Longford businesses told more challenges ahead for Ireland’s Experience Economy

Encompassing a broad range of hospitality, tourism and travel, food drink, entertainment, and retail businesses, as well as organisations in the arts, cultural, sporting and heritage sectors, the Experience Economy of Ireland and its extensive broader supply chain was abruptly stopped in its tracks by the sudden arrival of Covid-19 in 2020.

While some elements were helpless in the face of the various lockdowns, relying heavily on the Government supports to carry them through, the resilience and innovation on display was exceptional as restaurants became take-aways, food and drink was served outdoors, and retailers, entertainment venues and others pivoted to the online environment to find their customers and audiences.

While the difficulties wrought by the pandemic cannot easily be set aside, in 2022 we’ve witnessed an extraordinary comeback as the tourists return and our citizens resume their pre-pandemic lives. That is not to diminish in any way the damage that was inflicted on this important sector; rather it is to salute experience economy businesses, large and small, across Ireland who have revived, renewed and refreshed their offering so that Ireland can resume its global reputation as a country that offers legendary hospitality and great experiences.

The benefits of this industry are seen across rural and urban environments, extending to the most remote locations, and bringing vibrancy back to, and providing jobs in marginalised communities. Prior to Covid, Ireland’s Experience Economy spent almost €4 billion a year on purchases of goods and services, including over €1 billion in purchases from domestic food and drink suppliers. Over 330,000 people were either employed by or supported directly by demand from the industry, while comprising of €4.5 billion in wages, salaries and employment taxes every year.

The sector finds itself once again at the coalface of a new set of economic challenges, such as rising inflation, energy costs and interest rates. This time round, Government is stepping in to try to protect business from the worst impacts of rising energy bills, but it will not be able to prevent the rising costs in other areas of the economy.

We need to see ambitious financial supports for the Experience Economy, such as investments in education and skills in the sector, investment in our city centres to enhance their vibrancy, investment in low carbon initiatives, and measures such as making the 9% VAT rate permanent. While some of these asks have been realised there is more work to do to push for more funding and supports.
Supporting the Experience Economy will be key to helping to secure this vital industry’s recovery and sustain them so that they can play their vital role in our economy in 2023.

To discover more, head to www.ibec.ie/ yourexperienceeconomy