Deenihan blames Govt for cost of tourism in Ireland
Fine Gael spokesman on tourism, Jimmy Deenihan today accused Minister O'Donoghue of trying to shift the blame onto the Irish tourism industry for rising costs and a lack of competitiveness - when the blame lies squarely at the Government's feet.
"The Minister does not seem to comprehend that Government-sanctioned price increases in certain sectors are forcing price hikes in the tourism industry.
"Is it any wonder that Ireland is loosing out to places like Italy, Greece, France and Portugal when VAT on hotel accommodation there is between 5% and 10% compared while in Ireland it is 12.5%.
"The Government must take the opportunity in the Budget to rectify this unfair advantage by reducing the VAT rate.
"The Government, has allowed Ireland to loose tourists by its irresponsible attitude and actions over the last five years," added Deputy Deenihan.
