Company Watch

Hospitality Vat rate should be around 10%, says Dalata chief

The chief executive of Ireland’s largest hotel group says the Vat rate for the hospitality sector is lower in many European countries

Dermot Crowley, CEO, Dalata Hotel Group: ‘We are very lowly geared at the moment. That gives us the opportunity to potentially buy a site and develop a hotel ourselves, like the Maldron on Kevin Street.’ Picture by Fergal Phillips

The Vat rate for tourism and hospitality should be kept at around nine or 10 per cent, according to the chief executive of Ireland’s largest hotel group.

Last month, the government decided to extend the lower rate of Vat in the sectors until September. The temporary reduction in Vat to 9 per cent from 13.5 per cent will cost an estimated €300 million, according to the government.

“Government has been hugely helpful to us as ...