Hoteliers highlight their concerns in Killarney

Denyse Campbell, Maldron Hotel, Dublin AIrport, Emer Corridan, Cahernane Hotel, Killarney, Aaron Mansworth, Trigon Hotels, Bernadette Randles, Dromhall Hotel, Killarney and Martin Cassidy, Cassidy’s Hotel, Dublin pictured at the IHF conference in the Gleneagle INEC Arena in Killarney.
Pitcure: Don MacMonagle

Increasing business costs, lower occupancy levels and growing global economic and political uncertainty were among the pressing concerns facing hoteliers as they gathered in Killarney for the Irish Hotels Federation’s annual conference in the Gleneagle INEC Arena.

Industry research shows a drop in business levels within the sector. In 2024, the average national hotel room occupancy stood at 74 per cent for the year as a whole, down two per cent on the previous year.

With most regions seeing a drop in occupancy levels, a significant disparity continues to exist across the regions, ranging from 70 per cent occupancy in the border region to 81 per cent in Dublin.

IHF President Michael Magner pictured at the conference in Killarney

Business sentiment among hoteliers for the year ahead is down for a second year running with 37 per cent reporting a positive outlook for trading conditions over the next 12 months. This contrasts with 47 per cent who reported a positive outlook this time last year and 74 per cent the previous year.

IHF President Michael Magner highlighted the exceptional increases in operating costs over the last three years, which have eroded profitability, particularly for smaller hotels with less than 100 rooms that are more reliant on food and beverage sales.

“Last year was very difficult for many businesses within our sector due to what can only be described as relentless increases in the cost of doing business. This has been a persistent challenge for hotels and the wider hospitality industry since 2022 with no let-up in sight,” he said.

“The situation has been compounded by the decision to increase the rate of hospitality VAT, which has hit food service businesses particularly hard. It is therefore very welcome that the Government has committed to revisiting the VAT issue as part of the budgetary process.”

Mr Magner said having recently met with Minister Peter Burke, he is more optimistic about the immediate and longer-term prospects for the industry.

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