Survey Reveals A Hospitality Sector In Crisis

The latest survey by Hospitality Ulster reveals that the hospitality sector is in a state of crisis, with over 25% of businesses operating at a loss, and another 20% in the sector just about breaking even.

Colin Neill, chief executive of Hospitality Ulster, believes the Executive at Stormont should be doing so much more to support the hospitality sector. The government have made great play about how they want to increase tourism to Northern Ireland, but if they don’t support the businesses involved then they are heading for failure.

Governments Must Act Urgently

Here is what Colin Neill wrote in an article on the Irish News website about this issue. He wrote:

‘The UK Government and Stormont Executive must act urgently. The UK Spending Review in June featured within it significant funding for upskilling and apprenticeships, which is always to be supported.

‘But the hospitality industry has long been making the case that we could invest in our own specific upskilling needs if the Apprenticeship Levy was done away with. The levy requires employers to contribute 0.5% of their payroll without a guarantee that the monies will be allocated to apprenticeship programmes within Northern Ireland.

‘The sector here has been trusted enough to co-design brilliant upskilling courses in partnership with Belfast Met and the Department for the Economy, funded by the Department. Imagine the complementary investment into the workforce that could be done if these costs were removed; who knows better what skills are needed than the people working in hospitality every day?

‘Instead, we’re going in the opposite direction. Some 45% of Hospitality Ulster members cancelled investment in preparation for April’s cost increases; 31% lowered spending on employee training. 35% stated that they planned to cancel investment now as a result of the increases; 20% said the same about employee training.

VAT Reduction And Reversal Of Employer NI Contributions Urgently Needed

‘Our survey tells us that the most urgent asks 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.

‘If we can tackle these issues, hospitality businesses can get back to doing what they do best: serving up the atmosphere that has made us famous worldwide and investing in the workforce that makes our offering possible.

‘Tourism and regional jobs are two of the main pillars of the Executive’s economic development plans, both of which relay on hospitality to deliver them.

‘We at the coalface are telling them that there will be no scope for operators to deliver either if conditions persist as they are. It’s time they start listening.’

The hospitality industry has had it so tough over the last few years and it needs all the support it can get. Let us hope Mr Neill is listened to and the government act upon it.