Hoteliers welcome appointment of Longford-Westmeath TD Peter Burke as Minister for Enterprise, Trade and Employment

Barry Kennedy, Chair of the Midlands Branch of the Irish Hotels Federation (IHF) has welcomed the appointment of Longford-Westmeath TD Peter Burke as Minister for Enterprise, Trade and Employment.

Mr Burke’s appointment comes at a critical junction for Irish tourism and hospitality, with local businesses facing enormous pressure in relation to escalating operating costs.

Mr Kennedy says: “On behalf of local hotels and guesthouses, I would like to congratulate Peter Burke on his appointment as Minister for Enterprise. He has been a strong supporter of Irish tourism throughout his career, and we look forward to continuing to work with him and his colleagues in Government to address the challenges now facing our industry, including in relation to business costs.”

Minister for Enterprise, Trade and Employment Peter Burke TD

“A decisive Government response is now required to offset the impact of policy-driven cost increases and to put our industry on a more stable footing. This should include a review of the blanket increase in tourism VAT given the enormous impact this decision has had on food-related services, a widening of the existing business supports scheme and a restructuring of Employers’ PRSI.

“Ireland’s very high cost of doing business is particularly acute for our industry given its labour-intensive nature. In hotels, for example, labour costs are 35-45% of turnover and are continuing to rise as a result of Government-controlled employment-related measures coming into effect in close succession.

“This is at a time when hospitality businesses are forecasting worrying increases in operating costs this year, significantly outpacing inflation within the broader economy. Meanwhile we are dealing with the effects of a sharp rise in interest rates and the recent VAT increase, all of which significantly reduce profitability and erode competitiveness.”

As Ireland’s largest indigenous and regional employer, tourism and hospitality plays a vital role within our economy, supporting some 270,000 livelihoods the length and breadth of the country, including over 24,000 jobs across the Midlands. It is therefore essential that the right conditions are in place to secure the long-term, sustainable development of our industry.