An increasing number of hospitality businesses are dealing with problematic debts. In November, one in five reported financial difficulties, up from 14 percent the previous November, according to Statistics Netherlands. The findings are based on a survey of companies in industry, trade, and services with at least five employees.
Chief economist for Statistics Netherlands, Peter Hein van Mulligen, said the trend is puzzling. “The hospitality sector has long had the highest bankruptcy rate, and business confidence is negative. Yet a year ago, despite an even higher bankruptcy rate, businesses saw their debt burden as less problematic.”
Among all companies surveyed, 6.7 percent saw their debts as problematic, slightly higher than the 6.3 percent recorded a year ago. Statistics Netherlands also noted that an increasing share of firms in the information and communication sector perceive their debt burden as problematic: roughly 7 percent last month, compared with under 4 percent a year earlier.
The culture, sports, and recreation sector, along with transport and storage, shows a similar rise in problematic debts. In contrast, sectors such as retail, car sales, and repair reported fewer difficulties.
The hospitality sector is the most pessimistic about its survival, with about 6 percent of businesses saying they could last less than a year if current economic conditions persist. Another 35 percent are unsure how long they can continue. Across all sectors, around 4 percent of companies think they could survive for a year or less.