SHERIDAN, WYOMING - December 10, 2025 - Germany's service economy is facing its sharpest increase in corporate insolvencies in more than a decade, with hospitality, tourism and leisure businesses bearing a disproportionate share of the pain. In response to new 2025 insolvency figures from Creditreform, the Denkfabrik Zukunft der Gastwelt (DZG) is urging the Bundesrat to pass the Tax Amendment Act unchanged, including the reintroduction of the reduced 7% VAT rate on food, to stabilise one of the country's largest employment sectors.
Insolvency spike exposes deeper structural stress in services
According to Creditreform's latest analysis, around 23,900 companies filed for insolvency in 2025-an increase of 8.3% compared with the previous year. The rise is particularly acute among small and medium-sized enterprises that were already struggling with high energy prices, rising operating costs and persistent skills shortages. Many of these firms sit inside the "Gastwelt" service cluster of accommodation, gastronomy, foodservice, tourism and leisure.
For DZG, the trend is a clear warning signal. „Die Insolvenzzahlen sind ein Alarmzeichen", says DZG board spokesperson Dr. Marcel Klinge. He argues that for many service businesses, ongoing cost and price pressures have become a serious threat to viability, especially in structurally weak and rural regions where hospitality and overnight accommodation are core elements of local infrastructure.
7% VAT on food framed as targeted stabiliser, not special favour
DZG is calling on the Bundesrat to approve the Tax Amendment Act in its current form, including the renewed reduced VAT rate of 7% on food already passed by the Bundestag. The organisation frames this not as a sector privilege but as a targeted instrument to secure jobs, regional value creation and investment confidence along the Gastwelt value chain.
Klinge stresses that the relief is essential to create breathing space for businesses that cannot simply pass on all cost increases to guests. „Umso wichtiger ist die vom Bundestag bereits beschlossene Entlastung durch die sieben Prozent, die jetzt noch den Bundesrat passieren muss: Sie schafft den dringend benötigten Spielraum, um Betriebe, Beschäftigung und regionale Strukturen zu sichern." Without it, DZG warns that further companies will slide into crisis, with knock-on effects for employees, suppliers and financiers.
Planning certainty as a competitive factor for the "Gastwelt"
Beyond the immediate tax rate, DZG emphasises planning reliability as a decisive factor in investment and staffing decisions. Operators need clarity on fiscal conditions to commit to refurbishments, digitalisation projects, training and long-term workforce retention. In many towns and rural communities, functioning restaurants, hotels and leisure facilities are central to quality of life, tourism appeal and location attractiveness for other industries.
„Wir brauchen jetzt ein klares Signal der Verlässlichkeit", Klinge continues. „Die sieben Prozent sind wirtschaftliche Vernunft. Sie schützen Unternehmen, Arbeitsplätze und jene Orte, an denen Menschen zusammenkommen." From DZG's perspective, inconsistent or short-term tax policy risks amplifying uncertainty at a time when many businesses are already operating close to the limit.
Gastwelt: a cross-cutting pillar of the German economy
Defined in 2022 by Fraunhofer IAO and DZG, the Gastwelt concept positions hospitality and quality of life as a joint service product, spanning:
- Accommodation and hotels
- Gastronomy and foodservice
- Tourism and travel
- Leisure and experience industries
With 250,000 predominantly medium-sized companies and 6.1 million employees, the Gastwelt is described as Germany's third-largest employer and a "#HerzUnsererGesellschaft" - the heart of society. Its tight interlinkage with trade, mobility, digitalisation and infrastructure makes it a cross-sectional sector with high location loyalty and millions of jobs that cannot easily be relocated.
DZG: Think tank as bridge between policy, industry and regions
Founded in 2021, the Denkfabrik Zukunft der Gastwelt connects federal policymakers, science, associations and leading companies across all Gastwelt sectors. More than 200 member companies and partners - including Radeberger Gruppe, Deutsche Bahn, Unilever Food, Motel One, Transgourmet, Metro, Center Parcs, Dorint, Bioland, Dussmann, NordCap, Best Reisen, FlixBus, Booking.com and Gerolsteiner - employ over 740,000 people across Germany. Over 20 industry associations are also actively involved.
Against this backdrop, DZG is warning that the debate in the Bundesrat must take a broader view than short-term fiscal effects. „Wer jetzt nur auf kurzfristige Haushaltseffekte schaut, übersieht den volkswirtschaftlichen Schaden, der durch jede verlorene Küche, jedes geschlossene Dorfgasthaus und jedes stillgelegte Hotel entsteht", says Klinge. For the think tank, the 7% VAT rate is a litmus test of how seriously policymakers take responsibility for businesses, employees and regions in a sector that underpins both economic stability and social cohesion.
Learn more about the Denkfabrik Zukunft der Gastwelt and its policy work at www.zukunft-gastwelt.de.