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Global economic crisis hits German sex industry
By Erik Kirschbaum |
April 26, 2009, Sunday
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Print Edition
Print Edition
IT did not take long for the financial crisis to affect the world's oldest profession in Germany.
In one of the few countries where prostitution is legal, and unusually transparent, the industry has responded with an economic stimulus package of its own: modern marketing tools, rebates and gimmicks to boost falling demand.
Some brothels have cut prices or added free promotions while others have introduced all-inclusive flat-rate fees. Free shuttle buses, discounts for seniors and taxi drivers, as well as "day passes" are marketing strategies designed to keep business going.
"Times are tough for us too," said Karin Ahrens, who manages the "Yes, Sir" brothel in Hanover. She said revenue had dropped by 30 percent while turnover had fallen by as much as 50 percent at other clubs.
"We're definitely feeling the crisis. Clients are being tight with their money. They're afraid. You can't charge for the extras any more and there is pressure to cut prices. Everyone wants a deal. Special promotions are essential."
Germany has about 400,000 professional prostitutes. Official figures do not distinguish between the sexes and the number of male prostitutes is not known, but they account for a small fraction of the total and are treated the same under the law.
Annual revenues are about 14 billion euros (US$18 billion), according to an estimate by the Verdi services union. Taxes on prostitution are an important source of income for some cities.
Berlin's "Pussy Club" has attracted attention with its headline-grabbing "flat rate" - a 70-euro admission charge for unlimited food, drink and sex between 10am and 4pm. "You've got to come up with creative solutions these days," said club manager Stefan. "We're feeling the economic crisis, too, even though business has been more or less okay for us so far.
"Our offer might sound like it's too good to be true, but it's real. You can eat as much as you want, drink as much as you want and have as much sex as you want."
Ecki Krumeich, manager of Artemis Club in Berlin, said he raised prices by 10 euros despite pressure to cut them, although senior citizens and taxi drivers get a 50-percent discount on the 80-euro admission fee on Sundays and Mondays.
In one of the few countries where prostitution is legal, and unusually transparent, the industry has responded with an economic stimulus package of its own: modern marketing tools, rebates and gimmicks to boost falling demand.
Some brothels have cut prices or added free promotions while others have introduced all-inclusive flat-rate fees. Free shuttle buses, discounts for seniors and taxi drivers, as well as "day passes" are marketing strategies designed to keep business going.
"Times are tough for us too," said Karin Ahrens, who manages the "Yes, Sir" brothel in Hanover. She said revenue had dropped by 30 percent while turnover had fallen by as much as 50 percent at other clubs.
"We're definitely feeling the crisis. Clients are being tight with their money. They're afraid. You can't charge for the extras any more and there is pressure to cut prices. Everyone wants a deal. Special promotions are essential."
Germany has about 400,000 professional prostitutes. Official figures do not distinguish between the sexes and the number of male prostitutes is not known, but they account for a small fraction of the total and are treated the same under the law.
Annual revenues are about 14 billion euros (US$18 billion), according to an estimate by the Verdi services union. Taxes on prostitution are an important source of income for some cities.
Berlin's "Pussy Club" has attracted attention with its headline-grabbing "flat rate" - a 70-euro admission charge for unlimited food, drink and sex between 10am and 4pm. "You've got to come up with creative solutions these days," said club manager Stefan. "We're feeling the economic crisis, too, even though business has been more or less okay for us so far.
"Our offer might sound like it's too good to be true, but it's real. You can eat as much as you want, drink as much as you want and have as much sex as you want."
Ecki Krumeich, manager of Artemis Club in Berlin, said he raised prices by 10 euros despite pressure to cut them, although senior citizens and taxi drivers get a 50-percent discount on the 80-euro admission fee on Sundays and Mondays.
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