Longford hoteliers seek retention of 9% tourism VAT rate

The tourism VAT rate, which is due to expire at the end February, is currently under review by the cabinet.

In light of the growing economic challenges facing the sector, local hoteliers are urging the Government to retain the existing 9% rate to safeguard tourism livelihoods and secure the long-term development of Irish tourism.

A spokesperson said, “The industry is at a critical juncture with consumer confidence reaching decade lows as it grapples with a cost-of-living crisis, interest rate hikes, skyrocketing business costs and a global economy that is edging towards recession.

“Tourism businesses are collectively Ireland’s largest indigenous employer. Prior to the pandemic, the tourism industry supported over 270,000 livelihoods nationally, including some 6,400 jobs in Longford and Westmeath, generating €87m in annual tourism revenues.

“With a full recovery in tourism now likely to be delayed until 2026, an increase in the VAT rate to 13.5% is the last thing that should be contemplated given its inflationary impact and the damage it would cause to Ireland’s tourism competitiveness.

“This would result in Irish consumers and overseas visitors having to pay the third highest tourism VAT rate in all of Europe.

“Against this backdrop, hotels and guesthouses are urging the Government to retain the 9% VAT rate at its current rate.”