Hotel Sector to see c E127,000,000 increased environmental costs over next 10 years

On Oct 7, 2020 by ghadmin.


Whilst the negative impacts of the pandemic capture almost 100% of the sectors attention the environmental challenges facing us remain in place – and are increasing in intensity if you watch international reports and climate change issues occurring around the world.

However, all businesses must also be aware of the growing economic cost that environmental management will bring. The hotel sector alone will see increased environmental taxes/costs of almost E127,000,000 over the next 10 years. (To be paid by only c.820 business!! = E155,000 each) …and this is our conservative estimate and is adjusted for the Covid-19 impact. That is a whopping 57% increase!

The agreed Carbon Tax increases will add c. E53m over the next 10 with a total 10 year cost of c. E87m whilst the new agreed water charges will add c. E74m over the next 10 years on top of the current c. E384m annual cost of water. (Plus lets not forget the additional cost of energy which at an annual inflation rate of 2.5% will cost E192m more…it just gets worse!)

It would be reasonable for the sector to ask – “What are we getting back from these new government mandated charges/costs?” The current answer is – NOTHING.

What could the sector be getting? Direct support from the government to support actions that will not alone mitigate these increased charges but also enable hotels to reduce their total consumption and costs.

What needs to happen? The sector should be demanding a level playing field with other sectors where they are currently receiving substantial state aid designed to support them – Hotels do not qualify, even though they have one of the highest energy costs per square meter.

What does the sector need to be doing? Work with GHP in formulating an approach to government to create a programme that will deliver expert support to enable hotels make substantial savings in energy and water.

What savings can be achieved? GHP estimates that the Hotel Sector alone could reduce consumption of energy and water by at least 20% which would deliver a saving of c. E354,000,000 (E432,000 per hotel over 10 years)with limited capital investment- generally 50% of immediate savings can be delivered on a no or low cost basis with less than 2 years payback.

What is the Hotel Sector going to do? Now is the time with a Green Party Tourism Minister and a Green Party Environment Minister – now is the time to be actively engaging and showing them what Hotels can do – and all we want is some of the increasing carbon taxes delivered back to hotels – it is a win win approach.

The Green Hospitality Programme has a well tested process in place including an International Best Practice Energy, Water and Waste KPI Benchmark Calculator and Carbon Footprint Calculator. We call on the sector to engage with us and work to secure the required funding to support an Energy and Water Reduction Programme for the Hotel Sector.


If you believe that the hotel sector should be able to access expert support in reducing energy and water costs, paid for from these increased taxes and costs, email me at demanding action so i can focus your demands . (If you don’t call for support, you won’t get it!)

(These figures were updated following the 2021 Budget announcements and include a downward adjustment on Carbon tax increases to reflect carbon tax calculations solely on fossil fuels – 13/10/2020 GHP)

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