Tag: hospitality jobs

hotel jobs

New study shows rising costs for hotels due to staff shortages

Posted on | by Aisling Rafferty

A new study has highlighted the risk of rising staffing costs for hotels as the industry faces fierce competition for staff in an economy with falling unemployment.

According to Crowe Ireland’s annual survey of Ireland’s hotel sector, the industry has seen increased turnover for the seventh consecutive year and is reaching record profitability, record occupancy and record room rates in all regions across the country. The annual Crowe Ireland survey of the country’s hotel sector said that the industry has enjoyed the seventh consecutive year of increased turnover.

The survey found that average room rates across the country rose 6.9% last year compared to 2016. In Dublin, the average room rate was 6.8% higher at €136.96. The pace of growth in average Dublin room rates last year was half that recorded in 2016, despite just 237 new rooms coming on stream. In the southwest and western seaboard, average room rates soared 8% and 9.7% respectively to €100.67 and €87.49.

Luxury hotels saw room rates rise 6.2% to €218.02, a new record. Economy hotels saw the biggest growth in average room rates, which rose 11.8% last year to €68.43.

The survey found that Dublin hotels increased their profits by 12%. Profits at hotels in the southwest jumped 17.4% on average, and by 17p% along the western seaboard. At hotels in the midlands and east, profits were 13.9% higher on average.

While this profitability is welcomed, it puts the special 9% VAT rate for the hotel industry , introduced by the Government in the depths of the financial crisis, under scrutiny as budget day approaches.

In a review of the 9% rate , the Department of Finance said it had cost the Exchequer €2.6bn since its introduction in 2011, and was now a “significant deadweight”. The Department said the reduced rate cost €490m in 2017.

Crowe Ireland partner Aiden Murphy said that payroll cost increases were the most significant threat to the hotel sector’s profitability.

The falling unemployment rate in Ireland means the premium that hotels must pay for staff above minimum wage “will have to increase”.

“There is a concern that the payroll cost for hotels, which was 34.5pc of revenue in 2017, could return to much higher levels,” he said. “Going back seven years, it would have been as high as 38pc or 39pc.”

The minimum wage currently stands at €9.55 an hour but just last month, the government agreed that the rate will rise to €9.80 from next year, following a recommendation from the Low Pay Commission. Mr Murphy said that hotels typically pay between €1 and €3 an hour above minimum wage.

Mr Murphy also said that the cost of living and accommodation in particular could push hotel workers in Dublin to move to hospitality jobs outside the capital.

“There’s a concern for certain staff in Dublin about the cost of living increasing,” he said, pointing out that workers at regional hotels would find the cost of living much lower.

Barry Whelan Excel Recruitment

7 Things To Think About Before You Leave Your Job

Posted on | by Aisling Rafferty

With unemployment at near perfect and companies crying out for great talent, more people than ever are on the move and wondering if the grass may be greener somewhere new. Barry Whelan, CEO of Excel Recruitment takes you through the things you need to think about before you make a move

In Excel Recruitment, we see a lot of people come to us desperate for a move or eager to make a change, go through the often long recruitment process, only to stay with their current employer. From salary to progression opportunities to just plain hating their boss there are many reasons people start looking for their next job. But before you request your p45, make sure you’re clear on the following points-

  1. Know your reasons

Assess why you want to make a move and figure out whether they can be fixed by less drastic measures than moving jobs. Want more responsibility or a salary increase? Ask for it. Feeling overworked or overwhelmed? Discuss the situation with your manager, assess your time management or drop something from your workload. What might seem like an overwhelming problem might actually have a simple fix that could save you time and effort doing up your CV and attending interviews.

  1. Know your goals

Similar to the first point, make a list of what you want, why you want it and why you can’t get it with your current employer. Then divide these into absolute necessities and points that are less important to you. By setting these out before you start looking for a job, you’re far less likely to waste your own time or make a rash decision and end up in another job that’s not right for you.

