According to Yves Piron, director of welcome and integration agency OLAI, there will be no free beds available in 70 facilities run by the agency within the next three weeks.
"We feel left alone", the head said in an interview With Woxx magazine following repeated criticism of the handling of asylum seekers and refugees in Luxembourg.
In September, a resident of the Bourscheid centre likened it to the notorious Guantanamo Bay prison. He daubed graffiti on the walls in protest at what he felt were restrictions on freedom, which undermined the residents' dignity.
Piron said there was a distinct lack of structures to accommodate this community because of a number of reasons. Plans to construct container villages have been delayed by legal appeals.
Meanwhile, many of the residents who have since received refugee status and now receive jobseekers' allowance have been unable to find private rented accommodation because of prejudices regarding RMG.
The agency also houses asylum seekers whose applications have been rejected but have not yet been returned to their home countries.
Piron said about a third of people living in the agency's accommodation fell into these and other groups which meant that OLAI was no longer responsible for them.
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“The less space we have, the more tense it is living together,” he said, adding that asylum procedures currently take longer than six months, further adding to the frustrations of asylum seekers.
Conflicts caused by ethnic or religious differences do not exist, the director said, despite the fact that numerous asylum seekers have complained of being victimised for their religion or ethnic origin within foyers.
Accommodation for refugees and asylum seekers is expected to be overhauled in early 2017 but it remains to be seen what it will change.
OLAI doubled its workforce to 100 to support residents across its facilities. Its strategy is to have one carer overseeing 30 asylum seekers. At OLAI's initial reception centre in Kirchberg, the prescribed ratio is one employee to 50 asylum seekers.
In reality the ratio is closer to one carer to 160 asylum seekers. So far this year, 1,421 people have applied for asylum in Luxembourg compared to 2,447 in 2015.
