The Irish Hotels Federation (IHF) today received a major, independent economic report* undertaken by economist Peter Bacon which stresses the serious challenges facing the hotels sector. It confirms the worst fears expressed by the IHF since the recession started. Mr Bacon in his report outlines a series of urgent actions needed now if the hotel sector is to survive.
The Report highlights the damage which is being caused to the hotels sector as a whole by financial institutions and banks supporting unviable and insolvent enterprises. It underlines the urgent need to address over supply within the sector and the negative effect of ongoing tax regulations which impede the ability of unviable hotels to exit from the market. The Report clearly reinforces hoteliers’ concerns that the industry will collapse unless action is taken. This cannot be allowed to happen given tourism is one of the largest indigenous contributors to the economy. These concerns have been expressed regularly by the IHF since the economic downturn started. They formed the basis of its recent pre-budget submission to the Minister for Finance seeking to assist tourism become a significant driver of the economy’s return to growth.
According to Matthew Ryan, President of the IHF, the Report contains a very detailed and structured approach on how to deal with a sector in crisis. “This Report is possibly one of the most detailed and comprehensive analyses of the sector ever undertaken and includes very serious measures to improve the viability of the sector. The Report calls for the urgent active participation of the stakeholders involved including the banks and financial institutions, the Government, the tourism bodies and the hotel sector itself to seek effective solutions.”
The Report also supports the urgent case which the IHF has made since 2008 for working capital and cost reduction supports to be provided to businesses which would otherwise be viable. These businesses are well-placed to survive in the current economic environment provided an effective restructuring of the industry is achieved.
*Click HERE to access the report, "Over Capacity in the Hotel Industry and Required Elements of a Recovery Programme Report."
FOR INFORMATION:
Siobhan Molloy / Eoin Quinn
Tel: 01 6760168
Weber Shandwick
Mobile: 086 817 5066 / 087 233 2191