Global economic crisis
hits German sex industry
By Erik Kirschbaum
BERLIN (Reuters) - 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 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
told Reuters 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. 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
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 14
billion euros (12.5 billion pounds), 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 and in some parts of Australia, and the U.S. state
of Nevada.
In other countries, such as
Luxembourg, Latvia, Denmark, Belgium and Finland, it is legal but
brothels and pimping are not.
"CREATIVE SOLUTIONS"
Berlin's "Pussy Club" has
attracted media attention with its headline-grabbing "flat rate" --
a 70-euro admission charge for unlimited food, drink and sex
between 10 a.m. and 4 p.m.
"You've got to come up with
creative solutions these days," said club manager Stefan, who
requested his surname not be published. "We're feeling the economic
crisis, too, even though business has fortunately 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."
Stefan, who runs other
establishments in Heidelberg and Wuppertal besides the Berlin club,
said the flat rate had helped keep the 30 women working in each
location 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 38.50 euro price. The city has Germany's most
famous red-light district, the Reeperbahn, in the notorious St.
Pauli district.
Anke Christiansen, manager of the
"GeizHaus," said the effects of the economic 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."
A "GeizHaus" client, who gave his
name as Pascal, said: "Naturally we're all feeling the effects of
the crisis." He added that he could no longer afford his usual two
or three visits a week.
Guenter Krull, manager of the "FKK
Villa" in Hanover, concurred. "The girls are complaining, too,
because business is bad and I worry that it's all going to get even
worse.
CONTINGENCY PLANS
Ecki Krumeich, manager of upmarket
Artemis Club in Berlin, said he resisted pressure to cut prices,
although senior citizens and taxi drivers get a 50-percent discount
on the 80-euro 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" is 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 10
euros in January."
Stephanie Klee, a prostitute in
Berlin and former leader of the German association of sex workers,
said even if a few luxury brothels were weathering the storm
because of their wealthy regular clientele, many were
struggling.
"Just about everyone's turning to
advertising in one form or another," she said. "If the consumer
electronics shop and the optician come out with rebates and special
promotions, why shouldn't we try the same thing?"
While she and her colleagues might
have had five or six clients per day a year ago that had fallen to
one or even none.
Klee worries, however, that the
crisis has led to "price dumping" in some cities -- fees have
fallen as low as 30 euros in some parts of Berlin and elsewhere,
she said.
"You'll find a lot of customers
trying to negotiate prices down now," said Klee. "A 30-year-old
came up to me and said 'I lost my job so will you give me a
discount?'."
She and others said they were
alarmed that amateur prostitutes -- mostly women with low-paid
careers -- were increasingly turning to prostitution to make ends
meet.
"More and more women are
moonlighting on the weekends," said Ahrens. "They're not able to
get by with their main job and are in pretty dire straights. For
some it works out okay but it's tough for some others and they
often don't stay very long.
(Additional reporting by Bettina
Borgfeld; editing by Andrew Dobbie)