At its general assembly held in Mondorf-les-Bains on 10 March, the National Federation of Hoteliers, Restaurant Owners, and Café Owners (Horesca) made clear that the situation across the sector is mixed. It highlighted the most pressing challenges, including rising costs, staff shortages, and growing pressure on cafés and small businesses.
While the hotel industry can look back on a strong year, restaurants – and especially cafés – are facing greater difficulties. Former secretary-general and newly appointed director Steve Martellini summed it up by saying that the hotel sector is broadly doing well, while restaurants are facing more challenges and cafés remain the federation’s main concern.
One of the biggest issues for the sector remains the shortage of staff. Absenteeism is also a growing problem which, according to Horesca, affects not only hospitality but many businesses across the economy.
Through a working group called ‘Let’s Act’, the federation spent several months gathering proposals from people working in the sector and submitting them to policymakers. According to Horesca, solutions must go beyond simple monitoring and controls.
At the same time, the federation wants to support its members more closely. This includes appointing a new adviser, expanding training opportunities, and building partnerships aimed at providing practical benefits for businesses.
Martellini said the federation intends to engage directly with businesses in the field, talk to operators, and work together to solve problems. New training pathways are also being developed for employees without formal qualifications, he said.
Horesca president Alain Rix, whose mandate was renewed, stressed the economic reality facing the sector. Customers are still visiting restaurants and cafés, he noted, but many now have less money to spend.
At the same time, operating costs are rising, placing particular pressure on smaller establishments. The federation is especially concerned about the future of cafés, as traditional bistros are increasingly disappearing, he said.
Economy Minister Lex Delles said the government is closely monitoring developments in energy prices. Rix had previously warned that if prices were to surge again, the sector would immediately seek discussions with the government to explore possible support for businesses.
Delles pointed out that some assistance already exists for the hospitality sector, notably through investment support and measures related to energy grid charges. He also highlighted positive developments, including a growing number of hospitality establishments, rising employment in the sector, and a strong tourism year for hotels in 2025.
Beyond rising costs, access to investment remains another challenge. Rix criticised the fact that many businesses struggle to obtain loans from banks. Delles pointed to a loan scheme from the National Credit and Investment Corporation (SNCI) offering up to €200,000 at zero interest, with repayment beginning only after four years.
Horesca also sees a need for reform in concession agreements with breweries, calling for simpler and more flexible rules.
Despite the challenges, the federation said it does not want to focus solely on problems. Through events such as Expogast, new training initiatives, and campaigns like ‘Bewosst’, which promotes greater inclusion, the sector aims to demonstrate that it still has a strong future.
Rix concluded with a positive message, encouraging people not only to travel abroad but also to discover what Luxembourg itself has to offer.
The presence of three government ministers – Economy Minister Lex Delles, Labour Minister Marc Spautz, and Home Affairs Minister Léon Gloden – at the assembly in Mondorf-les-Bains was interpreted by the federation as a sign that the sector’s concerns are being taken seriously.
