Upcoming Trade Shows in Netherlands for Hospitality

Numerous economic factors converge to put pressure on the hospitality industry in the Netherlands – a sector that’s already in a precarious situation following the pandemic. High personnel, energy and rent costs have cast a shadow over the sector’s first full year without lockdowns, leading to dwindling profits and a decline in the number of catering establishments. Yes, the industry is in a process of recovery, but the numbers leave much to be desired. According to trade association KHN, there are currently over 45,000 hotels, cafes and restaurants in the Netherlands. However, the sector witnessed a decline in profitability in 2023, with profit margins shrinking by an average of 2% compared to the previous year. The inability of hospitality entrepreneurs to fully pass on increased costs to their customers has exacerbated financial strains within the industry. Despite a 14% increase in revenues to 31 billion euros in 2023, which was mostly driven primarily by growth in the first quarter following the lifting of lockdown measures, the industry saw a contraction in volume. Looking ahead to 2024, the KHN remains cautious about the sector's prospects, citing minimal economic growth projections, inflationary pressures and persistent staff shortages as ongoing challenges. Passing on higher costs to customers has proven challenging for many hospitality businesses and only one in three entrepreneurs able to do so effectively. Restaurants and cafes, in particular, face difficulty in fully transferring increased expenses to consumers without risking reduced patronage. This price sensitivity poses a dilemma for businesses. How does one remain profitable, while also preserving affordability for customers? At the same time, the hospitality industry grapples with significant debt burdens as approximately one in eight companies faces problematic levels of indebtedness. This challenge is acute for restaurants and cafes. The impending repayment of tax debts accumulated during the pandemic further compounds financial woes for these businesses.