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Tourism in MV: The mood is bleak – what are the problems?
Mecklenburg-Western Pomerania is experiencing strained tourism with a declining business climate, challenges and cost-cutting measures.
Tourism in MV: The mood is bleak – what are the problems?
The mood in northern German tourism is tense. The President of the German Hotel and Restaurant Association in Mecklenburg-Western Pomerania, Lars Schwarz, describes the current situation as sobering. Guests are booking more and more at short notice, staying for shorter periods of time and are also less willing to spend money. According to a report by Northern Courier The consumer restraint, which was found in a current survey by the North German Chambers of Industry and Commerce (IHK), is leading to a further deterioration in the mood in the travel industry.
A total of around 600 companies from the tourism industry took part in this survey - it shows that the mood is suffering compared to the previous year. The business climate index in the hospitality industry remained almost the same at 89 points in spring 2024 and now at 88 points, while the index in the travel industry fell from 111 to 107 points.
Growing discomfort
The general situation remains tense. The economic climate index, which shows the mood of the sectors between 0 (poor) and 200 points (very good), shows that although the number of overnight stays in the north is comparable to the level before the pandemic, concerns about high costs, uncertain conditions and a lack of staff are increasing. In the travel industry, 70 percent of companies rate their situation as good or satisfactory, while 30 percent rate themselves as poor. This is also reflected in the forecasts about the future business situation: 16 percent of companies expect a positive turnaround, while 33 percent expect a more unfavorable development.
The assessments of the risks affecting economic development are particularly striking. The majority of companies cite labor costs (84 percent) and the prices of energy, food and raw materials (72 percent) as the biggest concerns. 60 percent of those surveyed see the economic policy framework as a significant challenge, and 53 percent say that the lack of workers is affecting their work.
A look ahead
The companies' future prospects have brightened slightly, but the difficulties remain. Flexibility of working hours and a reform of corporate taxation are seen as important future measures to stabilize the industry. The IHK survey proves the negative turnaround, especially after a summer season that has so far gone well. Although many companies remain optimistic, sales forecasts for the next season are clouded: the business climate index in the hospitality industry has fallen from 112 to 99 points and in the travel industry from 133 to 117 points.
These circumstances not only depress the mood of entrepreneurs, but also make employees sweat. Staff shortages and the associated challenges represent a constant burden. This shows that the industry has a long way to go to regain complete stability. Despite the better numbers compared to last year, a feeling of uncertainty remains in the air, as can be seen from the results of the IHK North emerges.
24 percent of companies in the travel industry fear a negative development in the business situation, while only 14 percent expect an improvement. Geopolitical tensions and international crises are also contributing to travel being affected. Under these circumstances, those involved must act creatively and flexibly in order to meet the challenges of the market.