Killarney

By Sean Moriarty
<h3>This week&rsquo;s budget is a &ldquo;big blow&rdquo; to the tourism industry according to Chair of the Kerry branch of the Irish Hotel Federation (IHF) Bernadette Randles.</h3>
While she welcomed certain aspects of the budget, like the &euro;90 million aviation package for Irish Airports she was left dismayed that the VAT rate in the hospitality sector, which is currently set at 9 percent will return to 13.5 percent at end of next August.
 Ahead of the budget, hospitality sector officials were calling for this move to be delayed until 2025.
 The tourism industry nationally, is trying to recover from a &euro;7 billion hammering caused by COVID-19 travel restrictions.
 Ms Randles acknowledges that the aviation package will help attract new visitors but said that if the overall package remains too expensive the net result will be fewer visitors.
 &ldquo;This is a big blow. We are in recovery and survival mode, we are already contracting for 2023 and if we have to turn around to these clients and say their rates have gone up again, well they just may go elsewhere,&rdquo; she told the Killarney Advertiser. &ldquo;We are trying to recover, we are not whining, we are being very practical about this. It is not just hotels, but the entire tourism industry.&rdquo;
 Additional cost increases facing the entire sector include fuel, coffee products and linen suppliers. Ms Randles confirmed that all of these industries have put up their prices in recent weeks.

Budget 2022 a “big blow” to tourism industry

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