Corona aid for Hotels and Restaurants: This is what the federal government plans
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Corona aid for Hotels and Restaurants: This is what the federal government plans

Hotel and hospitality businesses have been particularly hard hit by the Corona crisis. On the initiative of the lobby association DEHOGA, the German government is now reacting and announcing measures. We offer you an overview of planned corona aid for hotel and catering businesses.

Hotels and hospitality were the first to be forced to close during the crisis. They will probably be the last to be allowed to open up for business. As a result, many businesses have no or only very limited turnover, while large parts of the running costs continue to exist.

DEHOGA pointed out these circumstances in a press release last week and made two demands. The Federal Government now gave clear signals of readiness.

 

Decrease of the VAT rate for hotel and hospitality businesses

The demand for a decrease in the VAT rate has been around for several years. During the crisis, the DEHOGA repeats the demand. In this way, short-term, unbureaucratic and application-free sales losses could be compensated partly at least.

Federal Minister of Economics Peter Altmaier said that the decrease of the VAT (lowering it to seven percent) really deserved careful consideration. In addition, concrete help for modernization and cost savings would be conceivable. CSU state group leader Mr. Dobrindt even explicitly supports the DEHOGA demand. In his opinion, such a decrease could help to create positive starting conditions after the crisis.

 

Rescue and compensation fund for hotel and hospitality businesses

From DEHOGA’s point of view, however, the tax decrease can only be one measure. In addition, the lobby association is calling for a rescue and compensation fund for hotel and hospitality businesses.

With regard to such a fund, Finance Minister Olaf Scholz signalled willingness and considers financial support.

Of course, the federal government would look into whether and where specific help was needed. In doing so, it is important to keep an eye on those sectors in which things could not start up again so quickly. The hotel and hospitality industry is definitely one of them. He held out the prospect that an investment package could contain investment incentives for companies and measures to stimulate consumption.

At this point, we will keep you informed as soon as there are any news or specific decisions by the federal government to support the hotel and hospitality industry.

 

Our assessment

It is positive that there are signals from politicians for additional support for the hotel and hospitality industry now. We can say from our daily experience that all restaurateurs suffer from the current official regulations.

Without further assistance, we believe that many insolvencies will occur.

Aid should be unbureaucratic and simple. This has largely been achieved in the establishment of emergency aid and the new KfW quick loan.

We are already supporting our clients with assistance in the areas of current situation analysis, liquidity planning and the introduction of suitable measures to overcome the current liquidity bottleneck.

Our clients, including those in the hotel and hospitality industry, benefit from the Federal Office of Economics and Export Control’s (BAFA) business management consulting fund set up for companies in the Corana crisis.

If you take advantage of consulting services, you will receive a subsidy of up to 4,000 euros. We have already reported on this here.

We are happy to support you and help you individually. Please contact us.

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Lars Rinkewitz
Lars Rinkewitz
Tel.: +49 211-90 86 70
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