2009-06-18 08:32:26
2009-04-21 02:06:13
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 labor 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 ($18 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 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Stefan, who requested his surname not be published.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)