Low VAT Rate Boosts Hotel Sector: IHF
Published on Feb 25 2015 10:48 AM in Hotel
The nine per cent VAT rate has been instrumental in making Ireland's hotel sector thrive once again, as room prices stay down compare to other European cities. Sarah Duignan of STR Global consult...
The nine per cent VAT rate has been instrumental in making Ireland's hotel sector thrive once again, as room prices stay down compare to other European cities.
Sarah Duignan of STR Global consultants told guests at the Irish Hotels Federation conference in Cavan that room rates are less than half of those in Paris and London, the Irish Independent reports.
Dublin now stands at 12th out of 20 European cities surveyed for room rates, as a room cost an average of €96 in 2014. This is compared to €255 in Paris, and €197 in London.
Dublin hotels remain the strongest in terms of growth compared to smaller town and regional hotels, as occupancy rates in the capital have seen 34 consecutive months of recovery.
Despite remaining competitive against the price of living, prices rose five per cent in 2014. This, according to IHF president Stephen McNally (pictured), was a necessary measure for hotels to pay for refurbishment after years of low prices.
"We were hit by a tsunami in the last five years when prices hit the floor, and they are still nowhere near pre-recession levels," he said.
The IHF conference concluded yesterday after a full house in the Slieve Russell hotel, Co. Cavan.