Election 2024: Small business — 'They've an abundance of money, but have done nothing to help hospitality'
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Political parties, particularly those in Government, must acknowledge that the hospitality industry needs more support and what has already been offered is “really low level” and “unimpactful”, a Cork-based restaurant owner has said.
With the election campaign in full swing, various small and medium-sized businesses will be seeking assurances of supports from political parties should they get into office. The hospitality sector, which has been struggling since the pandemic ended and the inflation surge began, has been among the loudest calling for Government assistance.
Their campaign for a return to the 9% Vat rate in the budget last month was unsuccessful but the election gives them another chance to push this message.
Speaking to the , Barry McLaughlin, owner of Poachers Restaurant in Bandon, Co Cork, said Government parties “need to acknowledge that what's been done in reaction to the challenges that hospitality have faced so far have been really low level”.
“They've been really unimpactful,” he said.
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Poachers has been in business for 18 years and employs around 18 staff with more taken on board during the summer months. Mr McLaughlin said they are very well-supported by locals in Bandon and are back to good levels of business following the pandemic, but at the same time it is challenging.
“Our business is quite good this year, I would say for the first time, back to pre-covid levels but with much more difficult trading conditions,” he said.
Mr McLaughlin said this is the first time he has seen a Government “so disconnected from the needs of our industry” and it is “causing enormous amounts of stress and worry for people in this industry”.
He said much of the sector’s lobbying efforts have been focused on trying to get the Vat reduction back but the challenges outside of that are still “so significant”.
“The Vat was probably the easiest way to ask for help,” he said, adding that a Vat reduction “is certainly something that would be enormously helpful”.
He said:
The temporary Vat rate of 9% for the tourism and hospitality sector was implemented as a support measure during the pandemic. It expired in September last year with businesses calling for its reinstatement ever since.
During the budget last month, the Government included a €170m Energy Subsidy Scheme which will provide businesses in hospitality and retail a cash payment of €4,000 before the end of this year.
However, Mr McLaughlin said this €4,000 payment will barely make a dent in the additional €40,000 he is now paying since the Vat rate went back up to 13.5%.
Mr McLaughlin also pointed out that inflation has hit household spending power which has a knock-on impact on businesses like them who are dealing with food price inflation like everyone else.
“So if our costs are high, our Vat is high, and we have to charge the prices that will keep us afloat, those prices going upwards. People are making tipping point decisions there,” he said, adding that they are deciding they can’t go out as a result.
Another issue that Mr McLaughlin said he would want parties to address is around the night-time economy and in particular the provision of taxi services. He said following the pandemic, people got out of the habit of going out to dinner and it takes an enormous amount of energy to try and draw people out again.
"You have a reduction in the amount of night-time taxi services that are available. Bear in mind, you're trying to draw people out. You're trying to make it easier for them to come back out to you. You're trying to rebuild your industry.
“One of the big sticking points is, actually, how do they get out? How do they get home?” he said.
Mr McLaughlin said he would also agree with calls by other parts of the hospitality and accommodation sector that there should be a dedicated Minister for Tourism.
“I would certainly go with the cohort that would feel it's important to have a dedicated tourism ministry. I don't think it's appropriate for the amount of jobs that are involved in this sector to have tourism tied up with two other entities,” he said.