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

Brian Lawlor, Chair of the Kerry 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 Kerry are facing enormous challenges due to unsustainable cost increases.

These have largely been driven by the Government’s economic policies. At the same time, there has been a worrying failure to offset these increases and provide meaningful measures to assist struggling businesses within the sector.

These businesses are the backbone of our tourism economy, supporting over 270,000 livelihoods nationally, including 16,000 in Kerry.

He said: “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 due to 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.”

“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.”

1 Kerry hoteliers are calling for an urgent review of the government’s tourism policy approach and a change in direction to put the tourism and hospitality industry on a stable footing before it is too late.

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

3 As a result the cost of doing business has increased and they targeted measures to improve the overall cost competitiveness within the economy over the next five years.

4 They also call for additional investment in enhancing regional air access and connectivity, including via Kerry Airport and Cork Airport.

5 Other requests include increased funding for hospitality training

6 A significant increase in investment in tourism marketing.

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

8 Access to finance and a full review of state-supported financing solutions for business development should be carried out to identify ways to increase access to finance further.
9 Tax exemption for tips and gratuities paid to employees.

10 A dedicated Department of Tourism and Hospitality with a seat in the Cabinet to maximise growth and employment potential.