THE IRISH Hotels Federation (IHF) has called on the Government to impose a blanket 30 per cent reduction in local authority rates to help stave off a crisis in the tourism industry.

In its pre-budget submission, the IHF said hotels and guesthouses across the country were saddled with excessive public sector and local authority charges, and that reducing these charges was the only way to ensure a return to profitability and competitiveness for the sector.

Chief executive of the IHF, John Power, said: “Hotels and guesthouses are struggling to deal with excessive rates imposed by local authorities that have little regard to the disastrous conditions facing these businesses.

“So far, the Governments approach to tourism has shown inaction and an unwillingness to adapt policy to address the needs of tourism businesses which are struggling for survival.”

The Valuation Act provided for a revaluation of the rateable valuations of all commercial premises across the country when it came in to effect in April 2002.

However, just one revaluation appraisal, for South Dublin County Council, has been completed in the seven years since the inception of the Act.

According to the IHF, the Valuation Office reduced the rates liability of hotels in South Dublin County Council by an average of 30 per cent. This was in sharp contrast to the marked increase in annual rates on valuation imposed by two-thirds of county and city councils in 2009,

A Fáilte Ireland report showed that overseas tourist visits to Ireland decreased by 4 per cent to 7.4 million in 2008.

To reverse the fall-off in numbers, the IHF has also recommended abolishing the €10 air travel tax, extending the employment subsidy scheme to the tourism sector, removing the seven-year exit barrier for investors who provided capital for hotels under the capital allowances scheme, and extending the State’s over-66 free travel provisions to all EU citizens.

The IHF said that tourism is Irelands largest indigenous industry, employing over 200,000 people across the country and making a direct contribution of €6.3 billion to the Irish economy in 2008.