Hoteliers Urge Government Support to Bolster Tourism Sector

The head of the Irish Hotels Federation (IHF), Michael Magner, has urged the Irish government to prioritize the tourism and hospitality industry in its national economic policy. Speaking before the Joint Oireachtas Committee on Enterprise, Tourism and Employment, he highlighted the challenges that the sector faces as it enters a new year filled with uncertainty.

Magner pointed to rising business costs, including energy, labor, insurance, supplies, and food, as significant threats to the viability of many hospitality businesses across Ireland. He stated, “Relentless increases in costs… have placed immense pressure on our sector. These rising costs threaten both our competitiveness and the viability of hospitality businesses, undermining Ireland’s appeal as a destination.”

As the industry grapples with these financial pressures, it also faces declining tourism revenues, economic instability in key source markets, and escalating international political uncertainty. Magner emphasized that these factors present real risks to the industry and jeopardize the ability of operators to remain viable in the long term.

Call for Essential Government Support

Magner stressed the importance of placing tourism at the core of national economic policy. He noted that the sector generates over €10 billion in annual revenues and contributes more than €2.9 billion in taxes to the exchequer. “Tourism makes an enormous contribution to economic diversification and rural development,” he said, adding that local hotels and guesthouses play a critical role in supporting local businesses and communities.

The IHF has outlined a wish-list of supports it believes are vital for the sector’s future. Key requests include:

– Measures to improve cost competitiveness within the economy.
– Increased investment in tourism training and skills development, utilizing surplus funds from the National Training Fund.
– Enhanced funding for tourism marketing and development.
– Targeted funding for a national hotel retrofitting scheme to reduce carbon emissions.
– Removal of barriers to growth in air access to Dublin Airport.
– Opportunities to improve regional air access and connectivity.
– Assistance for hotels in developing employer-led staff accommodation.
– Effective regulation of short-term lettings, including the proposed Fáilte Ireland register.
– Measures to support tourism capacity growth, including easing barriers to hotel development.

Magner welcomed the government’s recent decision to incorporate tourism under a newly restructured Department of Enterprise, Tourism and Employment. He also praised the reduction in hospitality VAT rates announced in the October Budget, describing it as a “welcome and timely intervention.”

“This will offer much-needed relief to struggling food service businesses across the country, particularly given their labor-intensive nature,” he noted. He cautioned that cost challenges within the Irish economy remain a grave concern, stating that Ireland is among the most expensive places in Europe to live and operate a business.

As the tourism and hospitality sector navigates these tumultuous times, the IHF emphasizes the need for immediate government action to ensure the industry can thrive and continue to contribute significantly to the Irish economy.