Latest news with #MichaelMagner
Irish Times
15-07-2025
- Business
- Irish Times
Planned 9.8% increase in non-domestic water charges undermining viability of hotels, says IHF
Non-domestic water charges are set to be increased by 9.8 per cent in October following a decision by the Commission for the Regulation of Utilities (CRU), but hoteliers have expressed 'serious concerns' over the increase. Michael Magner, the IHF president, described the increase as 'yet another example of the relentless increases in operating costs that are eroding Irish competitiveness and undermining the viability of businesses.' The new water and wastewater tariff rates will be effective from October 1st. The move is to 'ensure the recovery of costs of water services' and would aide 'the reliability, efficiency and sustainability of water services,' the CRU said. The decision to increase all charges by the same percentage value was made in the hopes of 'retaining the equity of cost allocation in the 2024 tariffs for all customer types' the CRU said in the decision published on Monday. READ MORE The IHF president said that, over the past two years, the average 70-bedroom hotel in Ireland will have seen an increase of over 40 per cent in its water tariffs. He said the increase is 'unsustainable given the exceptionally challenging environment' for Irish hotels. 'As a big consumer of water services, the hospitality sector is disproportionately impacted by increases in water tariffs, which businesses are unable to absorb.' Mr Magner said the 'cumulative impact of these and other cost increases now poses a serious threat to the viability of many businesses through our wider tourism and hospitality sector.' He said the sector is concerned about potential future annual increases over the next four years and the 'ongoing transfer of unjustifiable costs arising from inefficiencies in the delivery of water services in Ireland' while calling for a 'fairer funding model' to sustain water services and cost competitiveness for businesses.' Uisce Eireann had originally suggested a 13 per cent increase in charges to the CRU, which decides the rate, alongside two alternative increases of 1.7 per cent – in line with the harmonised index of consumer prices for 2025 – and 6.9 per cent – the average growth in Uisce Eireann's approved allowed revenues from 2020 to 2024. During a consultation period on the decision, the CRU received 22 submissions which opposed any increase but it noted that while 'affordability and competitiveness are significant issues for non-domestic customers and the Irish economy', Uisce Eireann is required to run in a 'commercially viable manner'. The regulator noted the increase was 'similar, or lower than' increases in similar percentage increases in UK water utilities. In light of the submissions received, the CRU said the 9.8 per cent increase was 'the most balanced approach'. 'The CRU is aware of the impact of bill increases for certain non-domestic customers and has engaged with Uisce Éireann to ensure that there are measures in place when engaging with customers with financial difficulties.'
RTÉ News
15-07-2025
- Business
- RTÉ News
CRU approves 9.8% hike in water charges for businesses
The Commission for Regulation of Utilities (CRU) has approved a 9.8% increase in water charges for businesses. Industry bodies have expressed concerns about the hike, which will come into effect from the start of October. The Irish Hotels Federation (IHF) said this is just one example of how increased operating costs are undermining the viability of businesses. "Over a two-year period, the average 70-bedroom hotel in Ireland will have seen an increase of over 40% in water tariffs," said Michael Magner, IHF President. "This is unsustainable given the exceptionally challenging environment in which hotels and other hospitality businesses are currently operating." According to Mr Magner, the hospitality sector is disproportionately impacted by increases in water charges, which he said businesses are unable to absorb. "The cumulative impact of these and other cost increases now poses a serious threat to the viability of many businesses through our wider tourism and hospitality sector. "It is now imperative that the Government tackles these increases head on and delivers targeted measures to enhance cost competitiveness and support business viability," he added. Mr Magner said the industry is particularly concerned about the potential for further annual increases through to 2029. "We are calling for a fairer funding model that supports the long-term sustainability of Irish water services, while maintaining cost competitiveness for SMEs," he added. In its decision published yesterday, the CRU said the increased water charges are necessary to ensure the reliability, efficiency and sustainability of water services.
Irish Examiner
15-07-2025
- Business
- Irish Examiner
Hotels warn 'unsustainable' increase in water charges threatens survival of businesses
Plans to increase water charges for hotels are "unsustainable" and threaten the survival of many businesses, industry representatives warn. The Commission for Regulation of Utilities (CRU) to approve a 9.8% across-the-board increase in water charges for non-domestic and wastewater following a proposal from Uisce Éireann. The increases will come into effect from October 1. The Irish Hotels Federation voiced "serious concerns" over the regulator's decision and said the increase follows an average hike of 30% in water charges for hotels compared to this time last year. 'This is yet another example of the relentless increases in operating costs that are eroding Irish competitiveness and undermining the viability of businesses," said IHF president and owner of Cork's Vienna Woods Hotel, Michael Magner. "Over a two-year period, the average 70-bedroom hotel in Ireland will have seen an increase of over 40% in water tariffs. This is unsustainable given the exceptionally challenging environment in which hotels and other hospitality businesses are currently operating.' Mr Magnier said that as a major consumer of water services, the hospitality sector is disproportionately impacted by increases in water tariffs, which businesses are unable to absorb. "The cumulative impact of these and other cost increases now poses a serious threat to the viability of many businesses through our wider tourism and hospitality sector." Uisce Éireann charges non-domestic customers for supplying water to their premises. "The charges customers pay are determined under Uisce Éireann's Non-Domestic Tariff Framework," said the CRU. "The ministerial-approved Strategic Funding Plan 2025-2029 suggests that there is a need for €16.9bn in Uisce Éireann's funding over the five-year period, to deliver Uisce Éireann's capital programme and recover its operating costs to achieve critical outcomes for customers and communities." Mr Magner said is now imperative that the Government tackles these increases head on and delivers targeted measures to enhance cost competitiveness and support business viability. 'We are particularly concerned about the potential for further annual increases through to 2029, including the ongoing transfer of unjustifiable costs arising from inefficiencies in the delivery of water services in Ireland. We are calling for a fairer funding model that supports the long-term sustainability of Irish water services, while maintaining cost competitiveness for SMEs.'
