The Irish Hotels Federation (IHF) is urging political parties to implement measures to address the commercial crisis in the tourism and hospitality sector, the largest indigenous employer in Ireland.
Key challenges include unsustainable cost increases due to government policies, with a call for a reinstatement of the 9% VAT rate for food service businesses to mitigate these pressures.
The IHF’s manifesto highlights ten policy priorities, including a review of tourism policy, enhancement of regional air access, increased funding for skills training, and greater investment in tourism marketing.
- A dedicated Department for Tourism and Hospitality is proposed to ensure strategic support and growth within the industry, along with measures for sustainability and improved access to finance.
- Urgent Review of the Government’s Tourism Policy Approach – change in direction required to put the tourism and hospitality industry on a stable footing before it is too late.
- 9% VAT for food services – reinstatement of the 9% rate of VAT for hospitality food service businesses, which are struggling to deal with exceptionally high operating costs.
- Cost of doing business – targeted measures to improve the overall cost competitiveness within the economy over the next five years
- Air Access – removing the passenger cap for Dublin Airport
- coupled with a wider focus on enhancing regional air access and connectivity.
- Training & Skills – increased funding for hospitality training and skills development through the National Training Fund.
- Tourism Marketing & Development – significant increase in investment in tourism marketing and development to support the recovery and long-term growth
- Sustainability – targeted funding for a national hotel retrofitting scheme to reduce carbon footprint throughout the sector in line with Ireland’s climate action goals.
- Access to Finance – full review of State-supported financing solutions for business development should be carried out to identify ways to further
- increase access to finance.
- Tips and Gratuities – tax exemption for tips and gratuities paid to employees.
- Dedicated Department for Tourism and Hospitality – a dedicated Department of Tourism & Hospitality with a seat at the cabinet to maximise growth and employment potential.
