Hotels warn of outlook amid slow recovery of occupancy

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Hotel room occupancy rates over the first ten months of the year remain down on the same period in the year before the Covid-19 pandemic struck, despite the recovery in tourism this year.

Average occupancy rates between January and October stood at 71% nationally and 75% in Dublin, a new survey of Irish Hotels Federation members has found."We are now heading into very turbulent times economically with growing uncertainty in our overseas markets," said Denyse Campbell, president of the Irish Hotel Federation."Energy costs are a particular worry and are now running at 10-12% of total revenue for the average hotel, up from just 4% of revenue in 2019.

We need your consent to load this rte-player contentWe use rte-player to manage extra content that can set cookies on your device and collect data about your activity. Please review their details and accept them to load the content.Manage Preferences As a result, hotels think the Government should not increase the VAT rate for hospitality to 13.5% from the current reduced rate of 9% at the end of February, as is planned.

 

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