The Irish Hotels Federation (IHF) has formally congratulated Simon Harris on his election as Taoiseach, and has called for “a decisive response” to address the challenges facing the domestic tourism and hospitality sector.
Mr Harris’ election comes, the IHF said, at a “critical junction” for Irish tourism and hospitality, with businesses facing “enormous pressure” in relation to escalating operating costs.
IHF President Michael Magner said: “I would like to congratulate Simon Harris on becoming Taoiseach. He has been a firm supporter of Irish tourism throughout his career, and we look forward to continuing to work with him and his colleagues in Government to address the challenges now facing our industry, including in relation to business costs.”
“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.”
As Ireland’s largest indigenous and regional employer, tourism and hospitality plays a vital role within our economy, supporting some 270,000 livelihoods the length and breadth of the country, 70% of which are outside of Dublin. It is therefore essential that the right conditions are in place to secure the long-term, sustainable development of our industry.
Mr Magner thanked former Taoiseach Leo Varadkar, TD, for his commitment and support for Irish tourism during his tenure in Government, including as Taoiseach, Tánaiste, Minister for Tourism and Minister for Enterprise.
