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.”
