Galway hoteliers seek measures to tackle rising costs

GALWAY hoteliers are seeking several new government measures to help them tackle the rising costs of operating their businesses.

Around 22,000 people are employed in the tourism sector across the county. A key concern for hotels and guesthouses in Galway is the exceptionally high operating costs they are grappling with, putting Galway’s competitiveness as a tourism destination at risk.

This, they argue, is being driven by successive public policies which have significantly increased operating costs. Padraig Nolan, Chair of the Galway Branch of the Irish Hotels Federation is hopeful these issues can be addressed in the 2027 Budget.

Proposals include a meaningful reduction in employers’ PRSI for labour-intensive hospitality businesses, measures to tackle excessive business costs and support for the development of hotel staff accommodation.

Mr Nolan is also calling for enhanced resources for hotel sustainability initiatives, increased funding for Fáilte Ireland, additional investment in training and skills and measures to support increased hotel capacity.

“Tourism and hospitality businesses are struggling to deal with unsustainable operating costs that are putting enormous pressure on margins,” he explained.

“This is a serious challenge for our sector, including the local tourism economy here in Galway. It is essential that Budget 2027 delivers targeted measures as part of efforts to offset some of these Government-controlled costs and enhance the cost competitiveness and viability of our sector.”

As Ireland’s largest indigenous employer, a vibrant and thriving tourism and hospitality industry is vital for the country’s economic well-being. It supports 270,000 livelihoods, including 69,000 people directly employed by Irish hotels and guesthouses.

The tourism industry generates €10billion in revenue for the Irish economy every year, while over €2.9billion in taxes are generated annually for the state by tourism-related activity.

Hoteliers from across the country recently met with TDs and Senators to discuss the key challenges facing Irish tourism and the measures required to ensure the successful long-term development of Ireland’s largest indigenous industry.