Oireachtas Joint and Select Committees

Wednesday, 15 June 2022

Joint Committee on Tourism, Culture, Arts, Sport And Media

Rising Cost of Tourist Accommodation: Discussion

Photo of Christopher O'SullivanChristopher O'Sullivan (Cork South West, Fianna Fail) | Oireachtas source

I do not quite buy the supply issue and I will come to that in a moment. Our guests will understand why the members of this committee are so frustrated. We welcomed discussions with the IHF and its members earlier during the pandemic when we were calling for an extension of the employment wage subsidy scheme, EWSS, restart grants, Covid restrictions support scheme, CRSS, supports and a reduction of the VAT. We asked for that and all we are asking for is a gesture in return whereby some communication go to members of the IHF in the Dublin area, given that is where this is happening, that are charging extortionate prices to rein it in and stop it because not only are they are doing severe reputational damage to Ireland as a country but it is completely unfair on hotels in the regions.

I come from west Cork and I carried out a quick comparison on a hotel-booking website. In a region where there is between 80% and 90% occupancy, where people are still facing the same challenges of increasing prices, the prices were, for example, €130 in Schull, Baltimore or Bantry, all very popular tourist destinations. In Kinsale, the price is slightly higher, at €190, while in Clonakilty, it is €150. These were all the last available room prices, so the supply-and-demand issue does not explain the €500, €600 or €700 prices, and those businesses face the same costs. Can the witnesses at least accept there is reputational damage? I have not heard a comment from the IHF, in particular, on the reputational damage these prices being charged in Dublin are doing to Ireland as a country and to accommodation provides in those regions such as west Cork that are not charging extortionate prices.

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