Hoteliers report electricity prices rises of over 400%

The IHF has also signalled its concern over the forward occupancy rates being reported by hotels with many reporting rates of 23% in November and 18% in December.

Hoteliers are reporting electricity price increases of over 400% from 2019 according to a new survey by the Irish Hotels Federation (IHF).

The group stated that hoteliers are facing "unsustainable pressure" this winter due to soaring energy costs and large price increases in linen and food which on an annual basis have increased 29% and 22% respectively.

The IHF has also signalled its concern over the forward occupancy rates being reported by hotels with many reporting rates of 23% in November and 18% in December.

The industry group called on the Government to retain the 9% tourism Vat rate that was brought in to help the sector during the pandemic. The IHF stated that the retention of the lower Vat rate was "essential to safeguard the sector".

President of the IHF, Denyse Campbell said that the inclusion of Government support in Budget 2023 is "critical" in order to alleviate some of the financial shock currently being experienced across the country. She continued stating that increasing the Vat rate to its pre-pandemic level of 13.5% would "add to inflationary pressures".

"Many businesses are finding themselves under greater pressure now than during the darkest days of the COVID-19 pandemic," Ms Campbell said.

Earlier this week, Finance Minister Paschal Donohoe said the hospitality industry has to play its part in offering the best value for citizens and tourists after it emerged the Government is expected to increase the special 9% Vat rate in the budget.

Mr Donohoe is now adamant that the special Vat rate is reversed and is examining everything up to a full return to the 13.5% rate in the budget.