Govt urged to back tourism and hospitality voucher scheme

File photo.

The Government has been urged to back a voucher per household scheme that would “provide a shot in the arm for devastated tourism and hospitality businesses”, as official figures show that the sector is the biggest casualty of the Covid-19 crisis.

A Department of Employment Affairs and Social Protection report found that the most severely impacted sectors in terms of jobs lost are tourism, hospitality and food services; retail; and construction. More than 128,000 workers in the tourism, hospitality and food sector are receiving the emergency pandemic unemployment payment, followed by 90,000 in retail and wholesale, and 70,000 in construction.

Dublin has the most Pandemic Unemployment Payment claimants at 171,700, followed by Cork with 61,200, and Galway at 32,000.

Those who have lost their jobs as a result of the impact of Covid-19 are more likely to be young, low-skilled, female and previously in part-time employment, the Department said. This reflects the higher share of these workers in the industry sectors most affected.

Just under 600,000 are now receiving the Pandemic Unemployment Payment.

Irish tourism bosses said the decimated sector needs support if it is to recover as the country’s biggest indigenous employer.

Irish Tourism Industry Confederation chief executive, Eoghan O’Mara Walsh, said a voucher system per household, backed by the Government, redeemable at Irish hotels, guesthouses or other tourism businesses would provide a ’’shot in the arm’’: “The only bit of business for tourism and hospitality enterprises up and down the country in 2020 is the domestic market. There is going to be no international market sadly at all in 2020. We are keen to see a voucher incentive that Irish householders could redeem through a Government-led package that will kickstart the industry again. It is going to be a long time before we see the high-spending Americans or wealthy Chinese back in Ireland."

Mr O’Mara Walsh added: “The Government needs to give it a nudge. It is not too difficult for the powers-that-be to devise this monetary voucher scheme per household that could be redeemable against an Irish hotel or guesthouse. It would encourage Dublin people to go the West, or people on the Wild Atlantic Way to go to Dublin.”

Researchers from the Department report found that by the week ending Apr 24, there were more than 1.1m persons in receipt of State support. The hit to tourism, hospitality, food and retail “will be potentially long lasting for two reasons”, the report said: “First, they are dependent on international travel which is likely to be subject to restrictions and an abundance of caution until the virus has abated entirely. Second, domestic consumers are likely to curtail demand for social activities for a similar time.”

Other sectors such as construction has disproportionately affected lower income individuals, younger workers and migrant workers, the report said. Households of those employed in sectors hardest hit have very little savings to combat hardship, the report added.