Hotels in need of supports
HOTEL and guesthouse owners in Wicklow and across the country want the Government to introduce urgent measures to help mitigate the impact of Covid-19 on business.
Over the past few weeks, the industry has been decimated with over 85 per cent of hotels closed nationally and the majority of the 260,000 employees laid off or on short-time.
Gerard O’Brien, Chair of the Wicklow branch of the Irish Hotels Federation (IHF) and Director at the Woodenbridge Hotel and Spa, has warned that any delays in implementing measures will result in a greater threat to the tourism and hospitality industry.
‘ The health and wellbeing of all citizens is intertwined with the economy, and people will need livelihoods after the crisis is over. Tourism supports 11 per cent of total employment nationally,’ said Mr O’Brien.
‘It is important to note that 70 per cent of these jobs are outside of Dublin which highlights its vital role in spreading employment opportunities and prosperity across the entire country. Here in Wicklow tourism supported 13,900 jobs and generated €135m in local revenues before this crisis. Irish tourism has been a key driver of job growth over the last decade, and it is essential that our industry remains to the fore of the national economic agenda, including in negotiations on the Framework for Government. Whilst discussions are ongoing, further measures are now urgently required to protect tourism livelihoods and address the enormous challenges we face. These challenges are existential for many tourism businesses and of a significantly greater scale than anything experienced during the last financial crisis.’
The IHF believe that the introduction of a number of measures will help businesses to start planning for their recovery. Local Authority rates and water charges should be waived for a minimum period of twelve months. The IHF also requests that tourism VAT rates should be reduced to zero for a minimum of twelve months and until the industry has recovered, then restored to 9 per cent on a permanent basis.
Mr O’Brien added: ‘Government controlled costs such as local authority rates, VAT and employer’s PRSI are having an enormously negative impact on viability scenarios during the recovery period. We recognise that the Government is being forced to increase the level of national debt to fund the health crisis and must protect the exchequer to fund ongoing services.
‘However, these urgent measures are required now to help our industry recover and play its part in ensuring that the Irish economy will be strong enough to service post COVID-19 national debt.’