THE hospitality industry in Fermanagh fears that the “unique circumstances” of its make-up on the border could have a detrimental impact on its future.
It was recently confirmed that Value Added Tax (VAT) in the Republic of Ireland will be at 13-per-cent for the coming year, with the same charge in the North at a much higher rate of 20-per-cent.
Businesses, especially on the border of Fermanagh, fear that the VAT hike could be devastating, as many firms battle against the rising prices and ongoing cost-of-living crisis.
Fermanagh and South Tyrone MLA, Jemma Dolan, met with representatives from Hospitality Ulster at Stormont, where she called for some consistency in taxes across the border.
Led by chairman Michael Cadden, Hospitality Ulster is calling on the governments to agree on a suitable rate of VAT which could be rolled locally.
“I want to commend Hospitality Ulster and industry representatives for the vital work they are doing to highlight the challenges facing the sector,” explained Ms Dolan.
“Hospitality is one of the North’s largest employers, playing a crucial role in our local economy and communities.
“This is particularly true in Fermanagh, where tourism and hospitality are at the heart of our economy.
“From our lakes and waterways to our hotels, guesthouses and local businesses, the industry sustains jobs and creates opportunities for families and communities right across the county,” she added.
Mr Cadden, who is the chairman of Hospitality Ulster, owns and runs on a hotel on the Fermanagh border.
“The competitive disadvantage is increasing. We are marketed as one island for tourism, but then having to compete on a different base price,” Mr Cadden explained.
“We are asking for a reduced rate of VAT, whether that is parity with the Republic of Ireland, or the reduced rate we had during Covid of five-per-cent.”