Hoteliers from across the city and county recently met with TDs and Senators 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, supporting over 270,000 livelihoods – including 22,000 in Galway.
A key concern for hotels and guesthouses across Galway 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.
Padraig Nolan, Chair of the Galway Branch of the Irish Hotels Federation 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 Galway. 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, Mr Nolan 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
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 Galway.
Tourism at a GlanceAs 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
22,000 tourism jobs throughout Galway
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
