"The 9% VAT rate wasn't broken and didn't need to be fixed." That's according to Michael Hanly who is general manager of the Cavan Crystal Hotel.
Speaking to Northern Sound, Mr Hanly voiced his concerns in relation to the Government's decision to increase the VAT rate from 9% to 13.5% for restaurants, hotels and hairdressers.
The decision means that Ireland will now have the third highest hospitality VAT rate in Europe. According to the local hotel manager, hospitality venues across the country have worked tirelessly since the Covid pandemic to get the industry back up on its feet again.
Mr Hanly fears that many smaller businesses which he says are the backbone to local communities won't survive this latest increase. As a result, he has called on the Government to reverse this decision, particularly as the sector heads into the winter months.
"We struggled through Covid and we actually got the country back up on its feet in many ways, and that's true to every single business in the country," Mr Hanly explained. "Everyone put their shoulder to the wheel and the hospitality industry was no different. I think certainly we should be lobbying the Government to bring the VAT rate back down to 9%. It has worked, it wasn't broken and it didn't need fixing. At the end of the, this will only drive people out of the main street and back to drinking at home which just defeats the purpose of getting out and about."
