Killarney business group forecasts 'bumper' year despite closures

Business closures including Celtic Donuts, Garret’s restaurant, and Revive cafe have become a bad omen for other towns

Killarney Chamber of Commerce joint president and Bricín restaurant owner Johnny McGuire: 'It is important not to pay heed to constant negative sentiment as all indications are that Killarney has much to enthuse about as it prepares for the season ahead.'  Picture: Don MacMonagle

Killarney Chamber of Commerce has assured businesses that it is optimistic 2024 will be a “bumper” year, despite cost pressures that have contributed to a wave of closures in recent weeks.

The business representative group’s upbeat outlook comes as the key tourist town is expected to attract 3,500 visitors to the Wander Wild Festival this month, an event forecast to be worth around €500,000 to the local economy.

Chamber joint presidents Pádraig Treacy and Johnny McGuire told 70 members at a lunch gathering in the Great Southern Hotel that “it is important not to pay heed to constant negative sentiment as all indications are that Killarney has much to enthuse about as it prepares for the season ahead”. 

Closures in the town, including Celtic Donuts, Garret’s restaurant, and Revive cafe, have become a bad omen for other towns across Ireland, while many other businesses cite the 13.5% Vat rate and high costs such as rents and wages as immediate challenges.

However, demand among retail and hospitality operators remains strong despite the volatile economic environment. The Chamber joint presidents said local auctioneers will confirm that of the six empty business properties in the town centre, three new leases have been signed and the other three are at an advanced stage of negotiations.

“Derelict shops really bring down a whole place but we are fortunate in Killarney,” Mr McGuire told the Irish Examiner last month, adding that he is aware of vacant premises that have been snapped up by new independent business owners.

However, “nobody’s going to be opening a place now while there’s not a lot of business in the town”, he said.

'Major economic boost'

The Chamber also said the town is set to benefit from “another major economic boost” as Hotel Killarney will return to the tourism sector. It was recently in use as an accommodation base for asylum seekers and refugees through a lucrative State contract.

The property, upgraded to four star, has undergone a €9m redevelopment and refurbishment and 190 bedrooms will be open for tourism business this year.

Some lobby groups expressed concern that the use of hotels to house asylum seekers will have a detrimental impact on local economies; however, many hospitality operators have said the high cost of doing business remains the most pressing challenge.

Attendees at the event in the Great Southern Hotel were reminded that the building in which they were gathered was “a shining example” of how a hospitality enterprise can adapt and thrive as it was celebrating 170 years in business and has traded through two world wars, a civil war, and recessions.