Mr John Madden, proprietor, Temple Gate Hotel, Ennis, Co ClareUnless the number of tourists visiting Ireland increases significantly this year, the hotel industry will find it very difficult to meet the pay increases set out in the social partnership agreement, believes Mr John Madden, owner of the Temple Gate Hotel in Ennis, Co Clare.
The fall-off in foreign visitors to the Republic has meant that the past two years were particularly difficult for many in the hotel business.
The perception that Ireland is now an expensive holiday destination is partly to blame for this and Mr Madden is concerned that any further pay rises, in addition to recent increases in VAT and insurance, could have a spiralling effect on inflation.
This would serve to further undermine Ireland's competitiveness in the international tourist market. "We are regarded as a relatively expensive destination. Any further increases would make it even harder to sell Ireland as a tourist destination," he says.
Mr Madden employs 70 people in his hotel, the majority of whom are full-time, and he believes that they are entitled to pay increases. However, unless business improves in the next 12 months, many hotels will be unable to afford these increases. "If our American business and our tourism business declines any further, then we may not be in a position to meet the pay increases," he says.
"We would like to be able to make some contribution to employees' wages and salaries over the next 18 months but unless things pick up, that may not be possible."
