Relentless increases in costs — including energy, labour, insurance, supplies and food — placed immense pressure on the hotel sector, Irish Hotels Federation president Michael Magner has told the Oireachtas.
As the largest and most regionally dispersed indigenous employer in Ireland, tourism and hospitality supported over 270,000 livelihoods – representing one in every ten jobs across the country.
Approximately 70pc of tourism jobs located outside of Dublin, and 69,000 employed directly by hotels and guesthouses.
Tourism generated over €10bn in revenues annually and over €2.9bn in taxes for the exchequer.
Michael Magner shared: “On behalf of the Irish Hotels Federation, thank you for the opportunity to address the Committee today. In addition to providing local employment, our hotels and guesthouses buy local services, source locally produced food, and provide an essential economic infrastructure in support of local business and the communities in which we operate.”
This does not come about by accident. Government policy is a determining factor in our success as is the outstanding support provided by our tourism agencies, Fáilte Ireland and Tourism Ireland. Their work driving tourism development, supporting businesses and promoting and marketing Ireland has been instrumental in building and maintaining Ireland’s reputation as a world-class destination.”
Looking ahead, we are confident that tourism can continue to grow, provided it remains central to Government policy decision-making. And this is why, for example, the Government’s recent decision to reduce the rate of VAT on food services in the Budget is a welcome and timely intervention. It will offer much-needed relief to struggling food service businesses the length and breadth of the country in the face of serious cost challenges, particularly given their labour-intensive nature.”
“Cost challenges within the Irish economy are, of course, a serious concern for our entire industry. We are currently one of the most expensive places in Europe in which to live and do businesses.”
“These rising costs threaten both our competitiveness and the viability of hospitality businesses, undermining Ireland’s appeal as a destination. In addition to cost challenges, our sector is navigating difficult headwinds in the form of declining tourism revenues, economic instability in key source markets and growing international political uncertainty. As we look toward 2026, these factors present real risks to our industry and the ability of hospitality operators to remain viable.”
It is therefore essential that Irish tourism and hospitality remain at the heart of our national economic policy, ensuring the right conditions are created to support the long-term, sustainable development of our industry.”
“In this regard, the decision earlier this year to move the tourism portfolio to within a reconfigured Department of Enterprise, Tourism and Employment has been a very welcome development, bringing greater economic focus and a more coherent and coordinated approach to policy planning for our sector.”
“Tourism is central to our country’s economic and social well-being. As Ireland looks to strengthen competitiveness, productivity and sustainability across our enterprise base, our tourism and hospitality sector stands ready to play its role as a major engine of economic prosperity.”
“We look forward to engaging further with the Committee on these important issues today and into the future.”
