Hospitality hit by a double blow ahead of festive season

GOVERNMENT supports like the Employment Wage Subsidy Scheme need to be extended for at least four months to help the struggling hospitality sector to survive, according to local hoteliers.
Clare hotels, who are big commercial ratepayers, suffered a double hit this week with a 3.8% hike in commercial rates and a reduction of financial supports under the EWSS.
Old Ground Hotel proprietor, Allen Flynn described the decision to increase rates as “extraordinary” at a time when a lot of businesses are struggling to stay open.
“It is only government supports that is keeping most businesses open at the moment. These supports need to be continued for the first six months of 2022.
“For a local authority to increase its commercial rates is completely at odds with what the government are trying to do. Other Chamber members are shocked and very disappointed with the increase. This sends out a very bad message to business.
Despite a strong staycation market when the hospitality sector reopened, Mr Flynn stressed every business in this sector is only barely surviving.
Acknowledging Tánaiste Leo Varadkar has stated that the hospitality sector has been badly hit by Covid-19 restrictions, Mr Flynn hopes that government supports will be extended well beyond next March. “Hospitality is the second biggest employer in the region. We have all suffered. We were the businesses that were closed the longest during the pandemic. We all want to adhere to government guidelines.
“Our capacity is down between 30 and 35% in all our bars and restaurants to comply with the one metre rule, which has a negative impact on income, since the start of the pandemic
“Businesses are asking for more supports just to survive.
Like most hotels, the Old Ground Hotel has experienced a significant reduction in Christmas functions following government health advice on office parties.
“Christmas functions are the backbone for business in December as accommodation occupancy is down.
Hotel Woodstock manager, Sean Lally called on the government to restore the financial supports under the EWSS to what existed last month for December and the first quarter of 2022.
The Ennis hotelier revealed government advice on limiting Christmas office parties had “wiped out” this vital income for hotels and licensed premises throughout the country, which can’t now be used to help the sustain businesses during the first quarter of 2022.
Mr Lally said any business is never happy about an increased cost in the current challenging environment dealing with the pandemic.
He urged the government to extend the commercial rates credit that ends in December into the first quarter of 2022 and to get the booster vaccine rolled out as quickly as possible.
“Business in the hospitality sector has been very tough over the last two years. We have faced once in a lifetime challenges with Covid-19 that still hasn’t gone away. We are still suffering following the current advice on office parties.
“We are worried about the impact on aviation following the new strain of the virus. It is challenging and we are trying to keep our costs as low as possible.
He said Woodstock Hotel are interested in next year’s rates re-evaluation as they believe their current commercial rates bill is too high for the property.
Ennis Chamber president, Darragh McAllister said savings can be found in any budgetary process once there is a willingness to look for cost reductions.
Acknowledging the council has some very good employees, Mr McAllister said it is always good to look at outside input from businesses in relation to local authority cost savings, if chamber representatives were briefed much earlier than last Wednesday evening before Friday’s council vote.
Commenting on the pandemic, he pointed the council fared well financially in terms of rates as the national waiver that was delivered by the government effectively went into the local authority’s coffers. “Businesses have no idea what is going to happen next week, next month or next year in terms of Covid-19 restrictions. To tie in an increase in rates for next year was very untimely.”
Acknowledging small rural businesses will be able to get a rebate if they settle their account in 2022, he expressed concern about the impact of the increase on a small number of high ratepayers who may now consider looking at investing in neighbouring counties where rates are much lower. He pointed out commercial rates is an important factor considered by any investor who is considering setting up a new enterprise in the region.
With a planned revision of the calculation of rates by the Valuation Office scheduled in 2022, he said it is disappointing the authority increased rates before this re-evaluation is completed.

by Dan Danaher