Hospitality Vat rate: Minister slams hotels for hiking prices for big concert and sporting events 

Senior coalition sources have said there is a 'strong commitment' to reduce the Vat rate for the hospitality sector to 9%, with the main focus set to be for cafes and restaurants.

The Government may split the Vat rate for hospitality and accommodation amid further criticism of hotels for hiking prices for big match and concert dates. 

Senior coalition sources have said there is a “strong commitment” to reduce the Vat rate for the hospitality sector to 9%, with the main focus set to be for cafes and restaurants.

But enterprise minister Peter Burke criticised hotels, particularly in Dublin, for increasing their prices when major events were taking place in the capital.

Mr Burke said inflated prices for hotel rooms due to specific concerts or games sent out a “bad message for Irish tourism”.

“I would absolutely call them out on that. It’s not something that is acceptable,” Mr Burke said.

He said the Government would be taking inflated hotel pricing into account as part of the budgetary process.

The introduction of a 9% Vat rate is still on the cards for the upcoming budget, he said, describing it as a “key tool” to support independent cafes and restaurants.

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He said a reduction in Vat would be “front and centre” of the Government’s new tourism strategy, due to be published next month.

However, the enterprise minister would not be drawn on whether or not the Government would split the rate, saying it was a matter for budget negotiations.