Hotel and guesthouse owners in Cavan and Monaghan met local political representatives recently to discuss the challenges facing the tourism sector as 2023 approaches. Businesses throughout the region remain in recovery mode, having survived the worst economic shock in recent memory.
However, skyrocketing energy costs and an expected global economic downturn in key markets next year, continue to create further challenges for those working in the sector.
Ross Mealiff, Chair of the Mourne Boyne Lakes of the Irish Hotels Federation (IHF) told local business people on the day that everything possible is being done to protect and secure tourism livelihoods and support the long-term sustainable development of Ireland's wider tourism industry.
He added that in Cavan and Monaghan tourism accounts for 5,100jobs, and €138m of revenue annually; and businesses understood the value and importance of tourism to their local communities.
"Over recent months, unforeseen challenges have arisen including the continued war in Ukraine; the increasing risk of a global downturn; escalating business costs; and ongoing energy crisis - which in particular is causing real concern for hotels and guesthouses here in Cavan and Monaghan.
"Nationally we are seeing hotels reporting increases of upwards of 300% in energy bills compared with 2019 levels. This is unsustainable and will inevitably lead to difficulties in relation to future viability of some businesses in the tourism sector."
"The current 9% rate is the right rate for Irish tourism in a European context. Increasing the tourism VAT rate by half to 13.5% in March 2023 would make Ireland's tourism VAT rate the third highest in Europe, far above other European countries where they take tourism seriously like Portugal (6%), Malta (7%), and The Netherlands (9%).
"Tourism is an important part of the local economy here in Cavan and Monaghan and the continued recovery of tourism and hospitality must be to the fore of Government economic policy as we seek to support these businesses throughout these continued uncertain times," Mr Mealiff said.
