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Roundtable Discussion: Tourism & hospitality have exciting futures ahead
ROUNDTABLE DISCUSSION:
TOURISM & HOSPITALITY HAVE EXCITING FUTURES AHEAD
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Tourism and hospitality, including the hotel, food and beverage sectors, account for about 20% of total employment in Fingal. Along with commercial aviation, they are amongst the sectors hit hardest by the pandemic. In this Roundtable discussion, three members of the Chamber consider the impact of the pandemic on the way people work and how the resulting changes in customer behaviour could affect revenues and business models, the likely pace of recovery for their sectors and the supports needed to ensure that tourism and hospitality thrive in the future.
Q1 The pandemic looks set to change the way many people work, reducing weekly footfall in the city centre and the main areas of office space and increasing the proportion of time people spend working at home. How will changes in customer behaviours affect revenues and business models for the hospitality industry and what will be required to adapt to those changes?
“As we begin to recover from the pandemic it is clear to see that outdoor dining, wellness and safety are key for guests for the future. We are seeing incredible demand for outdoor dining on our Patio and Terrace as people adapt to a more continental approach to hospitality,” says Guy Thompson, General Manager, Castleknock Hotel.
“There is a pent-up demand to eat out and socialize with friends in a safe, outdoor environment and people are happy to pay extra for quality surroundings and food and beverage offerings. Locally sourced, Irish produce is key as guests want quality but also have a strong urge to support local businesses. Menus and offerings will have to be continually reviewed to ensure they are seasonal and linking in with the people’s desire for wellness and a fresh approach to hospitality,” he adds.
Looking to the future, Thompson says that when the corporate travel and meeting business returns, “we expect a significant demand for ‘hybrid’ meetings and events, something we are committing significant investment to over the coming months with the aim of not just meeting but exceeding our guests’ expectations.”
Tariq Salahuddin, owner of Indie Spice Restaurant Ltd, says that a return to full indoor dining needs to be in place, along with other incentives, to bring people out to spend money in restaurants and shops and to get back into their offices.
“Travel restrictions for tourists needs to be lifted,” he insists. “I was in the city other day and despite indoor dining being in operation almost everyone was outside. Vaccine restrictions have to go and everyone should be allowed access to indoor dining. Other than natural outdoor dining areas, all newly created outdoor dining areas should be closed and people need to get back into their offices, working as they did before COVID arrived. Exactly what future will hold for us we simply don’t know but we must do everything possible to return to the way we lived in the pre-COVID days.”
Alison Lynch, who has worked in the coffee industry in Ireland and the UK for almost 30 years and is a co-founder of Blink Coffee Shop at the Malahide Marina, disagrees. “When I took my weekly flight home from London to Dublin on the 12 March 2020 I had no idea that the then unfolding pandemic would scupper my plans for building a coffee empire in the UK,” she says. Skip forward 18 months and I’m serving specialty coffee in Malahide with my co-pilot in BLINK, Lizzy Skelly, a fellow coffee lifer.
“A few years ago we attempted to do something together but the timing wasn’t right then. Now, with BLINK we’ve achieved our core goals – a femaleled coffee business that’s colourful, fun and kind, delivering specialty coffee and one that isn’t all stuffy and smashed avocado! If the last 18 months has taught us anything, it’s to adapt and embrace change. I think we are forever changed; I just don’t believe we will go back to the way we were before.”
In terms of the hospitality sector Lynch thinks there will be three main outcomes. “Some businesses, unfortunately, will not survive; some will adapt and re-invent themselves; and lastly new propositions and offerings will emerge. The upside is that towns and neighbourhoods will finally get an injection of activity, local spending and footfall – things they have craved and needed for many years.
“So I think the future is quite bright for local neighbourhoods but they will need to adapt, of course. The emergence of ‘15 minute communities’ will be accompanied by more business services and local offices, the development of outdoor spaces and streets, with gyms, salons, cafés, bars and reconfigured restaurants all seeing growth.”
Guy Thompson, General Manager, Castleknock Hotel.
Q2 Do you think it likely that tourism in Fingal will recover to previous levels and, if so, how quickly? How badly has the pandemic disrupted the business model and, again, what more will be required to ensure this important industry gets back onto a sustainable footing?
Lynch is confident about the future, but also emphasises the need for flexibility and a willingness to do things differently. “Absolutely business will recover, but the mix of businesses contributing to the pre-COVID figure will change,” she says. ‘Disruption’ is probably one of the most overused business buzz words of the last five years – in fact, the phrase ‘be careful what you wish for’ springs to mind because look at us now, globally ‘disrupted’ beyond recognition.
