The hospitality industry in Germany recorded growth in April – at least the figures were better than the previous month.
Germany’s restaurateurs and hoteliers did better business in April than in March. Adjusted for price increases (in real terms), sales rose by 0.2 percent compared to the previous month, according to preliminary results from the Federal Statistical Office in Wiesbaden. Including price increases (nominal), the hospitality industry recorded a sales increase of 1.3 percent.
Compared to April 2023, the companies recorded a nominal increase of 0.8 percent thanks to price increases. However, adjusted for price changes, revenues fell by 2.7 percent, according to the information.
Because the regular VAT rate of 19 percent has been in effect for food in restaurants since January 1, 2024, thereby increasing prices for customers, industry observers expect more bankruptcies in the restaurant 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.
Source: Stern
