Slieve Russell host major IHF conference
High operating costs, coupled with concerns for the economic outlook of the sector in the year ahead, weighed heavily on the minds of almost 500 delegates attending the Irish Hotels Federation’s (IHF) 86th Annual Conference at the Slieve Russell Hotel on Monday and Tuesday of this week.
With forward bookings reportedly underperforming - down 4.5% on this time last year - and business sentiment also taking a hit, IHF-led industry research shows less than half (47%) of hoteliers believe in a positive update in trading conditions over the coming 12 months.
This contrasts with 74% who reported a positive outlook at the same time last year.
Those hoteliers questioned ranked rising business costs as the most serious challenge, and early forecasts indicate increases in excess of eight per cent in operating costs in 2024, significantly outpacing levels of inflation within the wider economy.
Tony Walker, general manager of the Slieve Russell Hotel, acknowledged that difficulties exist but at the same time said there are “plenty of opportunities” through which the hospitality industry can evolve, particularly on the technological front.
On Tuesday the event heard from Offaly native Mark Abraham, founder of London headquartered Shackle, a provider of contactless tools to manage all in-hotel services.
The afternoon keynote speaker on that date, meanwhile, was recently retired Irish rugby Captain and fly-half, Johnny Sexton.
“We've had presentations about AI, and how it can impact the business, and Mark [Abraham] who has invented an app that can be used in hotels worldwide. The likes of that takes pressure of check-in and leaves us as a business with more time to concentrate on looking after the customers in other ways.”
Mr Walker also agrees with IHF President, Denyse Campbell, on her take in relation to impact of the Government’s decision to increase VAT for the tourism and hospitality sector.
The reduced VAT rate for tourism, hospitality and some other services returned to 13.5 per cent in September last year, and Ms Campbell believes it has rendered Ireland as “an outlier” with the third highest rate of VAT rate in Europe.
“It is incumbent on the Government to do more to tackle the very high cost of doing business within the Irish economy. This is a major challenge for tourism and hospitality, our largest indigenous employer,” said Ms Campbell, pointing to how the hospitality sector remains a vital part of the economy supporting some 270,000 livelihoods, 70% of which are outside of Dublin.
“We've seen a lot of restaurants and coffee shops close over the last number of months, and we would be saying why don't we just reduce the VAT rate back to nine per cent on food only, and leave it at 13.5% on accommodations,” suggests Mr Walker.
“I know the [Restaurant Association of Ireland] are keen, and are lobbying government for that to happen, so perhaps we might do likewise. That is one measure they could do.”