The Irish Hotels Federation (IHF) has called on the Government to introduce measures in the forthcoming budget that support the survival of the tourism industry and ensure the sector is ready to avail of the international and national economic recovery in 2011. In its pre-budget submission, the IHF calls on the Minster for Finance, Brian Lenihan, TD, to improve the trading environment in Irish tourism by promoting cost competitiveness, maintaining current levels of tourism marketing activity and addressing the capacity and credit problems facing hotel and guesthouse owners.
According to Mr Tim Fenn, Chief Executive, IHF, the strategic policy objectives for tourism must be to survive the downturn and thereafter begin to increase market share in both domestic and international tourism. He states that, in the absence of supportive policy measures, the hotel and guesthouse sector will not be in a position to actively participate in an ambitious medium term economic growth strategy which is clearly needed.
Key Tourism Proposals for Budget 2011:
* Increase the current level of activity funded by Fáilte Ireland and Tourism Ireland
* Immediately remove the air travel departure tax
* Impose a four-year freeze on all public sector charges at the 2009 level
* Introduce a scheme to waive 30 per cent of local authority rates on hotels and guesthouses
* Ensure the urgent availability of appropriately priced credit to the hotels sector
* Avoid any tax increases in tourism related products and services at national and local levels
“Irish tourism is capable of substantial and rapid growth relative to other export sectors provided we have a cost-competitive economy and a commitment to strong international promotion of our product,” said Mr Fenn. “Unfortunately, the Government’s policy framework has been too slow in recognising cost competitiveness and this has been intensified by the international economic slowdown. Budget 2011 provides Minster Lenihan with an opportunity to address the needs of tourism businesses which continue to struggle through a perilous trading environment.”
In addition to costs, marketing is a key aspect of competitiveness that can quickly respond to policy measures. Mr Fenn states, “Given the unprecedented collapse in visitor numbers, we’re calling on the Government to ensure that levels of marketing activity by tourism bodies are increased in real terms. This must include targeted support for marketing drives to reverse the collapse in the arrival numbers from Britain and attract corporate conference business to maximise the benefits of the Convention Centre Dublin.”
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