118 Hospitality Sector Companies Declared Insolvent So Far This Year
Published on Sep 30 2013 8:39 AM in General Industry
The number of hospitality sector companies going into insolvency is on the rise, according to new figures.
It comes as a surprise, given the rise in tourists visiting Ireland over the last year, which is being accredited to the Gathering.
Figures highlighted by the Insolvency Journal show show that 118 companies in the hospitality industry went to the wall between January and September, a 2% increase on the same period in 2012, when the number was 116.
The journal, published by restructuring specialist, Kavanagh Fennell, points out that while State tourism body, Fáilte Ireland, reported that overseas visitor numbers were up 6% in first half of the year, “it is clear from the hospitality insolvency statistics, that the Gathering alone cannot save this sector from its commercial difficulties”.
The figures show that insolvencies for the first nine months of 2013 were down 20% on the same period last year, at 1,025 from 1,282. In September, 105 companies failed, against 112 in September 2012. Receiverships were down 12% at 261, liquidations dropped 22% to 750.