Hotels and guesthouses in Mayo and across the country are facing massive challenges as the latest survey from the Irish Hotels Federation (IHF ) reveals a €2.6 billion drop in revenues during 2020, compared to the previous year - representing an unprecedented financial hit to the sector.
Down 60 per cent year on year, the collapse in revenues due to Covid restrictions has affected all areas of hotel operations – from accommodation, food and beverage to corporate events and social gatherings.
Results show a dramatic decline in room occupancy levels for the sector, plummeting to a record low of just 30 per cent nationally last year compared to 73 per cent in 2019, as a result of severe restrictions and an obliteration of overseas tourism into the country.
With significant government restrictions set to remain in place for the first of half of 2021 and beyond, the sector continues to face enormous financial challenges and uncertainty. Urgent additional Government supports are required if tourism businesses are to survive, according to the IHF, which is calling on the government to put in place an Emergency Tourism Budget with additional targeted measures to ensure the viability of tourism businesses and the hundreds of thousands of livelihoods they support throughout the country.
Mr Darren Madden, Chair of the IHF Mayo branch, stated: "We have experienced nothing short of a catastrophic financial shock, with risks of a prolonged and devastating impact on our industry and the ability of tourism businesses to survive and recover. Government supports so far have been piecemeal and fallen far short of what is required given the extended restrictions and economic damage facing our sector."
Emergency Tourism Budget
Mr Madden continued: "The government must come forward with a more coherent, sector-specific programme of supports and measures to secure the long-term financial sustainability of hotels and guesthouses.
"We are calling for decisive government action in the form of an Emergency Tourism Budget to include substantial increases in payments to tourism businesses under the Covid Restrictions Supports Scheme (CRSS ), enhanced employment subsidies, extension of the local authority rates waiver until the end this year and a further six-month moratorium on bank term loans to support cashflow.
"We also calling for a clear commitment from the Government to retain the 9% tourism VAT rate to assist recovery and secure a viable and sustainable future for our industry.
"Tourism businesses such as hotels are now contracting for international business up to two years out, in an exceptionally competitive market, with one hand tied behind their backs. As yet, they have no pricing certainty in relation to retention of this critically important VAT measure and this must urgently be addressed.
"It is critical that we get certainty around supports for business recovery. We cannot afford any delay if businesses are to have a fighting chance of getting back on their feet this year. A severely devastated hotels sector would be a major loss to Ireland’s economy and society for many years to come. This can and must be avoided", he said.
The IHF has outlined a range of urgent measures which it has submitted to government in its appeal for support.
