When food prices rise, energy becomes more expensive and people have fewer savings in their wallet, then less is spent in the hospitality industry, says Koepp.
“Inflation already began prior to the Ukraine war. Some products have become 30-40% more expensive. That makes a big difference.”
With many workers still working from home, lunch terraces are still emptier than before the pandemic. The situation is not expected to change anytime soon, as the EU is seeking ways to offer more work-from-home flexibility in the future.
Despite the return of tourism in 2022, and the hospitality industry seeing a big improvement compared to 2021, numbers are still far below 2019 figures. Luxembourgish consumer behaviours are also changing: Across the entire demographic, fewer people are going out for a meal or drink.
The fact there is no tax increase for businesses is great for long-term planning, according to the general secretary, but the tripartite measures should ensure that purchasing power remains. “This is more important than an index tranche”, says Koepp. “There is always a time lag between the measure and its effect.”
Establishments were also actively pursuing energy-saving measures, offering tips on the website for their members. Whether certain establishments will remain closed for longer over the Winter break cannot be ruled out.
Interview in Luxembourgish:
