Mullingar hotel chief warns of impact of high costs

A key concern for hotels and guesthouses in Longford and Westmeath in the run up to Budget 2027 is the exceptionally high operating costs that tourism and hospitality businesses are grappling with Matt O’Connor of the Mullingar Park Hotel has warned.

Mr O’Connor, president of the Irish Hotels Federation (IHF), who was among hoteliers from across the country who recently met TDs and senators to discuss the key challenges facing Irish tourism, said the costs are putting Ireland’s competitiveness as a tourism destination at risk.

Stating that it is largely public policies that have led to the significant rises in operating costs, the hoteliers pointed out that tourism is Ireland’s largest indigenous industry, supporting 270,000 livelihoods, including 6,400 in Longford and Westmeath.

Mr O’Connor told the politicians that the current “unsustainable” operating costs are putting enormous pressure on margins.

“This is a serious challenge for our sector, including the local tourism economy here in Longford and Westmeath,” he said. “It is essential that Budget 2027 delivers targeted measures as part of efforts to offset some of these government-controlled costs and enhance the cost competitiveness and viability of our sector.”

Mr O’Connor stressed the importance of decisive action in the budget and called for a meaningful reduction in employer PRSI for labour-intensive hospitality businesses, measures to tackle excessive business costs, including energy network charges; support for the development of hotel staff accommodation; increased funding for Fáilte Ireland and Tourism Ireland to deliver tourism growth; additional investment in training and skills and measures to support increased hotel capacity.

He stated that having these measures in place would go a long way towards ensuring the long-term success of Ireland’s tourism and hospitality industry, including local businesses throughout Longford and Westmeath.