Laois hoteliers send strong message to new Taoiseach over escaping operating costs 

Laois hoteliers have sent a strong message to Simon Harris following his election as Taoiseach on Tuesday urging him to act on the escalating operating costs impacting the industry. 

Barry Kennedy, Chair of the Midlands Branch of the Irish Hotels Federation (IHF)  congratulated Mr Harris and said his election comes at a critical junction for Irish tourism and hospitality, with local businesses facing enormous pressure. 

Mr Kennedy says: “On behalf of local hotels and guesthouses, 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.”