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The challenges facing Ireland's tourism industry

The challenges facing Ireland's tourism industry

Released Wednesday, 17th April 2024
Good episode? Give it some love!
The challenges facing Ireland's tourism industry

The challenges facing Ireland's tourism industry

The challenges facing Ireland's tourism industry

The challenges facing Ireland's tourism industry

Wednesday, 17th April 2024
Good episode? Give it some love!
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Episode Transcript

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rooms are very quiet. And

2:00

even bookings forward

2:03

are not strong at this

2:05

point in time. So there's a little bit of

2:07

concern there. So how's price come back to bite us?

2:10

Well, obviously there are issues around

2:12

price. In fact, if you were

2:15

taking a break now, you'd get very reasonable

2:17

prices in hotels in Dublin and around the

2:19

country. Price comes back

2:21

to bite us because we're an expensive country. We

2:24

have a high rate of that, as we've discussed

2:26

exhaustively. We have a high minimum

2:28

wage. Both in those cases

2:30

were the third highest in Europe. So

2:32

yes, it's an expensive destination. We can't do

2:35

it as cheap as they can do it

2:37

in Spain and Portugal and Croatia and Greece

2:39

because our cost base is so much higher

2:41

here in this country. So

2:45

usually what happens, the texters text

2:47

in and say they could get a flight

2:49

to 40 euro flight on Rhineair and a

2:51

cheap hotel and cheap food. But the reality

2:53

is if there's nine million visitors come to

2:55

Ireland every year, if you want to come

2:57

to Ireland, it's not going to be as

2:59

cheap as those destinations I've mentioned. I mean, some

3:01

of the comparisons that we did,

3:04

this is for May the

3:06

17th to the 19th,

3:08

all rooms with free cancellation

3:10

include breakfast. In

3:12

Ireland, the deals are a total price.

3:15

Upward the prices are per person, but

3:17

include flights and also free cancellations and

3:19

breakfast. So let's take the Galma Hotel

3:21

in Galway, classic King room with breakfast,

3:24

free cancellation, 702

3:26

euro at 90,

3:29

a classic twin with free cancellation

3:31

and breakfast, 729. You

3:34

can go to Barcelona, the four star Gottyco

3:36

Hotel, a bed and breakfast, free cancellation, fly

3:39

out at 8 in the morning and fly

3:41

home at 825 in the evening. And

3:44

that's 638 each for two people. They're

3:48

the calculations that people are making. Yes,

3:50

but as I just mentioned to you there, you're

3:53

going to Barcelona and the minimum wage is 1300 a month

3:55

and in Ireland it's 2146. And

4:00

the same can be said of many other countries you're

4:02

going to draw a comparison to. And

4:05

I could go on all day with these kind of

4:07

comparisons. But some of the things, like I know we

4:10

tax wine for instance. So if you go in

4:13

a wine producing country where there's very little tax on the

4:15

wine and you're looking at your total bill, it's got to

4:17

be quite cheap. But you can also

4:19

look at your steak, which might cost you 40

4:21

euro here and might cost you 15 euro there.

4:23

And you're thinking, hang on a second, we're

4:25

exporting beef to the world. How

4:28

come that element alone, I

4:31

know it has to be cooked by an

4:33

expensive chef and served by an expensive waiter,

4:35

but still. Pat, you

4:37

know, the ability of restaurateurs, and I'm sure

4:39

Adrian will bear this out, the ability to

4:41

put on a good fillet steak at a

4:44

reasonable price is absolutely impossible in this country.

4:46

Adrian, would you like to? Well,

4:49

what we've seen is that the fillet steak

4:51

has got to be far and few between

4:53

in terms of menus because it's too costly

4:56

to purchase by the restaurant owner from the

4:58

supplier. And then to make

5:00

their margin, what they have to sell it

5:02

at is probably prohibited for some customers. And

5:05

hence fillet steaks are coming off the menu

5:07

and going for maybe a cheaper cost to

5:09

provide a beef at the market. I'm

5:12

just wondering if it's so expensive for the restaurant

5:14

to buy it and the farmers are complaining they

5:17

make money. Yeah, the middle

5:19

one. It seems to me

5:21

that somebody in the middle is making a money.

