The Irish Hotels Federation (IHF) has called on the Government to impose a blanket 30 per cent reduction in local authority rates to stave off a crisis in the tourism sector.
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 relieving these charges was the only way to ensure a return to profitability and competitiveness for the sector.
John Power, IHF chief executive: “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 Government's 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 for 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.