Euro-sterling parity could cost Ireland’s drinks and hospitality businesses tens of millions in lost revenue as Irish shoppers cross the border for more affordable products, including alcohol.
The warning, issued by the Drinks Industry Group of Ireland ), follows a recent CSO report that implicates cross-border shopping in the decline in state revenue take.
The drinks industry directly employs 92,000 people and enables 210,000 jobs in the wider hospitality sector. Through a nationwide network of pubs, hotels, restaurants, off-licences, distilleries, microbreweries, wholesalers and distributors, the drinks industry exports €1.25 billion in goods annually and generates €2.3 billion of revenue for the Exchequer.
DIGI’s latest report, The Economic Impact of Brexit on the Drinks and Hospitality Sectors, authored by DCU economist Anthony Foley, estimated that a surge in cross-border shopping could cost the economy as much as €60 million before the end of 2017. If the sterling continues to drop against the euro in 2018 and reaches parity, these losses could be significantly more.