Hoteliers in Donegal are warning that while the industry has made great strides in recovery in recent years, the growth cannot be taken for granted and the 9% VAT rate must be maintained.
The Irish Hotels Federation which represents almost 1000 hotels and guesthouses across the country says; the lower VAT rate is one of the key components to the recovery in tourism in recent years and continues to support 235,000 jobs.
Paul Diver, Chair of the Donegal branch of the Irish Hotels Federation says the 9% VAT rate has been shown to be the right rate for the sector and warns that any increases in taxes on tourists would make a very fragile situation worse by making Donegal less competitive and attractive as a destination.
He says; in Donegal, the tourism sector supports 7,500 jobs and contributes €213m to the local economy.
While the sector has achieved a return to growth, Mr Diver says that there is no room for complacency due to the uncertainty around Brexit.
He says there is already evidence of a negative impact from Brexit, with visitor numbers from the UK down significantly with the drop even more pronounced for Donegal.
Tourism growth is also allowing hoteliers across Donegal to re-invest revenues in refurbishment, renovation, product development and innovation according to Mr Diver who says this much needed investment is critical for improving competitiveness and is essential for the sector’s response to Brexit………..
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