The recent success of the Fleadh in Belfast, together with The Open at Royal Portrush last year, demonstrates the considerable economic value of Northern Ireland’s hospitality and tourism industry. Major events attract visitors, spending and international exposure, with benefits extending beyond hotels, bars and restaurants to local suppliers, employment and communities. However, strong visitor numbers do not automatically translate into sustainable profitability. For hospitality businesses, the operating environment remains exceptionally challenging. A higher rate of VAT than competitors in the Republic of Ireland and several European markets, alongside business rates, rising wages and increased food and energy costs, continues to compress margins and constrain investment. The key question is therefore not simply how Northern Ireland attracts more visitors, but how the sector converts demand into profitable, sustainable growth.
Turning insight into action
Collaboration will be central to achieving that goal. Meaningful engagement between operators, representative bodies, funders, advisers and policymakers can ensure that immediate commercial pressures are understood while creating the conditions for future investment.
BDO NI recently strengthened its ongoing partnership with Hospitality Ulster by hosting a roundtable discussion with UK Hospitality Chief Executive Allen Simpson during his regional visit to Northern Ireland. The event brought together senior representatives from across the local hospitality community.
It provided an opportunity for frank discussion about the issues affecting businesses on the ground, from rates and skills shortages to taxation, access to finance and the confidence required to invest. It also ensured that the commercial realities facing Northern Ireland operators formed part of the wider UK conversation.
We subsequently hosted a market briefing for local hospitality funders, examining conditions in Northern Ireland, developments across Great Britain and the factors shaping investment and operating decisions throughout the sector.
These conversations matter because the sector’s challenges are interconnected. Tax policy affects pricing and competitiveness. Wage and energy costs influence margins. Financing conditions determine whether businesses can refurbish, expand or adopt new technology, while skills availability directly affects capacity, productivity and service standards.
Bringing the relevant stakeholders together creates a clearer understanding of those relationships and helps turn shared insight into practical action.
Strengthening commercial performance
These events are a natural extension of BDO NI’s day-to-day work with hospitality businesses.
Our role goes beyond responding when a particular financial, tax or regulatory issue arises. We take time to understand each business model, its cost base, operational pressures and growth ambitions.
That means helping management teams address the questions that directly influence performance: Which revenue streams are producing an appropriate return? Where are margins being eroded? How effectively are staffing, pricing and capacity being managed? Is the business structured and financed to support future growth?
Reliable management information and cash-flow forecasting are increasingly important. In a high-cost environment, businesses need timely visibility of revenue, margins, labour costs, overheads and working-capital requirements. This enables leaders to identify pressure points earlier and make informed decisions on pricing, investment and resource allocation.
There is also a need to balance short-term cost control with long-term competitiveness. Investment in premises, people, technology and sustainability can improve productivity and the guest experience, but it must be supported by a clear business case and an appropriate funding structure.
BDO NI is proud to continue working alongside Hospitality Ulster, UK Hospitality and the wider hospitality community. By combining commercial insight, sector expertise and a stronger collective voice, we can help local businesses navigate current pressures and realise their full economic potential.
If you would like to discuss how we could help your business, please feel free to get in touch with david.warnock@bdoni.com or the wider Advisory Team