‘Tough times ahead’ says Donegal Hotelier as VAT set to return to 13.5%

‘Tough times ahead’ is what the future holds for hotels in Donegal as the VAT rate for the tourism and hospitality sector is set to return to 13.5%.

That’s according to Paul Diver, Chair of the Donegal branch of the Irish Hotel Federation.

He says it wasn’t a bumper season for Donegal this summer and that some hotels are already talking about cutting down on food offerings as it simply will be no longer viable.

Mr. Diver added that the knock on effect for staff will be major:

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