Kilkenny hoteliers urge government to retain 9% tourism VAT

Kilkenny hoteliers have welcomed comments today by Minister for Tourism Catherine Martin TD, that she will continue to seek a further extension of the 9% VAT rate for the tourism and hospitality sector in Ireland.

The tourism VAT rate, which is due to expire at the end of February, is currently under review by the Cabinet.

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In light of the growing economic challenges facing the sector, local hoteliers are urging the government to retain the existing 9% rate to safeguard tourism livelihoods and secure the long-term, sustainable development of Irish tourism.

Prior to the pandemic, the tourism industry supported over 270,000 livelihoods nationally, including some 6,600 jobs throughout Kilkenny and Carlow, generating €163m in tourism revenues annually for the local economy.

Kilkenny hoteliers stated that 'with a full recovery in tourism now likely to be delayed until 2026, an increase in the VAT rate to 13.5% is the last thing that should be contemplated given its inflationary impact and the damage it would cause to Ireland’s tourism competitiveness'.

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"This would result in Irish consumers and overseas visitors having to pay the third highest tourism VAT rate in all of Europe," they added.

Against this backdrop, hotels and guesthouses in Kilkenny are urging the government to retain the 9% VAT rate at its current rate.