An average of €1,150 per room annually – that’s the “unsustainable level” hoteliers in Ireland are now looking at in terms of insurance costs, according to Irish Hotels Federation (IHF) president Michael Lennon.
The IHF, which has released its latest industry barometer, found that some 76% of hotels have seen further increases in insurance costs in 2018 on top of substantial increases in recent years. The average rise in premiums this year is said to be at 15%, which is contributing to the higher cost of doing business for hoteliers in the UK neighbour.
It was not specified what factors were driving the hike in premiums.
Meanwhile, aside from insurance prices, other major issues include reduced visitor numbers from the UK as well as the uncertainty surrounding Brexit. Combined, these led to a significant drop in business sentiment among hotels in Ireland, with only 49% reporting a positive outlook for the next 12 months.
This time last year, 82% had a positive outlook.
“With the Brexit storm gathering, relentless increases in the cost of doing business, international trade wars, a slowdown in European growth, and the increase in tourism VAT, there is little surprise in the drop in business sentiment,” said Lennon.
“Many of our members are now re-examining their future investment strategies and taking a more cautious approach to planning for next year and beyond.”
