Nearly half (49%) of Irish pubs and restaurants have reported a decline in tourists to their businesses over the past 12 months, according to a new survey published today (Friday). The survey found that 75% of business owners are concerned about Brexit and believe that the uncertainty it causes will impact consumer spending here in Ireland.
The survey was commissioned by the Drinks Industry Group of Ireland (DIGI) and conducted among 660 pub and restaurant owners across the country. The survey was designed to track sentiment of hospitality businesses following Brexit.
It found that 71% of business owners plan to invest in their premises in the next three years, with almost a third (30%) planning to create jobs.
Almost two thirds of respondents (65%) rated the UK as the most important tourism market for their business while 13% rated the rest of Europe and one in ten rated North America as most important. Ninety eight percent of respondents believe that Ireland’s excise tax rate is too high - Ireland has the second highest excise tax in the EU, behind Finland. Over 70% of respondents said Government should avoid any additional costs to businesses arising from policy decisions and regulation measures, while 72% recommended an excise tax reduction.
According to CSO statistics, there has been a 6.2% decrease in the number of UK tourists visiting Ireland in the period January to July 2017, compared to the same period last year. This has particularly affected the food and drinks industry, which relies heavily on British tourism, according to Donall O’Keeffe, Secretary of DIGI and CEO of the Licensed Vintners Association (LVA).
Speaking this week, O'Keefe said, "Tourists from the UK spend 40 percent of their budget on food and drink compared to 34 percent for the average tourist. Any decline in UK tourism numbers is a worry, and our survey results show that it is a reality. Action needs to be taken: Ireland’s drinks and hospitality sector is a major employer and contributor to our economy, and many of its SMEs have invested in their business in recent years. We must ensure we continue to support these businesses’ ongoing growth and development."
He added, "One key measure is a reduction in our excise tax rate. Ireland has the highest excise tax on wine, the second highest on beer and the third highest on spirits. Our excise tax is 19% higher than the UK’s, our nearest neighbour. Without any change to this country’s high, even punitive, excise tax, a continued drop in sterling will further undercut Ireland’s tourism competitiveness. Fewer British tourists will patronise the drinks businesses that are so important to the tourism sector."
Source: www.businessworld.ie
