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UnexpectedRoutines in Hospitals: Things Aren't as Usual

Hospitality sector revenues in North Rhine-Westphalia experienced a 6.3% increase in July 2021 compared to the same month previous year.

Hospitality Straying Far from the Usual Standards
Hospitality Straying Far from the Usual Standards

UnexpectedRoutines in Hospitals: Things Aren't as Usual

North Rhine-Westphalia's Hospitality Industry Shows Gradual Recovery Amidst Ongoing Challenges

The hospitality industry in North Rhine-Westphalia, Germany, has shown a gradual recovery in the first seven months of 2021, despite ongoing challenges posed by the COVID-19 pandemic. According to recent statistics, the industry recorded a real turnover decrease of 29.0% compared to the same period in 2020. However, compared to July 2019, turnover was still lower, indicating an incomplete recovery to pre-pandemic levels.

The comparison of the industry's results with the results of 2019 started in March 2021, providing a meaningful pre-crisis level comparison. This change in comparison method was influenced by the gradual easing of restrictions and the introduction of stimulus measures by the German government.

In July 2021, turnover in the industry was higher compared to July 2020, due to the easing of COVID-19 restrictions and the gradual recovery of business activities. Specifically, turnover in the hotel industry was 16.2% higher in real terms, while catering companies recorded a 4.4% increase. However, compared to July 2019, turnover was still lower, with a 26.8% decrease for the industry as a whole and a 22.2% decrease for catering companies.

Accommodation saw a 39.8% decrease in turnover compared to July 2019, despite a 13.9% increase compared to July 2020. The number of employees in the hospitality industry was 3.0% lower in July 2021 than in July 2020.

The key factors contributing to this pattern include the impacts and restrictions of the COVID-19 pandemic, government support and stimulus measures, and lingering effects of reduced travel and social events. The pandemic led to strict lockdowns and closures in 2020, sharply reducing turnover in the sector. The government's financial aid programs and temporary VAT reductions helped sustain the industry and contributed to a partial turnaround in 2021. However, international and domestic travel, as well as large gatherings, remained constrained relative to pre-pandemic levels, limiting the industry's earnings.

In summary, the hospitality turnover rose from the depressed levels seen in July 2020 due to easing restrictions and stimulus but remained below the 2019 baseline due to incomplete recovery from the pandemic’s widespread disruptions. The industry continues to face challenges, but the gradual recovery offers hope for a fuller return to pre-pandemic levels in the future.

[2] Source: Statistisches Landesamt NRW

  1. Despite the gradual recovery in North Rhine-Westphalia's hospitality industry, the turnover in finance for July 2021 was still lower compared to July 2019, indicating an incomplete recovery to pre-pandemic levels.
  2. The German government's financial aid programs and temporary VAT reductions played a crucial role in sustaining the hospitality industry and contributing to a partial turnaround in 2021, influencing the industry's financial performance.

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