Kerry Hotelier Calls for Action on Rising Business Costs
- The escalating cost of doing buisness is placing immense pressure on Ireland's hospitality sector,threatening the vibrancy of towns and cities across the country.
- The heart of any thriving town center isn't just the shops, but the smaller cafés, restaurants, and bars that create a sense of community and place.
- Padraig McGillicuddy, proprietor of Ballygarry Estate, Hotel and spa in Kerry, and a member of the Kerry branch of the Irish Hotels Federation, has publicly voiced his concerns.
The Rising Tide of Costs: A Threat to Ireland’s Hospitality Heartbeat
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The escalating cost of doing buisness is placing immense pressure on Ireland’s hospitality sector,threatening the vibrancy of towns and cities across the country. Concerns are mounting that without intervention, the unique character provided by local eateries and pubs is at risk.
Kerry Hotelier Sounds the Alarm
Padraig McGillicuddy, proprietor of Ballygarry Estate, Hotel and spa in Kerry, and a member of the Kerry branch of the Irish Hotels Federation, has publicly voiced his concerns. He emphasizes that the current economic climate is creating a serious challenge for businesses of all sizes.
Speaking on September 11, 2025, McGillicuddy highlighted a significant increase in costs across the board, impacting everything from supplies to energy and labor. These rising expenses are squeezing profit margins and forcing tough decisions about pricing and staffing.
A Call for VAT reduction
One potential lifeline for the industry, according to McGillicuddy, is a reduction in the Value Added Tax (VAT) rate for the food industry.He believes lowering the rate to 9% woudl provide much-needed relief and allow businesses to remain competitive.
A reduced VAT rate would be a significant boost, allowing us to absorb some of these rising costs and continue to offer value to our customers.
Padraig McGillicuddy, Proprietor, Ballygarry Estate, Hotel and Spa
The Broader Economic Impact
The challenges faced by the hospitality sector extend beyond individual businesses. A decline in the industry could lead to job losses and a decrease in tourism revenue, impacting the wider economy. Protecting these businesses is therefore crucial for maintaining the economic health of communities throughout Ireland.
| Cost Category | Estimated Increase (2023-2025) |
|---|---|
| Energy | 30-40% |
| Food & Beverage Supplies | 15-25% |
| Labor | 10-15% |