Irish hoteliers ‘broadly welcome’ energy support, says IHF
The sector has confirmed that it will continue to advocate for the retention of the 9% VAT rate beyond February 2023, as it is a ‘critical measure to ensure the long-term sustainable growth’
As the sector calls on the government to reconsider its decision on 9% VAT rate, hoteliers across Ireland have “broadly” welcomed the energy support announced in the recent budget, according to the Irish Hotels Federation (IHF).
However, it is reported that hotels and guesthouses are still seeking an amendment to criteria to ensure that “significant tourism employers” can receive appropriate support in the face of skyrocketing business costs and a “deteriorating” economic environment.
In addition, the sector has confirmed that it will continue to advocate for the retention of the 9% VAT rate beyond February 2023, as it is a “critical measure to ensure the long-term sustainable growth” of Ireland’s largest indigenous export industry.
Denyse Campbell, the president of the IHF, has stated that the tourism sector will be “disappointed” with the government’s decision to increase the tourism 9% VAT rate by 50% from 1 March next year and that the government “has not fully recognised” the importance of the tourism industry to every town and every county in Ireland.
Campbell said: “The Temporary Business Energy Support Scheme (TBESS) is broadly welcome for hoteliers that have been hit by shocking energy price increases of over 400% in electricity and 300% in gas prices since 2019, in addition to a severe rise in day-to-day operational costs such as linen, food and beverages in the last 12 months.
“However, we are seeking an amendment to criteria for significant employers so that they can receive appropriate support. This increase will make Ireland’s tourism VAT rate the second highest in the European Union, and far above other European countries where tourism is a significant part of their economies.”
She added: “Hoteliers and the tourism industry believe that 9% is the right VAT rate for long-term sustainable growth. Our industry has made great progress on restoring over 230,000 tourism jobs since the depths of the pandemic. We will continue to advocate for the retention of the 9% VAT rate beyond March 2023.”
