The hospitality industry in Northern Ireland faces considerable challenges, even as other sectors demonstrate signs of recovery.
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The recent increase in recruitment across various sectors in Northern Ireland marks a significant positive shift. However, this resurgence is overshadowed by a notable exception: the hospitality industry, which is facing a decline in hiring. This disparity underscores the unique challenges confronting this sector, one of the largest private employers in the region.
According to a recent survey by Hospitality Ulster, conditions within the hospitality sector appear bleak. Following the rise in operational costs introduced in April 2025, a striking 43% of businesses surveyed reported workforce reductions, while a staggering 70% had to cut employee hours.
This stark contrast to the optimism in other sectors indicates that hospitality is not merely struggling; it is fighting for survival.
Current state of the hospitality sector
Despite signs of recovery in other areas, many operators in hospitality do not share this optimism.
Half of the respondents expressed doubts about their business prospects for the upcoming year, and nearly two-thirds held a negative view of the market. This sector is not poised for a rebound; it is entrenched in a battle to sustain its viability.
Commitment to workforce development
Even amid these challenges, the hospitality sector remains dedicated to its workforce. For years, employers have focused on creating and maintaining quality jobs, often without sufficient recognition. This commitment continues despite immense pressure from the lack of effective Covid-19 support and the burden of the highest business rates in the UK.
In collaboration with the Further Education Curriculum Hub and the Department for the Economy, the industry has actively pursued training initiatives for both existing staff and newcomers. These programs have made significant progress by reaching out to schools, assisting the long-term unemployed, and establishing career pathways for older individuals and those out of the workforce.
Wellbeing and support initiatives
The hospitality sector’s commitment extends beyond training; it embraces a comprehensive approach to employee wellbeing. The Wellbeing Promise represents a collective commitment to fostering staff development, ensuring work-life balance, and promoting mental health. This initiative highlights the genuine care that hospitality employers have for their teams.
These efforts should not be seen as mere gestures; they are substantial investments in the social and economic fabric of Northern Ireland. However, these positive initiatives exist against a backdrop of increasing pressures.
Financial pressures and the need for government intervention
As the government budget approaches, alarming reports suggest a potential 3.6% increase in alcohol duty, which would further burden businesses already struggling to survive. Additionally, there remains a critical absence of a vital measure that could alleviate some of these pressures: a reduction in VAT for the hospitality sector, a proposal that enjoys support from an overwhelming 93% of industry members.
Throughout these challenging times, hospitality operators have done everything within their power to adapt. They have cut costs, embraced innovation, and supported their teams while striving to keep their establishments operational. What these businesses now require is a reciprocal commitment from the government in the form of decisive action.
Without intervention from Westminster, the gap between the recovery observed in other sectors and the ongoing struggles in hospitality will only widen. Northern Ireland risks losing not only economic vitality but also its cultural richness, job opportunities, and the invaluable skills that the hospitality sector fosters.
