HOTELS UPDATE Tim Fenn CEO, Irish Hotels Federation INTRODUCTION - PowerPoint PPT Presentation

HOTELS UPDATE Tim Fenn CEO, Irish Hotels Federation

INTRODUCTION Quality, Innovation and the Skills Gap • Budget 2019 and BREXIT • Economic Environment • Tourism Overview • Competitiveness • Business Response • Quality • Innovation • Skills Gap

BUDGET 2019 • VAT rate on tourism activities 13.5% • Revenue Estimated increase:  € 466m 2019  € 560m for full year • Regional and Rural Ireland € 300m • Hotel/Guesthouse Contribution ≈€ 150m/ € 180m • 7.5 years • 9% Right Rate

BUDGET 2019 and BREXIT European VAT Rates for Hotels Hotel VAT in Ireland now higher than 26 European countries with which we compete * UK

ECONOMIC ENVIRONMENT • The ESRI forecasts 8.9% growth for Irish Economy this year and 4.5% next year • Unemployment should average 5.7% this year, falling to 5.1% next year

TOURISM OVERVIEW € 10 bn 280K Tourism Revenue 260K € 9 bn Employment 240K € 8 bn Tourism Revenue 220K Employment € 7 bn 200K 180K € 6 bn 160K € 5 bn 140K € 4 bn 120K 2011 2012 2013 2014 2015 2016 2017 2018

TOURISM OVERVIEW • Tourism employment is up 55% since Q2 2011. (overall employment up 22% ) • Opportunities for skilled, semi-skilled and entry-level positions • Full employment in wider economy contributes to Skills Gap

TOURISM OVERVIEW 2018 Overseas Visitors YTD (Oct) +7.1% +1.1% +9.6% +13.7% Overall Great Rest of North Visitors Britain Europe America

TOURISM OVERVIEW Challenges Opportunities Sustaining Strong access Positive Tourism Securing growth growth stand-out for Outlook Ireland Economic Interest in Competitive Uncertainty Growth Ireland Market £

BUSINESS RESPONSE Each business should assess the implications for: • • Performance Target Markets • • KPIs Growth • • Costs Forecasts • • Viability Sales Activity • • Sensitivity Analysis Customer engagement • • Financial structure Clear Communication

QUALITY Payroll running at • Service Quality 35% of turnover • Product Quality Replacement investment • Healthy cash flow at 4% of turnover

INNOVATION Doing new things or doing old things new ways • Investment in Innovation • Technology • Enhance Customer Experience • Exceed Expectations • Customer Journey • Touch Points • Efficiency • Accessibility

SKILLS GAP In order to address the Skills Gap our industry must improve labour supply and skills development with initiatives: • At National Level • At Enterprise Level And in cooperation with State Agencies and Education Providers

SKILLS GAP National Level Initiatives • Careers Oversight Group (Fáilte Ireland) • National Careers Showcase • Get a Life in Tourism • Work Experience Programme • Career Visits to Schools

SKILLS GAP National Level Initiatives • Tourism Insight Programme • IHF Branch Employee of the Year Award • IHF National Employee of the Year Award • National Employee Appreciation Day • Careers Videos

National Employee of the Year

SKILLS GAP Hospitality Education and Training • ETBs, IOTs, Failte Ireland, SOLAS, Other Representative Orgs. • Develop new channels into the industry • Apprenticeship Programmes • Commis Chef 100 registered • Chef De Parte started • Traineeships National Commis Chef Apprenticeship Programme

SKILLS GAP Enterprise Level Initiatives Attracting and Nurturing Talent

SKILLS GAP Enterprise Level Initiatives • Driving Employee Retention • Generational profile and requirements • Flexible working options • Communication • Training & Development • Reward & Recognition • Employee Wellness • Managing performance • E-learning

A CAREER IN HOSPITALITY

Thank You