Siegfried built a castle on a rock in 963 AD and kings and rulers have fortified it ever since, making it a stronghold in the region and attracting businessmen from early times, because of its ability to offer them safety. The city grew larger and more majestic as time progressed and money started flowing into the country.
Luxembourg city is still attracting businessmen, but now the country sells information security to banks. Just like Switzerland. The clients are happy. And rich.
So is the country. It’s THE richest country in Europe, and your costs as a tourist will verify that here, people are used to having and spending more money.
Yes, Luxembourg is expensive. And the service level is a bit lower than in Germany (but hell; every service level is lower than in Germany) but we didn’t feel cheated. We felt, that we got quality for the money.
Whether it was the morning coffee at The Golden Bean or the Tarte Flambés at Goethe Stuff, the quality was good, the surroundings were charming and the views were amazing!