27.08.2013

HOTELIERS REJECT ATTEMPTS TO INCREASE TV LICENCE CHARGES

 

·       Increase in TV licence for hotels would be an indirect form of tourism taxation for guests

·       Imposing additional costs on over-burdened sector would further erode competitiveness

 

27th August 2013: The Irish Hotels Federation (IHF) today rejected any attempt by the Government to impose additional charges on the hotels sector at a time when the cost of doing business in Ireland is a major issue for hotels and guesthouses.  In response to the Government’s consultation on the introduction of a Public Service Broadcasting (PSB) charge, Tim Fenn, Chief Executive of the IHF states that an increase in the TV licence fee paid by hoteliers would be a further cost on an already over-burdened sector.

 

“Hotels and guesthouses are already operating in a high-cost, low-margin environment.” states Mr Fenn. “The imposition of an additional charge for customers to view a television in their hotel room would raise operating costs at a time when hotels are struggling to break even.”

 

“In effect, this would be an indirect form of tourism taxation for hotel guests – almost 70 per cent of whom are Irish residents and would have already paid a TV licence. Indeed, overseas guests contribute to licensing systems in their country of residence.”

 

“Irish tourism has experienced a severe economic shock in the last five years and this has been exacerbated by the stubbornly high cost of doing business in Ireland which is a major issue for hotels,” says Mr Fenn. “In order to survive, hotels have had to reduce prices and implement severe cost cutting measures. Any additional costs would put further pressure on businesses.”

 

 

-ENDS-

 

FOR INFORMATION:

Eoin Quinn                                                       Dublin office: 01 6760168

Weber Shandwick                                           Mobile: 087 233 2191 / 086 817 5066

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