  1. Know your plan

Never leave a job without a job is advice our consultants dish out a lot, but for a good reason. Leaving a job suddenly or without a job to go to can look like an impulsive decision and gaps in your CV can be difficult to explain at interviews.

If you are planning on taking time off between roles or taking redundancy, make sure you’ve done the maths on how long you can afford to live without a regular salary and make sure you have a deadline for when you are going to start jo hunting again- the last thing you want is to wait too long and feel pressured to take the first job offer that comes along.

  1. Know your industry

Researching your industry, the current market and your competitor’s businesses will give you greater insight into what your next move should be and where you see yourself. It’s also a good habit to get into for when you eventually start attending interviews. You will be prepared and able to show that your research has been done. This has the added bonus of giving you a lot more confidence when selling yourself to the interviewer.

  1. Know your worth

In the same vein, knowing where your salary sits within the market is vitally important in order to ensure your applying for the right jobs and pitching yourself at the right level to prospective future employers. Research salary surveys for your industry or look at the salaries advertised on job ads looking for your level of experience to see what they’re offering. Again, do the maths to figure out whether you’re willing to take a drop in salary for your dream job or whether you’ll only consider a move for a boost to your pay packet.

  1. Know your benefits

Assess your current situation and ask yourself what you have to gain, and what you could potentially lose from your current benefits package. Does your current employer let you leave early on Wednesday for yoga class? Do you have extra holiday days built up over years of service that a new company may not match? Ask yourself the same questions about sick leave, pension, etc. and ensure you know what you want to gain, what you can’t live without and what you don’t mind losing for the right role.

  1. Know what works for you

Similarly to the above point about knowing your benefits and what you could stand to lose if you make a move. Factors like location, commute time or working environment are all important parts of overall job satisfaction but can often be forgotten about when you start chasing more money or a bigger company. Before you start sending your CV to companies, ask yourself how much of a pay increase you’d need to be happy giving up your 10-minute commute?

 

Chef Job Interviews: The Do’s and Don’ts

Posted on | by Aisling Rafferty

Excel’s General Manager Shane Mclave began his career as a chef before making the move into chef and hospitality recruitment. He’s been interviewing chefs for years and has seen it all in terms of the dos and don’ts. Read his top tips for chef job interviews here-

I have now been interviewing chefs for almost as many years as I was a chef myself and I can safely say that when it comes to certain really common questions, 50% of all chefs don’t have the answers. Many chefs, while great at what they do in the kitchen, don’t have the tools they need to prove their ability to manage a kitchen in a job interview. So what are the must-haves when going for an interview, or for that matter, what do you need to know to be able to build yourself a successful career as a chef?

Know your numbers

I understand that costs will vary from restaurant to restaurant depending on what you sell but you don’t need to be an accountant to have a basic understanding of costings. This is crucial in an interview. In broad terms:

If you are selling lobster for €30 euro, which costs you €12 to make, and sell a pizza, that costs you €2.50, for €28euro it goes without saying you will make a lot more money selling pizza then you will selling lobster. This is why pizza restaurants are everywhere and lobster restaurants are not.

When it comes to food and labour cost there is no exact formula but if you follow the rough rule of “a third, a third, and a third” you’ll be headed in the right direction. Slightly better again, would be “30, 30, 40”. This means meaning no more than 30% food cost (25%-27% would be optimal) keeping labour costs 30% and the rest should cover the cost of running the business and if you’re lucky, a profit at the end of the year.

For chefs trying to keep the kitchen running at less than 30% food cost, this works more or less in reverse i.e., if a starter costs you €3.00 to make then you multiply this by 3.5 and sell it for €10.50, if something costs you €10, then you sell it for €35.

With the numbers taken care of now comes the most important thing of all-

The Food

It’s amazing how many interviews I have sat through with chefs who don’t mention food at all. While HACCP and how you work in a team are important, when people hire a chef they above all want someone with a genuine love and passion for food and who’ll bring that enthusiasm into their kitchen. If you don’t have a passion for food perhaps you need a change of career or at least a change in kitchens.

