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Kerry hoteliers renew appeal to retain 9% tourism VAT

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Kerry hotels and guesthouses have this week renewed their call on the Government to retain the 9% tourism VAT rate.

This is in response to very challenging economic headwinds facing the sector over the next 12 months.

New industry research carried out by the Irish Hotels Federation (IHF) indicates that the sector is now at a crucial juncture as it grapples with economic slowdowns in key overseas markets, escalating business costs and the impact of inflation on discretionary consumer expenditure.

Despite an uplift in tourism during the second half of 2022, hotel room occupancy remained significantly lower than pre-pandemic levels. Results for the year as a whole reveal that average room occupancy levels were 70% nationally and 67% for the South West.

Looking at the year ahead, overseas tourism markets continue to pose a significant challenge for Irish tourism, with many hotels and guesthouses reporting reduced levels of forward bookings compared to the same time in 2019:

· 57% report reduced bookings from Great Britain versus 2019 (12% report an increase, 31% no change)
· 48% report reduced bookings from Northern Ireland (9% report an increase, 43% no change)
· 37% report reduced bookings from the rest of Europe (17% report an increase, 46% no change)
· 41% report reduced bookings from the US (32% report an increase, 27% no change)

Of particular concern is the bleak economic outlook for the UK with inflation having reached a four-decade high and the country facing the risk of a prolonged recession.

Another pressing challenge for the hotels sector is excessive energy costs, with 85% of hotels and guesthouses very concerned about the impact this is already having on their business. Many hotels have experienced increases of upwards of 300% in energy bills compared with 2019 levels.

“With many of our key tourism markets experiencing a cost-of-living-crisis, the last thing the Government should be contemplating is an increase in consumer taxes such as tourism VAT," Bernadette Randles, IHF Kerry Branch, said.

"Consumers in Ireland and across our overseas markets are already being squeezed by exceptionally high levels of inflation and other pressures on their finances, which means there is a very real risk that many will pull back from spending on discretionary items such as holidays and breaks away. It is therefore very worrying that Government is considering an increase at this time given the impact it would have on inflation and the damage it would cause to our tourism competitiveness – resulting in Irish consumers and overseas visitors having to pay the third highest tourism VAT rate in all of Europe. The focus of the Government should instead be on safeguarding tourism livelihoods and securing the long-term sustainable recovery of our industry.”

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Town centre hotel slashes energy costs by over a third after retrofit

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A full energy retrofit at Scott’s Hotel will cut annual energy costs by more than a third, highlighting how hospitality businesses can benefit from available grant supports.

A showcase event at the hotel on Friday last heard how the project has significantly reduced carbon emissions while improving energy efficiency and the overall guest experience.

The project, delivered by Energywise Ireland under the SEAI Community Energy Grant (CEG) scheme, included a 162kW solar PV system, cavity and attic insulation, a hot water system upgrade and a new air conditioning system.

The renewable energy company said the retrofit has the potential to result in a 36% reduction in annual energy costs.

It’s also advising that companies and community groups can avail of grant amounts of between 30% and up to 50% for non-domestic buildings.


Berth Sheehy, CEO of Energywise Ireland said: “We were delighted to be asked to take on this project at Scott’s Hotel Killarney and we’re very pleased with the results. Hotels operate year-round with significant energy demands, so the impact of targeted measures can be substantial.

This project shows how businesses can reduce energy costs and emissions while making their operations more efficient.”



Managing Director at Scott’s Hotel Maurice O’Donoghue added: “Like many hospitality businesses, energy costs are a key consideration for us. We received sound, practical advice from Energywise Ireland and the results have exceeded our expectations. Not only have we reduced our energy use and running costs, but we’ve also improved comfort levels for guests throughout the hotel.”

The SEAI is encouraging other businesses across the country to explore available grant supports. Spokesperson Katerina Leromonahos said: “SEAI offers a range of supports to help businesses improve energy efficiency, from community-based projects to direct business grants.

These supports help businesses reduce energy use and lower running costs. We would encourage businesses to explore the options available and seek advice, including through registered One Stop Shops, to find the approach that best suits their needs.”


Founded in 2009, Energywise Ireland is a nationwide provider of energy services, specialising in renewable energy and retrofit solutions for domestic, commercial and agricultural clients. Its services include solar PV, heat pumps, EV charging systems and full energy upgrades, delivered through SEAI-supported programmes including its registered One Stop Shop.

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Shades are spot on for the greening of Killarney

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Killarney will leave every other town in the country green with envy when the whole place turns a distinctive shade of green in the lead up to and during the St Patrick’s Festival.

From early this month, buildings across the town and the surrounding area will be illuminated in vibrant green, including landmarks such as St Mary’s Cathedral, the Franciscan Friary, St Mary’s Church of Ireland, Methodist Church, Ross Castle and Killarney Courthouse.


In addition, several hotels, shops, restaurants and pubs will join in the celebration and a public vote on Facebook will select Killarney’s Best Green Themed Building.


Shop windows will be decorated, locals and visitors dress in shades from emerald to lime and colourful hats and costumes add to the fun.


Businesses have been urged to make a special effort this year and the entire town will be a winner.

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