WITH Budget 2026 just around the corner, Limerick hoteliers are urging the government to deliver targeted measures to safeguard the long-term viability of Irish tourism and hospitality.
The Irish Hoteliers Federation (IHF) say Limerick businesses are struggling to deal with exceptionally high operating costs and tight margins.
Tourism and hospitality supports over 270,000 livelihoods nationally including 12,000 jobs in Limerick.
Dermot Kelly, IHF Shannon Branch chairman, said “it is vital that the government takes decisive action to place Irish tourism and hospitality on a more stable and competitive footing”.
“This is especially challenging for regional food businesses. These businesses are now threading a fine line between covering ever-increasing costs and losing competitiveness”, Mr Kelly added.
Budget 2026 is expected to take place on Tuesday October 7 and while there is around €1.5billion in tax cuts and a spending package of €7.9bn expected, there will be no one-off cost of living payments.
The IHF are seeking a permanent restoration of the nine per cent VAT rate, a move which Mr Kelly believes would put Ireland on an equal footing with our European counterparts.
“Germany has recently announced a reduction in its VAT rate on food services to seven per cent from January next year, down from 19 per cent currently in place. This move recognises the broader social and economic role played by the hospitality sector and the particular challenges facing food businesses,” he said.
“We need a similar approach here in Ireland without delay. Restoring the nine per cent VAT rate for food-related services from January would be a vital policy intervention for a sector that contributes significantly to our economy as a driver of regional employment, economic diversification and rural development,” he added.
The IHF is also calling for new measures to tackle excessive business costs, measures to assist hotels develop employee accommodation due to a shortage of affordable housing, and increased investment in training, skills and development for its members.
