Five-star Hotel Palace in Zinnowitz closes: tourism under pressure!

Five-star Hotel Palace in Zinnowitz closes: tourism under pressure!

A cautious silence has fallen over Zinnowitz: the renowned five-star hotel “Palace” will close its doors at the end of November. After the recent closure of the Stralsund “Scheelehof”, this is the second high-profile closure to shock the hotel industry in Mecklenburg-Western Pomerania. In the tranquil region, where there are only nine five-star hotels, the situation for the catering and hotel industries is becoming increasingly difficult.

The problems are obvious: high energy prices, increased wage and additional costs as well as growing bureaucracy are affecting the sector. In addition, increases in prices among suppliers, especially in the food sector, are plaguing operators. However, rising costs are not the only problem. The shortage of skilled workers and guests' reluctance to consume also contribute to the precarious situation.

Challenges of the hotel industry

In an industry that is under pressure, even the best ideas are of little help. For example, while innovative models such as apartment hotels – the Kurhaus in Sellin or “The Breeze” in Ahlbeck, which only opened in 2023 – are booming, classic hotel operations remain essential for the holiday resorts in MV. At this point we would like to point out the need for political measures.

Tourism representatives are calling for tax breaks for the industry, support in recruiting employees and a reduction in labor costs. This is the only way the “model hotel” can be maintained in the region in the long term. A rethink is also necessary because while there is a general interest in growth among hoteliers in Austria, it can be seen that only 62 percent of those surveyed are planning expansion, but only 40 percent have the necessary funds or the confidence to invest. Around 20 percent have not made any significant investments in the last five years, which could have long-term negative consequences, such as lower guest satisfaction or increasing operating costs. Here, tourism in MV could benefit from alternative financing models such as buy-to-let or crowdfunding.

Political support required

The industry's concerns make it clear that there is agreement: At a time when costs are skyrocketing, politicians must also set the right course. The hotel industry can only survive if the general conditions improve and the necessary investments are made to maintain quality in the service sector. Only where conditions are right do companies have a chance of surviving increasing competition and convincing guests.

Particular attention is also paid to the aspects of partnerships with professional operators, which could strengthen the position with banks and investors. It remains to be seen how the industry will develop further - hopefully with a positive development that will also allow the classic hotel businesses in Mecklenburg-Western Pomerania to be given a fair chance.

For further insights into the challenges and developments of the hotel industry, read Ostsee-Zeitung and Wirtschafts-Nachrichten.

Meanwhile, you can also find more information on Google to get a complete picture of the current situation.