Thousands of Galway tourism jobs under threat

More than 20,000 workers in the tourism industry in Galway are at risk of permanently losing their jobs without immediate Government intervention, hoteliers have warned.

Galway hoteliers have proposed that local authority commercial rates and water charges on hotels and guesthouses be waived for 12 months, and for VAT to be cut to zero percent for at least a year, as part of a package of measures to save hospitality businesses.

The industry estimates that 85% of hotels nationally are closed, and most of the 260,000 employees temporarily out of work.

In Galway, tourism supported 20,900 jobs and generated €910m in local revenues before this crisis, according to John Ryan, Chair of the Galway branch of the Irish Hotels Federation.

Mr Ryan, owner of the Ardilaun Hotel in Taylor’s Hill, said hoteliers appreciate that the country is experiencing the greatest health crisis in living memory and that significant resources are being committed to address the overriding issue of public health.

However, he warned delays in implementing measures to save tourism will increase the risks.

As well as a twelve-month ‘holiday’ for hoteliers for bills such as water charges and commercial rates, the IHF has asked that VAT is reduced to zero for 12 months at least until the industry has recovered.

They have also called for measures to assist cash flow, business interruption grants and supports for seasonal workers who do not qualify for Covid-19 payments.

Mr Ryan pointed out that many hotels were willing to provide assistance to essential services where required by the HSE and other Government departments.

He said that mitigating the impact of Covid-19 must go hand-in-hand with ensuring that Irish people have a viable economy to return to in the coming months.

“The health and wellbeing of all citizens is intertwined with the economy, and people will need livelihoods after the crisis is over. Tourism supports 11% of total employment nationally, and 70% of these jobs are outside of Dublin which highlights its vital role in spreading employment opportunities and prosperity across the entire country,” he said.

“Irish tourism has been a key driver of job growth over the last decade, and it is essential that our industry remains to the fore of the national economic agenda, including in negotiations on the Framework for Government.

“Whilst discussions are ongoing, further measures are now urgently required to protect tourism livelihoods and address the enormous challenges we face.

“These challenges are existential for many tourism businesses and of a significantly greater scale than anything experienced during the last financial crisis.”

Mr Ryan said most hotels and guesthouses are closed, but they want an urgent response from Government so that they are in a position to resume once restrictions are lifted.

“Tourism and hospitality businesses are now working to secure the necessary funds to survive and restart,” he said.

“That process involves making predictions around the period of closure and the length of time it will take for various categories of revenue to recover. Government controlled costs such as local authority rates, VAT and employer’s PRSI are having an enormously negative impact on viability scenarios during the recovery period.

“We recognise that the Government is being forced to increase the level of national debt to fund the health crisis and must protect the exchequer to fund ongoing services.

“However, these urgent measures are required now to help our industry recover and play its part in ensuring that the Irish economy will be strong enough to service post Covid-19 national debt,” Mr Ryan added.