A KILLARNEY businesswoman, who heads up the hotel and guesthouse sector in Kerry, has urged the government to avoid scrapping the nine per cent tourism VAT rate as it could cause serious damage to the industry.
Niamh O’Shea said the lower rate brings Ireland more closely in line with other competing European countries and it enables the industry locally to become more competitive.
“Its positive impact has exceeded expectations. Here in Kerry our tourism sector now supports 15,700 jobs and contributes some €533 million to the local economy,” she said.
“While the industry has made great strides in recovery in recent years, this growth cannot be taken for granted. It is one of the key components to the recovery in tourism in recent years and continues to support jobs in the sector and encourage reinvestment.”
KillarneyToday.com understands that local hoteliers have met with Minister of State for Tourism, Brendan Griffin, to discuss the issue and while he has assured them of his support, it would appear that many at the cabinet table have different views.
Ms O’Shea, general manager at the five-star Killarney Park Hotel, insists there is no room for complacency with the tourism sector facing enormous difficulties due to the uncertainty around Brexit and the fall in the value of sterling.
“Our industry is heavily dependent on the economic environment of our major source markets and we are very vulnerable to external economic shocks, as the fall in UK visitors has shown.
“At a time of serious economic uncertainty around Brexit, it absolutely incredible to suggest that the government should undermine the sector and impose hundreds of millions in additional taxes on visitors, and make us less attractive”.
Hoteliers have pointed out that tourism growth is allowing hoteliers in Kerry to re-invest revenues in refurbishment, renovation, product development and innovation.
“We should be focusing on ensuring that the right conditions are in place so that tourism in Kerry can deliver long-term sustainable growth and further employment generation,” Mr O’Shea said.
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