Once completely dependent on the fishing industry, Warnemunde's economic alignment has shifted inevitably from the primary to the secondary and tertiary sector. Besides the Nordic Yards Warnemunde ship yard (the former Warnowwerft), the economy largely depends on tourism. The construction of a modern cruise line center in 2005 has contributed crucially to Warnemunde's establishment as the most important harbor for cruise line ships in Germany.
Being a center of maritime traffic, the district of Warnemunde comprises numerous navigational aids, the oldest being the lighthouse, built in 1897, and still currently in use. In the summer, the tower, approximately 121 feet high, allows visitors to enjoy an impressive view over the Baltic Sea and the northern districts of Rostock.
Rostock is the largest city in the north German state Mecklenburg-Vorpommern. Rostock is on the Warnow river; seven miles south of Warnemunde. Rostock is home to one of the oldest universities in the world, the University of Rostock, founded in 1419.