5:24

But we are a

5:26

high business cost country. So every

5:28

SME, whether it's in hospitality, retail,

5:30

manufacturing, everybody is in the same

5:32

boat. Our cost of production,

5:35

our cost of provision of a

5:37

service has increased substantially over the last number

5:39

of years and has increased

5:42

in huge figures

5:44

since the pandemic. Okay, so what are we

5:46

to do about it? Because if the

5:49

country is flat at the moment in terms of booking,

5:51

it may be based on last year's experience and saying,

5:53

hang on a second, go there and

5:55

it will cost you. It's good. The

5:57

experience is good, but it will cost you. part

6:00

of our promotion of Ireland as a

6:02

destination for tourism, the three things is

6:04

our people, our place and our product.

6:07

I think where we dial up the

6:10

uniqueness about Ireland is around our people and our

6:12

place. It's that extra customer

6:14

service, that extra delivery in terms

6:17

of quality of service when a

6:19

tourist comes into the country and

6:21

the satisfaction rates when you survey

6:23

tourists leaving Ireland, there is a

6:25

high degree of satisfaction among tourists

6:28

in terms of quality

6:30

of food, quality of service in

6:32

our country and actually the scenery and environment.

6:34

It brings me to another point though, you

6:36

talk about Ireland of the welcomes and whenever

6:39

we do outside broadcast we travel to hotels all

6:41

over the place and many

6:43

of the staff are not Irish at

6:45

all. They're brilliant, absolutely sometimes far better

6:47

in terms of their attitude

6:51

at the table and so on and they're welcome

6:53

at reception but they're not

6:55

Irish. So many people, there is

6:57

a labor shortage of skilled Irish people

6:59

in the sector, is there not? I'm

7:02

40 years working in the tourism and

7:04

hospitality industry. We had this discussion 30

7:06

years ago when we had, as we

7:08

described back in the accession states into

7:10

the European Union where people came here

7:12

from those countries and worked in our

7:14

hospitality industry. Now we have people working

7:16

in our hospitality industry and many other

7:18

industries including our medical profession from outside

7:20

the European Union and we're delighted to

7:22

have them here. When you were talking,

7:24

you were characterizing the appeal of here

7:27

as the distinctive Irish character

7:29

and the nature of the welcome. If

7:31

the people welcome you in many imporia,

7:34

be they overnighting in a hotel or

7:36

in a restaurant are not Irish, you can't

7:38

really use that as a selling point. Well,

7:41

I think when you look at the overall

7:43

mix in terms of Irish

7:45

and non-Irish working in our

7:47

hospitality is about 25% to 30% of

7:50

our overall workforce in hospitality which means

7:55

that at least 60% of our

7:58

workforce is Irish working in the UK. in

8:00

our industry. Now, Owen, looking

8:03

at Ireland, you look at

8:05

many countries and you look at access

8:07

costs to various countries. Ryanair

8:10

have done obviously great work in lowering

8:12

the access cost to many destinations. When

8:15

the planes are relatively empty, when they're full,

8:17

Ryanair is as expensive as the best in

8:19

the world. How are we in

8:22

terms of hotel prices, restaurant prices, access

8:24

prices? We can obsess a little bit

8:26

about this, about all the issues that

8:28

have just come up already. People

8:31

coming to Ireland are generally chasing price. The

8:34

access price, when they do chase price, tends to

8:36

be what they look at. Decisions

8:38

are sometimes made in the major

8:40

markets that Ryanair operates. Ryanair

8:43

is only 4% of Ryanair's entire business is Ireland, by

8:45

the way. They're huge

8:48

in Britain and Spain initially. People will

8:50

look at a website and come to

8:52

Dublin, not based on the hotel price,

8:54

but on the access price for the

8:56

airline. Now, they don't expect, there isn't

8:58

an expectation of cheap prices. I think

9:00

it was the great Austrian statesman,

9:02

Metternich decided Europe was

9:04

divided into beer-drinking countries and

9:07

wine-producing countries, wine-drinking countries. You

9:10

could draw a border right through the middle

9:12

of Europe. To

9:14

the north of that line, Ireland competes

9:16

pretty much with what Scandinavia does, Germany

9:19

does. It's

9:21

been a bit south of that. We're really not in

9:23

the same game that Spain and Portugal, the Irish people

9:25

go on their own holidays to. In

9:27

terms of eating out, access

9:30

fares are really how we

9:32

manage to make the money back for the

9:34

tourists inbound. Just on the

9:36

first point, we're very dependent on foreign markets. Two

9:39

of them are struggling to recover.

9:41

France and Germany, Britain is very poor.

9:44

America saved our summer last year. What

9:47

I'll say about what the hoteliers

9:49

are experiencing is Americans traditionally don't travel

9:51

in numbers in election year and we're

9:53

very dependent on them coming back. We're

9:56

not anywhere in... So this threatens to

9:58

be a bad year. We're in doubt.

10:00

anywhere back to pre-pandemic levels in international

10:02

aviation part and that is a

10:05

bit of a problem if somebody like

10:07

America doesn't pop up to save our summer like

10:09

it did last year. They're the

10:11

sort of press, but I think it was that

10:14

rendezvous France, the French tourism inbound, two

10:16

of the major sessions were about staffing

10:19

issues, cost of business, the same things

10:21

when you go to a French hotel,

10:24

it mightn't be a French person, we talk about

10:26

the Colleen in the green dress that we need

10:29

in the reception, but every other country

10:31

is facing very similar sort of problems

10:33

and we can talk a lot,

10:35

assess a little bit about

10:37

price and we've been doing so for many

10:39

many years. The cost of the

10:41

offering to the tourists in Ireland isn't

10:44

coming back to haunt us in cancellations. Our

10:46

growth was there right up to the pandemic

10:48

despite the fact we were worried about cost.

