Irish government has contracted for 22% of tourist accommodation
Irish tourism industry trade group ITIC has published a report calling attention to the consequences for the country's tourist accommodation owners of the government's "over-dependence" on their properties for the housing of Ukrainian refugees.
In its report ITIC says it "fully supports the Government's humanitarian reaction to the Ukrainian crisis" - but that the limitations being imposed on lodging carrying capacity for domestic and overseas visitors is "putting Ireland's tourism recovery at risk."
There are currently 57,000 Ukrainian refugees in Ireland and 22% of tourist accommodation capacity has been contracted by the government to house 34,000 of them. New arrivals continue at the rate of more than 1,000 per week.
Many refugees are being housed in prime tourist areas including West Clare, County Donegal, Killarney and West Waterford, and hospitality and retail businesses there are suffering loss of income and jobs on account of the lack of tourists.
ITIC makes the following recommendations for a more balanced approach to refugee housing in 2023:
- A "whole government" approach
- Creation of a 2-year humanitarian plan for housing refugees
- A 12%-15% allocation of tourism accommodation stock to refugee housing
- A Business Continuity Fund for negatively impacted tourism businesses
- Expedited Local Authority strategies
- Fast-tracking of alternative-accommodation solutions
- Minimize barriers for Ukrainians to entry to the labor force
- Expedite transition from Direct Provision
- Extend 9% tourism VAT to 2025
A tough situation for Irish hotels, and one that will become much worse if nothing is done before the spring of 2023. How will the government fix this situation? Watch this space.
