Warning over hotel closures in North West if VAT rate increased in Budget

The Donegal Chair of the Irish Hotels Federation is warning that many hotels in the North West will not survive the winter if the Government increase the VAT rate for the sector in the Budget tomorrow.

Currently a 9% VAT rate applies to the tourism and hospitality sector however there's concern that it will revert to 13.5%.

It comes as hotels say their gas and electricity bills have trebled or quadrupled in recent months.

The price of linen, as well as food and drinks, have also increased significantly.

Donegal Chair of the IHF Paul Diver says the industry is under a huge strain as it is and the move would put even more pressure on hoteliers:

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