Sinn Féin Rates Climbdown

Following claims by representatives of the hospitality sector that increases in rateable values would “push them to the brink”, Finance Minister John O’Dowd has just announced that he is halting the Reval 2026 process. Tourism-related jobs are among the most badly-paid in Northern Ireland, but Mr O’Dowd will not be providing handouts to people driven to the brink by poverty. After all, according to Mr O’Dowd local businesses, not workers, are the “are the backbone of our communities".

In fact, local businesses are only a part of the complex hospitality economy in NI. The hospitality sector in Northern Ireland reflects the structure of the NI economy as a whole, in which a small number of (mostly foreign-owned) enterprises employ the largest number of workers and make the most profit. A large amount of the foreign-owned profits return to the coffers of the owners rather than to the local economy.

Local family-owned groups (e.g., Hastings, Beannchor) and small and medium enterprises still employ over 70% of the hospitality workforce. 2025 surveys show that 27% of hospitality operators are running at a loss, with 20% just breaking even. Hospitality lobbyists put this down to the April 2025 minimum wage increases (£12.21/hr rising to £12.71/hr in April 2026) but do workers in Northern Ireland want to subsidise businesses that rely on rock-bottom wages to turn a profit?

Unlike many local small owners, international brands typically maintain profit margins of 15-20% due to centralized booking and supply chain power. As with the local economy in general, a significant portion of the profit accrued by foreign-owned hotels like Marriott or Hilton franchise leaves the region in the form of franchise fees and management dividends. 

We note with concern that on January 6th Minister O’Dowd said, “any spending increase in one area will inevitably mean a reduction in another”. We hope that the Executive will not be tempted to take the advice of Labour class warrior Hilary Benn, who suggests that Stormont should raise additional monies from the working class through water and prescription charges. In the meantime, god forbid that multinational hoteliers and their owners should pay their share.