Germany's restaurateurs and hoteliers did better business in April than in March, despite predictions that an increase in the value-added tax (VAT) for food in restaurants this year would lead to slower sales.
Adjusted for price increases, turnover in real terms rose by 0.2% compared to the previous month, according to preliminary results released by the Federal Statistical Office in Wiesbaden on Wednesday. Including price increases, the hospitality industry recorded an increase in turnover of 1.3%
Compared to April 2023, businesses recorded a nominal increase of 0.8%, thanks to higher prices. However, price-adjusted revenue fell by 2.7%, according to the figures.
The VAT was restored to 19% for food in restaurants on January 1 after being temporarily lowered to 7% during the coronavirus pandemic. This is driving prices up, with industry observers expecting more bankruptcies in the restaurant sector.
During the pandemic, the German government temporarily supported the catering industry with a reduced VAT rate. Despite industry protests, this measure expired at the end of the year.
