Restaurant visits in Thuringia associated with weight loss: Customers undergo medical observation while dining out
Thriving Cities, Struggling Countryside: Thuringia's Hospitality Woes
The hospitality sector in Thuringia is witnessing signs of gradual recovery in urban areas post-pandemic decline, with close to 4,300 businesses currently operating - although still fewer than pre-pandemic levels. Meanwhile, rural guesthouses are grappling with a persistent decline.
A Growing Concern: Thuringia's Silent Struggle
The CEO of the Thuringian Hotel and Restaurant Association (Dehoga), Dirk Ellinger, paints a grim picture for rural hospitalities, likening their situation to a "silent death." The lack of workers, particularly in rural areas, has forced businesses to reduce hours, increase days off, and even close down. Closings are on the rise due to the scarcity of potential business buyers.
A Beacon of Hope: The Proposed VAT Reduction
The industry pins its hopes on the federal government's proposed reduction of VAT from 19% to 7% for food items. Ellinger expects this project to avoid further political delays, which could help offset rising costs for food and energy. Despite these price reductions, customers may not experience significant savings, as restaurants hesitate to pass on all increased costs for fear of losing customers.
Thuringia's Employment Numbers: A Close Look
The total number of full-time employees in Thuringia's hospitality sector now slightly exceeds the 2019 levels, standing at nearly 20,600. Approximately 45,500 part-time or low-hour employees also contribute crucially to operations. The sector expects a positive development by 2025, aiming to recover from the "corona dip."
"Surviving the Storm": The Resilience of Thuringia's Hospitality Businesses
Last year, Thuringia's hospitality businesses benefited from a rise in overnight stays exceeding the ten million mark. However, the short average stay of visitors at 2.6 days remains a concern, with regions like the Rhön and Thuringian Forest attracting longer stays due to their popularity among families and hikers.
The first quarter of 2023 saw an average occupancy rate of guest rooms at around 44.5%, still behind Germany's average of 50.1%. Given the minimal snowfall in winter sports areas during the beginning of the year, the recovery process could be more challenging.
Navigating Challenges: The Need for Flexible Policies and Infrastructure Investments
The German Hotel and Restaurant Association (DEHOGA) and the events industry seek more flexible regulations regarding the Working Hours Act and less bureaucracy. Ellinger, in response to debates about introducing a packaging tax in Erfurt, calls for a ban on such taxes, citing a Tübingen study suggesting that a packaging tax does not have a measurable waste-reducing effect.
The Broader Landscape: Understanding Rural Hospitality Challenges and Solutions
Thuringia faces multiple challenges, including labor shortages due to an aging workforce and low wages[4], economic disparities compared to more developed areas, limited infrastructure, and seasonal fluctuations in demand. Solutions may include investment in infrastructure, marketing and branding strategies, workforce development initiatives, sustainable tourism practices, and government support.
Collaborating with educational institutions and offering competitive salaries, benefits, and training programs can help attract and retain skilled workers. Emphasizing the unique aspects of rural Thuringia, like natural beauty and cultural heritage, can attract eco-conscious travelers seeking authentic experiences. Improving accessibility through enhanced transportation links and developing local amenities can make rural areas more attractive to tourists. Encouraging sustainable tourism practices and government initiatives to support rural development can stimulate growth in the hospitality sector.
Despite the positive recovery seen in urban hospitality businesses in Thuringia, sports tourism could provide a significant boost to rural areas facing persistent decline. The lack of winter sports facilities in these regions might limit their ability to attract tourists during winter months, hence investments in infrastructure to accommodate sports tourism could be beneficial.
Moreover, rural hospitality businesses could benefit from collaboration with educational institutions to address the issue of an aging workforce and low wages. Offering competitive salaries, benefits, and training programs can help attract and retain skilled workers, thereby improving the overall operations and profitability of these businesses.
