Dear candidate
I am writing on behalf of local hotels and guesthouses in Galway to seek your support for pro-tourism policies in advance of the upcoming local elections.
A flourishing tourism and hospitality industry is vital for Ireland’s prosperity and economic well-being, both nationally and at a local level. Our industry plays an essential role in delivering balanced regional growth and makes a major economic contribution to Galway. As the country’s largest indigenous employer, tourism enterprises support over 270,000 livelihoods in every town and county, including some 22,000 in Galway.
While we have seen a welcome recovery in recent years, tourism and hospitality businesses are now facing a significant number of pressing challenges with implications for the longer-term sustainable development of our industry. These include the exceptionally high cost of doing business, pressures on consumer finances, skills shortages and an uncertain outlook for key tourism markets.
Local Authorities have an essential role to play in supporting our local tourism economy by helping to ensure the right conditions are in place to sustain further recovery. It is therefore of the utmost importance that elected Councillors do everything in their power to make sure that tourism is at the top of the agenda while working closely with local tourism stakeholders to support growth and sustain local employment.
As a candidate in the 2024 local elections, I would urge you to support our local tourism policy priorities which are outlined below:
— Greater collaboration with the tourism sector
It is vital that local authorities support greater development of tourism at a local level, working closely and collaboratively with state agencies and industry bodies in delivering regional tourism initiatives and helping tourism enterprises to diversify and attract visitors all year round.
— Support for community-based tourism.
Significant untapped potential exists to support tourism initiatives driven by local community groups, including events that will deepen links with the diaspora. Local authorities have an important role to play by working more closely with community organisations to help create compelling reasons to visit, including during the off-peak tourism season.
— Renewed focus on local government efficiencies
There must be a greater focus on efficiencies and cost savings in the delivery of local government services, and this must be reflected in reduced local authority rates. This is of critical importance given the serious competitiveness issues businesses are facing with spiralling costs of doing business.
— Availability of accommodation
A greater focus is required to address the shortage of housing accommodation which is having a serious impact on the ability of businesses and tourism enterprises to attract employees.
— Reduction in tourism VAT - Given the importance of tourism to our local economy here in Galway, I would also ask for your support of tourism-friendly policies at a national level, including in relation to the cost of doing business. This is having enormous implications for tourism and hospitality businesses at a time when they are grappling with the effects of last September’s VAT increase, which has eroded competitiveness. I would therefore urge your support for a review of this decision by Government and, at a minimum, a reduction in the rate of VAT to 9% for food-related services, where margins are under tremendous pressure.
I would also urge you to encourage debate on the importance of putting tourism at the top of our local economic development agenda and raise this as an issue for discussion in the elections.
Wishing you every success in your election campaign.
Yours sincerely,
Padraig Nolan
Chair, IHF Galway Branch
