Irish Hotels Federation send open letter to Carlow and Kilkenny TDs

The South-East branch of the Irish Hotels Federation have voiced concerns over possible government plans to increase the VAT rate on hospitality and tourism.

In an open letter to Carlow-Kilkenny TDs, writing on behalf of hotels and guesthouses throughout the two counties, the Irish Hotels Federation spelled out some of their key worries.

“Government estimates indicate that the proposed increase in VAT to 13.5 per cent would see people paying an additional €560m in taxes each year,” the letter reads.

“That’s a 50 per cent increase in taxes on everything from the price of a cup of coffee, to the price of a meal out, a stay in a hotel or guesthouse and the cost of social events such as weddings.

“This is at a time when people’s personal finances are already under significant pressure due to the cost-of-living crisis.

“This has a knock-on effect on the decisions the average person makes when deciding whether or not to spend money on discretionary items such as going out for a meal with family and friends or taking a short break in Ireland.

“From a tourism perspective, the current 9 per cent VAT is the right rate for Ireland. It is in line with average rates of tourism VAT across Europe. Increasing the rate of VAT paid by consumers to 13.5 per cent would make us an outlier among our competitors. We would have the third highest tourism VAT in Europe, which would seriously undermine our international competitiveness and ability to attract visitors.

“On behalf of hoteliers in Kilkenny and Carlow and our wider tourism community, we are urging local TDs to support our call on the Government to retain the 9 per cent VAT rate.”