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From Reuters
April 23, 2009
By Erik Kirschbaum
It did not take long for the world 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 among the 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 at her establishment while turnover had fallen by as much as 50 percent at other clubs.
"We're definitely feeling the crisis … You can't charge for the extras any more and there is pressure to cut prices. Everyone wants a deal. Special promotions are essential these days."
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.
In 2002, new legislation allowed prostitutes to advertise and to enter into formal labour contracts. It opened the way for them to obtain health insurance, previously refused if they listed their true profession.
Annual revenues are about e14 billion (R164.4 billion), according to an estimate by the Verdi services union.
Taxes on prostitution are an important source of income for some cities.
Prostitution is also legal and regulated in the Netherlands, Austria, Switzerland, Hungary, Greece, Turkey, some parts of Australia, and the US state of Nevada. In other countries, such as Luxembourg, Latvia, Denmark, Belgium and Finland, it is legal but brothels and pimping are not.
Berlin's pu*sy Club has attracted media attention with its headline-grabbing "flat rate" - a e70 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"You've got to come up with creative solutions these days," said club manager Stefan, who requested his surname not be published. "Our offer might sound like it's too good to be true, but it's real." Stefan, who also runs establishments in Heidelberg and Wuppertal, said the flat rate helped keep the 30 women fully employed.
Other novel ideas used by brothels and prostitutes include loyalty cards, group sex parties and rebates for golf players.
Hamburg's GeizHaus is especially proud of its discount e38.50 price. The city has Germany's most famous red-light district, the Reeperbahn, in the notorious St Pauli district.
Anke Christiansen, the manager of the GeizHaus, said the effects of the crisis were clear. "The regular customers who used to come by two or three times a week are only coming by once or twice a week now."
Ecki Krumeich, the manager of the upmarket Artemis Club in Berlin, said he had resisted pressure to cut prices, although senior citizens and taxi drivers got a 50 percent discount on the e80 admission fee on Sundays and Mondays.
"Naturally, we're keeping an eye on the overall economic situation and making contingency plans," said Krumeich, who said his "wellness club" was one of the largest in Europe with about 70 prostitutes.
"Our philosophy is: we provide an important service and even in a recession there are some things people won't do without. Other downmarket places might cut prices, but we decided we won't do that.
"In fact, we raised prices by e10 in January."
Stephanie Klee, a prostitute in Berlin and a former leader of the German association of sex workers, said that even if a few luxury brothels were weathering the storm because of their wealthy regular clientele, many were struggling.
"If the consumer electronics shop and the optician come out with rebates and special promotions, why shouldn't we try the same thing?" she said. - Reuters
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