10:51

We always have to worry, we always

10:53

have to worry about what our competitors, particularly the

10:56

likes of Scotland are doing. If we write

10:59

a double

11:02

digit percentage points over the cost of

11:04

an equivalent to Scotland, that's where we're

11:06

going to start falling out of the

11:08

business, but we're doing quite well and

11:10

we're dealing with a shared

11:15

problem in the cost of doing business and

11:17

we really need to, I would

11:20

support what Adrian's doing on the 9% fact

11:22

completely because when we start

11:25

imposing conditions upon ourselves that puts us

11:27

out of our sync with our competitors,

11:29

not Spain and Portugal but the Scandinavian

11:32

countries, Scotland, Northern Germany, places like that,

11:34

that's really a known goal we don't

11:36

need to score. Britain of course is

11:38

teetering always on the brink of recession

11:40

onto the current government. It

11:42

means prices are a bit depressed, they complain

11:44

about the cost of living, but

11:46

people are going to a new area and someone will

11:48

say well actually my shopping basket

11:51

I can get a lot more bangs from my

11:53

euro up there than I can down here. That's

11:55

good for Tourism Ireland that they have six counties

11:58

that are working to advance. different regulations

12:00

but they don't always favor cost

12:02

of doing business in the north-eyed

12:05

work either. Britain the

12:07

British market inbound is a bit like

12:09

Carlsberg, the old Carlsberg ad, it reaches

12:11

bits that nobody else gets because they're

12:13

a different type of client they're not

12:15

staying in the high yield hotels of

12:17

five stars they're going to the Midlands

12:19

hotels that really you know gets coach

12:21

tours elderly people coming

12:23

through and that's a very important

12:26

market for parts of the country

12:28

that don't get the high yield

12:30

customers and that's been suffering every year

12:32

since Brexit and it's not looking good

12:34

for a company. And what about the

12:37

presence of asylum seekers and Ukrainians in

12:40

the hotel stock because a lot of the

12:42

hotels took up those contracts because you know

12:44

there's no business in the winter there was

12:46

business in the summer but you know if

12:48

you take up a contract it might be

12:50

gone for the entire year including

12:52

the tourist season. Interestingly enough

12:55

there's been a benefit from that

12:57

which we've seen we've seen a

12:59

quite a few hotels returning to

13:01

the hospitality market that got the

13:03

investment money out of housing Ukrainian

13:05

and the other asylum

13:08

seekers the investment money that was needed

13:10

and was very badly deprecated by the

13:13

pandemic so I wouldn't get

13:15

too upset about the

13:18

fact that hoteliards have used this as a

13:20

source of revenue all of them that

13:23

I've spoken to have always talked about

13:25

returning to the tourism business when that's

13:27

done. We also had a couple of

13:29

openings which helped alleviate the situation in

13:31

Dublin and in Cork and a very

13:33

big hostel opening in Dublin which will

13:35

help alleviate the situation at the budget

13:37

end. It's about 12-13%

13:40

of our beds are out on contract and

13:42

the biggest problem

13:45

with them is it's not exactly proportional through

13:47

the country there are towns in the West

13:49

of Ireland where a large proportion of the

13:51

beds are out and Adrian's members

