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Baltic Sea Tourism Slumps as Closures Mount Across German Coast

Higher costs coupled with a rainy summer left hotels and restaurants with too few guests.

Overview

  • The Schleswig-Holstein hotel and restaurant association lost about 130 member firms in 2025, a roughly 7% drop from around 1,800 businesses.
  • Mecklenburg-Vorpommern hotel revenues fell 17.4% in the first half of 2025 versus 2019, even as ZDF reported a 2.6% rise in guest arrivals over the same period.
  • Industry leaders cite energy, food and staffing costs, weaker household spending, and a wet, cool summer as key drivers of the downturn.
  • Longstanding venues including Usedom Palace in Zinnowitz, Scheelehof in Stralsund, Anno 1800 in Heiligenhafen and Baltic Bay in Travemünde have shut, with reports of rising tourism-sector unemployment.
  • Policy responses under discussion include Schleswig-Holstein’s review of its Tourism Strategy 2025 and an approved reduction of VAT on restaurant food to 7% from January 2026, which sector representatives say may take time to help.