Cost of doing business, from food to linen, already squeezing hospitality, federation says
The Irish Hotels Federation said Dublin prices had increased by 18 per cent on average over the past three years and that 'gouging' was not in effect. Photograph: Nikida/Getty ImagesThe president of the Irish Hotels Federation, Denyse Campbell has said that the sector remains hopeful that the Government “will continue to support the industry” and not return the VAT rate to 13.5 per cent.
Ms Campbell told RTÉ Radio’s Morning Ireland that the Government needed to prioritise a sector which she said employs one out of 10 people in the country, with 70 per cent employed outside Dublin. Returning the VAT rate to 13.5 per cent from the nine per cent introduced during Covid lockdown in 2020 would make it the third highest rate in Europe, she said. The nine per cent rate was in line with most European countries.
The VAT rate needs to stay at nine per cent to maintain competitiveness for the industry, added Ms Campbell. The cost of doing business had escalated with the sector experiencing “crippling increases” of 300 per cent in energy bills, 28 per cent for food and increased linen costs.
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