Hospitality industry set to lose 60,000 jobs

Hospitality industry set to lose 60,000 jobs
Plenty of room at the inn. Photo: DPA
The German hospitality industry will likely lose up to 60,000 jobs in the next year as the recession takes hold, hotel and restaurant association Dehoga said on Tuesday.

Many people have already been made redundant at leading hotels in Berlin and elsewhere, Dehoga president Ernst Fischer told broadcaster SWR2.

Restaurants and hotels reported a prosperous Easter holiday weekend, he said, but overall they have complained of an up to 30 percent reduction in profits in recent months.

The recession will likely mean that many small restaurants will fail, but Fischer said he did not support any government intervention in the industry. Instead, the 19 percent sales tax applied to hospitality services should be reduced to seven percent, he said.

“If you know that 22 European countries have reduced value-added tax (VAT) for the hotel sector, then this becomes clear,” he told the broadcaster, adding that a seven percent sales tax would be the best stimulus measure to create new jobs, more investment and higher demand.

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