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Hoteliers predict difficult winter as costs continue to rise

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By Sean Moriarty

Hoteliers in Killarney have outlined, for the first time, the challenges they face, as a result of soaring costs in all sectors.

With barely a week left in the traditional peak summer tourism season, operators are bracing themselves for a hard and long winter.

Difficulties in the hotel industry affect everyone in Kerry; in pre-COVID times the sector supported 15,700 jobs and generated €592 million in local tourism revenues annually.

“The outlook for our business will be different from October onwards and into 2023 as we deal with a number of pressing challenges including heightened uncertainty around inflation, escalating business costs, increasing risk of a global downturn and damage to consumer sentiment,” said Bernadette Randles, the chair of the Kerry branch of the Irish Hotel Federation.

She revealed some of rising costs her family’s business has experienced in the last year.

“Just to put into context the points and why we make them I will give you samples from the Dromhall Hotel costs but I know all my colleagues in our industry and other industries are facing a lot of the same key challenges,” she told the Killarney Advertiser.

ELECTRICITY

The ESB bill at the Dromhall Hotel has increased by €6,000 per month. In June 2021 the hotel paid €4,820.52 but in June this year they paid €11,369.69. In July 2021 the cost of electricity at the Muckross Road venue cost €5,597.09 but that had jumped to €11,892.21 by July this year.

“This is for, more or less, the same units,” explained Ms Randles.

GAS

In the same period gas prices increased substantially too. In June 2021 she paid €3,452.80 but 12 months later her bill was €4,801.45. It was much the same story in July, in 2021 the hotel paid €3,191.11 and a year later it cost €4,467.85.

“This was more or less for the same usage of litres in 2021 and 2022,” she added.

FOOD

The cost of wholesale food into restaurants and hotels has also risen dramatically.

A simple barometer is the cost of a loaf of bread. A sliced-pan cost €0.97 a year ago – today it is €1.35.

Cooking oil has increased from €22 for a 20 litre drum to €38 in the same time period while a 25kg sack of plain flour was €16 a year ago but now costs €21.

Meats like a striploin of beef went from €12.50 per Kg to €14.50 per Kg; a chicken fillet went from €0.98 cent per fillet to €1.35 which shows prices have risen dramatically.

“All these suppliers are facing the same increase in costs so hence they too have to increase their costs. It affects us all,” she added.

FUTURE

“While our industry is currently seeing a welcome recovery in tourism, this is being boosted
significantly by a number of one-off short-term factors including high levels of pent-up demand, a
temporary increase in consumer spending post COVID and displaced business from 2020 and 2021,” she said.

“A key challenge facing our business and the industry as a whole is the escalating cost of doing
business which is having a detrimental impact across all areas of our operations.”

BUDGET

The Irish Hotel Federation is calling for a number of key measures from Government as part of Budget 2023.

They include:

1. Recruitment, Training and Development: Additional funding for hospitality recruitment and career
awareness, and targeted resources for training and skills development.

2. Tourism 9% VAT: Retention of the 9% VAT rate for tourism businesses to support cost
competitiveness in line with European competitors. The majority of Europeans have a low VAT rate
on accommodation. Increasing the VAT to 13.5% would leave us with the second highest rate in the EU.

3. Investment in Tourism Marketing and Development: Continued investment and support for tourism marketing both domestically and overseas.

4. Cost of Doing Business: Improve cost competitiveness within the economy and avoid any cost increasing measures affecting tourism businesses.

5. Sustainability: Targeted funding for a national hotel retrofitting scheme to reduce carbon footprint throughout the sector in line with the Government’s climate action goals.

6. Insurance Competition: Acceleration of work with Department of Finance to attract more insurance underwriters into the Irish insurance market.

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Grady demands Killarney traffic review

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Killarney councillor Martin Grady has called for an urgent review of traffic management across the town following severe delays along the Muckross Road during the morning rush hour.

Constituents living along Muckross Road, Woodlawn, and outer Muckross areas raised serious concerns with the local representative, reporting that motorists now face delays of over 30 minutes to travel from Flesk Bridge or Woodlawn Cross into Killarney town.


The situation is causing major disruption for parents doing school runs and commuters traveling to work every morning.


“This level of congestion is simply not acceptable,” said Cllr Grady. “I have been contacted by constituents who are experiencing significant delays every morning, with parents trying to get their children to school and people trying to commute into work being caught in traffic for prolonged periods.”


Cllr Grady urged Kerry County Council to look closely at the operation and light sequencing along the route.


“I am calling for a review of the traffic situation along the Muckross Road, including the operation and sequencing of the traffic lights and whether there are any other obstructions or traffic management issues contributing to the delays,” he said.


He stressed that the gridlock is not isolated to one approach road, but affects the entire urban area as population and traffic volumes continue to rise year on year.


“But this issue goes beyond the Muckross Road. Killarney as a whole is experiencing increasing levels of traffic congestion across the town. The people of Killarney have been suffering with traffic for far too long, and the situation is getting worse,” Cllr Grady said.


“Our population is growing and traffic volumes are increasing year on year. We need to look at the bigger picture and develop a proper traffic management plan for Killarney. We need to identify where the problems are, examine how traffic is being managed across the town and put measures in place to improve traffic flow. The current situation has gone beyond what is acceptable for residents, commuters and visitors to Killarney.”

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Killarney Pumpkin Farm returns for Halloween

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The annual event is in its sixth year and caters to people of all ages.

The farm is located in Headford; it is open every weekend for the month of October and the week of Halloween.

From pumpkin patches and cornflower mazes to witches and potions, there is something for everyone at the farm.

The eleven77 bus provides cosy comfort food and there are resident Alpacas on the farm.

Roam around the haunted cottage, enjoy storytelling with the Seanchai and explore the pretty pumpkin pixie village.

Pre-booking is essential, and tickets are available on the Killarney Pumpkin Farm’s website. It promises to be a jam-packed day of fun with the entire family.

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