Hotels pleading for VAT and rates relief to survive Corona virus crisis

THE Irish Hotels Federation (IHF) has welcomed new Government measures to help the hotel and B&B sector survive the COVID-19 crisis but says more will need to be done to prevent hundreds of businesses across the country closing for good.

In a statement issued after last Tuesday’s announcement of extra restrictions and aid packages, the IHF welcomed the government’s new Temporary Wage Subsidy Scheme; the enhanced COVID-19 Pandemic Unemployment Payment; the inclusion of the self-employed in this scheme and the provision of enhanced protections for people facing difficulties with their mortgages.

However, the lobby group said more needs to be done to help the ailing sector and ensure the survival of the vital hospitality industry on which Irish tourism relies.

Among the additional measures being sought as a matter of urgency are a cut to tourism VAT and a temporary waiver on commercial rates.

“The announcement is very welcome, but it is not nearly enough to safeguard the future of the tourism sector,” said IHF president Elaina Fitzgerald Kane.

“Current and future bookings vanished in days. Revenues plummeted by up to 100 per cent across the sector with a catastrophic impact on cash flow. We are calling again on the government to reduce the rates of tourism VAT and employer’s PRSI to zero until we see a recovery. In addition to our call for local authority rates to be waived, we are seeking direct business supports, including finance and marketing assistance. Let’s not repeat the mistakes of the financial crisis; too many jobs depend on the right decisions being made at the right time now,” he said.