I always ask chefs in interview ‘what the last restaurant that you ate in?’ or ‘what do you like to cook at home if you’re entertaining?’ and it’s staggering how many times I am met with a blank stare. I’ve gotten this response when interviewing seriously established head chefs from the likes of 4* hotels. Personally, I’m far more interested and excited to interview a second-year commis chef who goes foraging on their days off or grows herbs and vegetables at home and the same will be true for any potential employer so be sure to make the food central to everything you discuss in an interview.

Dress for success

Just because you wear whites all week doesn’t mean you can’t dress to impress in an interview. All good chefs are neat and clean in the kitchen and if you can’t groom yourself or dress in a professional manner then what are the chances won’t keep the kitchen neat and tidy or at least that is what a potential employer will think of you.

Dublin restaurant Etto takes top spot at Irish Restaurant awards

Posted on | by Aisling Rafferty

Dublin’s Etto has been crowned Ireland’s Restaurant of the Year 2018.

The winning restaurant, located on Merrion Row, has taken home the award for Best Casual Dining Experience for the past four years. The restaurant also took home Best Customer Service award while head chef Barry Sun Jian took home the award for Best Chef in Dublin at the awards run by the Restaurants Association of Ireland (RAI) earlier this week. Etto was opened in 2013 by Simon Barrett and Liz Matthews. Announcing the award, the RAI said: “Etto offers a daily changing, seasonal menu, served in a relaxed and informal environment and describe its dishes as honest and simple, using ingredients from local producers and suppliers where possible.” The prestigious award for All Ireland Best Chef went to Jess Murphy, head chef and co-owner of Kai Café Restaurant in Galway. Kai was also singled out for Best Digital Marketing.

The awards are now in their 10th year, received more than 90,000 online nominations were received for Irish restaurants and other hospitality businesses. Along with the public vote and votes from industry experts, winners were decided by judging panel assessment at regional level and by mystery inspections at National level. More than 1,000 restaurateurs, chefs and industry figures attended the All Ireland finals of the awards in Dublin on Monday night. A team of chefs, including several previous winners of the Best Chef title, cooked a six-course dinner for the finale at the Clayton Hotel, Burlington Road. The kitchen team included well known chefs included Gary O’Hanlon, of ‘The Restaurant’ fame and Danni Barry, whose restaurant, Clenaghans, took the Best Newcomer national title. Bistro in Waterford, and Elena Martinez of Crover House Hotel.

Liam Edwards, president of the RAI, said: “As an industry, the restaurateurs, pub-owners and entrepreneurs of Ireland continue to defy the odds. You strive to create jobs, expand upon Ireland’s understanding of food standards and world cuisine, all while maintaining exemplary customer service. Your support of Irish produce has never been greater and for this you should be wholeheartedly applauded.”

NATIONAL AND ALL IRELAND WINNERS

Best Gastro Pub:

Dublin – The Legal Eagle

Connaught – Cronin’s Sheebeen

Leinster – Lennons Gastro Pub

Munster – Moorings

Ulster – The Brewer’s House

All-Ireland – The Legal Eagle

Best Hotel & Guesthouse Restaurant:

Dublin – The Marker Hotel

Connaught – Wilde’s at The Lodge

Leinster – Ballyfin Demesne

Munster – Park Hotel Kenmare

Ulster – Newforge House

All-Ireland – Park Hotel Kenmare

Best Newcomer winners:

Dublin – Michael’s Mount Merrion

Connaught – Hooked

Leinster – Barrows Keep

Munster – Dooks Fine Foods Fethard

Ulster – Clenaghans

All-Ireland – Clenaghans

Best Cafe winners:

Dublin – Honey Truffle

Connaught – Pudding Row

Leinster – Strandfield Café

Munster – Maison Gourmet

Ulster – The Jolly Sandwich Bar

All-Ireland – Pudding Row

Best Wine Experience winners:

Dublin – Piglet Wine Bar

Connaught – Aniar Restaurant and Boutique Cookery School

Leinster – La Touche Wines 4 U

Munster – The Black Pig

Ulster – Ox Cave

All-Ireland – Piglet Wine Bar

Best World Cuisine winners:

