The future of Northern Ireland's hospitality industry is under threat following the publication of the draft Reval 2026 non-domestic rates valuations.

The latest figures show an average increase of 63% for hotels, with pubs also expected to shoulder a significantly heavier rates burden.

The surge in valuations comes at a precarious time for the sector, which is already grappling with rising overheads, a skills shortage, and the end of existing financial support measures in April 2026.

Ulster Unionist Economy spokesperson Diana Armstrong MLA warned that the proposed increases could be the "final nail in the coffin" for many businesses.

"I have grave concerns that figures based on this draft Reval will be the final nail in the coffin for many operating in hospitality," she stated.

"The hospitality sector is operating under extreme strain, supporting tens of thousands of jobs and contributing around £2bn annually to the local economy. Imposing a major fixed cost increase in rates on businesses will impose the grim reality of further painful choices in job cuts, reduced opening hours, reduced investment, and higher prices for consumers or, in the worst cases, permanent closure." Ms Armstrong also highlighted concerns raised by the NI Hotel Federation regarding the methodology used: "Reval 2026 is a dagger to the heart of hospitality, it is a disproportionate addition to a rates overhead that ignores the reality of soaring operating costs. As the NI Hotel Federation has warned, valuations driven largely by figures based on turnover risk missing the real time plummeting of profitability many venues have experienced in recent years."

Echoing these concerns, SDLP Leader of the Opposition and Finance Committee chairman Matthew O'Toole MLA pointed to the specific impact on the local pub scene.

"There is real and understandable concern in the pub scene about the burden of added rates pressure at a time when cost of living pressures are impacting on customers' disposable income," said Mr O'Toole. "Pubs appear to be shouldering a significant burden in this revaluation."

He urged Land & Property Services (LPS) and the Department of Finance to engage directly with the industry to prevent "unnecessary damage" to a sector vital for both tourism and local communities.

The UUP has called on the Executive and the Minister for the Economy to intervene and reset the calculations. Ms Armstrong concluded: "The reality is we need hospitality on the front foot showcasing the best of Northern Ireland. If the Executive does not intervene, Reval 2026 will not just rebalance bills. It will break businesses."