Mark PaulThe ongoing furore about the stratospheric rise in the cost of hotel rooms in Ireland has raised fears within the wider tourism sector that the issue could cost the industry any further extension of its special 9 per cent VAT rate, which is due to run out next Spring. It sounds like 2018 all over again.
Leo Varadkar, the Tánaiste, has already warned the industry that recent pricing decisions in the hotel sector could affect the wider tourism industry’s VAT rate. Certainly it is giving the Government a handy excuse to do what it wants to do anyway once the latest extension runs out next February – raise the sector’s VAT rate back to 13.5 per cent, which could bring in more than €400 million for the exchequer.
Public criticism of hotels over their room rates certainly has been intense in recent weeks. Widespread reports of weekend room rates this summer of €300-€400 per night even for modest hotels in Dublin have eroded political and public support for the sector following the pandemic. There have also been sharp rises in holiday hotspots, such as Killarney.Fianna Fáil Senator Timmy Dooley accused hotels last month of “price gouging”, which many within the sector denied.
Many hoteliers argue that prices are rising and the market is distorted because thousands of hotel rooms have been taken off the market to house refugees from Ukraine and also for the Government’s direct provision system for asylum seekers from other nations. About 4,000 rooms are thought to have been used by Ukrainian refugees, while 5,000 were being contracted recently for direct provision.
I can't wait for the slieveen price gougers to be bitten in the arse
Was going to stay in town for a concert in August, ridiculous pricing, so getting a taxi home now it's that costly.
It's gonna be a cold fukkin winter for the price gougers.
IrishTimes Hotels price gouging WILL cost tourism. Fixed the headline. 😉
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