THE hospitality industry is facing a ‘commercial crisis’ and the viability of many hotels and guesthouses is at stake if the government doesn’t bring down the cost of doing business, the chair of the Irish Hotels Federation (IHF) Cork branch has warned.
Ciaran Fitzgerald is the managing director of The Blue Haven Collection in Kinsale and chair of the hotel representative body in the county. He called on all political parties to commit to policy measures aimed at staving off the commercial crisis facing the wider tourism and hospitality industry, particularly food service businesses.
‘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 crossroads requiring immediate action by the next government,’ said Mr Fitzgerald.
The IHF is calling for a commitment to reinstate the 9% rate for hospitality food businesses. Other sector-specific measures proposed include a local authority commercial rates waiver and employer PRSI rebates to ‘offset the impact of policies that place labour-intensive industries such as tourism and hospitality at a disadvantage’.
The tourism and hospitality industry supports over 270,000 livelihoods nationally, including 27,000 in Cork.
‘Our message to all political parties and candidates in the general election is that tourism and hospitality should not be taken for granted,’ said Mr Fitzgerald. ‘Much more needs to be done.’
Other initiatives urged by the IHF Cork chief include additional investment to enhance air connectivity into Cork Airport, a firm commitment with timelines for delivery for the Cork Events Centre, funding for sustainability, training and skills development, and industry marketing and a dedicated department of tourism and hospitality. The industry is also seeking a tax exemption for tips and gratuities paid to employees.
