HomeIrish NewsITIC: Tourism Sector Wage Costs to Soar €1.4bn by 2026

ITIC: Tourism Sector Wage Costs to Soar €1.4bn by 2026

Ireland’s domestic tourism industry is, potentially, heading towards an additional €1.4bn in payroll costs by 2026, according to a cost analysis undertaken for the Irish Tourism Industry Confederation (ITIC).

The report, conducted by well-known economist Jim Power, claims that the tourism industry’s cost burden is growing as a result of recent Government labour measures – such as pension auto-enrolment, enhanced statutory sick pay, the move to a living wage, and PRSI increases.

These, Mr Power said, are putting significant pressure on the domestic tourism sector and will add 6.6% to payroll costs this year, alone, and 19.4% by 2026.

ITIC said: “The report states that the tourism and hospitality sector is hardest hit by these State-induced costs and argues for the need for mitigation measures including the restoration of the 9% VAT rate for the tourism sector, reform of employer PRSI rates, and an annual enterprise support package.”

Geoff Percival
Geoff Percival
Geoff has worked in business, news, consumer and travel journalism for more than 25 years; having worked for and contributed to the likes of The Irish Examiner, Business & Finance, Business Plus, The Sunday Times, The Irish News, Senior Times, and The Sunday Tribune.

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