Louth hoteliers seek government measures to tackle high cost of doing business
Hoteliers met with TDs and Senators to discuss the key challenges facing Irish tourism and seeking government help to tackle high cost of business
Hoteliers met with TDs and Senators recently, to discuss the key challenges facing Irish tourism and the measures required to ensure the successful long-term development of Ireland’s largest indigenous industry, supporting over 270,000 livelihoods – including 3,000 in Louth.
A key concern for hotels and guesthouses across Louth in the run up to Budget 2027 is the exceptionally high operating costs that tourism and hospitality businesses are grappling with, putting Ireland's competitiveness as a tourism destination at risk. This is being driven to a large extent by successive public policies which have significantly increased operating costs.
James McKenna, Chair of the Mourne, Boyne and Lakes Branch of the Irish Hotels Federation says: “Tourism and hospitality businesses are struggling to deal with unsustainable operating costs that are putting enormous pressure on margins.
“This is a serious challenge for our sector, including the local tourism economy here in Louth It is essential that Budget 2027 delivers targeted measures as part of efforts to offset some of these Government-controlled costs and enhance the cost competitiveness and viability of our sector.”
Outlining the key policy priorities for the industry, Mr McKenna stressed the importance of decisive action in the upcoming Budget:
Key policy priorities for Budget 2027
- A meaningful reduction in Employers’ PRSI for labour-intensive hospitality businesses
- Measures to tackle excessive business costs, including energy network charges
- Support for the development of hotel staff accommodation
- Enhanced resources for hotel sustainability initiatives
- Increased funding for Fáilte Ireland and Tourism Ireland to deliver tourism growth
- Additional investment in training and skills, leveraging untapped surpluses in the National Training Fund
- Measures to support increased hotel capacity
Irish Hotels Federation said that having these measures in place would go a long way towards ensuring the long-term success of Ireland’s tourism and hospitality industry, including local businesses throughout Louth.
As Ireland’s largest indigenous employer, Irish Hotels Federation added that a vibrant and thriving tourism and hospitality industry is vital for the country’s economic well-being, citing the following figures:
- 270,000 livelihoods supported by Irish tourism & hospitality
- 3,000 tourism jobs throughout Louth
- 69,000 people directly employed by Irish hotels & guesthouses
- Regional employment – some 70% of tourism & hospitality jobs are outside of Dublin
- €10bn in revenue generated by tourism annually for the economy
- Over €2.9bn in taxes generated annually for the State by tourism-related activity