Tourism to bear brunt of COVID’s €1billion impact

KERRY’S economy will suffer a €1billion hit this year as a result of the Coronavirus, with the tourism and hospitality sector to take the brunt of the impact according to a new economic report compiled by Kerry County Council.

The report, a comprehensive assessment of the anticipated economic impact of the COVID-19 pandemic on County Kerry, was published by Kerry County Council on Friday.

The analysis, compiled by an independent economist, James Dorgan, and with input from Kerry Tourism Industry Federation, IT Tralee, Kerry Chambers Network and the wider business sector in the county, identifies major challenges posed by the current public health emergency and will be used to guide local actions and policies to help drive the economic recovery in Kerry in the months and years ahead.

Drawing on a wide range of economic, demographic and employment research, the report found that the current crisis is having, and will continue to have, significant economic consequences in Kerry, particularly given its exposure in the tourism sector.

According to the study Kerry’s economy is set for a loss of €1billion in income this year alone, with almost 40 per cent of that loss being borne by the tourism industry.

The study found that tourism and related industries will see a €400million fall in income this year, a drop of 70 per cent, and the equivalent of nearly 10 per cent of the total estimated household incomes in Kerry.

Kerry has the highest relative dependence on tourism income per capita by county.

Of the estimated 69,000 people in the labour force in the county, the largest employment sector is in the retail and wholesale trade, followed by hotels and restaurants,

When the study was conducted, 36 per cent Kerry’s working labour force were in receipt of the Government Pandemic Unemployment Payment.

When added to the numbers on the Wage Subsidy Scheme and the Live Register, this equates to two thirds of ‘at work’ residents in the county being in receipt of State emergency payments.

The detailed research has also been supplemented by surveys of businesses undertaken by Kerry County Council and the Kerry Tourism Industry Federation recently to gauge the expected impact across many economic sectors.

These surveys found that half of the businesses in the county are anticipating a decline of between 50 per cent and 75 per cent in their incomes over the next 12 months.

Chairman of Kerry County Council, Cllr Niall Kelleher, said the report is a critical piece of research which will inform initiatives that will support the reopening of the economy locally.

“There is no doubting the economic impact of COVID-19 in Kerry, but it is vital that we quantify that in this way. The figures are stark and indicate the challenge we all face to restore economic activity in the county... having this data will help us to target supports, investment and promotional initiatives to where they are needed most,’ he said.

Chief Executive of Kerry County Council, Moira Murrell said the report is being considered closely by council management and elected members.

“It will also shape the continuing discussion of a new Business Leaders and Interests Group in the county and Kerry County Council’s own Economic Recovery Team, and will guide a series of actions and initiatives which will be rolled over the coming weeks and months,” she said.

“This research will be made available to all sectors in the economy to help guide their approaches. A new group including business leaders and local agencies has already begun the discussion on the initiatives which will be taken in the coming weeks and months to deal with the impact of the crisis on local businesses as well as leading out on the marketing and promotion of the county as normal economic activity resumes,” said Ms Murrell.

“We have already activated a series of practical supports for businesses in the county through the Local Enterprise Office and our Economic Development Unit. There is also important work being done in the tourism sector and other industries which complements that.

“This research which we are publishing will inform efforts to reopen the Kerry economy into the future,’ Ms Murrell said.