‘Significant long-term benefits’ – IHF welcomes cost of business advisory forum report

Report targets energy, insurance, planning, water and legal costs
Energy is second-highest hotel cost after payroll
CRU to consider business affordability in network plans
Water tariffs impact on tourism to be independently assessed
IHF supports recommendations and seeks timely implementation

The Irish Hotels Federation has welcomed the publication of the final report of the Cost of Business Advisory Forum, which was established by Minister for Tourism Peter Burke.

The report has set out wide-ranging recommendations to reduce the cost and complexity of doing business, targeting energy costs, insurance, planning, water services, legal costs, tax administration and banking. The IHF has confirmed that energy costs represent the second-highest expense for hotels after payroll, making the proposed measures particularly significant.

The report has recommended that the Commission for Regulation of Utilities takes account of business affordability when formulating network investment plans. It has also called for an assessment of the scale and impact of energy network pass-through costs, which typically account for over 40pc of hotels’ electricity bills. Other welcome proposals have included targeted measures aimed at reducing insurance costs, tackling planning application backlogs and addressing excessive regulatory burden. The report has further recommended an independent assessment of the impact of water tariffs on business, recognising that tourism and hospitality are disproportionately affected.

Paul Gallagher, IHF Chief Executive, shared: “We welcome the Government’s commitment to enhancing cost competitiveness within the economy and removing barriers to growth. Today’s report is an important step toward addressing the enormous cost challenges facing businesses, including hotels and guesthouses.”

“If implemented in a timely and decisive manner, the practical and targeted measures outlined would provide significant long-term benefits for our sector and the wider tourism industry. We strongly support these recommendations and look forward to continuing to work closely with the Government to ensure the right conditions are in place to support the long-term, sustainable development of our sector.”