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Kilkenny hotelier says businesses are feeling the pressure as new IHF report underlines challenges facing sector

The General Manager of the Kilkenny Ormonde Hotel says hotels across the country are feeling the pressure as business costs spiral.

It comes as a report from the Irish Hotels Federation found 94% of hoteliers are concerned about the economic outlook for the sector.

Despite an uplift in tourism following the pandemic, hotels are still battling a reduction in hotel room occupancy, increased costs, and the planned increase in the tourism VAT.

Colin Ahern explains they are experiencing rising costs in all areas of the business:

“Over the last 12 months we’ve seen our energy bills go up by 400-500%. We’ve seen the cost of food increase by 25%. The cost of drink has increased by 15%”

The IHF report shows the number of people planning on visiting Ireland next year is predicted to be at an all time low since 2019.

60% of hoteliers have reported reduced bookings from the UK, while 47% said they had fewer bookings from Northern Ireland.

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