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Hoteliers Cite Rising Business Costs as Biggest Challenge for 2025

Irish Hotels Federation 87^th Annual Conference 

 

“The Government, in partnership with the industry, has a pivotal role to play in creating a more positive business environment for enterprises throughout our sector,” says IHF President Michael Magner

 

• Business sentiment down with hoteliers reporting a drop in room occupancy rates for 2024

• 94% of hoteliers concerned about the outlook for the global economy 

• Forward bookings for hotels down €100m for 2025 compared with this time last year 

 

Increasing business costs, lower occupancy levels and growing global economic and political uncertainty are among the pressing concerns facing hoteliers as they gather today for the Irish Hotels Federation’s (IHF) 87^th Annual Conference taking place this year in the Gleneagle Hotel & INEC in Killarney.

 

Recent industry research carried out by the IHF shows a drop in business levels within the sector. In 2024, the average national hotel room occupancy stood at 74% for the year as a whole, down 2% on the previous year when an occupancy rate of 76% was achieved. With most regions seeing a drop in occupancy levels, a significant disparity continues to exist across the regions, ranging from 70% occupancy in the border region to 81% in Dublin.

 

Business sentiment among hoteliers for the year ahead is down for a second year running with 37% of hoteliers reporting a positive outlook for trading conditions over the next 12 months. This contrasts with 47% who reported a positive outlook this time last year and 74% the previous year.

 

This is reflected in forward bookings, which are pacing behind 2024. Compared to the same time last year, hoteliers are reporting a further drop of 2% in business levels on the books for 2025, equivalent to €100m in bookings. While results indicate that the domestic market and North America are holding up so far, hoteliers are reporting a net drop in bookings from Great Britain, Northern Ireland and the Rest of Europe.

 

Commenting on the outlook for the sector, IHF President Michael Magner highlighted the exceptional increases in operating costs over the last three years, which have eroded profitability, particularly for smaller hotels with less than 100 rooms that are more reliant on food and beverage sales.

 

While hoteliers continue to rank rising costs as the most serious challenge facing their business, the wider economic environment in which hotels operate is also a growing concern. Some 94% of hoteliers say they are worried about the global economy and the potential impact of political uncertainty in key markets. Closer to home, some 78% of hoteliers say they are concerned about the outlook for the Irish economy over the next twelve months with consumer finances remaining under considerable pressure and international developments posing risks to the Irish economy.

 

Mr Magner states: “Last year was very difficult for many businesses within our sector due to what can only be described as relentless increases in the cost of doing business. This has been a persistent challenge for hotels and the wider hospitality industry since 2022 with no let-up in sight. The situation has been compounded by the decision to increase the rate of hospitality VAT, which has hit food service businesses particularly hard. It is therefore very welcome that the Government has committed to revisiting the VAT issue as part of the budgetary process.”

 

“The Government, in partnership with the industry, has a pivotal role to play in creating a more positive business environment for enterprises throughout our sector,” said Mr Magner. “There is a lot more that the Government can do to assist businesses in labour intensive industries such as our own. The strong focus on tourism within the Programme for Government is of course very welcome and a vital first step to putting Irish tourism and hospitality on a firmer footing.”

 

“Having recently met with Minister Peter Burke to discuss the priorities for the development of our sector, we are more optimistic about the immediate and longer-term prospects for our industry. In particular, we believe that the recent repositioning of tourism within the reconfigured Department of Enterprise will facilitate a more joined-up and coherent approach to best support businesses within our sector. It will also help ensure a greater focus on creating the optimum conditions for business viability with our wider tourism industry – a vital part of the economy supporting some 270,000 livelihoods.”

 

*Survey was conducted during February 2025 with results based on responses from 195 hotels and guesthouses across the country. 

 

Hotel Occupancy rates for 2024 v 2023:

 

• National: 74% (down 2%)

• Border region: 70% (down 2%)

• Dublin (City & County): 81% (no change)

• Mid-West: 75% (down 2%)

• Midlands / Mid East: 71% (unchanged)

• South East: 72% (down 2%)

• South West: 71% (down 3%)

• West: 75% (down 1%)

 

Regions:

 

Border: Donegal, Sligo, Leitrim, Cavan, Monaghan

Mid-West: Clare, Limerick, Tipperary

Midlands / Mid East: Kildare, Laois, Longford, Louth, Meath, Offaly, Westmeath, Wicklow

South East: Carlow, Kilkenny, Waterford, Wexford

South West: Cork, Kerry

West: Galway, Mayo, Roscommon

11 Enforcement Orders Served on Food Businesses in January

The Food Safety Authority of Ireland (FSAI) today reported that 11 Enforcement Orders were served on food businesses during the month of January for breaches of food safety legislation, pursuant to the FSAI Act, 1998 and the European Union (Official Controls in Relation to Food Legislation) Regulations, 2020. The Enforcement Orders were issued by Environmental Health Officers in the Health Service Executive (HSE).

