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Editorial - Overstretched politics overreacts: Hotel industry on palliative

16.7.2020

Dear Insiders,

There is great confusion in the world of tourism: Sweden is opening up again, Luxembourg is closing its borders again, and Mallorca is closing a party zone. You can travel to Island without a test now, and Latvia registers every visitor. Who can keep up with this? Travellers must be getting even more confused. From an inside perspective, this smells much more like ruthless egoism and jealousy, if borders get opened or closed and tourism-dependent countries warn against staying in neighbouring countries ...

Restricting hotspots is fine, but creating such chaos across Europe under the guise of the corona-infected confuses people even more. No wonder that they are dispensing with their mouth and nose protection, ignoring bathing bans andfrequenting beach bars when they are "finally on holiday".

In other words: Politics is going too far out of overburden. Maybe this is the reason why it no longer wants to get involved in the hotel industry. This is why Dirk Iserlohe, Chairman of Honestis AG, parent company of Dorint Hotels, lists the mistakes politics is making, arguing with hard facts, particularly against the critical paragraph on "disruption of purpose", and making new proposals to politicians. As a trained banker, he knows the pitfalls of financing and continues to fight, not only for Dorint. His findings: "Bridging loans are the 'Trojan horse' of insolvency" and "The state's intervention was only palliative for our industry". By the way, one Dorint hotel is owned by the Free State of Bavaria that is turning its back on it.

For Italy, the truth is currently even harder than expected: Today, it is already clear that the hotel sector will lose 16.3 billion euros of turnover this year. This means that the season is virtually over. Our Italian correspondent Massimiliano provides an update. By the way, until yesterday evening, it was not clear how long the emergency state will be extended.

Meanwhile, the open hotels in Germany continue to work with tiny steps, massive power and lots of creativity to achieve meagre occupancy rates – but there is no sign of any cost recovery yet. Read how Success Hotel Group, SV Hotel, Bierwirth & Kluth, Deutsche Hospitality, H Hotels, Motel One and Vienna House have experienced the re-start so far.

The new Serviced Apartment Report is available including the latest corona figures. The previous year's "Rising Star" is losing momentum, but performed better than the classic hotel industry during the corona months – even though occupancy dropped from 90 to 70 and later down to 40%.

Real estate brokers provide additional analyses on the 2nd quarter of 2020. Deutsche Hospitality introduces its initial – already coordinated with Huazhu – loyalty programme. Caravanning is booming even stronger than expected.

And Expo Real is waiting to see what will happen. It announced further details on entry fees, conferences and the exhibition booths this week. We, the organisers of the "World of Hospitality", would at least like to try flying the flag for and with the industry. Talk to us! You can find more on page 1 and inside the magazine as well as lots of additional content in this well-filled issue.

See you next Friday!

Yours, Maria Pütz-Willems
Editor-in-chief

Ihre Meinung? maria[at]hospitalityInside.com

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