Preliminary data released Thursday by the Federal Statistical Office (Destatis) paints a concerning picture of Germany’s hospitality sector, revealing a significant contraction in sales throughout September 2025. The downturn, compounded by revised figures for August, is prompting renewed scrutiny of government policies and their impact on a vital pillar of the German economy.
Real turnover in the overall hospitality industry decreased by 1.3 percent and nominally by 0.4 percent compared to August, a marked slowdown following earlier, less pessimistic initial estimates. Year-on-year, the decline is even more pronounced, with real turnover down 4.9 percent and nominal turnover falling by 1.4 percent compared to September 2024. This suggests a persistent and growing weakness within the sector, beyond short-term seasonal fluctuations.
Hotels and accommodation providers are bearing the brunt of the contraction. Sales in this segment plummeted by 3.1 percent in real terms and 0.9 percent nominally between August and September, while the year-on-year decline showcases an even steeper fall of 6.1 percent in real terms and 2.3 percent nominally. This indicates a potential shift in travel patterns or a reduction in discretionary spending on leisure travel, which demands further investigation.
The restaurant and catering sector is not immune to the slump, experiencing a 1.8 percent decrease in real turnover and a 1.6 percent nominal drop between August and September. While the year-on-year decline is less severe, at 3.6 percent in real terms and 0.4 percent nominally, it still underscores a broader trend of weakening consumer confidence and potentially, challenges related to rising operational costs.
Analysts are increasingly questioning whether government support measures, designed to revitalize the industry post-pandemic, are proving effective. Concerns are being voiced regarding the impact of inflation, rising energy costs and potential labor shortages, all of which are contributing to the current downward spiral. The revised August figures, revealing a greater-than-previously-reported decline, add weight to calls for a re-evaluation of existing policies and the implementation of targeted interventions to mitigate the ongoing challenges faced by Germany’s hospitality businesses. The situation necessitates a comprehensive assessment of macroeconomic factors and their direct impact on consumer behavior and industry resilience.