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Saxony's Hotel Industry Faces Perfect Storm: Plunging Turnover, Soaring Costs, and High Vacancies

Surging costs and vacancies threaten Saxony's hotel industry. Trade union NGG demands higher wages to save businesses and attract workers.

It looks like a hotel, in the middle there is a table. It is the glass door in this image.
It looks like a hotel, in the middle there is a table. It is the glass door in this image.

Saxony's Hotel Industry Faces Perfect Storm: Plunging Turnover, Soaring Costs, and High Vacancies

The hotel and catering industry in Saxony faces a perfect storm of challenges. Turnover has plummeted by 14 percent this year, while personnel and energy costs have soared. Meanwhile, job vacancies remain high, with 315 open positions in Leipzig alone.

The situation is dire, with around 1,450 businesses closing between 2019 and 2022 due to lack of profitability. The trade union NGG is calling for higher wages to attract workers and keep businesses afloat. NGG proposes a 'Gastro-Start-Lohn' of 3,000 euros gross per month for full-time workers after training.

Axel Klein, managing director of Dehoga Saxony, acknowledges the difficulties but suggests wage increases should be affordable for entrepreneurs. He believes determining wages based on what businesses can afford is crucial.

With 315 open positions in Leipzig and 272 in Dresden, the industry is struggling to fill vacancies. NGG's demand for higher wages and better working hours could help attract workers and prevent further closures. However, balancing affordability for businesses and fair wages for workers remains a delicate task.

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