The German government is introducing a series of measures aimed at bolstering the nation’s tourism sector. Christoph Ploß, the Federal Government’s Coordinator for Tourism and Maritime Economy, has developed a five-point plan designed to enhance the industry’s competitiveness and appeal.
The plan, detailed in a report by “Welt” focuses on several key areas. Firstly, it proposes greater flexibility in working hours to alleviate operational challenges. Secondly, it includes a reduction of taxes and fees levied on tourism businesses, acknowledging the current high cost burden. A significant element addresses contributions to the German Travel Security Fund, which protects travelers in the event of an insolvency of their travel provider. These contributions are being progressively lowered, from 1% of liable turnover to 0.75% from September this year and further reduced to 0.5% in November. The plan explicitly states that package holidays will remain covered in instances of insolvency.
Furthermore, the initiative seeks to revitalize the aviation sector, which has previously scaled back German routes citing high airport taxes and charges. The five-point plan suggests a reduction in air travel-specific levies to make Germany more attractive to airlines. Simplifying the visa application process for tourists and business travelers is also included, with earmarked funding for the digitization of Schengen visas by 2026, a long-standing request from German companies, particularly benefiting the tourism and trade fair industries.
Beyond these core elements, the plan advocates for a shift from daily to weekly maximum working hours. The proposal also calls for a permanent reduction of the value-added tax (VAT) for the restaurant industry to 7% and a significant reduction in numerous documentation and reporting obligations. The government intends to shift away from routine compliance checks in hospitality, prioritizing enforcement based on risk assessment and focused on the identification of infringements, exemplified by a revised approach to food hygiene documentation in restaurants. The overall aim is to foster a tourism sector that is both competitive and responsive to the needs of businesses and travelers.