Measures are needed to try combat tourism crisis
IRISH HOTELS FEDERATION SAY DELAYS IN PROVIDING SUPPORT MEASURES COULD HAVE SERIOUS IMPLICATIONS FOR HOTELS AND GUEST HOUSES
HOTEL and guesthouse owners in Wicklow and across the country are calling on the Government to introduce measures that will tackle the crisis facing many businesses due to the COVID-19 pandemic.
Welcoming the positive trend in cases this week, Gerard O’Brien, Chair of the Wicklow branch of the IHF, acknowledged the great progress being made by the Government, the Chief Medical Officer, health professionals and society in general in suppressing the disease.
Mr O’Brien from the Woodenbridge Hotel thinks now is the time to address the need for people to have livelihoods after the pandemic. He is calling on the Government to urgently seek assistance from the proposed EU Recovery Fund being set up to combat the economic slump caused by the coronavirus pandemic, which is forecast to be the worst in a century throughout Europe.
‘The June Bank Holiday traditionally marks the start of the holiday season, yet thousands of tourism businesses across the country remain closed due to the pandemic,’ said Mr O’Brien.
‘That includes 90 per cent of hotels, and the majority of the industry’s 260,000 employees are laid off. 70 per cent of tourism jobs are based outside 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. Further delays in providing support measures could have devastating implications, particularly for rural Ireland, that may take decades to recover.’
He added: ‘While the various business and employment supports that have been introduced already are very welcome, they do not go far enough. Some industries, like tourism, have been far more severely affected and face a more challenging road to recovery and this is not being adequately recognised. Tourism proved itself to be a powerful engine for economic growth following the last recession, creating some 90,000 new jobs. With the right supports now, it can be again but time is of the essence.’
While the IHF accepts that the closure of the tourism and hospitality sector during the Covid-19 pandemic was the correct decision, they feel that some sort of compensation should be made available.
Mr O’Brien said: ‘When hotels re-open in July, they will be reliant on the domestic market for business. While every guest will be very welcome, the reality is that home grown tourism will not recoup the significant financial loss to the economy of overseas tourism, which last year accounted for over €7 billion in revenue compared to less than €2bn from the domestic market. When the time is right, the overseas market will re-open again for Ireland. In the meantime, specific supports are needed to safeguard an industry that can play a vital role in the country’s economic recovery and rural Ireland in particular.’
Mr O’Brien also warned against any delay in seeking funds from the EU, saying swift action by other countries will put Ireland at a competitive disadvantage.
He said: ‘One of the lessons learnt from the financial crisis was the requirement to act extremely quickly so that large parts of the economy are not obliterated, with long-term consequences. Tourism is highly competitive. Many major markets with which Ireland competes for tourists, such as France have already announced substantial support packages for their tourism industries, with further supports likely through EU funding. These supports are giving Ireland’s competitors much needed certainty to plan their recovery.’
The IHF is calling on the Government to implement liquidity measures tailored to the specific challenges facing tourism businesses to help them survive and restart. They also seek a reduction in tourism VAT on a permanent basis to assist recovery and secure a viable and sustainable future for tourism.
Calls are also being made for the continuation of the job subsidy scheme for tourism and hospitality during the crisis, as well as for an extension of the Local Authority three-month waiver for rates and charges for a minimum of twelve months.
Mr O’Brien warned: ‘All too often the economic and social contribution of tourism is overlooked. If the Government fails to take action now, the implications could be far reaching - from losses in tax revenue for the exchequer to the long-term impact of this pandemic on rural Ireland.’