Mr. Tim Fenn:

We share the sentiments of our colleagues in the VFI regarding the families and friends of those who have lost their lives due to Covid-19. The Irish Hotels Federation welcomes this opportunity to address the joint committee on the impact of Covid-19. Public health is always the first priority for hotels and guest houses, and we reiterate our full support for the Government in the task of suppressing Covid-19. We thank the Government for the supports that have been put in place to help our industry. They are making an enormous difference to our prospects for survival and recovery, as well as to the 270,000 people whose livelihoods we are trying to protect and restore.

Covid-19 has had a catastrophic impact on our industry, manifesting itself in substantial job lay-offs, revenue losses and a significant reduction in the financial reserves. We estimate that revenue across the hotel sector fell by more than €2.5 billion last year, an unprecedented drop of 60%, and the immediate outlook remains exceptionally challenging this year, with record low business levels on our books due to the high level of uncertainty about reopening. Key to restoring the livelihoods of 270,000 people who worked in our industry before the pandemic is the survival of the businesses that can drive recovery, but additional financial supports and measures are required to achieve this. The investment from the Government is small relative to the malaise of enduring unemployment and can be offset quickly by a reduction in unemployment supports.

The key Government supports required are: extending the EWSS and the local authority rates waiver until the end of March 2022; a doubling of the CRSS payments irrespective of the level of Covid restrictions, as well as removing the current €5,000 weekly cap; a new restart grant that is double last year's payment; extending tax warehousing and deferring payback by one year; a clear commitment to retain the 9% VAT rate until at least 2025; a 70% refund of energy and pass-through charges. Key banking and finance measures are also required. The Government must ask the regulator and banks to take a longer-term view in their approach to our sector by providing bank loan moratoria and employee mortgage deferments. The future growth loan scheme should also be reactivated. Some businesses will require recapitalisation when the pandemic is over. Consideration should be given to providing equity and debt finance incentives to see our industry into full recovery.

Prior to the Covid pandemic, our industry supported one in ten of all Irish jobs, with 70% of those jobs outside Dublin. In some cases, entire communities are dependent on tourism. In the aftermath of the last financial crisis, tourism was the number one creator of jobs. We want to play our part in Ireland's recovery but can only do so with the Government's continued supports. We will be happy to answer any questions the members may have.