BERLIN, Feb. 20 (Xinhua) -- The turnover of Germany's hospitality industry in 2023 increased by 1.1 percent in real terms compared to the previous year, according to the Federal Statistical Office (Destatis) on Tuesday.

But compared to the year 2019, the turnover was still 11.3 percent below the pre-COVID levels.

"Entrepreneurs are suffering from lower sales while cost pressure remains high," said Guido Zoellick, president of the German Hotel and Restaurant Association (DEHOGA), on Tuesday. The economic situation in the sector was "extremely tense," he added.

The "overall positive balance" was mainly due to the "comparatively high growth in accommodation," Destatis said. Restaurants and caterers, on the other hand, saw real turnover slightly decline compared to 2022.

During the pandemic and the following energy crisis, Germany's government temporarily reduced the value-added tax (VAT) rate for food in restaurants from 19 percent to 7 percent. Since the beginning of this year, however, the regular tax rate has been applied again.

"The restaurant industry in particular has been hit hard by the significant rise in staff, food and energy costs since 2022," Zoellick said. With the VAT increase, the "mood has deteriorated significantly," he added. Enditem

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