Irish Times
09-07-2025
- Business
- Irish Times
Hotels body renews call for 9% VAT rate amid ‘ever-increasing operating costs'
The Irish Hotels Federation (IHF) has renewed calls on the Government for a 'permanent restoration' of the 9 per cent VAT rate on the hospitality food services sector amid 'ever-increasing operating costs' in the upcoming budget. The IHF, the body for the hotel and guesthouse sector in Ireland, said the industry is experiencing 'difficult headwinds' amid the ongoing economic uncertainty caused by US import tariffs. 'Tourism businesses are struggling to deal with ever-increasing operating costs and tighter margins,' said the president of the Irish Hotels Federation, Michael Magner. The IHF holding an event in Buswells Hotel with public representatives on Wednesday to explain their position. 'It is now essential that the Government tackles this head on and delivers targeted measures to enhance cost competitiveness and support business viability,' he said. READ MORE Reducing the value added tax (VAT) rate to 9 per cent has been an ongoing campaign by the hospitality sector. The cost to the exchequer to stand at €764 million annually if applied to the full sector, or €545 million if restricted to food and catering services, as per estimates from the Tax Strategy Group in 2024. In an effort to boost tourism numbers, the sector called on the Government to enable 'enhanced air access' at Dublin and regional airports. The request comes amid rising scrutiny over the passenger cap at Dublin Airport, which the DAA expects will be breached this year. [ Does Ireland's hospitality sector really need a VAT cut? Opens in new window ] To aid the sector in riding out the wave of economic difficulties, the hotels group also appealed for the Government to introduce measures to tackle 'excessive' business costs such as insurance premiums and energy pass through charges. The Juggle: the issues facing women with young children when balancing childcare and their careers Listen | 44:30 The body requested increased investment in training and skills development for the sector through the National Training Fund and additional funding allocations to the public bodies, Fáilte Ireland and Tourism Ireland. The hotels federation president said that reduced tourism expenditure combined with economic challenges and political uncertainty post a 'serious risk' to the industry. He pointed to data from Fáilte Ireland showing 51 per cent of tourism businesses The sector, which generates €10 billion in revenue annually, was found by Fáilte Ireland to have seen 51 per cent of hospitality businesses see a decrease in revenues to date in 2025 compared with last year.
Extra.ie
01-07-2025
- Business
- Extra.ie
Major slump in tourist spending ‘part of ongoing trend'
The Irish tourist industry suffered a multi-million-euro hit due to how much foreign visitors spent in May. Some 560,500 tourists visited during the month, down 8% on May 2024. However, worryingly, excluding plane and ferry tickets, visitors spent €127 million less, with the total of €477 million down by more than a fifth compared with May last year. Tourism Ireland put the spending slump down to 2024 being a 'strong year'. But restaurateurs are 'deeply concerned' about the decline as the industry relies heavily on a strong summer tourist season. Pic: Getty Images Restaurants Association of Ireland (RAI) chief Adrian Cummins said: 'As we enter peak season, businesses are finding trading conditions challenging and margins eroded. The RAI is calling for a reduction in VAT to 9% for the food service sector and a review of employers' PRSI contributions for labour-intensive sectors, such as hospitality and retail. A new food tourism strategy is urgently required for Ireland.' Hoteliers also expressed 'serious concerns' about figures which 'indicate an ongoing drop in expenditure by overseas visitors, with figures for May down 21% compared to last year'. Irish Hotels Federation (IHF) president Michael Magner said: 'The decline in tourism spend is part of an ongoing trend this year. Our primary fear is if this continues into the summer, it could have a very significant negative impact. This would pose an enormous challenge for tourism businesses which are already struggling under unsustainable increases in operating costs.' Pic: Getty Images He said there is still a 'disparity between published figures and industry data', but May figures are more in line with what businesses are reporting. He said: 'Our figures indicate hotel room occupancy levels are holding steady so far this year compared with 2024. 'It conceals significant challenges around business margins due to already exceptionally high business costs, which continue to rise while revenues remain flat. These challenges are reflected right across our tourism industry at a time when we must remain vigilant to other difficult headwinds.' A Tourism Ireland spokesman said May 'typically represents around 10% of total annual spend, January to May represents around 33%'. Pic: Getty Images They added: '2024 was a strong year, with tourism from overseas worth more than €6billion, up by almost €600million compared to 2023. Island-wide, inclusive of NI, overseas visitors brought around €7billion to the economy last year. 'There are longer-term headwinds to take account of – including geopolitical and macroeconomic uncertainty, which can lead to consumers weighing up their holiday choices… 'The aviation industry is investing in Ireland, given there will be 6% more air seat capacity on routes this summer versus last summer, 10% more from North America, a key market, with new routes like Detroit, Nashville and Indianapolis opening up, as well as new European routes like Stuttgart to Dublin and Bilbao to Cork.' Some 560,500 visitors, who spent an average of €1,186 including fares, came to Ireland in May, down 10% on last May but up 2% on May 2023. Travel expert Eoghan Corry said: 'At the moment we're bulletproof; no matter what happens in Ireland our image is so strong, thanks to the likes of rom-com Irish Wish with Lindsay Lohan and Netflix, and all of that huge imagery, it's got millions of views.'
