The HOTREC event, co-hosted by the IHF and RAI is being held at a critical junction for the industry
Rising energy costs and geopolitical uncertainty are major concerns for Europe’s tourism and hospitality leaders as they gathered in Cork for the 92nd General Assembly of HOTREC, the European hospitality association.
Co-hosted by the Irish Hotels Federation (IHF) and the Restaurants Association of Ireland (RAI) in advance of Ireland’s 2026 EU Presidency, the HOTREC event is being held at a critical junction for the industry, bringing together representatives from 47 hospitality associations for hotels, restaurants, bars and cafés across Europe.
Delegates from more than 30 countries will discuss strategies for navigating the complex operating environment businesses are encountering due to energy disruptions, instability in the Middle East and broader economic headwinds. These challenges pose significant risks to the profitability and long-term viability of tourism and hospitality businesses, which support over 10 million livelihoods across Europe, including 270,000 in Ireland.
Highlighting the timeliness of the General Assembly, Alexandros Vassilikos, HOTREC President commented:
“Resilience is part of the hospitality sector’s DNA. But resilience alone is not enough. At a time of heightened geopolitical uncertainty in the Middle East and beyond, our businesses are facing inflationary pressures and constrained aviation routes, creating a highly volatile operating environment for a sector mostly made up of SMEs. What is needed now, more than ever, is a clear policy framework that genuinely supports hospitality and tourism SMEs and provides direction for the future.
“HOTREC’s General Assembly in Cork comes at a timely moment, offering our members, including our Irish colleagues, a valuable opportunity to exchange views, assess the challenges ahead and coordinate our collective response.”
Commenting on mounting challenges for the hotels sector, Paul Gallagher, IHF Chief Executive said:
“The challenges facing our sector have escalated significantly over recent weeks. The ongoing Iranian crisis is now having a direct and material impact on the wider economy, with increased fuel costs resulting in additional pressure on already tight operating margins. As one of the most energy-intensive industries, the hotel sector and wider hospitality industry is particularly exposed.
“More broadly, we are deeply concerned about the ripple effects of geopolitical instability on wider economic and consumer sentiment. Mounting uncertainty poses a significant risk to overseas tourism demand, particularly as international travel budgets come under renewed pressure. For an industry that relies heavily on global connectivity and consumer confidence, these headwinds are an enormous concern which requires a coordinated response both at a European and national level.”
Adrian Cummins, Restaurants Association of Ireland Chief Executive said:
“Welcoming Europe’s hospitality leaders to Cork is hugely significant for Ireland, particularly at a time of real challenge for the sector. Food businesses across the country are under sustained pressure from increasing input costs, with ongoing conflict in the Middle East now adding further uncertainty and compounding those challenges.
“Energy prices have risen sharply in recent weeks, driving significant increases in both input costs and energy bills and placing already stretched margins under intense pressure as consumer confidence continues to weaken. This week’s meeting of European hospitality leaders in Cork could not be more timely. It gives hospitality leaders a real opportunity to come together and discuss the key challenges currently facing businesses across Europe.” Luvly Content
