Mayo hotels call for VAT reduction ahead of general election

Hotels and guesthouses in Mayo have called on the government to reduce the VAT rate for hospitality foot businesses to 9 percent, among other measures - ahead of the general election. 

Declan Heneghan, Chair of the Mayo branch of the Irish Hotels Federation, and General Manager of the Knock House Hotel, said there had been ‘an alarming deterioration in the commercial model of hospitality food services’ due to increases in VAT and other cost increases. 

Hospitality representative organisations unsuccessfully campaigned for the 13.5 percent VAT rate to be dropped to 9 percent prior to the 2024 budget. 

The Irish Hotel Federation has demanded other measures an ‘urgent review’ of the government’s tourism policy, improved access to Ireland West Airport Knock, and a local authority commercial rates waiver and employers’ PRSI rebates. 

“Our message to all political parties and candidates in the general election is that tourism and hospitality should not be taken for granted,” said Mr Heneghan.

“Much more needs to be done to safeguard and prioritise our industry. Tourism and hospitality must be at the heart of the next Government’s economic policy supported by targeted measures to ensure our industry lives up to its full potential as a major engine for growth and economic prosperity,” he added.

“A key priority for our sector is the need to tackle the cost of doing business, which is getting out of control and posing an enormous risk to the sector. There has been an alarming deterioration in the commercial model of hospitality food services in particular as a result of the increased VAT rate coupled with a raft of Government-imposed large cost increases. Businesses are now at a cross-roads requiring immediate action by the next Government.”