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Killarney hotelier warns of “dangerous” VAT increase

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Prominent Killarney hotelier and IHF spokesman Tom Randles says the government’s proposed VAT increase on tourism-related goods could have major ramifications for the town’s tourist trade.

The rates for accommodation and food were lowered to 9% in 2011 to help promote job creation. However, a recent review of the VAT rate carried out by the Department of Finance said the measure had achieved its purpose and recommended that it be reset at 13.5%.

Speaking to the Killarney Advertiser, Mr Randles said that such a move would lead to higher prices for people visiting the town.

“If VAT goes up to the proposed 13.5% it would be very dangerous for the tourism industry, particularly in Kerr,” he said.

“It may dampen demand if prices increase. If the market was to tighten up it would be very bad for Killarney. The VAT rate was lowered to 9% in 2011 and that was a great success.

“The current rate is normal in Europe,” he added. “10 other EU countries have a rate of 10% or lower.”

The proposed VAT hike would predominantly affect the larger hotels as most B&Bs are not registered for VAT.

Earlier this year, the TEIR 1 tourism report revealed that 1.1 million visitors come to Killarney annually and the vast majority stay overnight. An increase of 30% is expected before 2025 but if the VAT rates return to 13.5% as proposed, those figures may have to be revised.

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Killarney Innovation Centre seeking funding for major expansion

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The Killarney Innovation Centre has announced plans for a new building project to meet the growing demand from small and medium-sized enterprises (SMEs) in the region.

The not-for-profit centre, which has operated for over 25 years, aims to expand its capacity to provide workspace and growth supports for local businesses.

Plans for the expansion have been in development for two years.

However, the centre is currently facing challenges in securing the capital financing needed to begin construction.

Management noted that while the demand for space is clear, existing government supports for such infrastructure are limited and difficult to access.

“This project is about creating the conditions in which businesses can thrive and contribute to the regional economy,” said Mr Counihan, Centre Chairperson. “The demand we are seeing reflects the ambition of local enterprises, and it is essential that infrastructure keeps pace with that growth.”

Over the past two years, the board has engaged with various funding bodies and agencies to secure financial backing.

Mr Counihan expressed frustration at the current funding landscape, stating there is a “disconnect between recognised need and available supports.”

The centre is calling for a renewed focus on capital investment for enterprise hubs, highlighting that such projects deliver long-term returns through job creation and regional competitiveness.

The proposed build would allow the centre to accommodate more businesses and provide enhanced services for evolving industry needs.

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Aghadoe Heights Hotel appoints new Spa Manager

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Aghadoe Heights Hotel and Spa has announced the appointment of Lorna Jankovic as Spa Manager.

The move marks a significant step in the hotel’s continued investment in luxury wellness as it prepares to unveil new innovations at its award-winning facility.

Jankovic brings extensive experience from senior roles in luxury hotels and destination spas across Ireland and Europe.

Her career includes positions at The Shelbourne in Dublin, Corinthia Hotels International in the UK, Malta, and Portugal, as well as experience with wellness cruiseliner Steiner Transocean.
“Our aim is to offer something that feels like a true reset,” said Jankovic. “We want guests to step away from constant stimulation and reconnect through touch, presence and thoughtful care. It’s about creating space for intentional rest and holistic luxury.”

The appointment comes at a pivotal time for the spa, with several developments set to be announced in the coming months.

These include the introduction of new treatments, the expansion of bespoke therapies, and updated holistic wellness programming.

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