13:53

who would rely on the spillover at

13:55

the downstream business from that are losing

13:58

out. Those certain counties you have

14:00

a higher proportion of tourism

14:02

accommodation displacement. Like the likes of County Clare

14:04

which is up near 34%, Dunnegal is nearly

14:07

40% of tourist

14:10

accommodation and Kerry as well. So

14:12

these counties and what they need

14:14

is the need to be identified

14:16

by the government as an issue

14:19

in terms of a support package

14:21

specifically for them. Unfortunately the

14:23

government has decided in their wisdom to give money

14:26

to visitor attractions and activity centres

14:28

but forgot about the local coffee

14:30

shop and local pub and restaurant who are

14:32

a downstream business. Where's the joint

14:34

up thinking there from the government? There's a

14:36

Falls Ireland grant for those visitor attractions but

14:39

there's nothing for other businesses.

14:41

Yeah and the question is if you're going to

14:43

these attractions where are you going to stay? Where

14:45

are you going to stay? Lorraine?

14:48

Yes Pat I agree with what Owen

14:50

says on the hotels who have had

14:53

the buffer of having 100%

14:55

occupancy and in our case

14:57

as well we're reinvesting some of that money

15:00

into making sure our product is ready for

15:02

to transfer back into the hospitality sector when

15:04

the time is over. When is

15:07

it going to be over? Nobody knows. There's

15:09

very little communication about what's the

15:11

future hold for the Ukrainian refugees or for

15:14

the hoteliers that are housing them and

15:16

I would welcome the government making

15:19

some announcement because people are feeling very unsure

15:21

of themselves. The recent reduction in

15:24

incoming Ukrainian refugees is

15:26

as a result of the cutback in the

15:28

offer for them but the people who are

15:30

here now are feeling very uncertain and uneasy

15:32

and you know they've lost the

15:34

kind of highlights because

15:36

of the Gaza war. There's a very

15:38

interesting thing it came across for

15:40

the budget traveler I

15:42

think it's from backpacker.com and you mentioned a

15:45

hostel a big hostel that's opening up for

15:47

the lower end of the market and what

15:49

they've done is they've taken out the cost

15:51

of access to various cities but the four

15:54

I have and this would

15:56

include paying into one attraction which could

15:58

be a museum or whatever. whatever, and

16:01

it would include food, breakfast,

16:04

lunch, dinner and a treat, which could be

16:06

a beer, transportation,

16:10

two rides and accommodation, a

16:13

hostel accommodation. Amsterdam comes

16:15

in tops. Now this is forgetting

16:17

about how you got there. The

16:19

cost per day is €118 to spend a

16:23

day in Amsterdam. The cost

16:25

in Dublin is €94 for a

16:29

backpacker. The daily cost

16:31

in Rome is €88 and

16:33

the daily cost in Barcelona is

16:35

€80. So

16:39

the backpacker gets more bangs for their

16:41

book in Barcelona, certainly than they do

16:43

in Dublin and certainly than they do

16:46

in Amsterdam. It's very interesting when you

16:48

look at the price of the pint

16:50

as our gauge. When you look

16:54

across Dublin and particularly the

16:57

very well-publicised rise of

16:59

the price of the pint in the pubs and temple

17:01

bar, you can walk 500 metres and

17:03

get a pint for €5 or €550 and you're

17:07

paying nearly ten in the temple bar.

