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Brexit: no deal could cost 10,000 Irish tourism jobs
A no-deal Brexit could result in the loss of 10,000 jobs in Ireland’s tourism industry, many of which are linked to the drinks and hospitality sector, a trade association has warned.
If the UK leaves the EU without a deal, 10,000 Irish tourism jobs could be lost
The Drinks Industry Group of Ireland (DIGI), an umbrella organisation for Ireland’s wider drinks and hospitality sector, said a no-deal Brexit would “further damage sterling and further reduce overseas visitor numbers” following last year’s VAT hike, which has “eaten into profit margins”.
“Irish tourism is driven by our drinks and hospitality sector, which employs almost 8% of the entire country in pubs, restaurants, hotels, breweries, distilleries, and other supporting businesses,” said Rosemary Garth, chair of DIGI.
“Most of the sector’s employees live and work in rural Ireland. For business owners in our sector, there is a perfect storm brewing. UK tourism has dropped. The sterling and euro are almost at parity.”
Furthermore, DIGI has warned that no-deal Brexit would encourage cross-border shopping, which is a “major concern for the industry” as it would “divert sales from Irish businesses”.
Drinks and hospitality providers would also be hit by disruption in the agricultural industry, which would have ramifications for domestic beer, spirits and soft drinks production.
“Obviously, the daily chaos in Westminster makes long-term planning for a no-deal Brexit immensely difficult,” continued Garth.
“However, considering that the chance of the UK and the EU reaching a deal is now very small, the Irish government must do everything in its power to lower or remove barriers that impede Irish businesses from operating at their maximum efficiency and productivity.”
Garth therefore urged the government to ensure “competitive” taxation policies.
Ireland’s excise tax on alcohol is the second highest in the EU, and as such, DIGI is asking Ireland’s minister for finance to reduce excise tax on alcohol by 15% over a two-year period.
Earlier this year, DIGI warned that a no-deal Brexit could have a “recession-type” effect on the drinks and hospitality sector.
New UK prime minister Boris Johnson has not ruled out a no-deal Brexit, but is facing furious opposition from MPs, who have voted to prevent the UK leaving the EU without a deal.