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Ireland\u2019s beleaguered hotels industry needs rapid help from the proposed EU Recovery Fund, representatives said.<\/p>\nIreland\u2019s beleaguered hotels industry needs rapid help from the proposed EU Recovery Fund, representatives said.<\/p>\n
Thousands of tourism businesses across the country remain closed due to the pandemic, including 90% of hotels, and the majority of the industry\u2019s 260,000 employees are laid off.<\/p>\n
Home grown tourism will not recoup the significant financial loss to the economy of overseas visitors, the Irish Hotels Federation (IHF) said.<\/p>\n
Chief executive Tim Fenn said: \u201cOne of the lessons learnt from the financial crisis was the requirement to act extremely quickly so that large parts of the economy are not obliterated, with long-term consequences.\u201d<\/p>\n
He said tourism was highly competitive.<\/p>\n
\u201cMany major markets with which Ireland competes for tourists, such as France, have already announced substantial support packages for their tourism industries, with further supports likely through EU funding.<\/p>\n
\u201cThese supports are giving Ireland\u2019s competitors much needed certainty to plan their recovery.\u201d<\/p>\n
A recovery fund worth \u20ac750bn euros has been proposed by the EU Commission.<\/p>\n
Economies across Europe have been devastated by the shut down forced by the pandemic.<\/p>\n
Hoteliers urged the Government to urgently seek assistance from the proposed fund.<\/p>\n
Mr Fenn added: \u201cWith 70% of tourism jobs based outside Dublin, further delays in providing support measures could have devastating implications, particularly for rural Ireland, that may take decades to recover.<\/p>\n
\u201cWhile the various business and employment supports that have been introduced already are very welcome, they do not go far enough.<\/p>\n
\u201cSome industries, like tourism, have been far more severely affected and face a more challenging road to recovery and this is not being adequately recognized.\u201d<\/p>\n
Mr Fenn called on Government to give grants and guarantee loans as well reduce tourism VAT.<\/p>\n
He said: \u201cBusinesses will be operating at severely constrained levels of activity when they re-open.<\/p>\n
\u201cThe Covid\u201319 Wage Subsidy Scheme should be continued until the impact of physical distancing and mass gathering restrictions has abated.\u201d<\/p>\n
He said the three-month local authority rates waiver period should be extended for tourism businesses to coincide with business interruption due to Covid-19 and for a minimum of 12 months.<\/p>\n
After that, payment of local authority rates should be based on reduced levels of activity due to the Covid-19 crisis, the lobby group added.<\/p>\n