Now isn’t the time to put tourism recovery at risk by increasing VAT.
That’s the view of Bernadette Randles who is the Kerry branch chair of the Irish Hotels Federation (IHF).
She was speaking as the 9% VAT rate for the hospitality industry looks set to revert to 13.5% at the end of this month.
Hoteliers in Kerry, and around Ireland, are expressing concern about the potential VAT increase on Irish consumers and overseas visitors, particularly given the current cost-of-living crisis.
Representatives from the tourism industry recently met with Ministers Michael McGrath and Paschal Donohoe, and are urging them to retain the 9% VAT rate.
Kerry chair of the IHF, Bernadette Randles says increasing consumer taxes is the last thing the country needs and says hoteliers are concerned consumers will pull back spending on tourism and hospitality this year; she says the tourism industry is particularly vulnerable and will be the first to be hit if consumers cut back on discretionary spending.
She says if the rate was to revert to 13.5%, Ireland would have the third highest tourism VAT rate in all of Europe.
She says regions, like Kerry, are critically dependant on tourism to support livelihoods and the local economy.
Bernadette Randles says the industry is facing uncertainty over the next 12 months and says the Government should be focusing on bedding down the recovery throughout the year ahead and doing everything possible to safeguard livelihoods and the long-term prospects for the industry.
