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Budget 2022 a “big blow” to tourism industry

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By Sean Moriarty

This week’s budget is a “big blow” to the tourism industry according to Chair of the Kerry branch of the Irish Hotel Federation (IHF) Bernadette Randles.

While she welcomed certain aspects of the budget, like the €90 million aviation package for Irish Airports she was left dismayed that the VAT rate in the hospitality sector, which is currently set at 9 percent will return to 13.5 percent at end of next August.

Ahead of the budget, hospitality sector officials were calling for this move to be delayed until 2025.

The tourism industry nationally, is trying to recover from a €7 billion hammering caused by COVID-19 travel restrictions.

Ms Randles acknowledges that the aviation package will help attract new visitors but said that if the overall package remains too expensive the net result will be fewer visitors.

“This is a big blow. We are in recovery and survival mode, we are already contracting for 2023 and if we have to turn around to these clients and say their rates have gone up again, well they just may go elsewhere,” she told the Killarney Advertiser. “We are trying to recover, we are not whining, we are being very practical about this. It is not just hotels, but the entire tourism industry.”

Additional cost increases facing the entire sector include fuel, coffee products and linen suppliers. Ms Randles confirmed that all of these industries have put up their prices in recent weeks.

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Kerry Airport gears up for another year of growth after record breaking 2025

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Kerry Airport is gearing up for another year of growth in 2026, with passenger numbers in 2025 on course to exceed 430,000 for the first time.

The Spring/Summer schedule will be launched in January with increased frequency on routes to sun destinations in Spain and Portugal with Ryanair.

The Chief Financial Officer at Kerry Airport, Basil Sheerin, said the airport’s continued growth has been driven by the professionalism of their staff, with strong performances across fuel sales, retail and car-parking.

He noted the full benefits of the new Arrivals Hall and extended Departures Area will be seen in 2026.

According to Mr Sheerin, the main challenges in 2026 will continue to be attracting new airlines and routes.

He said: “A lack of aircraft availability is still a problem for airlines, and the expansion of fleets is considerably behind forecasts. Administrative expenses remain a challenge, with increased costs in wages, local authority rates, energy, and maintenance exerting pressure on our gross profit margin.”

He added that Kerry Airport continues to monitor these areas rigorously to ensure optimal value for money.

Kerry Airport today contributes more than €18 million annually to the local economy and supports over 135 direct jobs, including countless others in tourism, transport, and service industries that depend upon their success.

Between now to the end of March 2026, Kerry Airport will handle 59 flights per week from Dublin, London Stansted, London Luton, Manchester and Frankfurt Hahn.

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Kevin O’Sullivan inducted into O’Callaghan Coaches Hall of Fame

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Killarney transport firm O’Callaghan Coaches honoured long-serving staff member Kevin O’Sullivan at their annual Christmas party held at the Fáilte Hotel last week.

O’Sullivan was officially inducted into the O’Callaghan Coaches Hall of Fame, joining company founders James and Lena O’Callaghan, as well as Denis Lynch and Mike Moynihan, in recognition of his service.


Kevin O’Sullivan joined the business over 30 years ago. His early career involved driving taxis around Killarney town at night, while operating school buses and private hire coaches during the day.


“Kevin began his journey with us over 30 years ago, working at the very foundations of the modern company we know today,” said Philip O’Callaghan. “It was this level of commitment and work ethic in those early years that helped shape the company’s growth and success.”


The evening also saw Michael O’Keeffe named ‘Person of the Year’.

The award is decided by a vote among company employees, and O’Keeffe is the second person to receive the title.


The event capped off a significant year for the Killarney-based operator.

O’Callaghan Coaches was recently named Ireland’s Best Small Workplace for 2025 and received Fáilte Ireland’s Outstanding Employer Award for both 2024 and 2025.

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