Mayo hoteliers call for budget action to address rising business costs
Irish Hotels Federation urges Government to introduce targeted supports to protect tourism jobs and improve competitiveness ahead of Budget 2027
Hoteliers from Mayo have called on the Government to introduce measures to tackle the rising cost of doing business. They warned that escalating operating expenses are putting pressure on the county’s tourism and hospitality sector.
The appeal was made during ‘Supporting Irish Tourism & Hospitality’, a recent Irish Hotels Federation (IHF) event, where hotel owners from across Mayo met with TDs and Senators to discuss the challenges faced by the tourism industry and the supports needed.
According to the IHF, tourism and hospitality supports more than 270,000 livelihoods nationally, including around 6,000 jobs in Mayo, making it one of the country’s largest industries.
Declan Heneghan, Chair of the Mayo Branch of the Irish Hotels Federation, said businesses are struggling with unsustainable operating costs.
“Tourism and hospitality businesses are struggling to deal with unsustainable operating costs that are putting enormous pressure on margins,” he said. “This is a serious challenge for our sector, including the local tourism economy here in Mayo. It is essential that Budget 2027 delivers targeted measures as part of efforts to offset some of these Government-controlled costs and enhance the cost competitiveness and viability of our sector.”
Ahead of Budget 2027, the IHF is calling for a reduction in employers’ PRSI for labour-intensive hospitality businesses, measures to address rising energy network charges, support for the development of staff accommodation, enhanced funding for sustainability initiatives, increased investment in Fáilte Ireland and Tourism Ireland, greater funding for training and skills, and measures to support additional hotel capacity.
The organisation says these actions would help strengthen the long-term sustainability of hotels and guesthouses across Mayo and the wider country.
Tourism remains a major contributor to the Irish economy, as it generates around €10 billion annually and contributes more than €2.9 billion in taxes each year. Approximately 70% of tourism and hospitality jobs are located outside Dublin, underlining the sector’s importance to regional economies.