• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to secondary navigation
  • Skip to primary sidebar
  • Skip to footer

Before Header

Call us today!  028 3752 2909 or 028 8778 9500

  • Facebook
  • LinkedIn
  • Twitter

WHR Accountants

  • HOME
  • ABOUT
  • OUR TEAM
  • SPECIALIST SERVICES
    • Audit & Assurance
    • Accountancy
    • Book Keeping
    • Computerisation
    • Payroll Services
    • Business Development & Start-up
    • Tax
    • VAT
    • Business Information Systems Support
  • BECOME A CLIENT
  • BLOG
  • VACANCIES
  • CONTACT
  • SEARCH

Mobile Menu

  • HOME
  • ABOUT
  • OUR TEAM
  • SPECIALIST SERVICES
    • Audit & Assurance
    • Accountancy
    • Book Keeping
    • Computerisation
    • Payroll Services
    • Business Development & Start-up
    • Tax
    • VAT
    • Business Information Systems Support
  • BECOME A CLIENT
  • BLOG
  • VACANCIES
  • CONTACT
  • SEARCH
  • Facebook
  • LinkedIn
  • Twitter
Home » Blog » Soaring Costs Hit Hospitality Sector Hard

Soaring Costs Hit Hospitality Sector Hard

June 9, 2025 By //  by Des Ingham Leave a Comment

The effects of the employer’s national insurance contribution increase, along with the increase in the National Minimum Wage are hitting the hospitality sector in Northern Ireland hard, according to a recent survey.

The survey has been produced by hospitality industry bodies such as Hospitality Ulster, UK Hospitality, The British Institute of Innkeeping and the British Beer & Pub Association, with the responses from the trade giving a stark warning that changes are needed and soon if we are going to stop many businesses from closing down.

A Quarter Of Businesses Operating At A Loss

The survey reveals that over 25% of hospitality businesses who took part are actually operating at a loss, 20% are only breaking even, and sadly only 6% said they were making a greater profit this year than they were doing at the same stage in 2024. 45% said they had cancelled investment plans and just over 50% said they had reduced their number of staff over the last 12 months.

Cost Of Operating Too Much For Hospitality Sector

Here is what Colin O’Neill, the Chief Executive of Hospitality Ulster, said about the results of the survey in an article on the Business Eye website. He is quoted as saying:

“The results of this survey are further proof to what Hospitality Ulster has been warning of for a long time: that the cost of operating is simply too much for Northern Ireland’s hospitality sector, which will suffer significant damage unless government support lifts the boot off our necks.

“How does the NI Executive expect to deliver their Programme for Government plan to double tourism in the next 10 years without the policies in place to deliver it? Put simply, hospitality accounts for four out of every five jobs in tourism and takes two thirds of the tourism spend. You can’t double tourism whilst you allow the hospitality sector to fail.

“Hospitality is worth £2 billion annually to the Northern Ireland economy; it accounts for 72,000 jobs and is the fourth largest private sector employer. Jobs are being lost, livelihoods under threat, communities set to lose precious assets, and consumers are experiencing price rises when wallets are already feeling the pinch. All of this will cause significant damage to both the local economy and local communities.

“The UK Government and Stormont Executive must act urgently. Our survey tells us that the most urgent issues for operators here are a VAT reduction for hospitality, the reversal of the Employer National Insurance contributions, and the alignment of business/non-domestic rates in devolved nations to match incoming reforms in England. In return for these supports, the hospitality industry can return to investment, job creation, and growth in communities. Without them, these surveys will grow more pessimistic, more jobs will be lost, and the local economy will be further weakened.”

Action is needed from the government bodies, let us hope they listen and show some support for the beleaguered hospitality sector.

Category: General

Looking for immediate answers to your questions?

Schedule a no-cost consultation today!

This is a very useful Call To Action in the “After Entry” widget area. You can put whatever you’d like in it, and change the background color to whatever you’d like.

You May Also Be Interested In:

Soaring Costs Hit Hospitality Sector Hard

Northern Ireland Energy Summit Back For A 2nd Year

Beyond The Fee: How An Accountant Can Save You Money On Your Taxes

BGF To Play Its Part In Supporting Businesses Across The UK With Funding

NI Business Delegation Visit Westminster To Push For More Investment, Support & Less Regulation

Surge In Use Of AI By Northern Ireland Businesses

New UK – EU Deal To Remove Routine Checks On Animal & Plant Products

8 Reasons Why An Employer Should Use Our Payroll Services

Rural Business Development Grant Scheme Proves A Hit With Rural Businesses

Previous Post: « Northern Ireland Energy Summit Back For A 2nd Year

Reader Interactions

Leave a Reply Cancel reply

You must be logged in to post a comment.

Primary Sidebar

WE PROMISE YOU:

If you are finding the current economic situation tough, then rest assured, we understand the pressures you face as a business owner or manager. You don’t have to face the future alone. When you choose WHR, you have an ally, a partner, a friend, in both the good times and the tough times.

028 3752 2909
028 8778 9500

RECENT POSTS

Job Retention Scheme – Update

Dear Payroll Client We are trying to continue to run our …

Soaring Costs Hit Hospitality Sector Hard

The effects of the employer's national insurance contribution …

Northern Ireland Energy Summit Back For A 2nd Year

After a well received first outing, the Northern Ireland Energy …

Beyond The Fee: How An Accountant Can Save You Money On Your Taxes

For many, the idea of paying an accountant to handle their taxes …

BGF To Play Its Part In Supporting Businesses Across The UK With Funding

It is heartening to read that the Growth Capital Investment …

NI Business Delegation Visit Westminster To Push For More Investment, Support & Less Regulation

A business delegation from Northern Ireland, comprising of …

Footer

Director

James Robinson

Head Office

WHR Chartered Certified Accountants
028 3752 2909 or 028 8778 9500

56 English Street,
Armagh
BT61 7LG

Contact Us

Contact our office today. Our team are ready to help you. There is no better time than now.
Click Here →

Follow Us

Keep up to date with our social media

  • Facebook
  • LinkedIn
  • Twitter
  • Blog
  • Specialist Services
  • Privacy Policy

Website created by ZebWeb