Hotels and guesthouses in Kerry have welcomed the range of measures and supports announced in Budget 2021 by Ministers Paschal Donohoe and Michael McGrath.
Irish Hotels Federation (IHF) Kerry branch chair, Bernadette Randles welcomed in particular the extension of employment supports to the end of 2021 and the rates waiver scheme along with the reduction in the tourism VAT rate, which she said would help aid the recovery of the industry. She said the new COVID Restriction Support Scheme, the Tourism Business Support Scheme and funds for tourism product development, are welcome recognition of the challenges being faced by businesses.
“The extension of employment supports until the end of December 2021 is very welcome," Ms Randles said.
Challenges facing tourism
"However, we are disappointed that the rates of the EWSS scheme were not increased. This does not recognise the challenges facing tourism and hospitality businesses in retaining key staff during the difficult winter/spring months and against the backdrop of additional restrictions. We also welcome the reduction in the tourism VAT to 9%, which is the right tourism VAT rate. It is an important measure that will stimulate demand and aid the recovery of the tourism and hospitality industry. After the last recession, tourism created the most jobs nationally - 90,000 new jobs - and there is no doubt that the 9% VAT rate contributed significantly to this increased employment. Pre-COVID, our industry supported almost 270,000 livelihoods, including 15,700 jobs, and generated €592m in revenues here in Kerry. This accounts for one in 10 jobs across the country, 70% of which were outside of Dublin. Reducing the Tourism VAT will help sustain jobs and communities across Ireland.
As well as providing a stimulus in the Irish economy, the reduction will improve competitiveness as an international tourism destination, she added.
However, she explained that it should be a permanent measure, at a minimum of five years.
"Contracts with tour operators for example, which can account for over 30% of many hotels’ business, are agreed two years in advance. Before today, VAT on Irish Hotels was the second highest in Europe and higher than 30 European countries. The UK – our nearest largest market and one of our biggest competitors - for example, currently has a VAT rate of 5% so today’s reduction is an important boost to our competitiveness."
Local authority rates
"We cautiously welcome the extension of the local authority rates waiver period to December 31 2020 and we look forward to engaging further with Government if, as expected, COVID restrictions are still in place at the end of the year. While every help is welcome, the time-period should coincide with business interruption due to COVID-19 and for a minimum of 12 months. After that, payment of local authority rates should be based on reduced levels of activity due to the crisis and until the industry has recovered. Businesses cannot be expected to pay rates on historical turnover figures that do not reflect the significantly lower levels of business that hoteliers are experiencing."
Ms Randles also welcomed the announcement that the Government is to introduce a compensation scheme for businesses forced to close due to Government restrictions.
“We welcome the recognition of the enormous hardship that these businesses face, including those in the tourism sector and we look forward to seeing the full details.”
Additionally, she welcomed the €55 million allocated for a Tourism Business Support Scheme as well as the €5 million for tourism product development, highlighting the strong success of products including the Wild Atlantic Way in increasing domestic and overseas visitor numbers in recent years.
While welcoming the range of measures and supports, Ms Randles said that additional liquidity measures are still required to help fund hotels during the coming months as a result of the cash flow lost out due to COVID-19 restrictions.
“We will continue to seek an extension of the moratorium on bank term loans from six months to 12 months. Government must continue to support us on finding the way forward on this as we feel it is a missed opportunity."
Katie celebrates 20 years in business
If you enjoy what you do, sure it’s not work at all – and that has been the case for Katie Hickey who has been in business locally for two decades. For the past 20 years Katie has been successfully running Sheer Beauty which is now located at 1 Hogans Lane (Hillary’s Lane). She […]
If you enjoy what you do, sure it’s not work at all – and that has been the case for Katie Hickey who has been in business locally for two decades.
For the past 20 years Katie has been successfully running Sheer Beauty which is now located at 1 Hogans Lane (Hillary’s Lane).
She said that it was a milestone she felt she may not reach on more than one occasion after coming through a pandemic, a recession, a re-location, and three maternity leaves.
However, she said that the loyalty of her clients over the years have given her great encouragement.
“Sincere thanks to my clients past and present who, without doubt, have been the reason I kept going,” Katie said.
Originally located in Fleming’s Lane for 19 years, Katie then re-located her business to Hogan’s Lane in Norma’s Flair for Hair.
“The beauty industry has evolved so drastically over the past 20 years. For me it is keeping things simple and enjoyable. Realising a client’s needs may not be the treatment itself but the time you give to them. Through the years you get to know your clients so well and some beautiful friendships have developed. I hope my clients have gained from me what I have from them. I have so many people I would like to thank and I will personally, but without doubt my husband Andrew and my family, 20 years in business would not have been achieved.
“ She has remained loyal to the brands she has carried over the years including Lycon Waxing, Aviva Tanning, Shellac and Jessica Manicure and Pedicure.
“I was also delighted to bring on board the fabulous facial range that is Killarney Organic. Killarney has been incredibly kind to me. I’m so proud to be part of such a wonderful community. If the past 19 months have proved anything for business it is together we are stronger.”
County Board open to GAA museum proposals
By Sean Moriarty The Kerry County GAA Board said it would operate “an open door policy” for any plans to build a GAA museum in the county. There have been talks at a political level to build such a museum in Kerry with political rivals in Killarney and Tralee both pushing for it to be built […]
By Sean Moriarty
The Kerry County GAA Board said it would operate “an open door policy” for any plans to build a GAA museum in the county.
There have been talks at a political level to build such a museum in Kerry with political rivals in Killarney and Tralee both pushing for it to be built in their home town.
Before he retired from politics in April, Michael Gleeson was campaigning to build a GAA and cultural museum on the grounds of Fitzgerald Stadium.
His campaign goes back several years before the recession set in, with a €0.5 million bridging loan secured from Croke Park along with funding from Fáilte Ireland. That funding was lost with the onset of the recession before 2010.
Tim Murphy, the outgoing chairman of the Kerry County Board, has confirmed to the Killarney Advertiser that no approaches have been made to the County Board at executive level during his five year stint at the helm.
However, he said the Board would be open to such approaches provided there is sound financial planning behind the project in place.
“The first and most important aspect is the capital funding and my understanding is there needs to be Fáilte Ireland funding in place first,” he told the Killarney Advertiser. “If it gets up and running, there needs to be very clear talks with all stakeholders so everyone knows each others expectations. A museum attracts footfall, but it costs a lot of money to run. We would offer an open door policy to all proposals but funding, first from a capital point of view and then from an operational point of view, will need to be in place.”
Katie celebrates 20 years in business
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County Board open to GAA museum proposals
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