Dublin – Nightmarket

Connaught – MoMA Restaurant

Leinster – Pink Salt Indian Restaurant

Munster – Palmento

Ulster – Tuk Tuk Asian Bistro

All-Ireland – Nightmarket

Best Kids Size Me winners:

Dublin – Michael’s Mount Merrion

Connaught – Gather Restaurant

Leinster – Platform Pizza Bar

Munster – GROW HQ Café and Food Education Centre

Ulster – Amici

All-Ireland – Michaels Mount Merrion

Best Local Food Hero winners:

Dublin – Jenny & Patrick McNally of McNally Family Farm

All-Ireland – Mark Murphy & Mark Doe of The Apprentice Chef Programme

Best Casual Dining winners:

Dublin – Hey Donna

Connaught – Gather Restaurant

Leinster – Truffles Restaurant & Wine Bar

Munster – Pilgrim’s

Ulster – Shu Restaurant Belfast

All-Ireland – Pilgrim’s

Best Emerging Irish Cuisine winners:

Dublin – Craft Restaurant

Connaught – Tartare Café + Wine Bar

Leinster – Kernel Bar & Kitchen

Munster – Sage Restaurant

Ulster – 28 Darling St

All-Ireland – Craft Restaurant

Best Restaurant Manager winners:

Dublin – Talha Pasha of Michael’s Mount Merrion

Connaught – Lee Hanifa of The Cottage Restaurant

Leinster – Joanne Harding of the Aldridge Lodge

Munster – Sally O’Brien of Farmgate Restaurant and Country Store

Ulster – Saul McConnell of NOBLE. Holywood

All-Ireland – Sally O’Brien of Farmgate Restaurant and Country Store

Best ‘Free From’ winners:

Dublin – I Monelli

Connaught – Sweet Beat Café

Leinster – Zucchini’s Restaurant

Munster – Nutrilicious Food Co

Ulster – The Dirty Duck

All-Ireland – Sweet Beat Café

Best Customer Service winners:

Dublin – Etto

Connaught – House of Plates

Leinster – Roundwood House

Munster – The Mustard Seed at Echo Lodge

Ulster – Harvey’s Point

All-Ireland – Harvey’s Point

Pub of the Year winners:

Dublin – Walshs Stoneybatter

Connaught – Flynns Bar

Leinster – Morrisseys

Munster – Murphy’s Bar Brandon

Ulster – Tomneys Bar

All-Ireland – Walshs Stoneybatter

Best Chef winners:

Dublin – Barry Sun Jian of Etto

Connaught – Jess Murphy of Kai Restaurant

Leinster – Sam Moody at Ballyfin Demesne

Munster – Aidan McGrath of Wild Honey Inn

Ulster – Chris McGowan of Wine & Brine

All-Ireland – Jess Murphy of Kai Restaurant

Best Restaurant winners:

Dublin – Etto

Connaught – Cian’s on Bridge Street

Leinster – TwoCooks Restaurant & Wine Bar

Munster – Mews Restaurant

Ulster – The Muddlers Club

All-Ireland – Etto

National winners:

Best Private Dining & Club Restaurant – Locks Windsor Terrace

Best Cocktail Experience – The Sidecar at The Westbury

Best Cookery School – MacNean House & Restaurant

Best Seafood Experience – Klaw Seafood Restaurant

Best Digital Marketing – Kai Restaurant

 

 

New 134 room hotel planned for Galway

Posted on | by Aisling Rafferty

Press Up Entertainment, Ireland’s largest and fastest growing pub and restaurant group, are said to have acquired a site in Galway with planning permission for a 134-bedroom hotel.

The site is located near Prospect Hill received planning permission for a hotel last year following an application by Highgate Properties. It is understood Press Up paid €4.5 million for the land. In addition to the bedrooms, there is permission for two bars within the building, which will ultimately have a total gross floor area of 5,310sq m. The acquisition comes as Press Up eye opportunities to expand into the UK market in the near future.

