VAT reduction delivers boost for Galway tourism

Galway businesses – particularly those in the catering and tourism sector – are reaping the benefits of the Government’s decision to cut the VAT rate from 13.5% to 9%.

That’s according to Galway Chamber of Commerce chief executive Michael Coyle who has also flatly rejected claims by his counterpart in the Consumers Association of Ireland, Michael Kilcoyne, that only and handful of hotels and restaurants across the city and county are passing on the cuts.

Mr Kilcoyne even suggested that the VAT rate should be restored to its previous level because it was making little or no difference to people’s pockets.

But Galway Chamber of Commerce chief executive Michael Coyle insists that they have had no adverse reaction from consumers or complaints that businesses in the city or county were charging “extortionist prices” – and he pointed to the fact that the county had bucked the trend when it came to tourism numbers this summer.

Mr Kilcoyne claimed however that he did a spot check on some hotels and restaurants in County Galway over the past couple of weeks and found that only a few had reduced their prices in accordance with the four and a half per cent VAT reduction.

He also found that other services, hairdressers in particular, had not passed on the reduction to their customers either.

Mr Kilcoyne said that she he asked some of the hotel owners and restaurant proprietors about why their prices had not reduced, they responded by saying that their overheads had increased.

But this has been rejected by Mr Coyle, who said there were no complaints from consumers in relation to prices – and pointed to the fact that some restaurants in the city were doing knock-down lunch prices and ‘early bird’ menus during the recent Race Week.

See full story in this week's Connacht Tribune.