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Association says situation in German hospitality industry remains tense

Tan KW
Publish date: Thu, 20 Jun 2024, 08:27 AM
Tan KW
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BERLIN, June 19 -- Despite the ongoing UEFA EURO 2024 football championship, the economic situation in Germany's hospitality industry "remains tense," the country's Hotel and Restaurant Association (DEHOGA) told Xinhua on Wednesday.

While the sector still hopes for economic respite from the sporting event, the hospitality industry continues to be beset by difficulties.

Facing "massively rising costs" and the consequences of value-added tax increases at the beginning of the year, "the all-important Easter business was also slow in our industry," the association said.

In April, Inflation-adjusted turnover in the German hospitality industry fell by 2.7 percent year-on-year, according to figures published by the Federal Statistical Office (Destatis) on Wednesday.

Meals outside restaurants continue to be taxed at lower rates. This does not benefit the hospitality sector, "once again putting restaurants at a competitive disadvantage compared to delivery services and takeaway offers, including those from food retailers," criticized DEHOGA.

The additional costs from the high inflation levels in the previous two years have been partly passed on to consumers. According to DEHOGA, a main course in a restaurant is around 20 percent more expensive than it was at the start of 2022.

"In view of the many challenges, policymakers need to take action," said the association, calling for urgent measures to relieve and strengthen businesses.

 


  - Xinhua

 

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