Hospitality group seeking reduction in alcohol excise tax
THE Wicklow hospitality and drinks business employs 7.235 people generating €197million in reveue for the local tourism economy according to a new report.
A new report by Drinks Industry Group of Ireland (DIGI) highlights importance of sector to national and local economies, but warns high excise tax and Brexit are grave threats to the industry.
It shows that local businesses purchase €1.8 million in agricultural outputs each year, and pay out €155.7 million in wages.
Local publican Eamon Horan who owns Horan’s Pub and Restaurant in Baltingalss said: ‘A reduction in excise tax is required to make Ireland a better value holiday destination.’
The figures are part of a new report, Ireland’s Hospitality and Drinks Sector and Your Constituency, commissioned by the Drinks Industry Group of Ireland (DIGI) and authored by Dublin City University economist Anthony Foley.
The report outlines the importance of the drinks and hospitality sector to the overall national economy, and to local economies across the country, particularly in rural Ireland.
However, Ireland’s high alcohol excise tax—the second highest in the EU—is jeopardising the future growth of hospitality and drinks businesses, including those in Wicklow, as tourists seek more affordable holiday destinations.
This is particularly the case for British tourists. 40 percent of all visitors to Ireland originate from the UK, but a slump in sterling value following the Brexit referendum has already had a significant impact. Between January and March 2017, 55,300 fewer British tourists travelled to Ireland compared Colette Coughlan from the Guinness Storehouse, Emeir O’Connell from Wicklow’s Historic Gaol and Eef Belckx. to the same period last year.
Wicklow publican Eamon Horan who is a DIGI member, said: ‘The findings of this DIGI report clearly show the huge importance of the drinks and hospitality sector to Wicklow’s economy. It supports thousands of jobs and generates millions of euros in revenue for local tourism and suppliers.
‘However, it’s also clear that the sector is in a precarious position as a result of high levels of excise tax on alcohol and the impact of Brexit. Our pub culture is a huge draw for tourists, WICKLOW was well represented at a networking event held in the Osprey Hotel in Naas which featured tourist operators from all over Ireland.
Also present were the Tourism Ireland team from mainland Europe.
At the event, the various tourism operators provided updates and news of interesting developments at their properties and visitor attractions, including Clissmann Horse Caravans, Wicklow’s Historic Gaol and Russborough House and Parklands Tourism Ireland outlined details of its extensive promotional programme which is under way throughout 2017, to grow tourism from Mainland Europe.
Finola O’Mahony, Tourism Ireland’s Head of Europe, said: ‘We were delighted to have but with fewer British tourists visiting Ireland due to reduced spending power, our pubs, hotels, restaurants and off-licences will do less business. We must take action to avoid job losses, and that requires a reduction in excise tax to make Ireland a better value holiday destination.’
The report was launched last week to mark the beginning of Support Your Local 2017, a DIGI campaign that seeks to highlight the economic, cultural and social contributions of local pubs, and calls for a reduction in Ireland’s alcohol excise tax. the chance to meet with representatives of the tourism industry and to hear directly about their latest developments and how their business is doing.
It also afforded us the opportunity to share details of the busy programme of promotions which Tourism Ireland is undertaking in Mainland Europe, to build on the success of 2016 and continue to grow overseas visitor numbers to the island of Ireland in 2017.’
Mainland Europe is the largest source of holidaymakers coming to Ireland, delivering 34 per cent (€1.8 billion) of all overseas revenue and approximately a third of all overseas visitors (3.3 million) in 2016. Markets like France, Germany and Spain continue to prosper.