There will be an estimated 3,400 fewer jobs in the drinks and hospitality industry in the Border counties in 2022, new analysis predicts.
The Drinks Industry Group of Ireland predicts that 140,000 people will be employed by drinks and hospitality businesses in 2022, down from almost 180,000 in Q4 2019.
And they predict that rural areas, women, and young people likely to be disproportionately affected by industry contraction.
15,200 people are employed in the drinks and hospitality industry in the Border counties.
In counties Donegal, Cavan, Monaghan, Leitrim and Sligo, DIGI estimates 3,400 fewer jobs including 1,080 among 15-24 year olds.
DIGI’s estimates are based on analysis of the latest industry employment report, Structure and Performance of National and Regional Employment in the Hospitality Sector of Restaurants, Hotels and Public Houses, researched and authored by DCU economist Anthony Foley.
DIGI has called for the Government to reduce Ireland’s excise tax rate, which is the second highest overall in Europe, by 7.5% in October’s Budget.
The group predicts that the likely substitution of some staycation demand with overseas sun holidays, some element of consumer reluctance, and the overall weaker national and international demand for travel and tourism—which in Ireland heavily involves drinks and hospitality businesses—means some pubs, restaurants, and hotels will not return to their pre-pandemic employment levels in 2022.
“Ireland’s high rate of excise, which represents a significant cost, is forcing drinks and hospitality businesses to make growth-limiting sacrifices,” said Liam Reid, Chair of DIGI and Corporate Relations Director at Diageo Ireland.
‘Ireland has the highest excise on wine, the second highest on beer, and the third highest on spirits, despite us producing some of the world’s most famous drinks products and the importance of drinks and hospitality businesses to Irish tourism.
“At such a precarious time for the industry, every euro matters. Money taken by the Government in excise tax is money that could be spent by pubs, hotels, and restaurants on recovery and investment.
“A 7.5% reduction in excise tax would have an immediate impact and mean more money for businesses to weather what is likely to be a difficult year and, potentially, maintain current staffing levels, hire new staff, invest in premises, and improve product and service offerings to the benefit of domestic and international consumers. Crucially, it will greatly support the industry to maintain the predicted 140,000 jobs.”
