Half of the businesses in Saxony's hospitality industry are pessimistic or negative about 2024, according to a survey by the German Hotel and Restaurant Association (Dehoga) in Saxony. Rising costs for energy, food and staff are the biggest challenge for businesses, Axel Klein, Managing Director of Saxony's Dehoga, told the German Press Agency. In addition, there is increasing bureaucracy and the expired reduced VAT for food.
In the course of the coronavirus crisis, VAT for food in the catering industry was reduced to seven percent for a good two years. Since January 1, it has been raised again to the original level of 19 percent.
According to the survey, almost eight out of ten establishments had increased prices due to the rise in costs, said Klein. "In addition, more than half of the companies have reduced the range of products and services on offer and foregone planned investments." A good 40 percent stated that they had introduced additional days off or shorter opening hours. It is still too early to assess whether guests are staying away because of the increased prices.
"It will now be important to explain the price increases to people. Who is making money from this? It's the state," emphasized Klein. For 30 years, he said, taxes on food in the catering industry in Germany have been too high. "But eating is more than just consuming food. It is a culture. And we need regional cuisine. Both for the population and for the economic cycle," emphasized Klein.
This is why Dehoga and its members are also supporting the large demonstration by farmers in Berlin on Monday. Several tens of thousands of participants are expected. According to Dehoga, there are a good 7000 companies in the hospitality industry in Saxony, of which around 2200 are represented in the association.
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