Corona crisis: Historical slump in sales in the hospitality industry

The business of hoteliers and restaurateurs is slowly picking up again. From the point of view of the industry, however, the crisis is far from over.

Wiesbaden (dpa) - Despite better business in June, the hospitality industry in Germany is still deep in the Corona crisis.

In the first half of the year sales collapsed by 39.7 percent (real) adjusted for price increases compared to the same period of the previous year; in nominal terms, the industry posted a minus of 38.4 percent, as reported by the Federal Statistical Office in Wiesbaden. The industry association Dehoga spoke of the strongest decline in sales in the history of the industry. "The shutdown from March tore huge holes in the balance sheets of hotels and restaurants," said association president Guido Zöllick.

In June there was a solid increase in sales of almost 64 percent compared to the previous month. That shouldn't hide the fact that "we are still a long way from normal sales," said Zöllick. Compared to February 2020, the month before the outbreak of the corona pandemic in Germany, sales in June were both real and nominally over 40 percent lower. The same applies to the comparison with June of the previous year.

In the fight against the spread of the virus, politicians had banned tourists from staying overnight in hotels and other accommodation providers from mid-March. From March 22nd, restaurants were closed with the exception of pick-up and delivery services. Business almost came to a standstill. Since mid-May, the restrictions have gradually been relaxed again. Business already picked up somewhat in May.

Due to distance requirements and capacity restrictions, however, business is only slowing down even after the reopening, reported Zöllick. According to a recent association survey, the lack of sales threatens the very existence of 60 percent of companies. "The crisis is far from over," said Zöllick.

Hotels and other accommodation providers were hit particularly hard in the first half of the year, with sales falling by almost 50 percent in real terms compared to the same period of the previous year. The gastronomy recorded a minus of almost 35 percent. "City and conference hotels, small restaurants and bars as well as event caterers, who register more than 80 percent loss of sales due to the lack of major events, have their backs to the wall," said Zöllick.

Now it is important "that further effective measures are taken to give the companies a chance of survival." The head of the association welcomed the ideas in Berlin to extend the short-time work allowance and the bridging allowances.

© dpa-infocom, dpa: 200819-99-225375 / 2

Hospitality sales June 2020

Dehoga to hospitality sales in June