Nine of out ten hotels now set to open doors

AFTER months of uncertainty, the majority of hoteliers across the county are now planning to open for business by mid July.

While a large number of hotel operators had indicated they may stay closed until the 2021 season, Government moves to end the lock-down have encouraged many to revise their plans.

According to a new survey carried out by the Irish Hotels Federation, almost nine in 10 hoteliers across the country are now preparing to reopen for guests by mid-July.

The survey of over 300 hoteliers – including several prominent Kerry hotel operators – was carried out following the government’s decision to bring forward the reopening date of hotels to June 29, and the publication of new operational guidelines by Fáilte Ireland.

IHF CEO Tim Fenn said it was encouraging to see that 87 per cent of hotels now intend to reopen in the next month, but he cautioned that the months ahead will be difficult.

“We face a serious challenge however in terms of making up ground due to lost overseas business,” he said.

“For the peak summer month of August, members project an average occupancy of 38 per cent this year compared with an average occupancy of 90 per cent for the same month last year – representing an enormous drop in projected business levels,” said Mr Fenn.

Hoteliers cited the wage subsidy scheme and a reduced tourism VAT rate as the two most important supports necessary for the sector.

“The Temporary Wage Subsidy Scheme is helping businesses to keep their teams together during these financially challenging times. It should be continued for as long as the impact of COVID-19 restrictions remain, and it should be extended to cover seasonal employees,” said Mr Fenn.

“Reducing the tourism VAT rate on a permanent basis would assist recovery and secure a viable and sustainable future for tourism. International competitiveness is an urgent issue for Irish tourism with hotel VAT now higher than 28 European countries we compete with,” he said.