A leading German hotelier and tourism official has expressed concerns regarding the future of domestic tourism in Germany, citing the country’s current economic climate. Rolf Seelige-Steinhoff, who owns several hotels on the Baltic Sea island of Usedom and sits on the board of the German Hotel Association, warned that a potential downturn in employment could significantly impact vacation spending.
Seelige-Steinhoff indicated that while consumers currently maintain disposable income for leisure travel, a rise in company insolvencies suggests this may not be sustainable. He criticized a perceived lack of long-term vision from policymakers and an underestimation of economic cycles, adding that the hospitality sector is particularly vulnerable to escalating costs.
He detailed a significant cost increase of up to 12-14 percent annually, driven by rising wages, energy prices and procurement expenses. Seelige-Steinhoff stated that these costs are necessitating price increases for consumers.
He reported a sharp decline in bookings starting in April 2024, resulting in estimated losses of around two million euros over the subsequent three and a half months. He observed increased price sensitivity among guests, with a growing inclination to save and a reduced willingness to take risks with spending.
According to Seelige-Steinhoff, Germany is frequently seen as a secondary vacation destination for many travelers. Longer-haul trips remain prioritized for primary vacations, but budgetary constraints are increasingly affecting decisions for secondary domestic getaways. He also noted that increased costs associated with air travel, including taxes and fees, contribute to this trend.
He highlighted a reduction in the average length of stay on Usedom, from 4.8 days to just under four days, representing a 15-25 percent loss in revenue.