Skip to content

Restaurant closures escalate in the rural areas, with minimal cost reductions observed.

Mysterious deaths at countryside lodgings - scarcely any discounts offered

Beer garden enthusiasts in the cities are eagerly anticipated by restaurant owners. Picture...
Beer garden enthusiasts in the cities are eagerly anticipated by restaurant owners. Picture included.
  • Hey there!*

Rural Hotels Shutting Down - Minimal Price Decreases Observed - Restaurant closures escalate in the rural areas, with minimal cost reductions observed.

Thuringia's hospitality industry might be economically stable post-pandemic in cities, yet the countryside isn't as fortunate. Dirk Ellinger, CEO of the Thuringian Hotel and Restaurant Association (Dehoga), shared in Erfurt that the industry is experiencing a gradual decline in the countryside.

Facing staff shortage issues, rural restaurateurs are forced to curtail opening hours, take additional rest days, or even close their businesses. Worse yet, closures are becoming increasingly common due to an absence of takers for takeovers.

Price Cuts on the Horizon? Not Likely

The hospitality industry is keeping their fingers crossed for the federal government's planned VAT reduction from 19 to 7 percent for food. Ellinger expects minimal political delays to this project. Such a reduction might help offset cost increases, especially in food and energy costs.

Despite the potential VAT reduction, broad price cuts for dining experiences don't seem likely. Ellinger explained that most restaurateurs are hesitant to pass on their increased costs to customers, fearing customer loss.

A Multitude of Part-time Jobs

Thomas Günther, board member of the Alliance of the Event Industry in Thuringia, echoes Ellinger's sentiments. Günther suggests that entrepreneurs consider using a significant portion of the planned VAT reduction for cost compensation.

According to Dehoga, Thuringia's hospitality industry currently has a slightly higher number of full-time employees compared to 2019, at around 20,600. Alongside these, around 45,500 employees are also employed part-time or on a low-wage basis, playing an essential role in running these businesses.

Prospects for 2025

Dehoga predicts a robust business development for the industry in 2025, with a slight increase in turnover, albeit with volatile cost increases. Their goal is to recuperate from the economic slump caused by the pandemic.

Guests Stay for an Average of 2.6 Days

Last year, Thuringia's hoteliers and restaurateurs saw a resurgence in the number of overnight stays, surpassing ten million again. However, visitors stay on average for only 2.6 days, which remains a drawback. The Rhön region takes the lead with an average stay of 4.3 days, followed by the Thuringian Forest at 3.2 days, primarily frequented by families and hikers. Conversely, Erfurt has an average overnight stay of 1.8, and eastern Thuringia's Saale region records 2.4.

Occupancy Rate Remains Lower Than Average

The average occupancy rate of guest rooms in the first quarter of 2025 was 44.5 percent in Thuringia. The state lags behind in catching up. "But it's tough when there's no snow in the winter sports areas at the beginning of the year," said Ellinger. The average occupancy rate of guest rooms in Germany between January and March stood at 50.1 percent.

The hospitality industry and the events sector urge the government for more flexible Working Hours Act regulations and less bureaucracy. Ellinger urged caution about the introduction of a packaging tax in Erfurt, citing a Tübingen study suggesting that a packaging tax doesn't significantly reduce waste.

  • Covid-19
  • Hospitality Industry
  • Catering Trade
  • Erfurt
  • Price Reduction
  • DEHOGA
  • Thuringia
  • Value-Added Tax Reduction
  • Part-time Employment
  • Interesting tidbits:
  • Demographic changes, competition from urban areas, climate challenges, and economic factors contribute to the decline in rural Thuringia's gastronomy industry.
  • Potential positive effects of a VAT reduction in rural areas include price reductions, business development, and increased competitiveness with urban counterparts.
  • Potential strategies for revitalizing rural gastronomy in Thuringia include promoting local produce, developing a unique brand for Thuringian cuisine, community engagement, and diversification of services.
  • According to Dirk Ellinger, CEO of the Thuringian Hotel and Restaurant Association (Dehoga), the rural hospitality industry in Thuringia is facing a gradual decline, with several restaurateurs opting for reductions in opening hours, additional rest days, or even closure due to staff shortages.
  • Despite the potential VAT reduction planned by the federal government, broad price cuts for dining experiences don't seem likely in the rural Thuringian hospitality industry, as most restaurateurs are hesitant to pass on increased costs to customers, fearing customer loss.

Read also:

    Latest