“The first step for both businesses and business support bodies, therefore, is to accept change and to understand that the way we did things before doesn’t apply 100% now. Many countries with cold weather – from Helsinki to Berlin – have fantastic outdoor lives; we just need to plan and support it on all levels – and to be honest, we should have been doing that years ago.
“So COVID has given this area a shot in the arm. But mostly all businesses need to be agile right now, they need faster responses and guidance. If we keep applying old rules to a new era we will paralyse the opportunities and changes required to the business models for survival and growth.
Castleknock Hotel’s Thompson expects that domestic tourism will continue to be strong for the remainder of the summer months but that the period from September to December and into 2022 will certainly be challenging. “Corporate and MICE (Meetings, Incentives, Conference/ Conventions and Exhibitions/ Events) markets will be slow to return and we do not expect a strong re-bound in these markets until the end of Q1 2022,” he says.
But he also applauds Fingal County Council and the Chamber Tourism working group for their excellent work promoting Fingal to domestic tourists. “Their significant expenditure on an extensive marketing campaign is benefiting all our businesses. It is vital that we continue this and work towards firstly promoting Fingal for the shoulder periods for the rest of this year and then building a robust and sustained campaign for 2022.
“Castleknock Hotel has a very strong all-Ireland leisure business which rebounded quickly after the lockdowns and thankfully forward bookings for the rest of the Summer are very strong. Increasing international visitors is vital and opening up Dublin Airport and allowing safe and easy passage for inbound corporate and leisure guests has to be a priority for the Government in conjunction with the DAA, the airlines and hospitality industry bodies.”
Indie Spice Restaurant’s Salahuddin also declares himself very optimistic about future recovery, but cautions that it is very difficult to say exactly when that will be as there are still few tourists coming into Ireland. “As soon as the scaremongering stops people will come out and join together to celebrate normal life. The pandemic has totally ruined the hospitality industry, particularly small to medium sized restaurants,” he says.
Alison Lynch (right), Blink Coffee Shop, with co-founder Lizzy Skelly on their opening day.
Q3 What supports do you regard as being essential to the survival of a thriving tourism and hospitality sector in the country in general and Fingal in particular – and who should be providing them? In your opinion, has the Government done enough or should it be doing more?
Salahuddin emphasises the need for equal treatment of businesses in the sector, irrespective of their size. “We need to treat everyone equally within the hospitality industry. There is no doubt that huge support is required. It has to be for everyone, however. Small businesses are very vulnerable at the moment. Other than cash support-from Government, local councils need to play a very visible role to support every corner of the industry. ‘Eat out to help out’ should be implemented by the government.
“I don’t think government has done enough. Support only if you have lost 75% of the business is shameful. Businesses that have lost 40-50% are in exactly the same position, or even worse. So local councils need to push government to do more. Those businesses that do not have outside dining areas have been very badly effected and there has been no talk at all about providing help for them.”
Salahuddin also expresses concern about the shortage of hospitality workers, a problem that he says “must also be addressed by government without a minutes delay”.
Staffing is also a worry for Thompson. “The phasing out of the Pandemic Payment needs to be accelerated to encourage people back to work as recruitment and retention of staff within the industry remains very challenging and we envisage this continuing for some time,” he warns.
Nevertheless, in his opinion the Government has provided excellent supports for business during the pandemic and is continuing to support businesses as they re-open and begin to recover. “The EWSS and CRSS schemes were both very good supports and we would like to see the EWSS continue until the end of Q1 2022,” he says. “Fingal County Council, too, has been excellent in its approach to supporting business with the suspension on the payment of rates, re-start grants, grants to promote outdoor dining and the easing of restrictions for on-street hospitality.
“The re-opening of hospitality is extremely important to ensure the survival of many businesses but there is very delicate balance to be found between continuing to protect the public whilst also providing much needed employment and hospitality services to tourists and the general population of Fingal who want to get out and socialise in a safe environment.”
Blink Coffee Shop’s Lynch argues “Clearly, there must be as much focus on staycation as on attracting international visitors once we are back open. There are so many great attractions and hidden gems in this country and all around Fingal. There is no doubt that the Wild Atlantic Way is currently contributing to staycation tourism in the West of Ireland; we need to get better at that here on the east coast.”
Tariq Salahuddin, owner, Indie Spice Restaurant Ltd.