IHF warn that Cork tourism sector faces stark future due to VAT increase
The Irish Hotels Federation is warning that the Cork tourism sector is facing a stark future unless the government rows back on the decision to increase VAT next year.
The group say bookings for 2023 are significantly down on 2019 due to uncertainty about the economy and a growing lack of consumer confidence, resulting in 60% of hotels reporting less bookings from Great Britain and 38% reporting reduced bookings from the rest of Europe.
Energy costs have also almost tripled for hotels, meaning an average 70-bedroom hotel is paying €380,000 more every year.
The IHF says the planned VAT increase from 9 to 13.5% in February will mean that consumers and overseas visitors will be paying the third highest tourism VAT rate in Europe.
Speaking to RedFM News, owner of the Vienna Wood Hotel in Glanmire, Michael Magner says businesses are already paying enough VAT.