The Irish Hotels Federation (IHF) has asked the Government to introduce supports to help hospitality operators build accommodation to house staff, and for a separate grants scheme to assist with retrofitting properties.
In a pre-budget submission to the Department of Finance, the IHF is also seeking a reduction in the VAT rate to 9 per cent for food services, an additional €90 million for marketing Ireland abroad, and an “intervention” to scrap the 32 million passenger cap at Dublin Airport.
In terms of housing, the IHF has flagged a “staffing challenge caused by the shortage of affordable accommodation near hotels”, which the IHF said was “undermining recruitment, retention and service delivery”.
“We propose that the Government carry out a cross-departmental review to identify options for assisting hotels to develop employer-led staff accommodation across the sector,” the 14-page document stated.
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“This would also act to alleviate wider pressure on the private rental market, particularly in tourism hotspots.”
The IHF estimated that by repurposing existing buildings on site and building from scratch on land attached to hotels, some 7,000 bed spaces could be provided within three years.
As a “priority”, the IHF said it sought “targeted funding for a nationwide hotel retrofitting scheme, managed centrally through a dedicated resource within Sustainable Energy Authority of Ireland (SEAI) and supported by a ring-fenced, multiyear Government grant programme”.
It said this would deliver “measurable environmental benefits, reduce operating costs and strengthen Ireland’s reputation as a sustainable tourism destination”.
The submission noted that hotels were big energy consumers, using a mix of 32 per cent electricity and 68 per cent liquid petroleum gas (LPG).
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“This high consumption places them in a powerful position to make a meaningful contribution to national carbon reduction goals, provided they receive targeted support and incentives,” the submission stated.
The IHF is also seeking a “significant increase in investment” of €90 million on tourism marketing, on top of an estimated €251 million spend for this year.
“This should be supported by targeted marketing strategies to optimise the return in market segments of greatest potential value and underwritten by enhanced destination marketing and infrastructure development projects,” it added.
The IHF said removing the Dublin Airport passenger cap would “allow the sector to meet rising global demand, attract new carriers, and support year-round tourism, delivering substantial economic and employment gains nationwide”.
In other measures, the IHF called for a “deceleration” in national minimum wage increases, for reforms to ensure that insurers “pass on the savings generated by recent reforms” that have reduced claim volumes and award levels.
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The submission acknowledged “progress” on establishing a new registration system for landlords offering residential properties on a short-term basis and calls for a “robust, well-resourced enforcement mechanism ... to protect housing supply and ensure fair competition for compliant tourism accommodation providers”.
In addition, the lobby group is seeking resources for economic research and analysis to support Irish tourism and identify consumer trends.
“Such analysis would provide robust, independent data to enhance the quality of public policy decision-making, support evidence-based investment decisions and accurately quantify the tourism sector’s contribution to Ireland’s economy,” it said.
“This insight is essential for ensuring that policy interventions maximise economic returns, job creation and regional development benefits.”
Irish tourism supports 270,000 livelihoods, with about 69,000 roles in hotels and guest houses, and generates €2.9 billion in tax revenues for the exchequer annually, according to the IHF.
