A new report, published on Monday by the Drinks Industry Group of Ireland (DIGI), suggests that a “no deal” Brexit will be very bad news for Ireland’s drinks and hospitality industry.
The report is titled National and Regional Employment in the Drinks and Hospitality Sectors, and was authored by DCU economist Anthony Foley.
The report notes that the drinks and hospitality industries account for 254,000 Irish jobs — or 11.5% of total employment.
According to Rosemary Garth, Chair of DIGI: “If a hard or no deal Brexit occurs and sterling devalues further, British tourists will look to save their money rather than spend it.”
“That means fewer holidays and a smaller budget when they travel. Considering the British are our single biggest tourism market, this is a significant problem for rural areas that completely rely on foreign spend to power their local economy.”
The report argues that in order to offset the costs associated with Brexit, Ireland should reduce the excise tax on alcohol, noting that “Broken down by drink type, we have the highest tax on wine, the second highest on beer, and the third highest on spirits.”
It is a complaint that DIGI has raised before, in their response to the 2018 Budget, which called for the government to introduce “pro-enterprise measures” and reduce the rate of tax on alcohol.
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