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Thuringia's hospitality sector remains midst hardships.

Incrementing expenses, intensifying administration, and further surge in VAT are causing stress to the hospitality sector. However, the sector anticipates a favorable summer season.

A waiter clears a table in a restaurant.
A waiter clears a table in a restaurant.

Lodging establishments - Thuringia's hospitality sector remains midst hardships.

Thuringian hospitality businesses anticipate a more hopeful summer season with an eye towards stabilizing sales, as shared by Thuringian Dehoga's managing director Dirk Ellinger in Erfurt this week. Despite their optimism, the industry faces challenges such as escalating energy, food, and drink expenses, along with an increased value-added tax since January. Furthermore, Ellinger highlighted a plethora of bureaucratic obstacles, with the Working Time Act being particularly taxing. He stated, "Many owners are worn out."

Ellinger pointed out that Thuringia's hospitality industry often consists of small-scale operations, with approximately 95% of the businesses pulling in up to one million euros in revenue annually. Based on the most recent industry study, Thuringia's restaurateurs and hoteliers witnessed a 6.8% drop in revenue in March compared to February. Profits are consequently decreasing as sales dwindle alongside climbing costs. Ellinger reported that the average profit decline for March stood at 17.3%.

The hospitality sector in the Free State is thought to be gradually recovering from the effects of the Coronavirus pandemic, albeit at a sluggish pace. Throughout the pandemic, 720 hospitality establishments in Thuringia closed down, representing a 14.8% decrease in overall businesses. Today, there are approximately 4,230 restaurants and hotels in the region.

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The hospitality industry in Thuringia, represented by DEHOGA, is hoping for a more prosperous summer season to help stabilize their sales, despite facing escalating expenses and bureaucratic hurdles. Despite being primarily composed of small-scale operations, Thuringian hotels and restaurants witnessed a significant drop in revenue, leading to decreasing profits. Efforts to recover from the Coronavirus pandemic have seen the closure of 720 hospitalities in Thuringia, but the sector continues to operate with around 4,230 establishments in total.

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