Hospitality warns of 'commercial crisis' if VAT rate is not decreased

In the absence of 9% VAT, the report warns that the sector will experience a significant decline with many more direct closures and job losses

A café located at the junction of the Castlerea and Roscommon road in Ballymoe village has announced its decision to close. Pic. iStock

Irish tourism and hospitality groups are urging the government to stave off what is being called a "growing commercial crisis" within the sector, citing a new economic report that lays bare the industry's "enormous challenges".

The report examining the downsizing of the industry by DCU economist Anthony Foley revealed that even when operating under the previous lower VAT rate, hospitality businesses within the wider tourism industry generated record levels of taxes for the exchequer.