Disappointment for IHF

The Government’s decision not to reverse the tourism VAT hike from last year’s budget has come under criticism from the Irish Hotels Federation.

According to Neil Grant, Chair of the Irish Hotels Federation (IHF) Cork branch, the increase in VAT from nine per cent to 13.5 per cent has “seriously undermined Irish tourism’s international competitiveness”.

Mr Grant said: “Budget 2020 is heralded as a Budget for Brexit. Despite the serious challenges facing tourism, Government has failed to recognise the importance of competitiveness and its role in the ever increasing costs of doing business in Ireland.

“This is a missed opportunity to rebalance the tax take from tourism at a time when economic indicators provide significant warning of a change in outlook.”

Mr Grant also highlighted that the hospitality industry has been one of the “great success stories” of the economy in recent years.

He explained: “Our industry supports 270,000 jobs and promotes balanced regional growth across the country. Here in Cork it supports 25,300 jobs and contributes some €895m to the local economy annually. It is therefore disappointing that the Government has failed to recognise the exceptional challenges now confronting tourism businesses.”