Irish restaurants warn of 'perfect storm' as British tourists cut back on spending
Industry groups warn that a combination of Brexit and high excise is hitting the sector.
BRITISH TOURISTS ARE spending less in Irish restaurants due to a combination of high excise duty and the UK’s vote to leave the European Union.
That is according to a new poll of members of the Restaurants Association of Ireland (RAI), which found that members of the organisation reported an average 12% fall in the amount spent by British tourists for July and August compared to the same time in 2015.
Some 320 RAI members were surveyed in the study, which found that this was even more pronounced in restaurants located in businesses located near Northern Ireland.
The lobby group said that its members in the border counties saw a drop of up to 20% on cross border spend in July and August compared to the same period last year.
‘Perfect storm’
The group’s chief executive Adrian Cummins warned that the industry is now facing a “perfect storm”.
“The combination of high excise and the uncertainty over Brexit has caused the ‘perfect storm’ for the restaurant trade and the tourism market in Ireland (and) we in the restaurant industry are already feeling the chill winds,” he said.
He added that excise duty, a charge levied on products such as tobacco and alcohol, “is a tax on jobs, it is a tax on tourism and it is a tax on Irish consumers”.
Restaurants Association of Ireland CEO Adrian Cummins
“Excise increases in Budget 2012 and 2013 were applied at a time of economic crisis,” he said. “Now that we are moving towards recovery, we need to take this heavy burden off consumers, tourists, businesses and employees across the drinks and hospitality sector.”
Pub industry
The Vintners Federation of Ireland, which represents the Irish pub industry, also said that its members were being hit by the uncertainty over Brexit.
The body’s chief executive Padraig Cribben claimed that its members in the border counties “are seeing a downturn of between 8 and 12% spend of British tourists compared to this time last year”. About 50 pubs were polled by the association.
He added: “We firmly believe that the Brexit vote has resulted in an even stronger case for a significant reduction in alcohol excise (and) Budget 2017 should compensate for the negative effect of Brexit, such as exchange rate uncertainty.”
A report produced earlier this year by DCU economist Tony Foley found that there are almost 7,200 pubs and 2,400 licenced restaurants across Ireland.
