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Baltic Sea Tourism Reels as Closures Mount, With Industry Looking to 2026 VAT Cut

A VAT cut on meals from January 2026 offers delayed relief for struggling operators.

Overview

  • DEHOGA Schleswig-Holstein lost about 130 member businesses in 2025, roughly a 7% decline from around 1,800.
  • In Mecklenburg-Vorpommern, first-half 2025 revenues fell 17.4% versus 2019 as guest arrivals there still rose 2.6%.
  • Operators cite surging energy, food and personnel costs, weak demand and a rainy summer as the key pressures on profitability.
  • Notable closures this year include the Usedom Palace in Zinnowitz, the Scheelehof in Stralsund, Anno 1800 in Heiligenhafen and Baltic Bay in Travemünde.
  • Industry groups welcome the Bundestag’s move to cut VAT on restaurant meals to 7% from January 2026, while labor shortages and a shelved training academy continue to strain capacity.