By Sean Moriarty

Hotel and guesthouse owners in Kerry met with local political representatives last week to discuss the challenges facing the tourism sector as 2023 approaches.

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The hike in VAT rates, due in March, will make Ireland the third most-expensive in Europe behind Denmark and Britain.

Currently Ireland sits mid-table and the 9% VAT rate is inline with Cyprus, the Netherlands, Lithuania and Estonia.

Hoteliers also discussed with local political representatives the importance of the 9% Tourism VAT rate and how this is the right rate for the long-term sustainable development of Ireland’s largest indigenous industry, which in 2019 employed 270,000 people and returned over €2bn to the exchequer in direct tourism-related taxes.

“The current 9% rate is the right rate for Irish tourism in a European context. Increasing the tourism VAT rate by half to 13.5% in March 2023 would make Ireland’s tourism VAT rate the third highest in Europe, far above other European countries where they take tourism seriously like Portugal (6%), Malta (7%) Netherlands (9%),” Bernadette Randles, Chair of the Kerry of the Irish Hotels Federation, said.

“Tourism is an important part of the local economy here in Kerry and the continued recovery of tourism and hospitality must be to the fore of Government economic policy as we seek to support these businesses throughout these continued uncertain times.”

Local hoteliers welcomed the upturn in tourism this year, businesses throughout the country remain in recovery mode, having survived the worst economic shock in recent memory and who are now confronting skyrocketing energy costs and an expected global economic downturn in key markets next year.