Coronavirus Crisis Puts German Hotels under Particular Financial Pressure
The coronavirus crisis is putting pressure on the finances of many companies in Germany, according to the latest survey by the ifo Institute. “Hotels, restaurants, and travel agencies are feeling particularly hard hit,” says Klaus Wohlrabe, Head of Surveys at ifo. “Many companies are experiencing liquidity shortages and this could lead to more bankruptcies.”
On a scale measuring financial impairment (for example, liquidity problems) from 1 to 5, the average reported by all service providers was 2.4. In retail it was 2.3, and in manufacturing 2.2. In contrast, the figure in construction was only 1.6.
Among service providers, it is hotels (4.3), restaurants and catering (4.2), travel agencies (4.1), and rental and leasing services (2.9) that are feeling the brunt of the crisis. In manufacturing, it is clothing manufacturers (3.5) and beverage producers (3.0) that are complaining most about their poor financial situation.
The financial situation is comparatively relaxed for manufacturers of glass and ceramics (1.6), service providers in information technology (1.5), manufacturers of electronic and optical equipment (1.4), and the chemical industry (1.4).