17:09

The pubs that are charging the most

17:11

are packed. So it's not really a

17:14

price that people are making. The prices

17:16

of running on the ground when

17:20

you land in the city aren't really

17:22

a factor in people deciding to come

17:24

to Dublin or not. They do expect

17:27

Amsterdam, Copenhagen and Dublin to be around

17:29

the same level. They do

17:32

expect provincial cities in Spain to be

17:34

at a much lower level. They'd be

17:36

horrified if they were charged Dublin

17:38

prices. But where we

17:40

sit in international tourism, the expectation isn't

17:43

that you're coming here for cheap deals.

17:46

Just an interesting aside, the

17:49

National Leprechaun Museum in Dublin

17:51

has been named the country's

17:53

most boring attraction. Anyone

17:55

been to it? No. You've

17:57

been to a few attractions in your time. I've been to more boring

18:00

attractions. I was at the Barb Dwyer Museum in

18:02

Oklahoma. The

18:07

top attraction by the way is

18:09

the Branson-Sinek Railway in Missouri. That

18:11

took the number one spot with

18:13

the US occupying the top

18:15

seven spots for really attractive

18:18

attractions. Some of the

18:20

comments and it's interesting, Dan here echoes something

18:22

you said on, my family has

18:25

been in the food industry for years and we've always

18:27

made good money. But in the last 20 years we

18:29

can up our prices and the higher the

18:31

better. The more we seem to charge, the more

18:33

people seem to think it's better. So

18:35

that's the kind of the Temple Park pint phenomenon. Yeah,

18:38

it's also that they don't just think it's better. They're

18:40

coming back because it is delivering

18:42

the quality. We do a reputation

18:44

for food. We're the fourth biggest

18:46

beef export in the world. Oddly

18:48

enough, other countries have built entire

18:50

culinary reputations in our food. So

18:52

I wouldn't really worry

18:54

about trying to market low cost food

18:56

to our tourists when they're coming to

18:59

Ireland. They see cattle in the field.

19:01

They see the sheep out in the

19:03

field. They see food being produced as

19:05

it should be and environmentally in a humane way

19:07

and I wouldn't be chasing the cost on that.

19:10

Yes, that's what I wouldn't agree with that texture

19:12

there because by and large in

19:14

the restaurant business, you have to provide value for

19:16

the customer. But

19:18

the value can be ambience, detail,

19:21

service, which allows people to charge

19:23

more for the same growth. Well,

19:26

that's true, Pat, but I don't think that

19:28

formula could work universally in the restaurant business.

19:31

My great fear is that we're going to

19:33

end up with fast food chains as an

19:35

offer to the tourism sector and that's not

19:37

going to work. You could be in any

19:39

country in the world to go to an

19:41

international brand and fast food chain. But Ireland

19:43

has the unique offering and I can tell

19:45

you that the customer that's

19:47

coming to Ireland is not prepared to

19:49

pay unlimited amounts to have that experience.

19:51

So as an operator, we're

19:53

faced with the challenges of the high costs.

19:56

You can cut down the portions a little bit.

19:58

You can cut down the portions cut down your

20:00

hours a little bit, but you can't

20:02

continue to charge huge prices. And there's

20:05

a level beyond which it becomes unviable.

20:07

Let's say, for example, in one restaurant

20:09

that I operate, the minimum wage increase

20:11

alone cost us 85,000 this year. Add

20:13

the increase in

20:15

that to that and other increased cost of

20:18

food. It just wipes out the profitability. So

20:20

the contrast is we end up with

20:23

less restaurants and a few charging and

20:25

a fortune, but the nine million tourists

20:27

need a broad spectrum of offers.

