The Irish Hotels Federation is appealing to the government to tackle what it describes as “unsustainable increases” in the cost of doing business.
The IHF says tourism and hospitality businesses are grappling with exceptionally high operating costs, which it says are “particularly challenging for regional businesses that are heavily reliant on food services.”
The call is being made to coincide with an event in Dublin, where hoteliers are discussing with TDs and Senators the “key issues and challenges” facing Irish tourism.
The IHF is using the industry briefing to outline what it believes are the “necessary steps required to ensure the successful long-term development” of the industry.
The President of the Irish Hotels Federation, Michael Magner, says: “Tourism businesses are struggling to deal with ever-increasing operating costs and tighter margins.”
“It is now essential that the Government tackles this head on and delivers targeted measures to enhance cost competitiveness and support business viability.”
Mr Magner says Fáilte Ireland’s Tourism Barometer for June 2025 shows that 51% of tourism businesses have seen a decrease in revenues to date in 2025 compared with last year, with food and drink businesses reporting a 75% drop in overseas revenue so far this year.
Ahead of the Budget, the group also says a permanent restoration of the 9% VAT rate on hospitality food services is key to supporting the viability of tourism food offerings.
It’s also seeking “a meaningful reduction in Employers’ PRSI for labour-intensive indigenous industries such as tourism and hospitality.”
Hoteliers also say measures are needed to support enhanced air access for Dublin Airport and regional airports, as well as increased funding for Fáilte Ireland and Tourism Ireland “to support sectoral growth, marketing and development.”
The Irish Hotels Federation represents over 900 hotels and guesthouses across the county, which employ over 69,000 people.
