Oireachtas Joint and Select Committees

Wednesday, 17 December 2014

Joint Oireachtas Committee on Transport and Communications

Tourism Industry: Discussion

10:15 am

Photo of Terry BrennanTerry Brennan (Fine Gael)
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Again, my main point is on hotel prices. I stayed in Dublin 137 or 138 nights last year, I am not sure what it is this year. I interviewed someone who came here for the Web Summit and stayed on the same hotel floor as me. He paid 330% more than I did the previous week and the following week. I was put out of my hotel but I did what I thought was the right thing and moved. It cannot be justified and it is not good enough to tell me that it happens in New York, Amsterdam, Rome, London or wherever. I go to an event in the US every year in the state of Georgia, and one concern wanted to put up the price of petrol and diesel by $0.01 for that entire week. There was uproar in Georgia. The hotel prices were different alright, but the hotels federation cannot justify an increase in hotel rates of 300% and 400%. Both speakers mentioned greater cost competitiveness. I come from a town where four or five local pubs have closed down. Imagine if, say at Christmas time, the pub was to increase the price of a pint by 300% - the publican would not sell too many pints and would not be there for too long. We should lead the way, acknowledging the contribution that both concerns have made to economic growth in the country. I know there will always be a demand.

However, to increase the rate by 300% is - the word will not come to me - more than unjust. The drinks industry has stated the 80% increase in the price of alcohol is due to VAT, excise duty and other taxes. Will the Irish Hotel Federation justify how it is right and proper to increase the room rate by more than 100%? In fact, some hotels in Dublin increased their rate by 450%. I do not care what room type one compares, but on the basis of comparing like with like in the same hotel, the price had increased by 250%. Colleagues of mine stay in the same place. How can one justify this increase? Let me draw a comparison with the cost of energy. The greatest demand for energy is at Christmas and Easter time. If the price of energy were to increase by 5% for the next week, there would be uproar in the country. I recognise the contribution to tourism of the Irish Hotels Federation and the Drink Industry Group of Ireland. I am involved in the tourism industry, which is the reason I am in Leinster House, but I cannot justify these exorbitant costs. Perhaps either Mr. McNally or Mr. Finn might be able to justify them, but they will find it hard to convince me. I can understand the reason for the hotel suite or the largeen suite bedroom, but I stay in a basic room.