Hoteliers call for 30% cut in rates

Hotelier today called for an immediate and countrywide cut of 30% in local authority rates saying the "exorbitant" charges were causing severe hardship for the industry.

Hundreds of hoteliers were attending an emergency meeting in the Grand Hotel in Malahide this evening to discuss what they say is the biggest crisis the industry has ever faced.

In a statement, the Irish Hotels Federation (IHF), said that in the current climate members were unable to pay local authority rates, and an emergency provision should be brought in to immediately reduce rates by 30% for hotels and guesthouses.

The IHF said the figure was based on the revaluation of all commercial premises in south Dublin, which resulted in a reduction of approximately 30% in the local authority rates liability of hotels and guesthouses in the area.

The body said this level of reduction should therefore be applied countrywide until such a revaluation process is carried out by all local authorities.

"Hotels and guesthouses are disproportionately subsidising the rates liability of other business premises to the tune of at least €30m each year," said IHF president Matthew Ryan.

"Hotels and guesthouses are being penalised by an antiquated taxation system of commercial rates that sees local authorities extract taxes relative to the size of premises without any recourse to the level of turnover or overheads of the business."