Tourism Under Pressure: New Guest Wishes and High Costs

Not "only" the world and societies seem to be changing ever faster, this also applies to tourism and the needs of guests. Both the hospitality and gastronomy sectors must adapt to this, according to the top industry representatives. There is also a "cost avalanche" in terms of goods, energy, and due to the increase in personnel costs. In these areas, political support is needed, such as longer depreciation periods.

Tourism Complains About High Costs

The price increases in hospitality and gastronomy are not the fault of the industry itself. Rather, the rising costs cannot be passed on quickly and sufficiently. This was stated by hospitality chairman Georg Imlauer and gastronomy chairman Alois Rainer at the traditional summer press conference of the gastronomy and hospitality sectors of the Chamber of Commerce on Thursday in Vienna. The operating results were lower in the industry median compared to 2019, despite increased sales. This makes investments more difficult.

60 Percent See a Good Summer Season Coming

Results of a survey were also presented there, which compared to the same survey a year ago, shows that the mood of entrepreneurs has deteriorated. This year, according to the information, only 60 percent of businesses expect a good summer season, compared to 70 percent a year ago.

Guests Have More Conscious Wishes

Investments are necessary to adapt to the changing wishes of guests. For hotels and also the menus, increasingly health-conscious guest segments play a role. Younger people, compared to the parent generation, largely abstain from alcohol. In addition, there is the pressure to save. "People still come to the inn, but, for example, they don't consume an aperitif and instead of a bottle of wine, only a glass; the dessert might be shared, a schnapps at the end is rather not important for younger people," said Tyrolean restaurateur Rainer from everyday life. For this, many establishments now need a proper vegetarian/vegan menu selection.

In holiday hospitality, much also revolves around health and wellness. Hotels with specializations score points, this also applies to accommodations only for adults or specifically for families. "If you accommodate both groups, you should make sure that they don't get in each other's way too much," said Imlauer, who operates several city and holiday hotels in Salzburg, Vienna, and Styria.

Demand Package to the Government

The new industry representatives, who have only recently taken office, also presented mostly long-standing demands from their sectors, which they continue to uphold. There is an urgent need to reduce bureaucracy. "Even in small businesses, this takes up ten hours per week," criticized Rainer.

"The ancillary wage costs must decrease, hopes are dampened, but we do not give up," said Imlauer. "They increase costs and put tremendous pressure on profits. Employees should also take home more net from the gross." Here, one could also act with a tax exemption on tips, said the hotelier, which would also reduce the bureaucratic effort. Rules for taxes on tips are currently under negotiation at the government level, but a tax exemption is not in sight.

Depreciation periods should be shortened, said Imlauer. For buildings, this is 40 years. "No bank finances for 40 years, in the end, we pay installments from the taxed profit back." Investment subsidies, for example, for the production of sustainable energy efficiency would also be effective.

Because energy costs are still extremely burdensome, said Rainer. "I also recommend that businesses negotiate with providers - and do so boldly, there is more potential than many believe." In general, energy prices should decrease overall.

Skilled Labor Shortage Continues to be a Problem

The shortage of skilled labor remains a major issue. More people from the East should be brought to the West to Austria, at least young people who are still more open to relocation. Additionally, programs for adult education in the tourism sector should be expanded. People over 18 years old from third countries, like students, should receive a residence permit to be trained as skilled workers over two years. This is better than pre-training in the Philippines or Indonesia. Already, more than half of the workers in the gastronomy and hotel industry come from abroad. Most come from Germany or Hungary, i.e., EU and not third countries. Quotas for third countries should be increased.

(APA/Red)

This article has been automatically translated, read the original article here.