Irish hotels slammed for taking in record cash while workers are on 'poverty pay'
Sinn Féin Senator Paul Gavan said that frontline staff should be getting more money.
IRISH HOTELS ARE pulling in record revenues while keeping staff on low wages and uncertain contracts, it has been claimed.
Sinn Féin Senator Paul Gavan has hit out at the Irish hotel industry, claiming that the sector is making record profits on the back of “poverty pay for employees”.
Gavan was referring to a report published by the Irish Tourist Industry Confederation earlier today, which showed that the Irish tourism industry is now worth over €8 billion, with spending by international visitors in Ireland rising by 9% to reach €4.7 billion.
Asked about his claim that the tourism sector is making record profits, Gavan told Fora: “We can glean it from the fact that turnover in the industry is at a record high, we know that two and two equals four.
“If turnover has gone up significantly and the cost base hasn’t gone up, which I know it hasn’t because I used to work as trade union official representing hotel workers, then you have (record profits).”
Low pay
Asked about his claim about the ‘poverty pay’ of hotel employees, Gavan pointed to a study from trade union Unite which said that workers in the ‘accommodation and food services’ sector in Ireland earn less than those working in other EU-15 countries.
According to the report, the ‘average compensation’ of those working in the sector in Ireland in 2015 was €15.40 an hour, while in EU-15 countries (the EU member states prior to May 2004) it was €19.30.
Figures quoted by Paul Gavan
“If you are working in a hotel here you will pay 25% less than if you were doing the same work in Germany or Holland,” he said.
“What I would like is for the Irish hotel industry to set up an employment registration order that would set rates of pay for the hotel sector.
“I would be calling for some of the revenue generated to make its way to the pockets of workers who are on the front line generating that substantial income.”
Low VAT rate
Gavan was also critical of the reduced rate of VAT paid by the hotel sector. The tax was cut for hotels from 13.5% to 9% as a temporary measure to kickstart tourism during the depths of the recession in 2011.
“Unless the Irish Hotels federation agree an employment regulation order to raise pay across the sector this VAT subsidy should be scrapped without delay,” he said.
A record number of overseas tourists, 8.8 million people, came to Ireland last year.
Despite Brexit concerns and capacity constraints, the ITIC believes that the tourism industry can grow by a further 5% in overseas visitors and 7% in export revenue for 2017.
Recent figures showed that the average daily rate for a hotel room in Dublin was €121.03 in November, above the European average of €107.14.
