Christmas party cancellations cost Munster hotels hundreds of thousands

The Irish Hotels Federation (IHF) representative is now calling on the Government to active the €4bn in Covid-19 supports announced in October's budget to help hotels maintain jobs and turnover. Picture: Howard Crowdy

A Cork hotelier says he is just one of many facing hundreds of thousands of euros in losses over the Christmas period.

Michael Magner, owner of the Vienna Woods Hotel in Glanmire, is estimating at least €200,000 "gone off the books" in the month of December as people take heed of public health advice and avoid Christmas parties.

With just 40 people expected, instead of the initial 300, at their Christmas party event on December 10, Mr Magner says it is not "viable for the hotel".

He said that hotels like Vienna Woods, which employs 136 people, rely on December revenues to get them through the traditionally quiet first quarter of the following year.

"We're not complaining about the fact that public health is a priority, we accept that and that is absolutely certain, but we need to consider our mental health as well," he said.

"It's got all the hallmarks of the beginning of March 2020 again," he said.

"We had a nice healthy book for December and it's all coming to a sad end."

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The Irish Hotels Federation (IHF) representative is now calling on the Government to active the €4bn in Covid-19 supports announced in October's budget to help hotels maintain jobs and turnover.

"We have 14 weddings in for December and all those weddings now have to conclude at midnight, and we'll abide by it, Mr Magner said.

"But the reality of it is that income and revenue are going to be affected."

"The Government has committed its support until April of next year, but at a tapering down level whereby the Employment Wage Subsidy Scheme (EWSS) reduces on the first of December, for the month of December, January and February, and then from March and April introduces again.

"There's no commitment to the commercial rates beyond the end of this year.

"Hotels like mine which rely heavily on the month of December to get you through the first quarter of the year, if we don't have that level of revenue coming in, it's very concerning," Mr Magner added.

"This is not just my story, it's a story right across Cork."

Dromoland Castle and a sister hotel have lost out on an estimated €400,000 in Christmas party income in recent days.

Meanwhile, of the country’s best known five-star hotels, Dromoland Castle and a sister hotel have lost out on an estimated €400,000 in Christmas party income in recent days.

According to chief financial officer at Dromoland Castle, Joe Hughes, the Christmas party cancellations for Dromoland Castle and neighbouring The Inn at Dromoland have come due to the current surge in Covid-19 cases and comments made by Chief Medical Officer, Dr Tony Holohan this week.

Mr Hughes said on Friday: “Prior to the CMO’s comments, some companies had already cancelled their proposed gatherings but the formal announcement crystallised smaller party group cancellations within 24 hours."

He stated that “the estimated total revenue shortfall would be circa €400,000 on forecast across both hotels”.