A look at how Covid, costs and staffing tested the retail and hospitality sectors in 2022.
Following a spike in Covid cases before Christmas, the Government introduced new restrictions in December that would last for most of January.Capacity limits were also introduced, alongside social distancing rules.
I know many workers will be worried tonight. The Pandemic Unemployment Payment will reopen for applications for workers impacted by latest restrictions. My Dept @welfare_ie will work on this as a matter of urgency & full details will be announced over coming days.Relief came for businesses and the public on 21 January, as the then Taoiseach Micheál Martin announced that almost all restrictions would be eased the following day.
Duncan Graham, Managing Director of Retail Excellence, said he believed the move would help retailers across sectors. Across the sector there were fears that the lack of chefs, bar staff and even managers would reduce the range of services they'd be able to provide to tourists.On 24 February, Russia invaded neighbouring Ukraine drawing condemnation from around the world
However, the CSO data suggested that rising prices had little impact on consumer spending during the first quarter of the year. While restaurants did record a surge in spending on St Patrick's Day, the data showed that their busiest day of the month was 26 March, the day after pay day for many workers across the country.Consumer behavior well and truly started to shift in April - with the main driver being inflation rather than Covid.Businesses across all sectors were forced to pass on rising costs to their customers - by hiking prices.
Many pubs were forced to close two days a week due to the staffing crisis which was exacerbated by the Covid-19 pandemic. It is understood that many people who previously worked in the industry may have retrained and gone to work in other sectors during the pandemic. Claims widely circulated that accommodation providers were using the strong rebound in demand to raise prices.
Then Tánaiste Leo Varadkar warned that the future of that lower VAT rate could be at risk if hotels were found to have been price-gouging.Figures from the Central Statistics Office showed that the volume of retail sales was down 1.3% in June when compared to the previous month, and by 6.6% on an annual basis.This was due to rising concern about the impact of strong inflationary pressures on demand.
CSO figures showed that prices were up 8.7% compared to a 38-year high of 9.1% in the previous two months. "As the main tourism season draws to a close, businesses are reporting skyrocketing cost increases, which are nothing short of frightening," Ms Campbell said. But the Minister for Finance held firm on the decision to return the VAT rate for hospitality to 13.5% next year.However, the Government said it would review the situation surrounding the hospitality VAT rate before it increases in March.
"This increase will make Ireland's tourism VAT rate the second highest in the European Union, and far above other European countries where tourism is a significant part of their economies, such as Portugal, Turkey and Malta.In Wicklow town, Co Wicklow, Jackie Buckley was forced to close her café 'Jackie B's due to rising costs.
"I don't think the Government thought down to us. It felt like they were saying 'thanks but, you can go now’."Retailers geared up to make the most of Black Friday - the first since Covid-19 pandemic restrictions were removed. "Two third of online shopping goes outside the country so we are asking people to think of and support local online and bricks and mortar businesses," said Evelyn Moynihan, co-founder of Champion Green, a campaign set up to support and promote small and medium-sized businesses in Ireland.
Footfall in shops across the country increased significantly in December compared to the same time last year - according to Retail Ireland, a representative group for the sector.
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