Tipperary hoteliers call for urgent change to safeguard tourism and hospitality

Hotels and guesthouses in Tipperary today called on all political parties and candidates in the general election to commit to policy measures aimed at staving off the commercial crisis facing the wider tourism and hospitality industry, particularly food service businesses.

Patrick Kickham-Lennon, Chair, South East Branch of the Irish Hotels Federation says that an urgent change in direction is now required to ensure the future viability of the industry as Ireland’s largest indigenous employer.

Tourism and hospitality businesses throughout Tipperary are facing enormous challenges as a result of unsustainable cost increases.

These have largely been driven by the Government’s own economic policies.

At the same time, there has been a worrying failure to offset these increases and provide meaningful measures to assist struggling business within the sector.

These businesses are the backbone of our tourism economy, supporting over 270,000 livelihoods nationally, including 5,400 in Tipperary.

He states: “Our message to all political parties and candidates in the general election is that tourism and hospitality should not be taken for granted. Much more needs to be done to safeguard and prioritise our industry. Tourism and hospitality must be at the heart of the next Government’s economic policy supported by targeted measures to ensure our industry lives up to its full potential as a major engine for growth and economic prosperity.”

“A key priority for our sector is the need to tackle the cost of doing business, which is getting out of control and posing an enormous risk to the sector. There has been an alarming deterioration in the commercial model of hospitality food services in particular as a result of the increased VAT rate coupled with a raft of Government-imposed large cost increases. Businesses are now at a cross-roads requiring immediate action by the next Government.”

“We are calling for a commitment to reinstate the 9% rate of VAT for hospitality food businesses, which have been disproportionately impacted over the last 18 months. Other sector-specific measures are also required including a Local Authority commercial rates waiver and employers’ PRSI rebates to offset the impact of policies that place labour-intensive industries such as tourism and hospitality at a disadvantage.”

Tipperary hoteliers are calling on all political parties and candidates in the general election to commit to the following key policy initiatives:

Urgent Review of the Government’s Tourism Policy Approach – change in direction required to put the tourism and hospitality industry on a stable footing before it is too late.

9% VAT for food services – reinstatement of the 9% rate of VAT for hospitality food service businesses, which are struggling to deal with exceptionally high operating costs.

Cost of doing business – targeted measures to improve the overall cost competitiveness within the economy over the next five years.

Air Access – removing the passenger cap for Dublin Airport coupled with a wider focus on enhancing regional air access and connectivity.

Training & Skills – increased funding for hospitality training and skills development through the National Training Fund.

Tourism Marketing & Development – significant increase in investment in tourism marketing and development to support the recovery and long-term growth.

Sustainability – targeted funding for a national hotel retrofitting scheme to reduce carbon footprint throughout the sector in line with Ireland’s climate action goals.

Access to Finance – full review of State-supported financing solutions for business development should be carried out to identify ways to further increase access to finance.

Tips and Gratuities – tax exemption for tips and gratuities paid to employees.

Dedicated Department for Tourism and Hospitality – a dedicated Department of Tourism & Hospitality with a seat at the cabinet to maximise growth and employment potential.