Hoteliers call for urgent action on ‘unsustainable’ insurance costs
62% of hoteliers have seen further increases in their insurance costs over the last 12 months, according to the Irish Hotels Federation.
The Irish Hotels Federation said its research shows the average increase in premiums was 28%, with the latest hike coming after substantial increases in recent years.
It also said that about 90% of hotels and guesthouses say they are concerned about the impact of insurance costs on their business.
IHF President Michael Lennon said the increases are unsustainable.
“Exorbitant insurance costs are curtailing the ability of hotels and guesthouses to re-invest in their businesses with knock-on effects for the tourism industry,” Mr Lennon said.
The IHF said it wants urgent action by the Government to address the spiralling cost of insurance.
“We need decisive action by Government to tackle insurance costs, particularly in relation to the handling of personal injury cases in Ireland and the excessive levels of awards being made which are four to five times higher than in the UK,” Mr Lennon said.
He also urged the Government to give greater urgency to setting up the Judicial Council to review levels of awards for personal injuries.
He said that a zero tolerance approach to fraud is required in order to create an effective deterrent against exaggerated or misleading claims.
“It is vital that a dedicated Garda resource is created specifically tasked with investigating fraudulent cases for potential prosecution,” the IHF President stated.
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