A proposal by Sinn Féin spokesman for finance Pearse Doherty TD to abolish the 9 per cent VAT rate on hotel beds has been slated by Paul Diver, Chairman of the Donegal Branch of the Irish Hotels Federation.
Mr. Diver, who is the owner of the Sandhouse Hotel in Rossnowlagh, said that this move would lead to job losses and even hotel closures.
He said, “I would be the first to concede that there has been an improvement in tourism figures this year but much of this has been in the Dublin region and the traditional high density tourism centres like Kerry and Galway.
“The reduction of VAT has helped re-open hotels here in Donegal and has sustained jobs that would otherwise have been lost.
“This is an absolutely ridiculous suggestion and will only hinder growth in a sector that is so vital to Donegal.” he said