New Taoiseach must address challenges facing tourism sector - Mayo hotelier
“A decisive response from government is now required to address the challenges facing tourism and hospitality, particularly in relation to escalating operating costs,” says the Irish Hotels Federation (IHF) Mayo Branch chairperson.
Congratulating Simon Harris on his election as Taoiseach, Darren Madden said his appointment comes at a critical junction for Irish tourism and hospitality, with local businesses facing enormous pressure in relation to escalating operating costs.
Said Mr. Madden: “A decisive government response is now required to offset the impact of policy-driven cost increases and to put our industry on a more stable footing.
“This should include a review of the blanket increase in tourism VAT given the enormous impact this decision has had on food-related services, a widening of the existing business supports scheme and a restructuring of Employers’ PRSI.
“Ireland’s very high cost of doing business is particularly acute for our industry given its labour-intensive nature. In hotels, for example, labour costs are 35-45% of turnover and are continuing to rise as a result of government-controlled employment-related measures coming into effect in close succession.
“This is at a time when hospitality businesses are forecasting worrying increases in operating costs this year, significantly outpacing inflation within the broader economy. Meanwhile we are dealing with the effects of a sharp rise in interest rates and the recent VAT increase, all of which significantly reduce profitability and erode competitiveness.”
Tourism and hospitality play a vital role within our economy, supporting some 270,000 livelihoods the length and breadth of the country, including over 6,000 jobs in Mayo. It's essential that the right conditions are in place to secure the long-term, sustainable development of the industry, he said.
A firm supporter of Irish tourism throughout his career, Mr. Madden said they looked forward to continuing to work with Mr. Harris and his colleagues in government to address the challenges facing the industry, including in relation to business costs.