The highest inflation in Germany in forty years will add to the political crisis and cause a recession in the economy, which will inevitably affect tourism. These are the conclusions of the Advisory Council of Economists under the German Government.
The warning they published explicitly stated “the risk of an economic downturn in Germany.” “This can directly affect the pockets of Germans, limit spending and reduce travel intentions,” experts say. In the current situation of the sanctions war, all economic forecasts are being revised downwards. The main reason is Germany's dependence on Russian oil. “The risk of a recession is significant. It won't stop the economy, but it will be a “heavy burden,” said economist Volker Wieland. Growth, previously estimated at 4.6 percent in 2022, will ease to 1.8 percent. “The situation may be accompanied by high inflation hitting the pockets of citizens,” he adds. According to the economist's forecasts, 6.2% inflation can be expected this year.
Recall that at the end of March, experts from the Association of European Travel Agencies and Tour Operators (ECTAA) recorded a significant decrease in the number of bookings, in many markets – primarily in Germany. “Consumers are reluctant to make new bookings,” the ECTAA said. They also added that it is still too early to make accurate forecasts for the upcoming season, but demand is no longer what they expected. “In addition to the feeling of insecurity, the fall in bookings is also affected by the rise in travel prices, which will increase even more in the coming period,” experts say. In the second half of 2022, they predict an increase in the cost of travel as a result of rising energy prices and the rising cost of basic goods – and this is of particular concern. Including because the price increase “combined with the decrease in the purchasing power of travelers due to inflationary pressures” will further deter potential tourists from buying a tour. Read the details here.
For those who care about a healthy lifestyle, we recommend reading: “Scientists have established a unique effect of 100 grams of cranberries per day on the heart.”
➔ Do you watch the news on your smartphone? Subscribe to tourism news from Turprom in Google News or Google Discover: these are fresh travel ideas, travel news and collections on sales of tours and air tickets! Or subscribe to the travel news channel at YANDEX.ZEN or at PULSE.MAIL.RU. We also recommend subscribing to our News Channel in Telegram: https://t.me/tourprom