Hospitality groups warn of 'perfect storm' facing industry ahead of Government meetings

Challenging environment is being further compounded by the reinstated 13.5% VAT rate, the group said

The group, which comprises the Restaurants Association of Ireland (RAI), the Irish Tourism Industry Confederation (ITTC), Vintners Federation of Ireland (VFI), Irish Hotels Federation (IHF) and Licensed Vintners Association (LVA), said costs remain a "persistent challenge," with hospitality businesses throughout the country reporting an average increase of 16% in operating costs year to date. 

A consortium of tourism and hospitality groups have reiterated calls for a reinstatement of the 9% VAT rate for the sector ahead of its meeting with the Minister of Finance and Minister of Public Expenditure.

Business groups have warned the industry is facing a "perfect storm" as it grapples with an increasingly challenging operating environment due to rising costs, falling food sales and very tight margins. This is being further compounded by the reinstatement of the 13.5% VAT rate in September 2023, the consortium said.