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Irish hospitality ‘among most at risk’ from Brexit

The Irish hospitality sector is one of the most vulnerable to the impact of Brexit, and the government must “act now” to keep the country competitive, two trade drinks bodies have said.

The Irish alcohol sector is the ‘among the most vulnerable’ to Brexit, trade associations have warned

Responding to reports from The Economic and Social Research Institute on government economic responses to Brexit, Patricia Callan of the Drinks Industry Group of Ireland (DIGI) and Director at Alcohol Beverage Federation Ireland (ABFI), said the country must be better prepared.

“The ESRI’s findings paint a bleak picture of Ireland post- a hard Brexit: €200 million could be lost from the economy each year, and nearly 50,000 jobs may be lost over a decade,” she said.

“This is yet another reminder that action is needed now. We must get into decision-making mode on policy that addresses the reality of Brexit.

“While our diplomatic response is advanced, it is now time for action on our economic response. Specifically, we need our Government to produce a Brexit Budget and pull together a coordinated Brexit strategy that protects jobs, encourages economic activity and mitigates the risk of a hard Brexit that could hinder free trade.”

She said a Brexit Budget for Ireland must contain clear policies that take into account the effects of the UK’s withdrawal from the EU. It must also use tax measures to stimulate economic activity and create and maintain jobs, she added.

Callan also emphasised the risks faced by the hospitality sector in particular.

“The hospitality sector is a network of pubs, hotels, restaurants, off-licences, distilleries and breweries supporting many other industries, with a presence in every part of the country. A decline in British tourism will be hugely detrimental to rural Ireland, where the hospitality sector is often the primary—and sometimes only—employer.

“Among the most at-risk jobs in the country are those in the hospitality sector. Ireland depends disproportionately on British tourism, yet already the number of UK visitors was down 8% in the first four months of 2017; sterling, too, has dropped 15% against the euro since the referendum.

“Ireland is becoming a more expensive destination for our biggest market which risks us becoming less attractive. These trends are likely to continue.”

Callan concluded by calling on the government and industry to act “in unison” to make sure Ireland remains competitive as a tourist destination.

In May the Irish government released a paper on Brexit which “confirmed” the “deeply flawed nature” of the country’s proposed Public Health (Alcohol) Bill (PHAB), the ABFI argued.

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