New analysis suggests that there will be 6,730 fewer jobs in drinks and hospitality industry in the South-West in 2022 as a result of the pandemic.
Despite the predicted economic recovery, analysis by New Drinks Industry Group of Ireland (DIGI) warns of two-tier recovery in 2022, with hospitality facing major post-Covid challenges.
DIGI believes there will be 40,000 fewer jobs in industry in Ireland, with almost 6,730 in Kerry and Cork.
DIGI analysis of a DCU economist report predicts that 140,000 people will be employed by drinks and hospitality businesses in 2022, down from almost 180,000 in Q4 2019, and that, in rural areas, women and young people likely to be disproportionately affected by industry contraction.
In counties Kerry and Cork, where there is an estimated 30,100 people employed in the drinks and hospitality industry in the South West, DIGI estimates almost 6,730 fewer jobs including 2,140 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.
Foley’s report shows that the accommodation and food service sector, which includes most drinks and hospitality businesses, employed almost 180,000 people in the last quarter of 2019.
However, DIGI 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.
DIGI has called for a 7.5% reduction in excise tax in October’s Budget to help the industry weather difficult trading environment, maintain the predicted 140,000 jobs and support sustainable recovery in 2022 and beyond.
‘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.
‘At such a precarious time for the industry,' he said, '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.’