Minister Warns Hospitality Sector About Rising Prices
Published on Mar 26 2015 11:05 AM in Hotel
Minister for Tourism Paschal Donohoe has warned Irish hoteliers that a return to pre-recession prices is not the goal of the lower VAT rate.
The rate for the hospitality industry was lowered from 13.5 per cent to nine per cent in 2011 in a bid to invigorate the hotel and tourism sector and to see a return to competitiveness.
Ostensibly, it would appear it has worked as the hotel market thrived in 2014 and tourism numbers hit record highs in the year. Last year around 7.3 million people visited the country, up from 5.9 million in 2011.
However, as reported in the Irish Times, the minister has urged hospitality businesses to stay competitive and not return to pre-recession levels. “The pricing that we saw in 2005, 2006 and 2007 is not a target, that is not a target that should be returned to,” the said.
Donohoe's comments come after recent reports that hotel prices are on the rise - 2015 marking the fourth year in a row the prices have increased.