The Unwelcome Guest wrote:
Is the problem with the hotel sector not a lack of revenues? Too much competition, tax breaks unwinding, poor business models...
Its more complicated than that. Yes many hotels that will never be profitable have been built over the past few years.
But the costs of doing business here is a big problem for the better established part of the sector when it comes to generating tourism from abroad.
I was just using this as an example anyway. Ok, I hear of lots of people going to Newry to do their shopping (I dont and wont). Retailers there have two big advantages - lower property costs and lower wage costs. There is a general assumption that in the rip off republic the extra costs we pay accrue as profits. This is not true.
If wages fall here it would force an adjustment to the cost of living. Ten years ago it would have been harder as there was a shortage of accomodation and demand marginalised the lower paid. We have now fixed that
Anyway, I think the real fix for this country is broad wage constraint - that is the biggest issue in attracting jobs here (we used to be cost cometitive, now all we have are the tax advantages).