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Hotels estimated to lose over €90 million in revenue due to event cancellations this Christmas

The Irish Hotels Federation (IHF) has urged the government to retain supports for the industry.

Image: Alamy Stock Photo

HOTELIERS HAVE CALLED on the government to retain supports for the industry as concerns grow over lost revenue due to event cancellations.

Research from the Irish Hotels Federation (IHF) has estimated that hotels and guesthouses are missing out on over €90 million in lost revenue due to companies cancelling events and social gatherings.

Industry stakeholders are urging the government to provide additional supports to the sector amid a decline in event bookings over the Christmas period.

The cancellations of company events and social gatherings come as current public health guidelines advise the public to work from home where possible and reduce their social contacts.

Tim Fenn, Chief Executive of the IHF, said in a press statement: “The trading environment for the hotels sector is now completely different to a few weeks ago. Hotels and guesthouses are taking an enormous financial hit, and this must be recognised upfront by government in the form of urgent additional supports for our sector.”

“We have been repeatedly told that there will be no ‘cliff edge’ yet that is not what we are seeing from the government at present.”

“The government must recognise the impact recent changes to public health advice are having on our industry and reverse decisions to withdraw supports until the impact of Covid 19 measures has abated,” he added.

Occupancy rates for hotels this winter are also at lower than expected levels, with room occupancy averaging 34% for December and 14% in January and February.

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The IHF said the tourism industry was at a “critical juncture” as they face the withdrawal of supports with Covid 19 measures still in place.

Currently, the government is set to cut EWSS employment supports from 1 December and the local authority rates waive will be discontinued on 1 January 2022.

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