More and more traditional inns are closing. The state government of Tyrol is trying to counter this by promoting pubs. The Neos see the model as a failure and are in favor of a bonus card. Gastronomy spokeswoman Anna Kurz talks about the anger of guests because of the expensive prices and the pressure on family businesses.
They are called Kirchenwirt, Alte Post or Goldener Hirsch, Adler, Schwan. They used to be a meeting place for locals, but today they can often only survive as gastronomic temples for the upper class and financially wealthy holidaymakers. The classic pub is threatened with extinction. This is evident from figures from a study by the University of Innsbruck. In Tyrol alone, 55 companies disappeared between 2012 and 2020.
The pandemic, inflation and the lack of employees are further fueling the developments. Neos boss Dominik Oberhofer warns of a dramatic decline in the coming years. “The middle disappears, taverns and other small bars that are social meeting places for the general population. Fast food chains and expensive gourmet restaurants will lag behind,” is his prediction.
Circumstances are the real problem
For the pink club president, the state café financing introduced in 2019 failed miserably: “The financing campaign cost 150,000 euros, which resulted in 17 applications, of which only eight were approved for a total of 90,000 euros. Over four years it will be a non-starter!”
Oberhofer is convinced that too many requirements and controls are the real problem. Gastronomy spokeswoman Anna Kurz also sees it this way (see interview below). The demand on the state government is to “clean up”. In the meantime, pub financing has been reorganised.
Bonus card is intended to attract Tyroleans to the inn
Oberhofer has a slightly different form of financing in mind: he also sits as a representative of Neos in the Chamber of Commerce. At first you think of the controversial ‘schnitzel bonus’ in Lower Austria. But the Neos proposal has little to do with that, according to Oberhofer. His concept: “If you visit a pub twice and spend 30 euros, you will receive a credit of 30 euros for a third visit.” He is convinced that this can result in 100,000 extra pub visits every year. It would cost 3 million euros. Where are you going to get the money from? “Not from the taxpayer, but from half the Chamber of Commerce and the Tourism Fund – there is endless amounts of coal there,” says Oberhofer.
20,000 euros as a ‘courage bonus’ for young people who take over a company
Since the introduction of the state pub bonus in 2019, eight applicants have received financing for the acquisition of companies. About 90,000 euros were distributed. Neos club chairman Dominik Oberhofer calls the model a “non-starter”. Tourism LR Mario Gerber (ÖVP) counters this by saying that the state has distributed a total of 1.1 million euros in funding for café projects since 2019. Gerber calculates that there were 27 projects in total. The support is divided into financing for investments and the Tyrolean pub bonus.
The state increased this bonus for the takeover of a company this year and doubled it to 20,000 euros each. “The Tyrolean tavern culture is the flagship of local gastronomy. It is a sign that in Tyrol not only traditional values are remembered, but also actively lived. We are doing everything we can to maintain this tradition,” says the State Tourism Council. The ‘you’re missing’ information campaign was a success for Gerber. Twelve companies have reopened with support.
“They often buy more expensively than consumers”
Gastronomy spokeswoman Anna Kurz spoke to the ‘Krone’ about the pressure in her industry and the anger of guests about expensive food and drinks. She also sets clear requirements.
“Kron”: Mrs Kurz, you are chairman of the gastronomy department of the Chamber of Commerce. How dramatic is the situation of the Tyrolean innkeepers?
Anna Kurz: Gastronomy – not just classic taverns – is small in Tyrol. Many family businesses are struggling with inflation after the pandemic. Add to this the enormous shortage of employees and the upcoming investments. The pressure is enormous.
Many respond with higher prices. In some cases these have risen sharply. Do you understand guests’ anger about expensive food and drinks?
Of course I understand that, but no one takes price adjustments lightly, especially since many Tyrolean innkeepers make their living from regular guests. But costs have risen on all sides. An example: Restaurateurs often buy at a higher price in stores than consumers, because they do not benefit from the promotional prices in wholesale.
Do inn vouchers and innkeeper bonuses help?
Everything helps, but much only in the short term. What we have been asking for for a long time is a reduction in indirect labor costs and a relaxation of the numerous regulations.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
