MUCH of Clare’s economy relies on international tourism, and while there are clear risks to it in a time of global political turmoil, Ennis hotelier Sean Lally feels the county has advantages that could see it through any difficulties on the horizon.
“Nobody likes change and we’re at one of the most changeable times ever with all of the stuff that’s going on, that’s out of our control. But what we can control is our own county and we’re lucky enough in Clare, we’ll probably be insulated a little bit in terms of tourism, because of the amount and quality attractions that we have on our doorstep and the fact that Shannon Airport is there. We are so lucky with it,” he says.
However the level of inflation is a massive challenge, he adds.
“There is cautious optimism, but the caution is there because of the amount of change that is happening. Also inflation has gone through the roof in terms of running a business.
“We have seen more than double digit growth in terms of our meat products, our dairy products and the likes of eggs have become really, really expensive. At a certain level in food related businesses you can’t survive once the costs go too high. We have seen a growth in wages, rightly so, that has to happen, but the cost of doing business and the cost of living has become way too expensive.”
Beef prices have increased far too quickly, he says.
“A lot of our beef is being exported into the UK because there is a shortage of beef over there. The meat producers are turning their back on the Irish market which is very frustrating, remember the Irish hospitality industry has supported Irish beef for years and it’s disappointing to see that the meat producers are focusing on serving the UK market at premium rates and are forgetting about the Irish consumer who has always been there, supporting them year in, year out.”
Very dramatic prices will soon be charged, he feels.
“We have all heard of the €10 pint in Temple Bar, now we’re going to hear about the €50 steak. That’s probably the price you need to have the fillet steak at to make anything out of it, with the cost price that is there at the moment.”
He thinks the Government has been too slow to take action to cut costs. “There are talks of the VAT coming down, the Government has said it will be dealt with in the next budget. The next budget isn’t until the autumn, which means that they probably won’t change it until January. And a 4% reduction in VAT is nothing compared to a 20-30% increase in your meat prices. How many businesses will have failed between now and then because of the inflation?
“Inflation is everywhere, every time you fill up or charge up your car you see it. We’re just way too expensive, we’re up there with the likes of Denmark in terms of the cost of living in Europe. We’re too expensive to do business in. Until we get our inflation under control and get the costs of doing business down, it’s going to be extremely challenging.”
In addition he feels that the development of coastal wind energy is not happening quickly enough.
“You can’t just turn it on in the morning, a lot of investment has to go in, but I don’t see it happening just yet. I don’t think we are taking it seriously enough. If our energy costs were to come down at least that would be one thing.”
Traditionally American tourists stay longer and spend more, and despite Trump’s brand of isolationism, he hopes many Americans will still visit Ireland this summer.
“I think they will travel. They don’t like an election year, but the election has happened. Yes, there may be a lot of uncertainty and talks about tariffs, but I still think that they will travel. It’s a huge market for us and one of our most important markets in Co Clare. I think they will travel and thankfully Micheál Martin’s trip to the White House went off every well. It was a potential banana skin and it shows the soft power of the Irish.”
Clare still has a very strong tourism product, he says, and the Council taking on attractions like Bunratty Castle has helped.
“In Clare we are lucky that a lot of the businesses are family run, a lot of the attractions are top class.
“We have a large number of attractions in our own county. You have a very active Clare Tourism Unit within Clare County Council, who are very good at promotion and they control a lot of the key attractions within the county, which is great, because you can try and hold people longer in the county.
“The Council has invested into the attractions it has taken over and improved the offering which will help us. There are more flights in and out of Shannon Airport, and hopefully those are supported, because the more passengers they get the more potential there are for more flights.”
Owen Ryan has been a journalist with the Clare Champion since 2007, having previously worked with a number of other publications in Limerick, Cork and Galway. His first book will be published in December 2024.