Clouded mood in tourism: Lower Saxony is struggling with high costs!

Clouded mood in tourism: Lower Saxony is struggling with high costs!

The mood in the hospitality and tourism industry in Lower Saxony is clouded. This is shown by the spring survey conducted by the Lower Saxony Chamber of Industry and Commerce (IHKN) among around 450 companies. The first positive signs from the good weather over the Easter holidays did not brighten the industry's gloomy outlook. The challenges are diverse and complex.

According to the survey, rising labor costs and high energy and raw material prices are the main factors weighing on the hospitality industry. Monika Scherf, Managing Director of the IHKN, emphasizes that there is no sign of widespread optimism. The climate index in the hospitality industry rose slightly from 87.5 points in autumn to 90.6 points in spring. Last year this value was 90.2 points, which indicates a slight improvement, but is still far from stable.

Industry-specific risks

A quarter of the companies surveyed rated the current situation as good, around half as satisfactory, while around 28 percent rated the situation as bad. What is worrying is that only 18 percent of companies expect a more favorable business situation, which represents a slight increase compared to autumn (8 percent). Around a third even expect the situation to get worse, while almost half expect the situation to remain the same.

85 percent of respondents identified the greatest business risk as labor costs, which is an all-time high. The costs of energy, raw materials and food also represent a significant risk for 76 percent of companies, followed by economic policy conditions (60 percent) and staff shortages (51 percent). In the industry, it is expected that 44 percent of entrepreneurs will have to increase their prices, while more than half expect prices to remain the same.

Policy measures and outlook

Despite the tense situation, there are signs of a certain level of confidence. Measures announced by the federal government, such as reducing the sales tax on meals in restaurants from 2026, could give the industry some hope. Scherf also appeals to the federal government to reduce bureaucracy and put more trust in companies.

The survey took place between the beginning of April and the beginning of May and included companies from the hotel, catering, camping industry as well as travel agencies and tour operators. The challenges facing the industry are also reflected in overarching trends in the labor market. Loud Destatis Labor costs in Germany continue to rise, affecting both employers and employees. The uncertainties could impact the entire industry unless stable solutions are found.