Hotel industry calls for 9% tourism VAT rate to remain to combat inflation

The President of the Hotels Federation Elaina Fitzgerald-Kane has called for VAT to remain at 9 per cent as a measure to combat inflation and its impact on the hospitality sector.

Speaking on RTÉ radio's Morning Ireland as the Federation hosts its first AGM in two years, Ms Fitzgerald-Kane said that there were "green shoots" and a cautious recovery of the sector.

Without the support of the Government, the industry would not have survived the pandemic, she said. While there was optimism in the sector, there remained a sense of uncertainty of “what lies ahead”.?

When asked about high prices in Irish hotels last summer, Ms Fitzgerald-Kane said there had been 30 per cent occupancy last year. The tourism sector was an important employer of 270,000 people, 70 per cent of them outside Dublin. She urged people planning to holiday in Ireland this summer to shop around, book early and book directly to get the best prices.

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On the issue of hotel rooms being occupied by displaced people from Ukraine, Ms Fitzgerald-Kane said that the industry was engaging with the Department of Children and it had been a very positive experience.