After increases in February, Germany’s innkeepers did worse business again in March. Sales in the hospitality industry fell compared to the previous month both in price-adjusted terms (minus 2.4 percent) and nominally (minus 1.5 percent), as the Federal Statistical Office in Wiesbaden announced.
Compared to March 2023, the companies recorded an increase of 2.1 percent, at least in nominal terms, thanks to price increases. According to the information, adjusted for prices (in real terms), revenue also fell in this view: by 0.9 percent.
The hospitality industry in Germany continues to lag significantly behind the sales levels of the pre-Corona period: Compared to March 2019, i.e. the year before the outbreak of the pandemic, sales in March of the current year were 13.3 percent lower in real terms.
Because the regular VAT rate of 19 percent has applied again to food in the catering industry since January 1, 2024, resulting in higher prices for customers, industry observers are expecting more bankruptcies in the catering industry. During the Corona pandemic, the federal government temporarily supported the hospitality industry with a reduced VAT rate. This measure expired at the turn of the year despite protests from the industry.
Federal Statistical Office: Hospitality Industry 03/2024
