‘Scapegoated’ hospitality sector up in arms over shutdown threat

Tourism representatives who met with Tánaiste Leo Varadkar this week, say they were given no indication that there would be another lockdown before the new year.

Publicans, restaurant owners, and hoteliers have reacted angrily to the Government's announcement. Picture: Leah Farrell/RollingNews.ie

Restaurants, pubs, and hotels have reacted angrily to the likelihood of an earlier-than-expected fresh shutdown of business before the end of the year.

The news that hospitality businesses will now probably be forced to close their doors between Christmas and New Year's Eve — earlier than the January shutdown that many had been expecting — has come “out of the blue” and sent “shockwaves” through the industry, according to the Restaurants Association of Ireland.

The week between Christmas and new year is generally a critical time for restaurants, and closure could cost the average eatery as much as €30,000, it said.

The Government is "minded" to go with "significant restrictions" on the hospitality sector before New Year's Eve, the Taoiseach has said. Micheál Martin said the Government would decide when the Cabinet meets on Tuesday. | Read more: https://t.co/shKOKzNN2w pic.twitter.com/HVo6avQ4qr

— RTÉ News (@rtenews) December 18, 2020

The group’s chief executive Adrian Cummins said restaurants and eateries were under the impression that they would be able to trade up to the new year, particularly as no new Covid cases in the past two weeks have been linked to hospitality businesses. He said the threat of further closure was “alarming”.

Mr Cummins said the sector feels as if it is being “scapegoated” and “unfairly targeted” for closure.

“There is huge financial pressure on the industry, and we need to generate as much revenue as we can to get over January and February,” he said.

Publicans said the further likely shutdown plans will “strangle” the sector, with bars and pubs stuck in a “cruel limbo”.

The Vintners’ Federation of Ireland said a coherent roadmap to a sustainable reopening is “vital” if the pub and bar trade is to survive in 2021. The VFI said pubs are “at the mercy” of the Government and the National Public Health Emergency Team (Nphet).

“This weekend, pubs serving food are facing another round of calls to suppliers to cancel orders, worried staff are fearing for their jobs while a further erosion of customer confidence is likely,” the VFI said.

"The message to Government is clear: tell our members what’s going on, and tell them now."

It said no business sector can survive such a “violent” undermining of its foundations.

Hoteliers expressed “utter shock” at the suggestions of an early reintroduction of a lockdown, calling the move “extremely short-sighted”.

Irish Hotels Federation president Elaina Fitzgerald Kane said hotels are "a key part of the solution" by providing "very safe, highly-controlled, spacious environments for people to stay, independent of the home setting."

“Limiting the options available to people looking for a safe place to stay and dine is not the answer,” she said.

Tourism bosses have attacked the Government over its communication. Irish Tourism Industry Confederation CEO Eoghan O’Mara Walsh said a number of the sector’s representatives met with Tánaiste Leo Varadkar this week, but were given no indication that there would be another lockdown before the new year.

“The current situation is horrific and the tourism and hospitality sector has done everything asked of it in terms of health and safety, and yet at each surge is being closed unilaterally by Government,” he said.

One bright note is that the EU has approved a €15m scheme — in the form of direct grants — to support Ireland-based inbound tourism agents impacted by the pandemic.

Non-essential shops are expected to remain open despite any tightening of restrictions. This would be a “sensible” approach, industry group Retail Excellence said. However, it also wants coffee shops to be classified as retail outlets so that they can remain open.

“Retail has proven to be a safe space for both employees and shoppers so far,” said Retail Excellence managing director Duncan Graham.

The Hair and Beauty Industry Confederation (Habic) said the impact of rolling lockdowns is putting the job security of the entire industry at risk, and that each shutdown is eroding business.

“With each and every lockdown, we see more and more businesses face permanent closure and job losses,” said Habic chief Margaret O’Rourke Doherty.

Separately, CSO figures show that nearly 60% of companies availed of the State’s Covid-related employment support schemes between March and September.

Over half of companies had employees or self-employed in receipt of the pandemic unemployment payment during the period.

Meanwhile, Cork Airport said it expects one of its “quietest Christmases in decades”, with just 11% of normal passenger levels.