A prominent German hotelier and tourism official has cautioned about the future of domestic tourism in Germany, citing concerns over the country’s economic climate. Rolf Seelige-Steinhoff, who owns several hotels on the island of Usedom and serves on the executive board of the German Hotel Association, indicated that while current spending remains robust, a potential downturn in employment could significantly impact holiday destinations within Germany.
Seelige-Steinhoff expressed criticism of a perceived lack of long-term vision from policymakers, emphasizing an underestimation of economic cycles. He highlighted the particular vulnerability of the hotel industry to escalating costs, including labor, energy and procurement – collectively adding as much as 12 to 14 percent to annual expenses. He stated that price increases are becoming increasingly necessary.
According to Seelige-Steinhoff, bookings in his properties experienced a sharp decline starting in April 2024, resulting in losses of roughly two million euros over a three-and-a-half-month period. He noted a growing price sensitivity among travelers, combined with a heightened tendency to save and reduced willingness to take risks with spending.
Germany, he explained, often serves as a secondary holiday destination for many travelers, with longer, more expensive trips prioritized initially. However, budgetary constraints are now frequently impacting the feasibility of even a second vacation. He also pointed to rising air travel costs – driven by taxes and fees – as a contributing factor. While the primary vacation is still often taken abroad, the duration of secondary domestic trips is decreasing. The average stay on Usedom, formerly 4.8 days, has dropped to just under four days, representing a substantial loss of revenue – estimated at 15 to 25 percent.
