Increased government support is needed for hospitality businesses, Kildare Senator says

Increased government support is needed for hospitality businesses based in County Kildare.

That's according to Fianna Fáil Senator for Fiona O'Loughlin.

The Newbridge-based politician has called for increased government support for hospitality businesses in the upcoming Budget.

The Senator said: "Hospitality businesses are facing an extremely challenging operating environment due to rising costs, falling food sales, tight margins and the 13.5 per cent VAT rate.

"The cost of doing business is a significant challenge for businesses in the hospitality sector.

"Industry research shows that 77 per cent of hospitality business report a negative outlook for the next 12 months."

Senator O'Loughlin continued: "This challenging operating environment is evident with hospitality businesses facing an average increase of 16 per cent in operating costs in the year to date.

"I am calling for the government to intervene and assist these hospitality businesses, such as cafes, restaurants, small, family-run hotels that deal almost primarily in food and gastropubs that are so vital to our communities."

She concluded: "Reinstating the nine per cent VAT rate for food-related hospitality services in the upcoming Budget would be a significant step that would provide vital assistance to the industry and would make our communities more attractive as a destination by enhancing the range and availability of tourism and hospitality services."

Paul Lenehan (President Restaurants Association of Ireland), Senator Fiona O’Loughlin and John O’Neill (Hamlet Court Hotel, Johnstownbridge). Photograph supplied by Senator O'Loughlin.