Hospitality industry continues to suffer from consumer restraint
The hospitality industry in Baden-Württemberg continues to weaken. According to preliminary calculations, the sector recorded a real increase in turnover of just under 0.5% between January and September compared to the same period in the previous year, as announced by the State Statistical Office in Stuttgart on Friday. The figures describe business adjusted for price effects.
In nominal terms, the increase in the period amounted to 8.5 percent. According to the statisticians, the continued significant difference between the nominal and real value reflects the price increases due to higher costs, including for energy and food.
The hospitality industry includes both accommodation and gastronomy. The positive sales trend in the hospitality industry continues to be driven by accommodation. In the year to date from January to September 2023, this sector achieved a price-adjusted increase in turnover of 4.3% (nominal +11.2%). In contrast, gastronomy recorded 1.6% less turnover in real terms than in the same period in 2022 (nominal: +7.1)
VAT on food in the food service industry will be raised again to 19% at the start of the year. According to the Deutsche Presse-Agentur, this was agreed by the traffic light coalition. The "Handelsblatt" had previously reported.
Takeaway, supermarket and delivery food will be taxed at seven percent. In order to relieve the gastronomy sector during the coronavirus crisis, the tax rate for food in restaurants and cafés was also temporarily reduced from 19% to 7%. The regulation was extended several times due to the energy crisis, most recently until the end of this year. The industry had campaigned vehemently for the tax cut not to be allowed to expire.
Despite the overall weakening of the hospitality industry, preliminary statistics suggest a modest real increase in turnover for the sector in Baden-Württemberg between January and September compared to the previous year. However, the significant difference between the nominal and real value underscores the impact of price increases on costs, such as energy and food.
The hospitality industry's struggle with consumer restraint is further highlighted by the upcoming increase in VAT on food in the food service industry, as announced by the traffic light coalition, which will affect both restaurants and cafes, as well as takeaway, supermarket, and delivery food.
Source: www.dpa.com
