Government are ‘totally out of touch’ with hospitality sector

By Kate Heaney

THOSE in the hospitality sector in Donegal were not feeling elated post Tuesday’s budget, despite being offered €4,000 towards energy bills and a possible discount on commercial rates.

In the run up to the budget, the Irish Tourist Industry Confederation (ITIC), The Vintners’ Federation (VFI), The Restaurants Association of Ireland (RAI) and numerous other business lobby groups sought to have the 13 per cent VAT rate reduced again to 9 per cent.

However, this has fallen on deaf ears in government, despite a constant stream of restaurants, cafes and pubs closing their doors for good.

The recently appointed Donegal Branch Chair of the Irish Hotels Federation, Aisling Arnold, yesterday told the Donegal News that she is “hugely disappointed” with the budget accusing government of being “totally out of touch” with what the hospitality industry is facing.

“As far as we are concerned this budget has done nothing for us,” she said.

“We rely very heavily on the food trade and are already struggling with very high food costs and margins are very tight without any increase.

“Our prices are totally out of kilter making us one of the most expensive in Europe and it is not sustainable. We already have a reputation as an expensive country to visit and overseas visitors are starting to look at Ireland as a destination.

“Domestic customers are still being hit by the cost of living crisis and the spend on food and beverages is already down.

“Even the €4,000 grant for small businesses there are a lot of rural businesses which will not qualify for it as it is very restrictive,” Aisling said.

She pointed out how many small restaurants and cafes are closing or have already closed.

“Government is not listening and they are not looking at the big picture,” she added.

Read full article in Thursday’s edition of the Donegal News on shelved now!

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