The tourism experts of the Austrian Chamber of Commerce warn that the war in Ukraine could jeopardize the hoped-for recovery of Austrian tourism. Soaring costs, especially in the areas of energy and fuel, mean that prices for guests are rising and cancellations may have to be expected.

“After two years of the pandemic, people are longing for vacation. That is why the booking situation in the tourism and leisure sectors has recently developed positively and the signs were also quite good with a view to summer. Unfortunately, the Ukraine war threatens to throw a spanner in the works with regard to the hoped-for 'catch-up effects': Our businesses are confronted with constantly rising energy and food prices, some of which they will also have to pass on to their guests. Politicians must quickly take countermeasures against this impending wave of inflation,” says Robert Seeber, head of the federal division for tourism and leisure at the Austrian Federal Economic Chamber (WKÖ).

Tourism businesses that require a lot of energy are particularly badly affected. These are, for example, swimming pools and canteen kitchens with their own cold rooms. The Chamber of Commerce is now demanding that the government should grant targeted relief measures and/or an energy subsidy. The temporary reduction in mineral oil tax is also considered to be a short-term expedient measure. Finance Minister Magnus Brunner (ÖVP) explicitly ruled this out after initial approval. Within the government, the Greens should brace themselves against tax cuts on petroleum products.

Hotels and restaurants expect rising prices for their guests

According to the Chamber of Commerce, hoteliers are also affected by sharply rising costs. These can no longer be fully borne by oneself, so that increased accommodation costs are to be expected. This could have a negative impact on the number of bookings, because many potential guests now have to turn over every penny twice. Even the solid booking situation for Easter cannot make up for the enormous burdens, according to the WKO.

Susanne Kraus-Winkler, Chairwoman of the Hotel Industry Association: "After the enormous dry spell during the corona pandemic, our companies are now faced with the next big hurdle. The hotel industry in particular has been badly affected by the massive wave of inflation that is approaching us in the form of multiplying energy and food costs. What that means in times of corona-related new debt, the still tense situation on the international travel market and the only slowly picking up congress, seminar and city tourism is probably clear to everyone. There is therefore an urgent need for relief measures for companies - such as tax credits, but also a noticeable reduction in non-wage labor costs".

Mario Pulker, chairman of the Gastronomy Association, takes the same view: “Many of our businesses are already feeling the effects of rising food prices and delivery bottlenecks for certain foods. Inflation-related losses in disposable income will also have an impact on business in the catering industry. We know that when money is tight, the first thing to save is when eating out. Of course, innkeepers cannot bear the costs. Solutions to counteract this spiral of inflation are therefore the order of the day!”

WKÖ travel agencies disappointed with retention of 3-G upon entry

“Since the beginning of the war in Ukraine, there has been a clear downturn in booking inquiries. The reason for this is in particular the great uncertainty among travelers," reports Gregor Kadanka, chairman of the Association of Travel Agencies. “Special tour operators or 'incomers' who work on the Russian or Ukrainian market are particularly hard hit. But there are also major difficulties with the Asian market due to the longer flight times. A reorientation to other markets takes time. Therefore, these particularly affected companies need targeted help in the form of grants to bridge the gap.” Kadanka is disappointed that the 3G regulation will be retained when entering Austria: “Right now would be the end of 3G, as is already the case in more and more European countries implemented, has been an important signal for domestic tourism.”