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Fears are growing in Killarney over the government’s proposed VAT hike for the hospitality sector with many hoteliers warning that any increase could have major ramifications for the local economy.

Niamh O’Shea, who is the Chairperson of Kerry IHF and GM of Killarney Park Hotel, says any VAT increase would hit Kerry hard.

“Hiking the VAT rate would be wrong for Ireland’s largest indigenous industry and without question would have a disproportionately negative impact here in Kerry,” she said. “Tourism is a vital economic driver for our county and the largest employer. We continue to have a major challenge with seasonality and Brexit is just around the corner. We need to be able to remain competitive to survive.”

Ettienne van Vrede, CEO of the Hayfield Family Collection (which includes the Great Southern Killarney, The Killarney Royal and Hayfield Manor), echoed Niamh’s sentiments.

“Tourism makes a vital contribution to Kerry, supporting 15,700 jobs and generating €533m in revenue each year for our local economy,” he said. “Tourism itself in Kerry remains very seasonal. While we have achieved growth in recent years, it has been very uneven and follows a severe loss of ground during the downturn.”

It remains to be seen when or how the proposed hike will be implemented but there may be trying times ahead for some of Killarney’s best-loved hotels.