Cost creep in the tourism sector is totally unacceptable – Coghlan

Speaking in the Seanad, Government Chief Whip and Senator for Kerry, Paul Coghlan, said that cost creep and price gouging in the tourism sector is totally unacceptable and should not be tolerated.

“Tourism numbers reached record levels in 2015 with Ireland experiencing its best year and we are on target for growth of 6% in 2016. Almost 8 million visitors came to Ireland in 2015 and they spent more than €4 billion, a huge sum.

“A key factor in attracting all of these visitors has been the value for money offering available in Ireland. We cannot let this slip.

“There is a danger looming on the horizon, namely, price gouging. The Chairman of Fáilte Ireland, Michael Cawley, recently raised the issue that Dublin prices, in particular, present a danger and are creeping upwards.

“This is an issue which we must watch closely. Fáilte Ireland has been very successful with its promotion of the Wild Atlantic Way, Ireland’s Ancient East, conference business, activity holidays and much more. A lot of money is being invested in further promotion, but it is essential that tourists can avail of good value for money during their time in Ireland.

“This Government abolished the travel tax and introduced the 9% VAT rate for the hospitality area. These measures provided a major boost to the industry during the recession and have been maintained on the proviso that the value of the reduced VAT rate is passed onto the customer.

“The strength of the dollar and the pound have also benefited tourism in the past number of months. However, as outlined by the Minister for Finance, Michael Noonan in his budget speech, if prices continue to rise unacceptably, particularly in our capital city, the Government will have to review the 9% VAT rate, which would be unfortunate for tourism.

“Fine Gael has a long term plan for the tourism sector, a sector which supports 200,000 jobs in Ireland. In order for the sector to continue to grow it is vital that tourists are offered value for money in conjunction with the excellent amenities we have on offer.”