Donegal Daily
  • News
  • Sport
  • Courts
  • Jobs
  • Business
  • Lifestyle
  • Travel
  • Politics
  • Features
  • Donegal County Council News
Friday 15°CSaturday 15°C

Donegal Daily Donegal Daily

sponsor banner
sponsor banner
  • News
  • Sport
  • Courts
  • Jobs
  • Business
  • Lifestyle
  • Travel
  • Politics
  • Features
  • Donegal County Council News
News

Donegal hotels facing ‘uncertain economic environment’ – IHF

written by Staff Writer January 19, 2023
FacebookTweetLinkedInPrint

Donegal hotel and guesthouse representatives today renewed their call on the government to retain the 9% tourism VAT rate.

The Irish Hotels Federation (IHF) made the call in response to very challenging economic headwinds facing the sector over the next 12 months. 

New industry research carried out by the organisation indicates the sector is now at a ‘crucial juncture’ as it grapples with economic slowdowns in key overseas markets, escalating business costs and the impact of inflation on discretionary consumer expenditure.

They say the hotel sector supported 8,000 tourism jobs in Donegal (pre-Covid) and generated more than €249 million for the local economy.

Paul Diver, IHF Donegal Branch, expressed deep concern about the impact the proposed VAT increase to 13.5% would have on an industry still recovering from the pandemic.

“With many of our key tourism markets experiencing a cost-of-living-crisis, the last thing the government should be contemplating is an increase in consumer taxes such as tourism VAT,” he said.

“Consumers in Ireland and across our overseas markets are already being squeezed by exceptionally high levels of inflation and other pressures on their finances, which means there is a very real risk that many will pull back from spending on discretionary items such as holidays and breaks away.

“It is therefore very worrying that the government is considering an increase at this time given the impact it would have on inflation and the damage it would cause to our tourism competitiveness – resulting in Irish consumers and overseas visitors having to pay the third highest tourism VAT rate in all of Europe. Now is not the time to jeopardise the recovery by increasing tourism VAT. The focus of the government should instead be on safeguarding tourism livelihoods and securing the long-term sustainable recovery of our industry.”

Mr Diver noted that, far from being an exceptional measure, most European countries have a low VAT rate on tourism accommodation. 

For example, of the 27 EU countries, the VAT rate on accommodation is 9% or lower in 16 countries. 

“In these countries it is settled policy to support tourism with a lower VAT rate as its contribution to tourism jobs, businesses and the wider economy pays its way many times over,” he explained.

“This should equally be the case for Irish tourism as our largest indigenous industry, which prior to the pandemic supported over 270,000 livelihoods, including some 16,000 jobs throughout Kerry, generating €592m in tourism revenues annually for the local economy.”

 

Donegal hotels facing ‘uncertain economic environment’ – IHF was last modified: January 19th, 2023 by Staff Writer
FacebookTweetLinkedInPrint
Staff Writer

LEAVE A COMMENT

You may also like

Much loved local ecologist launches ‘Birds of...

6 hours ago

Donegal planners grant retention permission for hobbit-style...

8 hours ago

Plans for 35 new houses and apartments...

10 hours ago

Benny is still ‘harping on’ as he...

11 hours ago

Charity 5K cancelled following Inishowen road tragedy

11 hours ago

Packie Bonner to open ‘Working Over By’...

12 hours ago

East Donegal family birthdays raise over €3k...

12 hours ago

Motorists warned after oil spill in south...

14 hours ago

HSE group in Donegal honoured for work...

14 hours ago

Over 6,500 Ukrainian refugees now living across...

15 hours ago
Advertisement
Advertisement

Donegal County Council

Facebook
Donegal County Council
Advertisement
Advertisement
Donegal Daily Jobs

Read More

  • News
  • Sport
  • Courts
  • Jobs
  • Sales & Services
  • Obituaries
  • Features
  • Business
  • Politics
  • Council News

Information

  • Contact Us
  • About
  • Advertise WIth Us
  • Privacy Policy
  • Disclaimer
  • Terms & Conditions

Our Sites

Donegal Woman
Donegal Woman
Donegal Daily

© 2025 Donegal Daily. All rights reserved.
Website by owenod


Back To Top.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.OkPrivacy policy