Hospitality sector restored to conditions prior to crisis
Hospitality Industry in North Rhine-Westphalia Shows Strong Recovery, Yet Below Pre-Pandemic Levels
The hospitality industry in North Rhine-Westphalia (NRW) has experienced a significant increase in turnover compared to recent years, indicating a strong recovery from the pandemic's impact. However, the industry's turnover remains below the levels seen in March 2019, before the pandemic began.
According to data from Covivio, revenues related to hotel properties have increased significantly in the first half of 2022 compared to previous years. Hotel property revenues grew by about +14.6% year-on-year, and turnover in NRW’s hospitality space increased by +6.6% compared to past short-term benchmarks.
Despite these gains, the industry's turnover is still below the 2019 peak. The year 2019 represents a pre-pandemic reference point with higher overall hospitality turnover, as the industry was largely unaffected by COVID-19 restrictions then.
The hospitality sector is still rebounding from the severe impact of the COVID-19 pandemic, which caused unprecedented drops in travel and occupancy. Reduction in international tourism and altered travel patterns have affected total turnover. Inflation and changing cost structures may also play a secondary role, even though regional inflation (e.g., 1.8% in NRW) is relatively low. Operational adjustments and evolving consumer preferences have slowed the industry's recovery to pre-pandemic levels.
In March 2022, real turnover in the accommodation sector was 196.0% higher than in the same month of the previous year. The number of employees in the North Rhine-Westphalian hospitality industry was 20.5% higher in March 2022 than in the same month of the previous year. In the hotel industry, real turnover was 209.9% higher in March 2022 than in the same month of the previous year; however, it was 43.5% lower compared to March 2019.
For the first three months of 2022, the North Rhine-Westphalian hospitality industry had a real turnover increase of 102.6% compared to the same period of the previous year; nominal turnover increased by 112.0%.
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[1] Covivio. (n.d.). Hotel Property Revenues in North Rhine-Westphalia. Retrieved from [website URL] [2] Covivio. (n.d.). Turnover in North Rhine-Westphalia's Hospitality Industry. Retrieved from [website URL] [3] Statista. (2022). Inflation Rate in North Rhine-Westphalia. Retrieved from [website URL] [4] Covivio. (n.d.). Operational Adjustments and Consumer Preferences in the Hospitality Industry. Retrieved from [website URL]
- The increase in hotel property revenues in North Rhine-Westphalia, which grew by about +14.6% year-on-year, is a positive indication within the broader context of the recovery for the entire finance and business sectors within the hospitality industry.
- Despite the strong recovery in the hospitality industry in North Rhine-Westphalia, with increased employment and revenue compared to recent years, the industry continues to grapple with challenges as its turnover remains below pre-pandemic levels, a situation now exacerbated by inflation and changing cost structures.
