Hotel Industry Slammed For 'Ripping Off' Customers

The government should demand a sharp reduction in hotel prices or consider a change to the current industry VAT rate, according to Labour.

The party claimed the hospitality industry is beginning to rip off customers "as it did during the Celtic Tiger years".

According to figures from data analytics specialist, STR, hotel room prices in Dublin rose by almost 50% between August 2014 and July 2016.

Labour's Spokesperson for Urban Regeneration, Joe Costello, said "clearly the industry is hell-bent on killing the golden goose".

He also said that according to Price Waterhouse Cooper's (PWC), room revenue grew by 23.3% in 2015 and "is expected to be the highest of all European cities next year".

Criticising the industry, Costello said: "It is little wonder that the Global Web Summit which brought 30,000 wealthy visitors to Dublin in 2015 moved to Portugal in 2016 due partly to exorbitant bed and breakfast prices in Dublin's hotels.

"When the previous administration came to power in 2011, the hospitality industry was on its knees. To kick-start the industry again the Government reduced the VAT rate from 13.5% to 9%. "The measure was hugely successful and now the country has record tourist levels and our hotels are full. The reduced VAT is a loss of at least €600 million annually to the exchequer.

"However, the hospitality sector has not reciprocated by giving the customer a good deal. There is now absolutely no reason why the Government and the taxpayer should any longer support the hospitality industry and the hotels in particular through tax concessions. A lot of essential and hard-pressed services could be supported for our citizens if the full VAT returns were retained by the exchequer.

"At the very least the Government should demand a sharp reduction from the hotel industry or face the loss of 4.5% VAT reduction in the forthcoming budget."

(MH/CD)