Increase in Overseas Visitors Welcomed by Hotels Sector


  • 9% VAT rate must be retained to support domestic tourism
  • Hotels sector extremely sensitive to consumer demand at home
  • Domestic tourism accounts for 70% of hotel sector revenues


The Irish Hotels Federation (IHF) states that, despite an increase of 8.1% in overseas visitors in the last quarter, many hotels in rural areas continue to suffer from struggling domestic demand. While welcoming the increase in overseas visitors, Michael Vaughan, President of the IHF, states that the sharp contraction in consumer spending so far in 2013 is putting renewed pressure on hotels outside the main urban areas.


“Irish tourism is very dependent on the domestic market with holidaymakers from the island of Ireland making up 70 per cent of overall business in the hotels sector. This is even more pronounced in rural areas, where business from the domestic economy can account for up to 85% of bednights – making the sector extremely sensitive to consumer demand at home.”


“The Government’s decision to reduce tourism VAT to 9% has provided a vital stimulus for hotels and guesthouses and acted as a key competitive advantage when marketing Ireland as a tourism destination abroad,” says Mr Vaughan. “It’s now of the utmost importance that the Government provides greater certainty around the retention of the tourism VAT rate into 2014 to support struggling domestic demand, which is by far the largest source of revenue for many rural hotels.”  






Eoin Quinn / Siobhan Molloy                  

Weber Shandwick                                          

Dublin office: 01 6760168

Mobile: 087 233 2191 / 086 817 5066

« Back