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CHALLENGING OUTLOOK FOR HOTELS IN 2020 According to the latest industry barometer from the Irish Hotels Federation (IHF), 2019 was a year of mixed performances for the hotel sector. Business sentiment amongst hotel and guesthouse owners across the country is continuing to fall with just over a third (35%) reporting a positive outlook for 2020.The latest CSO figures show only a 1.5% increase in overseas visitors to the end of November, compared to a 5.5% increase for the 11 month to end of November 2018. While almost half of hoteliers (48%) reported an increase in business for 2019, just slightly fewer (44%) reported a fall. Business levels from the domestic and US markets remain strong, with 48% of hoteliers reporting increases in the domestic market and 44% of hoteliers reporting increases in the US market. However, the UK market continues to decline. Seven in 10 hoteliers saw a drop in business from Great Britain in 2019, while over half reported a fall in business levels from Northern Ireland. The fallout from Brexit in 2020 and the high cost of doing business remain key concerns for the sector, with many highlighting the significant negative impact that escalating insurance costs and local authority rates are having on competitiveness.
“The fallout from Brexit and the high cost of doing business remain key concerns for the sector, with many highlighting the significant negative impact that escalating insurance costs and local authority rates are having on competitiveness” Michael Lennon, President of the Irish Hotels Federation, said the Government must put more supports in place to assist tourism businesses. “We continue to face high costs of doing business, which have been compounded by the Government’s decision to increase the tourism VAT in last year’s Budget. The threat to businesses posed by escalating insurances costs is well documented. Our members are also reporting significant pressure from rising local authority rates. The Government has to do more to tackle the costs that are stifling businesses. Tourism is a highly competitive business and these costs are making us less attractive as a destination. Decisive action is needed now to mitigate the impact this will have on tourism, especially the regions.”
CALORIES ON MENUS LEGISLATION IS “NANNY-STATISM AT ITS BEST” Proposed legislation that would force restaurants to display the calorie count of the food they serve on menus has been blasted by some industry groups. RAI CEO Adrian Cummins said that enforcing calorie count menus would cost the state tens of millions of euro to implement. He added that chefs would spend more time doing paperwork than in the kitchen, which would do nothing to make the career more appealing when we are facing a chef shortage. “It looks like this proposed legislation for presenting calories on menus is being rammed through by the Government with little thought about the negative effects it will have. This really is nanny-statism at its best,” he said. The RAI is calling for education, not legislation. “We want to see Home Economics or Food Science equivalent mandatory in second-level and we need more comprehensive food education on the primary education syllabus.”
ISSUE 1 2020 | HOTEL
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CATERING REVIEW
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17/01/2020 13:51
