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.