The head of the local branch of the hotelier’s association has said a series of increased operating costs must be tackled by Government to save jobs in the industry.
Carolynne Murray, Chair of the Donegal Branch of the Irish Hotels Federation, was speaking after meeting a number of Donegal TDs and Senators.
Ms Murray, the CEO of the Shandon Hotel at Marble Hill, Dunfanaghy, led a delegation of hoteliers from across Donegal.
The meeting was held to discuss the key challenges facing Irish tourism and the measures required to ensure the successful long-term development of Ireland’s largest indigenous industry.
The industry supports over 270,000 livelihoods – including 8,000 in Donegal.
A key concern for hotels and guesthouses across Donegal in the run up to Budget 2027 is the exceptionally high operating costs that tourism and hospitality businesses are grappling with, putting Ireland’s competitiveness as a tourism destination at risk.
This is being driven to a large extent by successive public policies which have significantly increased operating costs, claim hotel industry representatives.
Ms Murray said “Tourism and hospitality businesses are struggling to deal with unsustainable operating costs that are putting enormous pressure on margins.
“This is a serious challenge for our sector, including the local tourism economy here in Donegal.
“It is essential that Budget 2027 delivers targeted measures as part of efforts to offset some of these Government-controlled costs and enhance the cost competitiveness and viability of our sector.”
Outlining the key policy priorities for the industry, Ms Murray stressed the importance of decisive action in the upcoming Budget:
Key policy priorities for Budget 2027
A meaningful reduction in Employers’ PRSI for labour-intensive hospitality businesses
Measures to tackle excessive business costs, including energy network charges
Support for the development of hotel staff accommodation
Enhanced resources for hotel sustainability initiatives
Increased funding for Fáilte Ireland and Tourism Ireland to deliver tourism growth
Additional investment in training and skills, leveraging untapped surpluses in the National Training Fund
Measures to support increased hotel capacity
She added that by having these measures in place would go a long way towards ensuring the long-term success of Ireland’s tourism and hospitality industry, including local businesses throughout Donegal.
Tourism at a Glance
As Ireland’s largest indigenous employer, a vibrant and thriving tourism and hospitality industry is vital for the country’s economic well-being:
270,000 livelihoods supported by Irish tourism & hospitality
8,000 tourism jobs throughout Donegal
69,000 people directly employed by Irish hotels & guesthouses
Regional employment – some 70% of tourism & hospitality jobs are outside of Dublin
€10bn in revenue generated by tourism annually for the economy
Over €2.9bn in taxes generated annually for the State by tourism-related activity