 

Five Closure Orders were served under the FSAI Act, 1998 on:

· Balam Limited (Foods of Non-Animal Origin Processing), 114 Boyne Road, Dublin Industrial Estate, Glasnevin, Dublin 11

· Lismore Golf Club (Restaurant/Café), Ballyin Lower, Lismore, Waterford

· The Turk Grill (Take Away), 23 Grattan Street, Sligo

· Ella’s Heaven Café and Bakery, 95A Talbot Street, Dublin 1

· Miner’s Rest Public House (Closed Area: The external drinks storage room), Ballingary, Tipperary

 

Three Closure Orders were served under the European Union (Official Controls in Relation to Food Legislation) Regulations, 2020 on:

· Xpress Pantry (Closed activities: Part of the activities of the business, its establishments, holdings, or other premises be ceased – The manufacture and wholesale of foods of animal origin and subsequently being placed on the market), Unit 9, Dunshaughlin Business Park, Dunshaughlin, Meath

· Indian Tiffins (Restaurant/Café), 143 Parnell Street, Dublin 1

· Bewley’s Café (Closed activity: Part of the activities of its establishment be ceased, specifically the use of the vacuum packing machine), 78/79 Grafton Street, Dublin 2

Three Prohibition Orders were served under the FSAI Act 1998 on:

· Miner’s Rest Public House, Ballingarry, Tipperary

· La Citadel (Retailer), Unit 4, Glebeview House, River Mall, Swords, Co. Dublin

· M Tee Ventures (Retailer), Unit 1, Glebeview House, River Mall, Main Street, Swords, Co. Dublin

 

Some of the reasons for the Enforcement Orders in January include: active cockroach infestation; rodent activity and rodent droppings; raw fish vacuum packed in the same machine where ready-to-eat foods were vacuum packed with no documented cleaning and disinfection procedure or cleaning schedule in place for the vacuum packer; damp and mould growth; personal items such as shoes, a gazebo and scooter in a food production area; complete lack of cleaning; all surfaces stained and dirty with waste food debris and a build-up of dust; no evidence of a food safety management system in place; a business that had not been approved by a competent authority for the operations taking place; unlabelled food items with no traceability information provided.

 

Dr Pamela Byrne, Chief Executive, FSAI, reiterated that the legal onus is on food businesses to ensure they fully comply with food safety legislation at all times.

“Food businesses have a fundamental legal responsibility to ensure the food they produce is safe to eat. The Enforcement Orders served in January highlight unacceptable breaches of food safety legislation, including inadequate pest control, poor hygiene standards, and a lack of proper food traceability. These non-compliances pose a serious risk

to consumer health and also undermine confidence in the food industry. It is essential that all food businesses implement and maintain a robust food safety management system to prevent such violations. The law is clear, food safety is not optional, and food businesses that fail to comply will face enforcement action.”

Also, during the month of December 2024, one prosecution was taken by the Health Service Executive in relation to:

· Vicos Grill (Take Away), 1 Ludlow Street, Navan, Meath.

Solgar Team Up with GAA/GPA and the GAA Museum in New Three-year Partnership

Solgar, a leading provider of high-quality nutritional supplements, are pleased to announce an exciting new three-year partnership with the Gaelic Athletic Association (GAA) and the Gaelic Players Association (GPA), the representative body for inter-county Gaelic Games players, becoming the official vitamin partner of the GAA/GPA.

Nestlé Health Science’s global-leading Solgar brand announced Galway’s Paul Conroy, Limerick’s Tom Morrissey, Down native and Galway Camogie player Niamh Mallon and Cork ladies footballer Katie Quirke as brand ambassadors at today’s launch.

