A rise in right-wing extremism is posing a serious threat to the economy in East Germany, according to a government report.
One such industry affected is tourism. The Dresden marketing organization told CNBC via telephone that domestic visitor numbers, based on overnight stays in the city, were down 3.7 percent year on year in the period of January to July 2016.
This is a significant amount when you take into consideration that domestic holidaymakers account for 80 percent of the total tourism in Germany, according to the German National Tourist Board (GNTB).
The visitor drop in Dresden was partly blamed on xenophobic statements made during Pegida demonstrations. Pegida is a far right, anti-immigration group originating in Dresden.
Slightly offsetting the domestic fall, international tourist figures in Dresden were up 4.4 percent in the same period.
Iris Gleicke, the German official behind the governmental report published earlier this week, said that: "Right-wing extremism in all its forms poses a very serious threat for the social and economic development of the 'new' states." The report is published annually and assesses Germany's reunification process.