Press Up is the largest restaurant and venue group in the country and the group behind well-known restaurants such as Captain America’s, Roberta’s and the Dean Hotel. Press Up, which last year had a turnover of about €52 million, has said it hopes to open at least nine new hospitality venues over the coming year, including the Devlin hotel in Ranelagh, Dublin, which will open in the summer.

The group is also reported to be developing a 140-bedroom hotel in Cork. It is also planning a revamp of former private members’ club Residence on St Stephen’s Green, which it purchased recently. In addition, Press Up will soon open a cocktail bar in a three-storey building on Dublin’s Aungier Street, which company documents suggest will be called The Dutch Billy. The group’s other recent purchases include the well-known Elephant & Castle restaurant business in Temple Bar.

Job vacancies in hotel sector increased 200% in last five years

Posted on | by Aisling Rafferty

Job vacancies in the hotel sector have increased by almost 200% from 2013- 2017 according to jobs.ie

The job board said demand for key hotel roles such as hotel chef, bartenders, waiters, receptionists, porters, cocktail mixologists and concierges have all increased hugely. Every role has experienced growth in the last five years, particularly since 2016. Vacancies for hotel chefs increased by 149 percent over the five-year period and although vacancies were down by 9pc in 2017 compared to 2016, the number remains high. Hotel bartending, mixologist and concierge vacancies all soared by 80 percent in 2017 compared to just the year before.

Ireland’s hotel sector has demonstrated remarkable resilience,” said Christopher Paye, general manager of jobs.ie. Despite a drop in visitors and revenue from the crucial British market, 2016 proved to be a turning point for the sector, thanks to rising numbers of tourists from the rest of Europe, North America and Asia. Paye continues, “However, there is a mounting risk that demand for workers will outstrip supply, and this is already proving the case for chefs,” and he warns the growth of Ireland’s tourism industry will be “short-lived” if the skills shortages are left unaddressed.

The hospitality sector is worth €7.2bn to the Irish economy and supports an estimated 235,000 jobs. There was welcome news for the sector last week when Minister for Business, Enterprise and Innovation Heather Humphreys announced changes to employment permit regulations which saw the removal of certain chef grades from the ineligible occupation list. These changes will make it easier to source chefs from outside the European Economic Area.

Meanwhile, hotel group Dalata has said it expects to add some 300 jobs in Ireland this year thanks to the opening of three new hotels, two in Dublin and one in Cork. The new properties are expected to open by the end of the year.

Salary Series 2018- Hotel Salaries

Posted on | by admin

 

Excel Recruitment are delighted to release our 2018 Salary Survey. Our Salary Survey covers all aspects of the Hospitality Industry including Hotel, Chef and Industrial and Corporate Catering salaries. In a series of blog posts, Excel’s expert team give their take on the year ahead and the factors affecting salaries in each industry.First up, General Manager of Excel Shane Mclave discusses hotel salaries and the effects of Brexit. To view our Hotel and Catering Salary Survey in full click here. To get consultant Laurence Roger’s take on the much-discussed issue of Chefs salaries, click here.

It’s been an interesting year for the hospitality sector in general, and the hotel industry in particular. Brexit and all its consequences, both real and potential, were on everybody’s mind. Its first effects were definitely felt with a 54% decrease in the national average of UK visitors in the last year, according to Failte Ireland. Despite this, it was still a great year for the industry with 69% of hotels and 63% of national attractions welcomed more visitors than in 2016

The minimum wage

We can see that from a salary perspective, there is not a huge difference on 2016 except for salaries at the lower end of the scale, up to €30,000. The general consensus within the industry is that the biggest challenge in 2018 will be to manage the increase in the minimum wage. The jump to €9.55 at the beginning of January has had a knock-on effect. In previous years, employers could allow for an extra 10c or 15c above the minimum wage to create more attractive packages. However this year, with a jump of .30c, this is not possible. We are seeing employers make the decision to raise the hourly pay rate to €10 per hour for entry-level positions. This is pushing up all the lower pay scales to a higher level making it very difficult for businesses in a candidate driven market.

