Hotels struggling in tourist slump

IRISH hotels are struggling to meet payments, operating at a third of capacity and still using winter overdrafts as the tourist slump continues.

Fine Gael spokeswoman on tourism, Olivia Mitchell, received the information during a meeting she had with a delegation of hoteliers from Cork and Kerry.

The figures show three quarters of hotels are using winter overdraft facilities in the peak season, while about half of hotels and guesthouses are experiencing difficulties in meeting VAT/PAYE payments on time. The data also shows 40% of hotels have not fully paid 2008 rates, with some urban hotels operating at a third of capacity and others in more remote areas in freefall.