German Hospitality Sector Sees Sales Decline
Economy / Finance

German Hospitality Sector Sees Sales Decline

Preliminary data released by Destatis, the German Federal Statistical Office, paints a concerning picture of the nation’s hospitality sector, revealing a continuing trend of declining revenue throughout September 2025. The figures, adjusted for seasonal and calendar fluctuations, indicate a real-terms decrease of 1.3% and a nominal drop of 0.4% compared to August. Year-on-year, the situation appears even more challenging, with real-terms sales down 4.9% and nominal sales reduced by 1.4% against September 2024.

The revised August figures further underscore this downward spiral. Initial estimates had indicated a 1.6% real-terms decline compared to July; however, the revision now confirms a more substantial 1.6% decrease, alongside a nominal reduction of 1.4%. This ongoing negative trajectory has triggered debate within the governing coalition, with some economists attributing the slowdown to a combination of factors including persistent inflation eroding consumer spending power and the lingering effects of pandemic-era travel restrictions.

The hotel and accommodation sector is bearing a disproportionate burden. September 2025 saw a real-terms sales decrease of 3.1% and a nominal decline of 0.9% when compared to the previous month. Year-on-year, the sector has experienced a significant hit, with real-terms sales down 6.1% and nominal sales reduced by 2.3%. Critics are pointing to government policies regarding tourism taxes and regulatory burdens as potentially exacerbating these difficulties for hoteliers.

The restaurant and catering segment, while performing slightly better than accommodations, still recorded a real-terms decrease of 1.8% and a nominal drop of 1.6% in September compared to August. The year-on-year comparison reveals a more modest decline, with real-terms sales down 3.6% and nominal sales reduced by just 0.4%. However, the sustained weakness across both segments of the hospitality industry raises questions about the long-term viability of many businesses and the potential economic impact on regions heavily reliant on tourism. Opposition parties are now calling for immediate government intervention, including targeted financial support and a review of existing regulations, to prevent further deterioration and safeguard jobs within the crucial hospitality sector.