Mayo hoteliers issue call to election candidates

HOTELIERS in Mayo have today called on local candidates in the general election to commit to decisive action in support of continued recovery in Irish tourism.

Michael Lennon, Chair of the Mayo Branch of the Irish Hotels Federation (IHF) said that, while tourism has made significant progress in recent years, continued growth cannot be taken for granted.

Commenting at the launch of the IHF’s national tourism policy document for the general election – A Strategy for Job Creation and Economic Growth – Mr. Lennon stated that tourism currently supports 5,200 jobs in Mayo and contributes some €175 million to the local economy annually.

He said that while the sector has benefitted from a number of pro-tourism measures, such as the 9% tourism VAT rate, conditions within the industry remain challenging.

A lot more needs to be done over the next five years before Irish tourism reaches its full potential for growth and job creation.

As part of a four-point plan, the IHF is seeking to ensure tourism remains a major engine for economic growth and employment, targeting the creation of 40,000 new jobs throughout the country by 2021.

The plan calls on the next government to support tourism by addressing a number of key challenges, including:
1. Providing greater cost competitiveness within the Irish economy.
2. Restoring marketing funding to 2008 levels, with greater support for regional tourism.
3. Allocating additional funding for tourism product and infrastructure.
4. Investing in people, skills and training, including vocational and craft training.

As one of Ireland’s largest indigenous industries, tourism is vital for the country’s economic well-being. Irish tourism has created 33,000 new jobs since 2011 and now employs over 205,000 people throughout the country, equivalent to 11% of total national employment.

It accounts for 4% of GNP and last year generated €7.3 billion in revenues for the economy and €1.8 billion in taxes – thereby supporting the local economies of every village, town and county.

Mr. Lennon stated: “We’re at the early stage of recovery following the downturn and challenges include the high cost of doing business in Ireland, particularly around government controlled costs such as local authority rates, water and energy levies. Significant additional investment is also required to support tourism marketing and product development – areas where funding has been significantly reduced since 2008.

“Tourism represents an excellent investment for the country and it’s therefore vital that it remains at the heart of Ireland’s economic policy.

“We’re calling on local candidates in the general election to commit to a range of pro-tourism policies that bolster Ireland as a leading destination for overseas visitors and holidaymakers. With the right support, this would generate up to 40,000 additional new jobs in tourism businesses across the country, including a significant number here in Mayo.”

Commenting on the recovery to date, Mr. Lennon said: “The 9% VAT rate, in particular, is of enormous importance to tourism businesses – helping to level the playing field when competing with international destinations for visitors.

'With revenues being continually reinvested within the sector, the initiative continues to enable the industry to create additional employment – both nationally and locally in Mayo.

'This is good news for the local economy as the majority of hotels and guesthouses plan to increase staffing levels further over the next twelve months.”