Retention and reward

The next big obstacle for hospitality is to retain the staff that they already have in place through progression and reward. We can see that there are more and more internal promotions, allowing Owners and Managers to keep their core staff in key positions. While this may be a way of retaining staff without any immediate financial cost for the business, if not managed properly, it could lead to inexperienced staff holding senior positions, for which they are not yet ready. They also run the risk of staff getting frustrated at increased workloads and responsibility without feeling a financial benefit. Reward is a different approach that some key players within the hospitality industry are taking and it seems to be working quite well, rewarding staff financially for achieving milestones within the company, usually loyalty and length of service.

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1,300 hotel rooms to be added to Dublin, but supply will still be tight

Posted on | by Aisling Rafferty

It’s forecast that Dublin will see 1,300 new hotel rooms added to the capital this year. More than 500 of the rooms will come from extensions to existing hotels while six new hotels are expected to open in the city in in 2018.

Dalata, Ireland’s largest hotel group, will continue to grow opening three Maldron Hotels and a Clayton Hotel, a 140 room property on Kevin Street and a hotel on the site of the former Charlemont Clinic on the Grand Canal which will have 180 bedrooms opening in September. This month, the McGill family’s Iveagh Garden Hotel will open on Harcourt Street. The family also own the Harcourt and Harrington Hotels and the new 152 room property houses an underground river which will act as a source of renewable energy.

The Liberties will see the opening of Ireland’s first Aloft hotel in the spring with 202 rooms. The hotel is bound to be a hit with tech lovers as guests can use smartphones and Apple Watches to open their room doors. The Dean’s sister hotel, the 41 room Devlin will open in Ranelagh this summer, along with its own 50 seat cinema. According to Davy Stockbrokers said that 2018 will be the first time in almost 10 years that Dublin will see a “meaningful increase” in the supply of new hotel rooms.

Despite these new openings, Dublin’s hotel supply will still remain tight as Dalata close two hotels, the Ballsbridge Hotel and Tara Towers towards the end of 2018/start of 2019. Tara Towers will shut down later this year ahead of being redeveloped into a 140-bedroom Maldron Hotel while the groups lease on the 392-bedroom Ballsbridge Hotel is due to expire in October and while the group is expected to seek an extension of the lease until March of 2019, the property is then set to re-developed by Chartered Land.

Outside of Dublin, Belfast will get 4 new hotel additions, the Grand Central Hotel opening at the end of May with 304 rooms, the Maldron with 237 rooms, Marriott Hotel will open in the Quays area with 190 rooms and a Hampton Hotel will host 180 rooms. Cork’s South Mall area will also get sees a new Maldron too with 230 bedrooms.

Tackling the Chef Crisis Series: Eileen Langan Rizvi

Posted on | by Aisling Rafferty

In our new blog series, our expert Hospitality Recruitment Consultants give their views on the Chef crisis and what they think needs to be done to solve the issue. First up, Eileen Langan Rizvi explains the need to promote hospitality as a great industry to work in….

The Chef crisis is not new, but have you seen the problem change and/or get worse in recent years?

Yes, the problem is definitely getting worse. Over the past number of years, I’ve seen commis chefs jump ahead of their qualifications to Chef de Partie/ Sous Chef in an effort by many businesses to fill gaps in their staffing. A lot of Irish chefs left the hospitality industry during the Celtic Tiger. With the economic crash, I had hoped Irish chefs would return to the industry but that hasn’t happened. Many have found a better work/life balance and no longer want to work in an industry where it is the norm to work excessive hours and every weekend for low pay. Current chefs working in restaurants, bars and hotels are seeing the lifestyle enjoyed by friends and family outside of the industry and are being inspired to move away from a career in hospitality. Others are aware of the shortage and wondering why this isn’t being reflected in their salaries.

What, in your opinion, is the main cause of chef shortage?