Solgar will also become one of the title sponsors of the GAA Museum, home to the rich sporting, social and cultural history of Gaelic Games and among the top ten per cent of the most popular visitor attractions globally*. On average over 120,000 people visit the sporting museum annually, immersing themselves in the rich history of Ireland’s national games and the contribution of the Gaelic Athletic Association (GAA) to its social and cultural life.

With over 75 years’ experience within the industry, a proud and rich history and heritage and a commitment to excellence and quality, the partnership with the GAA/GPA and GAA Museum represents a natural alignment for Solgar.

Gordon Yule, Business Executive Officer, Nestlé Health Science UK & Ireland

“We are delighted to have the opportunity to partner with the GAA/GPA, which represents the gold standard of Gaelic Games players across Ireland and to work with the GAA Museum, an organisation with an amazing history, tradition, culture and commitment to excellence. The three-year partnership is an exciting opportunity for Solgar, and we look forward to collaborating further with the GAA/GPA and GAA Museum.”

GPA CEO Tom Parsons said,

“We are delighted to welcome Solgar on board as the official vitamin partner to inter-county players across Ireland as part of our ongoing commercial partnership with the GAA. Solgar is focused on quality and ensuring people can be at their very best and that directly mirrors the work we carry out on behalf of our 4,000 members as we seek to create an environment that enables them to excel as high-performing athletes on the pitch and in their lives off the pitch. Partnering with Solgar represents a natural progression and we look forward to building on today’s announcement.”

GAA Commercial Director Peter McKenna said,

“We are delighted to join forces with Solgar, a brand globally recognised for its commitment to excellence and quality. The partnership represents a superb opportunity to share the powerful and compelling story of the history and heritage of our national games, and the exploits of our wonderful players, past and present, with even greater audiences.”

GAA Museum Director Niamh McCoy said,

“The GAA Museum occupies a hugely significant place in Irish sporting and cultural life, documenting the incredible history behind our national games and immense contribution of the Gaelic Athletic Association to Ireland’s social and cultural development. As an organisation with such an immense history, we are particularly pleased to partner with Solgar, one which brings a proud tradition and pedigree to the table. Today’s announcement marks another exciting chapter in the history of the GAA Museum, and we look forward to building and strengthening the partnership with Solgar and providing an even greater experience to the many visitors who will come through our doors.”

Hoteliers Call for Urgent Change in Direction to Safeguard Tourism and Hospitality

Ten Key Policy Priorities to Stave Off Growing Commercial Crisis within the Sector – Irish Hotels Federation General Election Manifesto

  

On Tuesday, 12^th November 2024 – The Irish Hotels Federation (IHF) called on all political parties and candidates in the general election to commit to policy measures aimed at staving off the commercial crisis facing the wider tourism and hospitality industry, particularly food service businesses. Launching its manifesto, IHF President Michael Magner states that an urgent change in direction is now required to ensure the future viability of the industry as Ireland’s largest indigenous employer.

 

Tourism and hospitality businesses are facing enormous challenges as a result of unsustainable cost increases, notes Mr Magner. These have largely been driven by the Government’s own economic policies. At the same time, there has been a worrying failure to offset these increases and provide meaningful measures to assist struggling business within the sector. These businesses are the backbone of our tourism economy, supporting over 270,000 livelihoods the length and breadth of the country, some 70% of which are outside of Dublin.

 

Mr Magner states: “Our message to all political parties and candidates in the general election is that tourism and hospitality should not be taken for granted. Much more needs to be done to safeguard and prioritise our industry. Tourism and hospitality must be at the heart of the next Government’s economic policy supported by targeted measures to ensure our industry lives up to its full potential as a major engine for growth and economic prosperity, both nationally and regionally.”

 

“A key priority for our sector is the need to tackle the cost of doing business, which is getting out of control and posing an enormous risk to the sector. There has been an alarming deterioration in the commercial model of hospitality food services in particular as a result of the increased VAT rate coupled with a raft of Government-imposed large cost increases. Businesses are now at a cross-roads requiring immediate action by the next Government.”

 

“We are calling for a commitment to reinstate the 9% rate of VAT for hospitality food businesses, which have been disproportionately impacted over the last 18 months. Other sector-specific measures are also required including a Local Authority commercial rates waiver and employers’ PRSI rebates to offset the impact of policies that place labour-intensive industries such as tourism and hospitality at a disadvantage.”

