Irish operators deny profiteering charges

Hotels and restaurants in the Irish Republic have strenuously denied charges of profiteering after the latest Irish Consumer Price Index showed their prices have risen by 7.2% so far this year, some 3% ahead of the country's inflation rate.

Michael Kilcoyne, chairman of the Irish Consumers' Association, accused the sector of profiteering at the expense of customers.

He said: "People shouldn't be surprised if tourists decide not to come here when they see the prices being charged in hotels and restaurants.

"These price rises are being driven by pure greed, as there is no evidence of wage inflation in the sector."

The Irish Tourist Industry Confederation, an umbrella body for the trade, also said it was concerned that rising prices would affect Ireland's ability to attract overseas visitors.

But Henry O'Neill, chief executive of the Restaurants Association of Ireland, insisted that restaurants were operating on narrow margins. He said factors such as the escalating cost of insurance and waste disposal were driving up prices.

John Power, chief executive of the Irish Hotels Federation, called the allegations unfair and unwarranted.

He said wage costs in the industry had risen by 8-12% over the past 12 months, while insurance premiums had increased by "40-200%".

by Anthony Garvey

Source: Caterer & Hotelkeeper magazine, 22-28 August 2002