The German hospitality sector is facing mounting pressure from staffing shortages, rising costs and concerns about a potential shift towards a two-tiered system, according to Thomas Geppert, head of the Bavarian Dehoga (German Hotel and Restaurant Association). He has urged the federal government to reconsider limitations on labor migration from the Western Balkans.
Geppert expressed worry that the industry could be moving towards a scenario reminiscent of the United States, characterized by fast-food chains dominating urban centers while exclusive, high-end dining caters to affluent clientele, with a significant decline in traditional establishments in rural areas. He emphasized the crucial social role these establishments play, serving as vital community hubs and spaces for social interaction across all societal levels.
While acknowledging the planned reduction of the value-added tax (VAT) from 19% to 7%, Geppert stated that this measure alone is insufficient to offset the sector’s current challenges. He cautioned that the public should view any resulting tax relief as a form of support for small and medium-sized enterprises, rather than expecting immediate price reductions on menu items.
A critical concern is the ongoing shortage of workers. Geppert stressed that filling these vacancies is impossible without attracting skilled laborers from abroad. He specifically called for a reversal of the federal government’s current policy of limiting regular migration from the Western Balkans to 25,000 individuals per year. Previously, this limit had been raised to 50,000. Geppert argued that this restriction is counterproductive, hindering economic growth and denying the industry access to a motivated workforce seeking legal employment with proper contracts.