Advertisement
News

Budget 2022 described as disastrous for hospitality

Oct 12, 2021 17:10 By radiokerrynews
Budget 2022 described as disastrous for hospitality Budget 2022 described as disastrous for hospitality
Share this article

The Restaurants Association of Ireland has described Budget 2022 as disastrous for tourism and hospitality.

The association says the budget has no ambition to stimulate and revitalise the tourism industry, as the 9% VAT rate is set to end in August.

The Irish Hotels Federation has cautiously welcomed the range of measures and supports announced today, but is calling for the Government to reconsider its position on the 9% VAT rate.

Advertisement

The 9% VAT rate for hospitality has been in place since November 2020 and was due to finish at the end of December this year; it’s now been extended to the end of next August.

The Restaurants Association of Ireland says the VAT increase is a blow for tourism recovery.

It says whilst wage supports remain in place for the still restricted restaurant, hospitality, and tourism sector, they’ll taper off in the New Year.

Advertisement

CEO Adrian Cummins is warning the hospitality industry faces a challenging five years to restore business to pre-COVID levels.

He says this budget is a disaster for members; the VAT rate ending, and wage supports tapering off will be the final nail in the coffin of many hospitality businesses.

The Irish Hotels Federation has cautiously welcomed the budget.

Advertisement

IHF Chief Executive, Tim Fenn, says the extension of employment supports and the rates waiver scheme are a welcome recognition of the challenges still facing the sector.

He’s expressing serious concerns, however, about the ending of the current Employment Wage Subsidy Scheme in December, calling for a sector specific exemption for hospitality.

He’s also calling on the Government to reconsider its position on the 9% VAT rate, saying it should be extended until after 2025 in order to safeguard overseas tourism recovery and competitiveness.

Advertisement

 

Share this article
Advertisement

RadioKerry Newsletter

Sign up now to keep up to date with the latest news.

Processing your request...

You are subscribed now! please check your email to confirm your subscription.