Wednesday, 9th December 2009

HOTELIERS WELCOME DECISIVE MEASURES TO RESTORE PUBLIC FINANCES &
ACKNOWLEDGEMENT OF TOURISM

Budget 2010 - Reasonable and Realistic Measures says hotels chief

• Strong and credible steps taken toward restoring the public finances
• Success of hospitality sector reliant on the stability of the overall economy
• Discounted rail travel for all senior citizens from abroad
• Maintaining tourism marketing funding welcomed
• Plan to tackle local authority inefficiencies heartening
• Restoring employment throughout the economy a key priority

Commenting on Budget 2010, Matthew Ryan, President, Irish Hotels Federation (IHF) today welcomed the strong and decisive action taken by the Minister for Finance and the Government, towards restoring the public finances. Mr Ryan states, “The measures announced today are a significant and welcome step on the long path to public financial correction which is essential to steer us toward a return to growth in our economy.  We particularly welcome the acknowledgement by Government of the important role of tourism in the economy.  We welcome measures including maintaining funding in the level of tourism marketing, a new voucher scheme to enable discounted travel for senior citizens from abroad and a reduction in excise duty on alcohol products which will assist our sector going forward.  Overall, the budget represents a decisive approach to getting the country back on its feet and restoring confidence in the economy both nationally and internationally.”

Overseas Over 66s Reduced Travel measure:

The IHF particularly acknowledges the Government’s appreciation of the importance of tourism in Budget 2010. It welcomes the Government’s creative response to expanding Ireland’s tourism attractiveness by providing overseas citizens over 66 years of age with vouchers for reduced travel costs on rail services within the country.

“This voucher scheme offering discounts is a great step in the right direction. It will provide a major boost to Ireland’s appeal to this lucrative market abroad – some 80 million senior citizens in the EU alone. This initiative, in combination with low cost access fares to Ireland and the fantastic value packages available in Irish hotels and guesthouses, will strengthen our promotional assets.  Our hope is that the scheme is meaningful, effective and easy to access for the target market. In the UK alone, there is a market of 9 million over 66s who have the time, discretionary income and inclination to travel. With the right scheme, this could be a great boost to reinvigorate our largest tourism market – which is currently in decline,” says Mr Ryan.

Tourism Funding:

The IHF specifically welcomes the Government’s 2% increase to €155m in its tourism services budget and in particular the provision of €44.25m for tourism marketing which will be used to promote Ireland as a destination both internationally and domestically.  With overseas trips to Ireland down almost 14% in 2009, a key objective for 2010 is to regain lost ground, particularly in the British market.  In terms of business tourism, the IHF calls for greater priority to be given toward attracting new business and conference visitors to derive maximum benefit from the availability of the national conference centre when it opens next September.  The tourism product development fund of €22 million is also an important investment to reinvigorate tourism attractions throughout the country.

Efficiency review of Local Authorities: 

The IHF states that enormous inefficiencies exist among local authorities across the country and this is having a disastrous, knock-on impact on rates levied against businesses. The Government’s decision to tackle inherent inefficiencies is a welcome development however; there is an urgent need to address the inequities on the rates and charges being levied on the hotel and guesthouse sector.

“Exorbitant rates are having a detrimental impact on the viability of hotels and guesthouses which are struggling to survive. Local authorities throughout the country as a matter of urgency need to exercise their powers to establish emergency waiver schemes in respect of rates payable by the seriously wounded hotel sector. Our call for an emergency waiver is backed up by our experience in South County Dublin, one of only 88 Local Rating Authority areas in which a revaluation has actually been carried out.  There, the recent revision of rateable valuations resulted in an average reduction of over 30 per cent in the rates liabilities of hotels,” says Mr Ryan.

Employment Support Measures:

The IHF welcomes the recent announcement by An Tánaiste, to open up the Employment Subsidy Scheme to companies from all sectors of the economy, including the tourism sector. The decision recognises the importance of tourism as a major component of the enterprise sector and supports hotels and guesthouses across the country in prioritising employment and staff retention within the sector. The IHF states that hotels and guesthouses are important economic drivers employing over 60,000 people throughout every village, town, city and county.

“The success of our Ireland’s hospitality industry is very much reliant on the stability of the overall economy. We must now begin to devote our creativity and energy to the more difficult problem of restoring high levels of employment and economic growth.”

Taxation on Alcohol:

The IHF welcomes the Government’s decision to reduce excise duty on alcohol products, describing it as much needed measures to assist competitiveness and address the imbalance that now exists between Ireland and the UK.

ENDS

FOR INFORMATION:

Siobhan Molloy / Eoin Quinn                  Tel: 01 6760168

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