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Paschal Donohoe Accuses Hospitality Representatives Of Price Gouging.

Finance Minister, Mr Paschal Donohoe has demonstrated his displeasure at greedy hoteliers for price gouging their customers. 

Mr Donohoe met with representatives of the hospitality sector which included the Irish Hotels Federation; Irish Tourism Industry Confederation; Licensed Vintners Association; Vintners’ Federation of Ireland and the Restaurants Association of Ireland, for a requested pre-Budget meeting.

Tipperary Tourism

The above named representative organisations had gone into the meeting seeking to retain the lower existing 9% Vat rate; a reduction in excise duty on alcohol, and a targeted financial support package to help with the cost of energy increases.

Representatives were quickly reprimanded by Mr Donohoe; latter who informed them that the Government had provided strong supports for hotels in recent years. Same supports had gotten them through Covid-19 he stated, and he was therefore extremely disappointed that value for money for those looking to holiday in Ireland had not been forthcoming.

Finance Minister Donohoe made it known that that charging over €500 for a room with an American football game in the Capital, was not acceptable and politicians were now looking for the 9% Vat rate to be increased due to exorbitant accommodation prices. It is understood that there was a muted acceptance by some representatives that some hotels were indeed involved in price gouging.

In May 2022, Mr Donohoe had extended the special 9% Vat rate, latter introduced in November 2020, for a further six months, at an estimated revenue loss to the State of €250m: to assist businesses that had been severely impacted by harsh, but necessary, Covid restrictions.

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2 comments to Paschal Donohoe Accuses Hospitality Representatives Of Price Gouging.

  • Chris

    The last time this 9% VAT rate was applied, the hospitality industry in most of the tourist hotspots in Ireland were big users of the Jobbridge scheme. Should be retained only if these industries pay their employees a living wage. Thankfully few restaurants in Thurles availed of the Jobbridge scheme. Places in Dublin, Cork and Kerry did.

  • George Willoughby

    Chris, We understand that Skills Shortages were also one of the topics debated with Finance Minister Paschal Donohoe at this same meeting, obviously in the hope that the government would once again support a similar cheap labour pool. These same employers are failing even to train staff employed/working in their premises as I was forced to point out recently to a Thurles hotel manager.

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