Hotel Federation demand ‘level playing field’

The Irish Hotels Federation (IHF) has welcomed the provisions in Budget 2005 for the increase in capital investment in transport and in personal tax credits.

The Federation also praised the increased investment in national roads and transport, facilitating greater access to all regions.

It was disappointed however that an anomaly in the treatment of VAT on business expenditure in hotels and restaurants was not addressed.

“Today is a lost opportunity,” said IHF President Richard Bourke. “Ireland can not expect to gain a share of the €40 billion global conference and incentive travel business with such an anti-business VAT regime”.

Bourke pointed to Visit Britain, the UK’s Tourist Authority, as an example of how a country is successfully using VAT reclaim as part of its marketing strategy to target the business tourism market.

“Ireland can never come close to attaining its potential for business tourism unless it addresses this major anomaly in the VAT system” he said.

The Federation has now called on the Minister to rectify this issue in the upcoming Finance Bill.

“Despite our best efforts to remain competitive, in the face of spiraling overheads and costs, we are reliant on the Government to play provide a level playing pitch that will enable us to compete with our European counterparts” said Mr Bourke.