Germany's hospitality sector has sunk deeper into crisis, with restaurants and hotels reporting sharp declines in business during the first half of 2025, reported dpa.
Adjusted for price changes, sales dropped by 3.7% compared with the same period last year, the Federal Statistical Office (Destatis) reported on Wednesday.
Only higher prices kept revenues from collapsing further: in nominal terms, turnover slipped just 0.1%.
Restaurants were hit hardest, with sales down 4.1%, while hotels and other accommodation providers recorded a 2.6% decline, Destatis reported.
The setback has been linked partly to the restoration of Germany's full 19% value-added tax on food in 2024, when a reduced 7% rate introduced during the coronavirus pandemic expired. The new government plans to reinstate the lower rate in the coming year.
After a brief uptick at Easter, conditions worsened in June. In real terms, sales fell 5.9% from the same month last year, while nominal sales – including price increases – were down 3.4%.
Source: www.dailyfinland.fi