20:29

I wonder, Adrian, you might be able

20:31

to help me here, how many of

20:34

the restaurants are actually sort of professional

20:36

limited companies rather than family restaurants? Because

20:39

the perception is in continental Europe, an awful

20:41

lot of them are family run. So people

20:43

do maybe all the extra hours that are

20:45

required. They're not, you know, they're cooking themselves.

20:48

So there's no really expensive chef in the

20:51

kitchen. It's, you know, family

20:53

run, family maintained. They put

20:55

an exact figure on what's the

20:57

percentage. I wouldn't have that. But you

21:00

know, you are correct. There's a,

21:02

we have far more independent restaurant

21:04

owners, independent coffee shop owners across the

21:06

country. We're not, we're not like the

21:08

United States where it is predominantly brands

21:10

across every town and street

21:13

in the States. And we pride

21:15

ourselves in the quality of our,

21:17

our food and our offering. I

21:20

read you some of the texts. My American friend

21:22

who was a regular visitor in the past says

21:24

she wouldn't come over again due to the fact

21:26

that she'd be lucky to get a broom closet

21:28

that she could afford in Dublin. At

21:30

the minimum wages are much lower

21:32

in other European countries because housing

21:34

is much cheaper and all social

21:37

services are superior, healthcare, childcare, welfare

21:39

benefits, etc. Two nights in Wexford

21:41

B&B, two dinners, 605 euro, seven nights all inclusive

21:44

Bodrum, a thousand and nine euro would

21:47

love to holiday at home, but it's

21:49

unsustainable. That's from Paul. Yes, but

21:51

in Bodrum, the minimum wage is about 500 euro

21:53

Pat. So like, you know, it's

21:56

not apples and apples, it's apples and oranges.

21:58

Yeah, but people actually are not asking. questions are

22:00

they but to the waiting staff

22:02

how much you're earning it's the experience. Yeah

22:04

but they do know I would be conscious when I'm in

22:06

Portugal if I'm about to tip I would know that that

22:08

person is on a minimum wage of about 450

22:11

an hour but the bottom line is that

22:14

Bodrum has a huge resource of people

22:16

to draw from to come and work in their

22:18

industry. Ireland is at full employment and we do

22:20

not have people we can call upon to come

22:22

and work in our industry. Another one on behalf

22:25

of my professional association I made a bid to

22:27

host an international conference here in Ireland we lost

22:29

the bid due to the costs. The

22:31

conference committee objected to all of our

22:34

costings price for accommodation food site rental

22:36

etc our country is perceived as far

22:38

too expensive by our international colleagues. Why

22:41

is fillets stakes so expensive in world terms

22:43

Ireland is a beef superpower it does not

22:46

make sense perhaps the fillets

22:48

are being produced exclusively for export that's

22:50

from Ed having just

22:52

returned from Gran Canaria where we two

22:54

adults and two nagers dined in good

22:57

restaurants having three course meals bottled water

22:59

and wine around 120 euro we will

23:01

not holiday in Ireland again sadly incidentally

23:04

many of the staff there were not

23:06

local they were from various other countries.

23:09

What about block booking in hotels as you

23:11

can't stay in a Saturday night you have

23:14

to save Friday and Saturday really unfair to

23:16

families that have to book large rooms if

23:18

they just want to get away for the

23:21

night. Sick pay is the biggest cost it's

23:23

another week's holiday which has to be covered by

23:25

another person many of my 120 staff

23:28

are putting it to

23:30

their holiday. I'm French I've lived in

23:33

Ireland for two decades welcoming family visits

23:35

regularly however their trips are becoming less

23:37

frequent due to the high cost of

23:39

living here despite them staying with me.

