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Global Economy

Hospitality suffers from pandemic

Germany's restaurateurs and hoteliers were unable to recover from the slump in sales of the first Corona year in 2021. Nominally, the companies had just 0.1 percent more money in the till than a year earlier, as the Federal Statistical Office announced today. In real terms, i.e. at constant prices, sales in the hospitality industry fell by a further 2.2 percent compared to 2020. This means that sales are still well below the level before the Corona crisis.

"The years 2020 and 2021, which were characterized by the corona-related restrictions, were the weakest in terms of sales in the hospitality industry since the time series began in 1994," said the authority. Compared to the pre-crisis year of 2019, the industry's turnover in 2021 was 40.3 percent less, adjusted for inflation. Nominally it was 36.4 percent less.

Christmas business was canceled again

At the end of 2021, the usual high turnover in the hospitality industry failed to materialize again. From November to December, calendar and seasonally adjusted revenues fell by 21.1 percent in real terms and by 20.4 percent in nominal terms. Because in December, the access restrictions in gastronomy and accommodation were tightened in many places. In addition, many guests preferred to stay at home due to the sharp increase in incidence and concerns about a corona infection. The number of vacationers was also well below the pre-crisis level.

Nevertheless, hospitality sales in December 2021 were almost twice as high in real terms as a year earlier, when a lockdown suddenly slowed down business just before Christmas. However, it was still almost 42 percent below the level of February 2020, the month before the outbreak of the corona pandemic in Germany.

60 percent of the companies fear for their existence

The German hotel and restaurant association DEHOGA recently stated that, according to a survey, almost 60 percent of businesses fear for their existence. From March 2020 to November 2021, restaurants and hotels lost 74.1 billion euros in real sales. Therefore, the state must continue to support affected companies.

In a first estimate, the statisticians assumed a more favorable development. In mid-January, the Federal Office had predicted real stagnation in sales in the hospitality industry for 2021 and calculated a nominal increase of two percent compared to the previous year.

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