Turnover accommodation and food services slightly down

Turnover accommodation services down

Relative to Q4 2018, turnover by accommodation services fell by 2.7 percent in the subsequent quarter. Prices rose slightly, but the volume of sales decreased by 3.1 percent. Turnover still grew in Q4 2018, namely by 1.9 percent.

Turnover generated by hotels fell by 1 percent and the volume of sales by 2.1 percent. Turnover generated by other accommodation services, such as holiday homes and campsites, fell by 6.9 percent relative to Q4.

Turnover growth for food and beverage services

In Q1 2019, turnover generated by food and beverage services (including restaurants, fast-food restaurants, canteens, catering companies and cafés) rose by 0.6 percent relative to the previous quarter. Prices increased, partly due to raising of the low VAT rate as of 1 January 2019. However, the volume of sales decreased by 1.6 percent.

Canteens and catering companies recorded the highest turnover growth rate (1.8 percent). Restaurants and fast-food restaurants also achieved turnover growth relative to the preceding quarter, both by 0.7 percent. Turnover generated by cafés fell by 0.7 percent. The volume of sales fell in all sectors.

Entrepreneurs less positive

At the start of Q2 2019, business confidence (based on self-reporting) in the sector accommodation and food services stood at 8.6, over 3 percentage points less favourable than one quarter previously. This is the lowest level in four years. Staffing deficits increased slightly;29 percent of entrepreneurs in this sector reported they were facing impediments in their business operations as a result of understaffing. This percentage has increased rapidly since Q4 2016.

The shortage of suitable personnel is also evident from the record number of slightly under 23 thousand outstanding vacancies in the sector accommodation and food services at the end of Q1 2019. The number of bankruptcies in this sector in Q1 was up slightly relative to Q1 2018.