Mr. Tim Fenn:

The IHF welcomes this opportunity to address the committee on working conditions and skill shortages in the tourism and hospitality sector. The IHF is the national representative body of the hotel and guest house sector in Ireland. Our membership ranges from small, family-run hotels and guest houses to large international hotel groups, including all categories in that description, from budget to luxury hotels.

Our submission outlines our sector’s pursuit of excellence in employment standards, people development and the structured opportunities for advancement our industry provides. We also address some of the issues we face, including skills shortages and a requirement to immediately review the work permits system, which is failing to respond effectively to the current skills gap in a competitive employment market. The tourism and hospitality sector experienced phenomenal growth in employment, 57% or 98,000 people, from 2011 to 2019, prior to the onset of Covid–19. The industry then supported 269,700 livelihoods, equating to one in ten of all Irish jobs, with 70% of these jobs located outside Dublin. Of this figure, 179,800 people were employed in accommodation and food services, including 65,000 people who were employed directly in hotels and guest houses. This growth is testament to the recruitment, development and retention success achieved by the industry.

By April 2021, due to the impact of Covid-19, hotel employment had dropped from 65,000 to 26,900, including those supported by the employment wage subsidy scheme, EWSS. We then identified the training and upskilling needs of almost 30,000 people, and these were mainly kitchen, food and beverage and accommodation roles. Hotel employment has recovered to 54,500, which is a positive result given the enormously difficult trading environment and the devastating impact of Covid-19. We estimate that 19,000 people require training and upskilling.

We look forward to restoring the livelihoods of approximately 270,000 people, and more, in the coming years. In doing so, we will continue to promote the best-in-class employer practices that have made our industry what it is today. It provides a wonderful environment for people who are passionate about their jobs and interested in opportunities for career progression. We are also focused on bridging the skills gap by developing bespoke education and training programmes, to be undertaken before and during employment, and improving co-operation and engagement with education providers to build employee capabilities and skills. Our submission provides a summary of the extensive human resource, education and training and health and well-being supports available.

Regarding working conditions, Ireland has a comprehensive framework of employment rights and Government proposals are imminent in areas such as the introduction of a statutory sick pay scheme, deciding to provide for auto enrolment in pensions and proposals to develop a living wage. Labour overheads account for between 36% and 45% of costs in hospitality businesses. Of the 27 EU member states, 21 have a statutory minimum wage. The minimum wage rate in Ireland, in nominal terms, is the second highest, after Luxembourg. It will be apparent from any review of employment advertisements that employers are offering rates of pay above the minimum levels for many roles to attract and retain people. Employees in our sector also benefit from gratuities provided by customers.

We welcome the opportunity to engage with the committee and we look forward to dealing with members' questions.