Hospitality VAT and bunk bed prices
Deputy Doherty condemned excessive Dublin accommodation prices for sports fans while backing the reduced hospitality VAT rate. The Minister pressed him repeatedly to clarify Sinn Féin’s position, defended the VAT cut as pandemic support, and argued Government would challenge poor-value pricing in the sector.
Next Saturday, supporters will be travelling to Dublin from Derry, Clare and Cork to watch their county teams play in the all-Ireland quarter finals. They will be faced with rip-off prices in the city next weekend. Hotels are charging more than €400 per night and hostels are charging eye-watering rates for bunk beds. One hostel is charging €167 for the pleasure of sleeping in a bunk bed with nine other strangers in a dormitory. That is absolutely crazy. It is what is happening in this city in 2022.
Last month, the Minister extended the reduced VAT rate to the hospitality sector until next March. We know this comes with a price tag for this year and next of €500 million. Two weeks ago, I stood here and asked the Minister, who introduced this tax rate, to engage with the industry to ensure it is passing on that saving to customers. Has he done that? More importantly, what is the Government going to do to tackle the rip-off prices people are being charged?
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He needs to be clear on what his view is in this regard. Is he against the extension of the 9% rate for hospitality?
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This is a sector that went through such a difficult period over the past three years-----
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I agree with the extension. What I disagree with is hostels charging €167 for a bunk bed with nine others.
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We have put in place a measure to give the sector the opportunity to recover from the awful effects of the pandemic.
Of course I remember the issue that Deputy Doherty raised with me, but this is why the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, who is directly responsible for dealing with our tourism sector and its future development, and her officials have been engaging with representatives of the hospitality sector to make clear to them the price they will pay in future for putting in place prices that do not deliver good value and that discourage domestic and international tourism here. The greatest losers from unaffordable pricing in this regard, if it takes hold in Irish tourism-----
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-----will be those involved in Irish tourism.
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Regarding the 9% rate of VAT-----
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-----I am ever more confused about where Sinn Féin stands on it. It is a measure put in place to support a really important employer in parts of our economy.