Hotels and guesthouses in Donegal have criticised the Government’s decision not to reverse the tourism VAT hike, which came into effect following last year’s budget.
The increase in VAT from 9% to 13.5% is said to have seriously undermined Irish tourism’s international competitiveness and the ability for hotels to re-invest in their business and local economy.
The hike, coupled with the sterling rate, is reportedly making Donegal 25% more expensive than competitors in Northern Ireland.
Paul Diver is Chair of the Irish Hotels Federation Donegal branch:
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