Germany’s hospitality industry experienced a notable decline in revenue during the first half of 2025. According to preliminary data from the Federal Statistical Office (Destatis) in Wiesbaden, total revenue for hotels, restaurants, and other hospitality businesses fell by 3.7% in real terms compared to the same period in 2024. Nominal revenue, not adjusted for inflation, showed a marginal decrease of 0.1%.
Hotels and other accommodation providers recorded a 2.6% drop in real revenue and a 0.2% decline in nominal terms over the first six months of the year compared to 2024. The slowdown reflects ongoing challenges in attracting domestic and international visitors amid economic uncertainties.
The gastronomy sector was hit even harder, with a real revenue decrease of 4.1%, while nominal figures slightly increased by 0.1%. Restaurants and dining establishments continue to face pressure from rising operational costs and changing consumer spending patterns, which contributed to the sharper decline in this segment compared to hotels.
June 2025 saw further declines for the hospitality industry. Compared to May 2025, real revenue decreased by 2.5%, while nominal revenue fell 3.9%. When compared to June 2024, the drop was even steeper, with real revenue down 5.9% and nominal revenue down 3.4%.
Hotels and accommodation providers recorded a 1.6% real decline compared to May 2025 and a 5.1% decrease relative to June 2024. The gastronomy sector experienced a 2.1% real decline from May and a 5.3% decrease year-over-year, showing continued strain in restaurant revenues.
The German gastronomy sector is hopeful that the government’s planned reduction of the value-added tax on food from 19% to 7% starting next year will help stabilize revenues. This reduced tax rate had previously been applied between 2020 and 2023 to offset the effects of the COVID-19 pandemic and high inflation following the energy crisis. Industry stakeholders are optimistic that this measure will support consumer spending and help the sector recover in the coming months.
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