Finding a yarn shop in the European cities we visited was not difficult. If the tourist office does not know (and only rarely does the tourist office fail to know), then finding a fabric store — they are everywhere — and asking usually works.
Innsbruck was no different. This shop, Masche & Design, is in a courtyard off Innrain 9, near Marktplatz. It is a small space, but has a large selection of European yarns. Worth a trip.
I also visited a nice shop on Museumstrasse, which had a nice selection of yarn and thread. It was the only shop where I saw — and bought — Diana Strickdeckchen, a magazine with knitted doilies and tablecloths.
Shopping for yarn in Europe is not difficult. It just takes persistence and willingness to ask questions in an unfamiliar language, often with a lot of hand gestures and drawings. It made me wonder if knitting visitors to the United States would find it as easy to find yarn shops.