Irish Hotels Federation calls for higher pricing, more investment

Ireland is reportedly the 14th most expensive city in Europe in terms of hotel prices, but is the second most occupied city. As a result, Stephen McNally, president of the Irish Hotels Federation, said rates need to rise in order to attract new investment to increase the number of available rooms.

Minister for Tourism Paschal Donohoe has cautioned the tourist industry that the lower 9-percent rate of VAT for tourism-related services will only be retained as long as it is evidently helping to retain jobs in the sector and feeding through to prices for consumers.

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Speaking on RTÉ's Morning Ireland, McNally said costs for the initiative were initially estimated at €300 million, but have actually worked out at €50m due to the increase in revenue it has generated.

McNally added that a balance is needed between keeping attractive prices for consumers, while also attracting much needed investment.

He said that while Dublin is the 14th most expensive city in Europe in terms of hotel prices, but is the second most occupied city.

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