Urgent measures need to protect hospitality jobs - Mealiff

Hotel and guesthouse owners are calling on the Government to introduce urgent measures to mitigate the impact of Coronavirus on the tourism and hospitality sector, which employs some 3,200 people in County Cavan and 1,6000 in neighbouring County Monaghan.
The Irish Hotels Federation (IHF) says that, over the past few weeks, the industry has been decimated with over 85% of hotels closed nationally and the majority of the 260,000 employees laid off or on short-time.
Ross Mealiff is the owner of the Hotel Kilmore in Cavan. He is also the chair of the Mourne, Boyne & Lakes branch of the IHF.
“Every day’s delay in implementing the measures, results in greater risks to our tourism and hospitality industry,” said Mr Mealiff.
The hotelier said that mitigating the impact of COVID-19 must be balanced with ensuring that Irish people have a viable economy to return to in the coming months.

As talks are ongoing around the formation of the next Government, Mr Mealiff is emphasising the role that Irish tourism plays in the economy and the measures required to support the sector.
“These challenges are existential for many tourism businesses and of a significantly greater scale than anything experienced during the last financial crisis,” said Mr Mealiff who also praised federation members for their role in providing assistance such as accommodation and food to essential services where required by the HSE and other Government departments.

 

Proposed measures

Hoteliers are calling for a range of measures that will allow businesses to plan now for their recovery. These include:
Waiving local authority rates and water charges for at least 12 months
Measures to assist with cash flow including business interruption grants, interest free loans and a minimum 12-month deferral on senior debt (both capital and interest)
Tourism VAT rates to be reduced to zero for a minimum of 12 months and until the industry has recovered, then restored to 9% on a permanent basis
Employer’s PRSI to be reduced to 0.5% for a minimum of 12 months
 Supports for seasonal workers in tourism who do not currently qualify for COVID-19 related payments.
 
Mr Mealiff added: “At present most of our industry nationally is closed. We are seeking an urgent response to ensure that hotel and guesthouse properties are preserved and ready to scale up when the COVID-19 related restrictions are lifted.
Confirmation on such measures is required now so as businesses can plan their return.
“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,” concluded Mr Mealiff.