Figures show plummeting hotel occupancy rates

Hotel occupancy rates in Kerry stand at 26% for October and just 9% for November. File Picture

Occupancy rates in hotels in Munster have plummeted because of Covid-19 restrictions, the Irish Hotels Federation (IHF) has revealed.

IHF is also warning that jobs are now at risk because of decreasing revenues.

Across Cork and Kerry, hotel room occupancy rates and future bookings were at 51% for September, 26% for October and 9% in November.

Hotels in the Midwest are recording occupancy rates of just 31% for September, 19% for October and 10% for November. The IHF said there were 11,500 jobs in the sector pre-Covid with €327m being generated. Now revenue has dropped to €240m putting 8,500 jobs at risk.

In Waterford, the situation is similar with bookings in the South East of 60%, 40% and 20% for September, October and November respectively.

The IHF said restrictions brought about by Covid-19 has resulted in “a collapse in hotel bookings”. Bernadette Randles, Chair of the IHF Kerry Branch said the county had reached “make or break” time.

“Urgent and unprecedented intervention from the Government is required to support tourism businesses and safeguard thousands of jobs throughout the sector,” she added.

“This must form a central plank of the Budget due to be announced next month.” Prior to Covid-19, Kerry’s tourism and hospitality industry supported 15,700 jobs and generated €592m in revenue annually for the local economy.

“We are now facing a deepening crisis with 11,600 tourism jobs across Kerry at risk this year and local tourism revenues forecast to drop by €440m as businesses fight for survival,” added Ms Randles.

Hotels are demanding enhanced employment subsidies, a reduction in tourism VAT, extended waiver of local authority rates and greater access to banking finance.

The IHF is also calling on the Government to support previous Temporary Wage Subsidy Scheme (TWSS) levels of €350/€410 per week for businesses that can demonstrate a 50% reduction in turnover for a 12-month period to 31 March 2021 and to reduce VAT to 9%.

“Reduction in tourism VAT to 9% would assist recovery and secure a viable and sustainable future for tourism," Ms Randles said.

“The outlook is exceptionally difficult and highlights the requirement for urgent immediate sectoral specific measures for tourism."

“This situation is nothing short of disastrous for our sector with serious implications for the tourism industry and wider economy. We are calling on the Government to implement sector-specific measures as a matter of urgency."