A cost too far

Just when the industry was beginning to come to terms with the current economic situation, along comes a bolt form the blue. Whilst Iceland and Ireland have been linked in the past, in regard to our financial matters, who would have thought Iceland would have a similar effect on our waning economy for a second time? The eruption of the Eyjafjallajokull volcano is causing havoc multitude of ways: from curtailing air travel, to systemic cancellation of events, including Meitheal, which may have a serious impact on tourism this season. However, as we go to press aircraft restrictions are been lifted, so let's hope this is just a blip and nothing more. The Irish people, along with Tourism Industry, responded admirably. Maybe the positive side of this will be seen in a return by travellers, acknowledging the hospitality they experienced, proving we are top of the heap when it comes to tourism and valuing our tourists.

The recent RAI conference brought together over 300 restaurateurs from all over Ireland. Credit to all at Fitzpatrick Castle Hotel in Killiney for a job well done. From lunch to the main event, no one could find anything to complain about. The conference itself brought up some interesting facts. Overall, the presentations helped form the nucleus for change, that if applied, should bring profitability to business in the future. The common thread? Attention to detail in customer service is vital for success, irrespective of what level you operate in. This message, however, is missed by Government. On one hand, different Ministers are telling all sectors of business to be competitive and rise to the challenge, when they implement barriers to impede this. Recent information from the RAI shows how difficult it is to operate within the hospitality sector, given Government and Local Authorities charges. Waste license fee has increased from €1200 to €4000, the introduction of Grease Trap Monitoring Fee to €870 per annum, Water Rates, Development Levies, Sunshine Tax on Outdoor Seating/Music Performance Tax/Business Improvement District Levy.

Ireland is also the only country in Europe to pay a premium for Sunday work. This is estimated to cost Irish Restaurant owners, on average, a 33% wage premium. The government has to come up with a more realistic way to help us trade out of this current situation: increasing charges is not the way forward. Taxing a path out of does not work, so let’s look at different opportunities. What about reducing further excise duty on wines and spirits? Reduce vat on food: give tax incentives to encourage Irish businesses to use our hotels for conferences and events. Let’s encourage businesses to spend, because in the long run everyone, including the exchequer, benefits. We at Hotel and Restaurant Times would like to add our voice of welcome to Mary Hanafin TD, in her role as Minister for Arts, Sport and Tourism, and wish her well for the future. Her speech at the RAI dinner gave an indication of how importantly she views her role. During her address, she made reference to the comments of her appointment. Some commentators consider it a demotion. Instead, she sees Tourism as one of the most important components, in respect of exchequer returns, and left no one in doubt of her ability and commitment to the sector. She certainly has a passion and sense of understanding for the industry, no doubt shaped by her time as child at the Anner House Hotel. Despite the detractors, the sector has a capable, enthusiastic, and committed individual fighting in their corner.

Cyril McAree

EDITOR