The tourism industry has declined – but it is still one of the best-performing sectors of the economy

Relatively strong sector: tourism is ahead of industry, construction and trade

Despite the worsening prospects for tourism, the sector continues to outperform other sectors of the national economy. The -6-point TKI exceeds the GKI business confidence index (-11 points), as well as the values ​​of industry (-11 points), construction (-24 points) and trade (-22 points). The difference compared to the service sector as a whole is minimal: the business climate index there stood at -7 points.

Companies are more optimistic about employment

The employment expectations of companies operating in tourism remain positive: the value of +4 points is more favorable than the service sector average (+2 points), as well as the national economy (-1 point), the industry (-3 points) and the construction industry (-6 points). However, it lags behind the +8 points measured in trade.

Rising prices and costs – restrained price increase plans

55% of tourism companies reported price increases in the past three months, an average of 5% compared to the same period of the previous year. One third of companies plan further price increases in the next three months, while no one indicates a reduction.

At the same time, operating costs increased even faster: 73% of businesses reported cost increases, with an average increase of 12%. This may also have contributed to the deterioration in the perception of the economy.