Business

State’s ‘experience economy’ accounts for 9% of total employment, says Ibec

Employers’ lobby group calls on Government to develop ‘overall strategy’ for €4bn sector

Ibec's Sharon Higgins said the Government will have to act urgently to address State-imposed cost increases identified in a recent report. Photograph: Naoise Culhane

Ian Curran
Wed Mar 20 2024 - 05:00

Ireland’s hospitality and entertainment sectors require oversight from the Government and a long-term strategy to help businesses grapple with rising costs and skills shortages, the Irish Business and Employers Confederation (Ibec) has warned.

The lobby group, which has campaigned in recent years to raise the profile of the Republic’s so-called “experience economy”, said in its latest economic assessment of the industry that its customer-facing aspect accounts for roughly 9 per cent of total employment in the State, or about 220,000 jobs. This “interconnected ecosystem” — encompassing thousands of businesses in a variety of sectors like tourism, culture and sports events, bars and restaurants — accounts for about €4 billion in annual spending on goods and services, it said.

Consumers here spend about €1 in every €3 on experiences, according to the report, compared to €1 in every €4 in other European Union countries. The report cites Croke Park, which will play host to high profile acts including Bruce Springsteen and AC/DC this summer, along with the annual Sea Sessions festival in Bundoran, Co Donegal, and the Epic Irish Emigration Museum among others as being significant contributors to the experience economy.

Yet, the sector is in need of support against the backdrop of rising costs and labour shortages, Ibec said. Chiefly, it wants the Department of Enterprise to lead a co-ordinated effort across Government to deliver an “overall strategy” for the sector to ensure its “sustainable and economic development” across the State.

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Ibec has also repeated its call for the Government to pause further increases in the national minimum wage and other planned labour policy measures. In an open letter to Taoiseach Leo Varadkar in January, Ibec chief executive Danny McCoy called on the Coalition to publish a full cost-impact assessment of recent policy changes — including the commitment to introducing a national living wage by 2026 — before April.

While the lobby group welcomed the report’s publication last week, “the true measure of its success lies in the urgency and decisiveness of the policy response”, said Sharon Higgins, executive director of membership and sectors at Ibec.

“The report has confirmed the significant cost increases that experience economy businesses are expected to face over the next two years and acknowledges the serious concerns regarding job retention and business viability,” she said. “Ibec would like to see a commitment to a ‘competitiveness charter’ concerning State-imposed labour market costs, as well as the introduction of a PRSI rebate targeted at specific companies. These measures are crucial for ensuring the resilience and sustainability of the experience economy in Ireland.”

Owen Reidy, general secretary of the Irish Congress of Trade Unions, speaking in January said Ibec’s call for a halt in progress on employment rights was “unacceptable and shouldn’t be tolerated”. He said: “People must live as well as work in this economy and we expect the Government to continue with its commitment to introduce a living wage over the next period.”

Ian Curran

Ian Curran

Ian Curran is a Business reporter with The Irish Times

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