THE body representing the north’s hospitality sector has called for a cut in VAT and a ‘rates holiday’ to support businesses hit by the coronavirus.
Hospitality Ulster made the call as towns and cities across Ireland postponed St Patrick’s Day parades and festivals.
It followed similar calls by the Restaurants Association of Ireland (RAI) on Tuesday in response to reports that 80 per cent of corporate bookings had been cancelled across the south amid the accelerated spread of covid-19.
Hospitality Ulster announced the establishment of an ‘Industry Response Group’ on Tuesday, affirming that the cancellation of St Patrick’s Day celebrations will have financial implications for the industry.
Managing partner of business advisory group BDO NI, Brian Murphy, will chair the new group. The committee includes legal specialists, along with representatives from the tourism and hospitality industries.
“The establishment of this group is a practical response to a developing situation which will have financial consequences for the hospitality sector - a key driver of the economy,” said Mr Murphy.
“We are bringing forward a range of real and practical measures that can be implemented straight away that will ensure the sector and the economy can be sustained during this unusual period.
“We want to preserve and ensure the ongoing livelihoods of everyone in the hospitality sector.
“We only have to see the decisions that are being taken by the hour around the cancellation of events such as St Patrick’s Day parades to note that we are in a very concerning period of time for the industry,” he said.
“We are asking the government to consider a number of actions and to intervene immediately to alleviate the situation.”
Hospitality Ulster said it has already issued industry guidance and practical information to support the hygiene standards within the industry.
Meanwhile, across the border, RAI boss Adrian Cummins said that while hospitality firms support the cancellation of parades, they need immediate support to prevent closures and job losses.
“What we’re hearing from our members is that they are experiencing 80 per cent corporate booking cancellations due to covid-19,” said Mr Cummins.
“The cancellation of one of the biggest tourism draws of the year is a further blow to many restaurant businesses and could be the straw that breaks the camel’s back. While our number one priority is the safety of our customers and the public, we need the government to step up and step in and help Irish restaurants survive.”
