Tourism sector in Germany facing imminent crisis as hotel owners issue alarm over wave of bankruptcies and soaring costs

In a critical assessment of Germany's domestic tourism outlook, hotelier and tourism expert Rolf Seelige-Steinhoff has expressed concerns about the impact of the current economic situation on vacation destinations in Germany. This apprehension is particularly evident on the island of Usedom, where Seelige-Steinhoff owns several hotels.

Seelige-Steinhoff's concerns stem from a noticeable trend among guests. As budget constraints become more prevalent, guests have become more cost-conscious, with thriftiness increasing and risk-taking decreasing. This shift has resulted in a decrease in the average length of stay on Usedom, with the average duration dropping from 4.8 days to less than 4 days.

This decrease in length of stay has significant implications for revenue. According to Seelige-Steinhoff, it costs 15 to 25 percent in turnover. Moreover, the second vacation may not be feasible for many due to budget constraints, further impacting the revenue of hotels.

The increase in costs is not limited to the decrease in length of stay. High taxes and fees contribute to more expensive flights, while the hotel industry, being at the end of the value chain, is particularly vulnerable to cost explosions such as rising labor costs, energy, and procurement costs. These cost increases could lead to up to 12 to 14 percent higher costs per year for hotels.

In response to these challenges, Seelig-Steinhoff believes that the duration of the second vacation goes down, and prices in the hotel industry will likely have to adjust to accommodate these cost increases. He also criticises political developments in Germany, suggesting that politics has missed opportunities and underestimated cycles.

These economic challenges are not unique to Usedom. If job losses increase significantly, as indicated by the sharp rise in insolvencies, vacation destinations across Germany may face similar challenges. Many travelers are considering Germany as a secondary vacation destination, which could further exacerbate these issues.

In conclusion, Rolf Seelige-Steinhoff's observations highlight the potential challenges facing vacation destinations in Germany due to the current economic situation. His call for political action and adjustments in the hotel industry underscores the need for a comprehensive approach to address these issues and ensure the sustainability of the tourism sector in Germany.

Tourism sector in Germany facing imminent crisis as hotel owners issue alarm over wave of bankruptcies and soaring costs