 

The IHF is calling on all political parties and candidates in the general election to commit to the following key policy initiatives including as outlined in our manifesto:

 

• Urgent Review of the Government’s Tourism Policy Approach – change in direction required to put the tourism and hospitality industry on a stable footing before it is too late.

 

• 9% VAT for food services – reinstatement of the 9% rate of VAT for hospitality food service businesses, which are struggling to deal with exceptionally high operating costs.

 

• Cost of doing business – targeted measures to improve the overall cost competitiveness within the economy over the next five years

 

• Air Access – removing the passenger cap for Dublin Airport coupled with a wider focus on enhancing regional air access and connectivity.

 

• Training & Skills – increased funding for hospitality training and skills development through the National Training Fund.

 

• Tourism Marketing & Development – significant increase in investment in tourism marketing and development to support the recovery and long-term growth

 

• Sustainability – targeted funding for a national hotel retrofitting scheme to reduce carbon footprint throughout the sector in line with Ireland’s climate action goals.

 

• Access to Finance – full review of State-supported financing solutions for business development should be carried out to identify ways to further increase access to finance.

 

• Tips and Gratuities – tax exemption for tips and gratuities paid to employees.

 

• Dedicated Department for Tourism and Hospitality – a dedicated Department of Tourism & Hospitality with a seat at the cabinet to maximise growth and employment potential

 

Eight Closure Orders Served on Food Business in August

The Food Safety Authority of Ireland (FSAI) today reported that eight Closure Orders were served on food businesses during the month of August for breaches of food safety legislation, pursuant to the FSAI Act, 1998 and the European Union (Official Controls in Relation to Food Legislation) Regulations, 2020. The Closure Orders were issued by Environmental Health Officers in the Health Service Executive (HSE).  

 

Two Closure Orders were served under the FSAI Act, 1998 on:   

• Jazz Chinese Restaurant, Coolock Village Shopping Centre, Beechpark Avenue, Coolock, Dublin 5 

• Freshly Chopped & Neat Pizza (Restaurant/Cafe), First Floor, 13-15 Main Street, Fairview, Dublin 3 

Six Closure Orders were served under the European Union (Official Controls in Relation to Food Legislation) Regulations, 2020 on:  

• Letterkenny Kebab and Pizza/East Ocean (take away), 61 Port Road, Letterkenny, Donegal 

• Baalbec Take Away (Closed area: The outdoor area used to accommodate the potato peeling and preparation), Sarsfield Street, Kilmallock, Limerick 

• Al Huda Grocery (retailer), 72A Summerhill, Dublin 1 

• Cafe India,16 Harbour Street, Tullamore, Offaly 

• Divine Catering (domestic kitchen), Farnamurry Close, Ballygraigue Road, Nenagh, Tipperary 

• Akanchawa Honey Pot (restaurant/café), Unit 39, Coolmine Industrial Estate, Blanchardstown, Dublin 15 

Some of the reasons for the Closure Orders in August include: evidence of ongoing rodent infestation with droppings found in kitchen area; failure to implement adequate pest control measures; dead cockroaches found in traps and flies in the deli area; inadequate regular and thorough cleaning; uncovered bins filled with food waste; a build-up of dirt on used catering equipment and on the floor; a lack of basic hygiene provisions, such as hot water, soap, and drying facilities for staff; food not stored at correct temperature; a lack of food allergen information available for customers; failure to implement an appropriate food safety culture. 

Dr Pamela Byrne, Chief Executive, FSAI, warned that there is a legal responsibility for food businesses to act responsibly and ensure the food they provide to their customers is safe to eat.  

“Whilst most food businesses follow high food safety standards and are compliant with food law, inspectors continue to encounter cases where consumers’ health is put at risk through a failure to comply with food safety and basic hygiene requirements. These non-compliances are avoidable, and we have zero tolerance for any food business that does not comply with its legal requirements. Food businesses have a legal requirement to ensure the safe supply of food and it is unacceptable that basic procedures like handwashing, cleaning, robust pest control measures and storing food correctly at the appropriate temperature are not being properly followed. Food businesses must do better.” 

Details of the food businesses served with Enforcement Orders are published on the FSAI’s website at www.fsai.ie. Closure Orders and Improvement Orders will remain listed in the enforcement reports on the website for a period of three months from the date of when a premises is adjudged to have corrected its food safety issue, with Prohibition Orders being listed for a period of one month from the date the Order was lifted.