Hotels have reported electricity price increases of over 400% and gas price increases of over 300% since 2019, a new survey of business costs by the Irish Hotel Federation (IHF) has found.
Denyse Campbell, president of the IHF, said that one hotelier in the south-west has seen €10,000 added to their monthly electricity bill in the past year, going from €8,300 in July 2021 to €18,000 in 2022.
A larger hotelier in the north-east paid €122,000 for electricity last month compared to €27,000 in August 2021, an annual increase of more than 350%. The results are based on a survey of hotel and guesthouse owners and general managers conducted in August and September.
"What’s even more concerning is that energy prices are projected to get worse. Combined with rapidly cooling demand – with hoteliers projecting forward occupancy of 23% in November and 18% in December – many businesses are finding themselves under greater pressure now than during the darkest days of the Covid-19 pandemic," Campbell stated.
The survey also shows significant inflation in the cost of essential business items such as linen (29%), food (22%) and beverages (12%).
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Campbell has called for the government to retain the 9% VAT rate for tourism and hospitality in next week's budget, and said that state supports are urgently required for the sector.
“Since the springtime, our industry has made great progress in restoring the livelihoods of almost 90% of the 270,000 people who were working in the industry pre-pandemic," she said.
"These jobs are in rural, regional and urban communities throughout the country, with more than 70% of them based outside Dublin. However, we are now in the midst of another crisis.”
“We are asking the government to provide avenues of survival for tourism businesses in next Tuesday’s budget. There is an immediate need for measures to mitigate the impact of the energy price increases, financial support for businesses through continuity grants, and increasing grants to enable hotels to become as sustainable and low carbon as possible.”
(Pic: Getty Images)