In my opinion, the lack of work/life balance is causing chefs to leave the industry and deterring young people from pursuing a career as a chef. The hours chefs are required to work are excessive and particularly demoralising for chefs on salary when they do the maths and realise what they are being paid per hour. Split shifts were abolished a number of years ago and this was a step in the right direction, but now chefs are working straight shifts 12+hrs instead of splits. Chefs are realising the importance of a work/life balance and are less willing to give up spending time with family to spend EVERY weekend and Bank Holiday working.

Another issue is the lack of a training Cert Course. When this was available, it provided a way into the industry for many young people and provided kitchens with eager to learn commis chefs.

Is the problem industry-wide or worse depending on location?

Through talking to my clients every day, I’m definitely seeing the problem is worse in rural areas, outside large towns and cities with bigger populations

What in your opinion is the solution to the problem?

Training Programs like Cert or proper apprentice programmes need to be introduced and promoted. These will promote hospitality as a career choice and provide a way into the industry for young people who have an interest in pursuing a career as a chef. They will also provide businesses with the opportunity to take young talent under their wing and train young chefs to become a vital part of their business.

I also think working hours need to be looked at by both employers and the wider industry. There needs to be a conscious effort to make a career as a chef more attractive by allowing chefs to have a better lifestyle.

Where should this solution come from?

The Government need to introduce a recognised apprentice program and encourage employers to take on young people as apprentices or on work placements. Providing training for young people at the start of their careers will encourage them to pursue a career as a chef by seeing all the benefits and opportunities that come with working in a kitchen.

Do you think that there is a lack of incentives to work in the industry? What can be done to attract people to careers in the industry?

Again, there needs to be a conscious effort made to achieve a better work/life balance. The very real image of chefs working 12+ hour shift and every weekend and Bank Holiday is making the industry an unattractive place to work and turning people off pursuing a career as a chef.

VAT 9%

Excel Recruitment supports keep VAT at 9%

Posted on | by Aisling Rafferty

Ireland’s 9% VAT rate for the hospitality industry entered the news again this month as arguments in favour of scrapping the 9 per cent rate circulating around the Department of Finance ahead of the upcoming Budget.

Excel Recruitment work with and on behalf of some of the most well-known and best-loved names in hospitality nationwide and have always been a huge advocate of a 9% rate for the hospitality industry. It is crucial that these companies continue to be supported in their work, providing jobs throughout the country and contributing massively to one of the country’s most important sectors. The rate was one of the few saving graces for hard-pressed hotel and restaurant operators during the recession. Despite being out of the recession, the hospitality industry still faces many challenges including spiralling commercial rates and the uncertainty of Brexit. Add to this the incoming increase in minimum wage in January, which will further increase costs to businesses’ and the growing trend of rising rates in order to retain talent amid a continuing chef crisis. Some parts of the sector are now experiencing improved trading conditions in line with the economic recovery but this is not universal and many businesses are still under significant pressure.

In terms of tourism, the 9% rate is crucial for Ireland to remain a desirable destination and competitive within Europe. Chief Executive of the Restaurants Association of Ireland (RAI), Adrian Cummins, said “Seventeen out of 19 Eurozone countries have a VAT rate of below 10%. A 9% VAT rate in Ireland is not only the correct rate for our country, but it is also in line with the rest of Europe. We need this VAT rate particularly now as Brexit negotiations begin, to remain competitive”.

Minister for Finance Paschal Donohue has signalled the rate will stay (Irish Times, July 2017) but nothing is official until the budget is announced in October. Until then those that work in, for and with the hospitality must be vocal about its importance and its need to stay.

While increasing the VAT rate may provide a short-term injection of cash to the Exchequer, piling additional bills on to already pressured businesses’. It would have serious negative effects on many businesses’ ability to operate and will lead to the loss of jobs and the closure of many quality hospitality operations all over the country. The VAT rate has enabled Ireland’s hospitality industry to do fantastic things – attracting more tourists, grow across the country and employ thousands of people. For all these reasons and so much more, keeping VAT at 9% is an absolute must.