Tourism sector in Germany faces impending crisis due to bankruptcies and skyrocketing expenses, as per hotel owner's warning

In an interview, hotelier and tourism expert Rolf Seelige-Steinhoff voiced his concerns over the current state of the hotel industry in Germany. Seelige-Steinhoff, a board member of the German Hotel Association, owns several hotels on Usedom.

Recently, Seelige-Steinhoff has observed a sudden drop in bookings at his properties from April 2024. This drop in bookings has resulted in a loss of around two million euros in just over three months.

The main causes for this decline, according to Seelige-Steinhoff, are significantly higher costs for hotels amounting to 12 to 14 percent more per year. Rising labor costs, energy, and procurement costs are contributing to this cost explosion in the hotel industry.

Another factor affecting tourism is the high taxes and fees on flights. These costs are causing tourists to take their second holiday elsewhere, with Germany sometimes out of budget. As a result, the average length of stay for tourists on Usedom has decreased from 4.8 days to just under 4 days. This reduction in length of stay is costing the local economy significantly, with a loss of 15 to 25 percent in revenue.

Seelige-Steinhoff also notes that the duration of the second vacation goes down due to expense. Tourists are choosing to take their second holiday further away due to financial constraints, leading to a reduction in the number of tourists on Usedom.

The cost explosion in the hotel industry is hitting hotels particularly hard, according to Seelige-Steinhoff. He views the domestic tourism outlook in Germany critically due to the current economic situation. Seelige-Steinhoff believes that politics has missed opportunities and underestimated cycles, contributing to the challenges facing the hotel industry.

Despite these challenges, Seelige-Steinhoff remains optimistic about the future of tourism in Germany. He encourages the government to take action to address the rising costs and support the hotel industry to ensure a bright future for domestic tourism.

Tourism sector in Germany faces impending crisis due to bankruptcies and skyrocketing expenses, as per hotel owner's warning