Hotels and guesthouses in Donegal have called on all 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.
Aisling Arnold, Chair, Donegal 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 Donegal are facing enormous challenges as a result of unsustainable cost increases, she said.
She added “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 8,000 in Donegal.”
Ms Arnold said their 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.”
The Dunfanaghy-based hotelier said they are calling on any future Government to reinstate the 9% VAT rate for hospitality.
“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.”