Tourism and hospitality chiefs have called for an immediate change in direction by the next government, to address ‘the enormous challenges’ facing the industry.
The statement was issued on behalf of Eoghan O’Mara Walsh (CEO, Irish Tourism Industry Confederation), Adrian Cummins (CEO, Restaurants Association of Ireland), Pat Crotty (CEO, Vintners’ Federation of Ireland), Tim Fenn (CEO, Irish Hotels Federation) and Donall O’Keeffe (CEO, Licensed Vintners’ Association).
The group has warned that the sector is now at a crossroads, with many businesses struggling to deal with very tight margins and reduced profitability, due to increasing operating costs, particularly in relation to food services.
The statement suggests that this has been driven in recent years by economic policies pursued by the government, including a series of employment-related cost increases coming into effect in close succession, and that the impact of these measures has been particularly acute for hospitality food businesses, given the labour-intensive nature of the industry.
‘Businesses throughout our sector are facing a perfect storm. They are operating under exceptionally tight margins, falling food sales and significant increases in operating costs,’ read the statement.
‘A fundamental change in direction is now imperative if we are to stave off what can only be described as a growing commercial crisis facing many businesses.’
The group is calling for the following four policy measures to be prioritised within the next programme for government: a reduction in VAT for hospitality food services, tackling the cost of business challenges, removing the Dublin Airport passenger cap, and the establishment of an economic department for tourism and hospitality.
‘This is of critical importance given the integral role our industry plays within the economy as the country’s largest indigenous employer and a major engine for growth and prosperity,’ according to the group.
