Pictured at the Irish Hotel Federation event were, l-r, Tony Walker, Slieve Russell Hotel; Matt O’Connor, Vice President IHF; Offaly Fine Gael TD John Clendennen and Paul Gallagher, Chief Executive, IHF. Photo: Maxwell Photography.

Offaly hoteliers urge Government to tackle increased business costs

Published:

Offaly hoteliers discussed the key challenges facing the Irish tourism industry at a recent ‘Supporting Irish Tourism & Hospitality’ Irish Hotels Federation event.

Making their case to Government representatives, the hoteliers outlined necessary measures to ensure the successful long-term development of Ireland’s largest indigenous industry, which supports 2,200 livelihoods in Offaly.

In the run up to Budget 2026, a key concern for hotels and guesthouses across Offaly is the exceptionally high operating costs that tourism and hospitality businesses are grappling with, a situation that is particularly challenging for regional businesses that are heavily reliant on food services.

Matt O’Connor, Vice President of the Irish Hotels Federation (IHF) said: “Tourism businesses are struggling to deal with ever-increasing operating costs and tighter margins. It is now essential that the Government tackles this head on and delivers targeted measures to enhance cost competitiveness and support business viability.”

Mr. O’Connor stressed the importance of decisive action in the upcoming Budget with the permanent restoration of the 9% VAT rate on hospitality food services essential to "the viability of our tourism food offering".

The IHF Vice President also called on the Government to tackle excessive business costs and increase funding for Fáilte Ireland and Tourism Ireland to support the growth of the sector.

Published: