As of: February 14, 2024, 2:16 p.m
By: Robert Wallenhauer
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Shisha smoking was trendy for years, and more and more shisha bars were opening in German city centers.
There are said to be 5,000 in Germany.
They are now in an economic crisis.
Berlin/Munich - “None of this is fun anymore.
We can no longer exist as a shisha bar like this,” says Oguzhan Güler, operator of a shisha bar in Munich, to the
Süddeutsche Zeitung (SZ)
.
He says his sales have fallen by more than 20 percent.
The reasons: The number of customers has fallen sharply since the Corona crisis, energy costs have risen sharply and recently a packaging regulation for shisha tobacco caused dissatisfaction and additional costs.
Shisha bar owner Güler is not alone with these problems.
According to an industry association, the shisha industry is threatened with a wave of bankruptcies this year.
“If the federal government does not change course and overturn the senseless packaging regulations, one in three or one in four shisha bars will probably be closed by the end of this year,” said the managing director of the Federal Association of Water Pipe Tobacco, Folke Rega, to the
German Press Agency
.
Smoking shisha: Young people are increasingly smoking shisha at home - shisha bars are suffering as a result.
© Pond5 Images/Imago
Shisha industry: Tobacco is only available in small packs
He was referring to conversations with bar operators and retailers who reported a sharp drop in demand for legal tobacco.
There have already been some store closures.
The economic situation among manufacturers and retailers is very tense, and there is even an “acute” threat of insolvency.
The regulation introduced in mid-2022 states that shisha tobacco may only be sold in single can packaging and no longer in large containers.
The packages can now only contain 25 instead of 200 grams, reports the
SZ
.
Bars are no longer allowed to serve customers individual portions from a large pack.
According to the association's estimates, this has roughly doubled the price.
To save money, many consumers bought illegal products.
They smoked at home and no longer in a shisha bar.
“Black market products are dangerous, they are not subject to state food controls and contain contaminated tobacco and banned substances,” warned Rega.
Consumption: Shisha is still smoked - but at home
A look at the tax statistics confirms the poor state of the shisha industry.
According to the Federal Statistical Office, tax stamps were issued for 727 tons of water pipe tobacco in 2023, significantly less than in 2022 (893 tons).
This is the net value, after deduction of refunds.
Compared to 2021 - the year before the packaging regulations were introduced - according to the General Customs Directorate, there were 6,897 tons.
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While tax revenues have fallen sharply, consumption has remained stable, according to estimates by the industry association.
Association managing director Rega concludes this from feedback from importers who sell shisha coal and continue to report good business.
“Much of the shisha charcoal is used to light black market tobacco.”
Shisha Association: Police and customs do nothing against black market tobacco
He is annoyed that sellers of untaxed hookah tobacco appear aggressively on social media and sometimes even use their real names to advertise the deals in backyards.
“The police and customs remain largely inactive, even though these are systematic violations of the law that make life difficult for honest merchants.”
He appeals to the Federal Ministry of Finance to change the regulation on packaging size and allow larger containers again.
“That would stifle the black market and boost legal business,” says Rega.
Munich bar owner Oguzhan Güler agrees.
“We are an important part of the catering industry,” he tells SZ.
He is now installing a kitchen in his shisha bar and hopes that pizza and pasta will bring more guests into the house again.
(with material from dpa)