IHF & Hoteliers Welcome Publication of Cost of Business Advisory Forum Report

The Irish Hotels Federation (IHF) has welcomed the publication of the final report of the Cost of Business Advisory Forum, established by the Minister for Enterprise, Tourism and Employment, Peter Burke TD. The report sets out wide-ranging recommendations to reduce the cost and complexity of doing business, targeting energy costs, insurance, planning, water services, legal costs, tax administration and banking.

As the second-highest cost for hotels after payroll, the targeted measures proposed to reduce energy price pressures are particularly welcome. These include recommendations that the Commission for Regulation of Utilities (CRU) takes account of business affordability when formulating network investment plans and carries out an assessment of the scale and impact of energy network pass-through costs, which typically account for over 40% of hotels’ electricity bills.

Other welcome proposals include targeted measures aimed at reducing insurance costs, tackling planning application backlogs and addressing excessive regulatory burden. The report also recommends an independent assessment of the impact of water tariffs on business, recognising that tourism and hospitality are disproportionately affected.

IHF Chief Executive Paul Gallagher said: “We welcome the Government’s commitment to enhancing cost competitiveness within the economy and removing barriers to growth. Today’s report is an important step toward addressing the enormous cost challenges facing businesses, including hotels and guesthouses.

“If implemented in a timely and decisive manner, the practical and targeted measures outlined would provide significant long-term benefits for our sector and the wider tourism industry. We strongly support these recommendations and look forward to continuing to work closely with the Government to ensure the right conditions are in place to support the long-term, sustainable development of our sector.”