Iran Conflict Hits German Hospitality Industry Hard with Declining Sales and Rising Costs
Economy / Finance

Iran Conflict Hits German Hospitality Industry Hard with Declining Sales and Rising Costs

The ongoing war in Iran is increasingly burdening German hotels and restaurants, according to Jana Schimke, Head of Operations for Dehoga. In a survey conducted by the industry association, 76 percent of establishments reported a pullback in consumption related to the conflict. Of these, 47 percent experienced cancellations: one in two in the hospitality sector, and 38 percent in gastronomy. Schimke commented, “It is dramatic wherever you look.”

The companies cited significant cost increases, with 90 percent naming higher fuel and heating prices, and 86 percent mentioning rising wholesale costs for food and beverages. Furthermore, 80 percent of the businesses noted that increased transport and logistics costs have taken a toll. Schimke stressed, “The effects of inflation are clearly visible in our industry.”

Overall, the establishments recorded a 5.1 percent drop in revenue compared to the previous year. Dehoga’s Managing Director added that “many people are cutting back on dining out-whether it’s minimizing drink orders, skipping dessert, or generally coming less often. We feel this keenly, and consequently, sales are suffering.”