23:42

So Canaries own what about that

23:44

protest? Tour is out not much

23:47

not much to it from what

23:49

I can see well

23:51

publicised there five the four islands

23:53

everyone can name plus La Gomera

23:56

at 12 o'clock on Saturday and

23:58

it's There's been a reach

24:01

out in social media to gather and protest against

24:03

over tourism. One of the sort

24:06

of movement we'd have seen in Dubrovnik,

24:08

Barcelona and Venice, but the Canary Islands

24:10

is very dependent on tourism. I wouldn't

24:12

expect large numbers. I wouldn't expect any

24:14

Irish people going away to even notice

24:16

they were taking place. Pat, just one

24:18

point on the comments that you're getting in. Irish

24:21

people have suffered the winter of rain and

24:24

they need to get away to the sun. And

24:26

there happens to be times in the year you

24:28

can go when the flights are cheaper and you

24:31

can get accommodation that's reasonably priced. So

24:34

really we're talking about the people coming

24:36

into Ireland, the nine million visitors, are

24:38

coming for a different thing. They're not coming

24:40

for it to toast in the sun

24:42

and to have air conditioning running at night

24:44

in the hotel bedrooms. So frequently

24:47

we get comments from people who can go to

24:49

Barcelona and go to the Canaries and have a holiday

24:51

at half the price they can have it here. Irish

24:54

people do need to get away. I'm looking forward to it.

24:56

I'm sure you are too. Every

24:58

second day here there's a shower every hour. And

25:01

so really we're not comparing like

25:04

with like. Adrian, what has to be

25:06

done? I mean the 9% would be a help, but

25:08

would it be a panacea for

25:10

all ills or are so

25:12

many outfits still with warehouse

25:15

debt which will cut them down?

25:17

Yeah, well the warehouse debt is a portion

25:19

of our industry that are caught in the

25:21

warehouse debt and that has to be repaid

25:23

from me onwards. And you will see more

25:25

closures because of that. But

25:27

the big issue for the food-led businesses is

25:29

that 9% battery. That would be

25:31

a huge lifeline to our industry.

25:34

Otherwise you would see more and more increase

25:36

in closures. When you benchmark

25:38

this year against the height

25:40

of the recession and the financial crash, we

25:43

had one a day of closing back then. Now we have two a

25:45

day of closing now. Lorraine? I

25:47

agree that the 9% is essential and I think Simon

25:49

Harris could hit the ground running now and

25:52

reverse the trend of restaurant closing. However

25:55

on the warehouse debt, I cleared

25:57

my debt and I think it would be unfair on people to

25:59

get it. debt holiday or a

26:01

debt write-off because they're getting zero

26:03

interest. They're getting zero interest which is fair enough

26:05

but I think a lot of small

26:07

operations might close down and reopen again in

26:10

order to avoid the warehouse debt which I

26:12

think would be very unfair on those businesses

26:14

that have paid their debt. I'm tired

26:16

of hearing about the poor hotels and coffee

26:18

shops alone. What about the retailers in those

26:20

areas that they are also dependent on tourism

26:22

to top up their income? You know the

26:25

novelty shops, the tourist shops. Ellen,

26:28

as someone who's not a provider of

26:30

these services, what's the solution to make

26:33

sure that 2024 is a decent

26:35

year for tourism? Is there anything that anyone can

26:37

do? Don't score any own

26:39

goals but you know things like that

26:41

rates manage the staffing and

26:43

the permits for people coming in, try

26:46

to get chefs all of that. Remember

26:48

in the modern diverse wonderful world where

26:50

people travel so much homogenization is the

26:52

enemy. Every single one of Adrian's restaurants

26:55

and the two a day that are

26:57

closing down is losing something distinctively Irish.

26:59

We could end up in a situation

27:01

where franchises and familiar names start taking

27:04

over our provincial teams. That's not what

27:06

we want to happen. We want people

27:08

to feel they're in Ireland

27:11

and in a particular county and in a particular part

27:13

of Ireland by what they see and what they eat

27:15

when they get there. Hotelier Lorraine Sweeney, own

27:17

Corrie travel journalist Adrian Comincio of the

27:19

Restaurant Association of Ireland. Thank you very

27:22

much for joining us. The

27:24

Pat Kenny Show. With a Viva

27:26

Insurance. Weekdays at 9am. On

27:30

News Talk.

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