The General Manager of a County Waterford hotel says rural hotels and restaurants will be hardest hit by the VAT increase.
The rate of VAT in the tourism sector will rise from 9% to 13.5% in January.
Declan Moriarty is the General Manager of the Park Hotel, Dungarvan. He told WLR News that “owners will certainly have to decide whether they can absorb this increase or raise their prices.”
“The 9% VAT rate had allowed the industry to improve, we saw many more businesses move into the food business and be innovative with food and ingredients.”
“My main concern as a hotelier is that businesses that rely solely on food will suffer greatly, and that many of the improvements we saw in the food business may be affected.”
Declan Moriarty says they’ve decided to absorb the increase for weddings.
“The Park Hotel, Dungarvan has been hosting weddings for so many years and we fully appreciate the extra burden that the increased VAT rate could have on couples planning their special day. The 4.5% VAT increase that couples have not accounted for will be a problem for many, and this is why we have decided to take the hit, absorbing the tax increase. Our prices will remain the same as we will not be increasing the prices of our wedding packages.”
Declan continued, “Our priority as always is each and every couple that put their trust in our team here at The Park Hotel, Dungarvan to make their wedding day the most special occasion. Planning a wedding can be a stressful experience and our aim is to make every couples journey as relaxing and stress free as possible.”