FILE PHOTO: Tourists ride a sightseeing bus along the boulevard Unter den Linden passing the German Historical Museum in Berlin, Germany, August 15, 2025. REUTERS/Annegret Hilse/File Photo

BERLIN (Reuters) -Germany's hospitality industry saw revenues fall by 9.3% in July, according to an industry survey published on Tuesday, offering little respite for companies worried about rising costs for labour as well as food and drink.

Hopes for a summer boost were not met, the DEHOGA industry association said on Tuesday, citing the results of its poll of almost 4,000 businesses.

For the months of August and September, 32% of them rated their booking and reservation situation as poor to very poor, versus 23.8% who found it good or very good.

"Costs are skyrocketing, guests are more price-sensitive, and sales are declining. The current pressures are pushing many businesses to their limits," DEHOGA President Guido Zoellick said in a statement.

Two fifths of hospitality businesses such as hotels and restaurants fear losses in 2025, the survey found.

However, some 76% of businesses expect their financial situation to stabilise if the sales tax is reduced by the German government from a current 19% to 7%, as promised by the coalition from early next year.

(Reporting by Klaus Lauer, Writing by Rachel More, Editing by Kirsti Knolle)