Energy prices affect tourism

High energy prices put at risk an ever growing number of economic sectors. They also hamper the business of the German gastronomy and coach operators. This is underlined by a new tourism report compiled by the Association of German Chambers of Commerce and Industry. According to this report, 32% of hotel managers expect business to be less profitable this summer given that exploding energy and food prices cannot be simply passed on to clients.

However, one third of businesses interviewed plan to pass on additional cost to customers in the form of price increases.

Sharply increased energy prices also remind us of how strongly tourism depends on means of transport. Due to increasing fuel prices coach operators do not expect a good summer season 2008: 40% of companies expect turnover to fall and not a single business expects sales to increase. Furthermore, they believe that their city tours are adversely affected by environmental policies. About 30% of all coaches in Germany did not receive an environmental badge.

Travel agencies and tour operators, on the other hand, expect the holiday season to be successful – in spite of rising energy costs. They are planning to pass on additional costs for mobility – almost 40% want to increase their prices and are optimistic. Hotels, boarding houses as well as camping sites are also hoping for good summer business. These may be able to benefit from the continuing popularity of tourism within Germany.

The new report containing forecasts on the summer season 2008 as well as a summary on the winter season 2007/2008 is available for download. GERMAN