€400m VAT rise worries Kilkenny hotels

Kilkenny hoteliers have expressed “deep concern” about the e ect of a potential €400m increase in VAT on Irish consumers and overseas visitors. e increase is under consideration by the Government at a time when consumers, both at home and abroad, are under signi cant nancial pressure in the midst of a cost-ofliving crisis.

Following a recent meet- ing between hoteliers and the wider tourism industry with Ministers Michael McGrath and Paschal Donohoe, Irish Hotel Federation (IHF) South East Branch Chair Colm Neville said: “We are urging the Government to retain tourism VAT at its current rate. Increasing consumer taxes is the last thing the country needs given the additional in ationary impact this would have on domestic tourism while also making us less competitive in attracting overseas visitors.

“Consumers are already being squeezed by high in ation and soaring interest rates with a real risk they will pull back from spending on tourism and hospitality this year,” he said.

“If implemented, the proposed 13.5% rate would mean we would have the third highest tourism VAT rate in all of

Europe. is a ects everything from the price of a cup of coffee, to the price of a meal out, a stay in a hotel and the cost of a wedding. A massive concern for us is the impact that this would have on people’s spending decisions.

“ e reality is that people are much less likely to spend money on discretionary items such as holidays and breaks away at times of nancial stress. Our

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industry is particularly vulnerable and will be rst to take the hit,” said Mr Neville.

e focus of the Government should be on bedding down the recovery over the next 12 months – doing everything possible to safeguard livelihoods and the long-term prospects for our industry.

Now was not the time to put tourism recovery at risk by increasing VAT.

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