I’m not in to sector bashing but I do feel there are a few bad eggs out there that engage in the highest level of price gouging in the hospitality sector and this is why I don’t think the sector deserves just a straightforward cut to 9%… It should come with so reassurances, guarantees, hell even some legislation.

To balance increased income from duties and levies while reducing VAT for the hospitality sector, and supporting low-income families, the elderly, and home carers, we can adopt a multifaceted approach:

1. Reduce VAT in Hospitality

VAT Reduction:

Cut the VAT rate for hospitality (currently at 13.5%) back to 9% to stimulate growth and tourism. This can help restaurants, hotels, and related services recover post-pandemic, cost of living & inflation crisis’ and incentivize more consumer spending in these sectors.

Price Control and Monitoring:

Implement strict regulations & legislation to prevent price gouging during high-demand periods like concerts, festivals, or holiday seasons. Monitoring would be carried out by local authorities and any price increases beyond reasonable thresholds should be heavily fined.

Establish a real-time reporting platform for consumers to report excessive pricing, which would encourage self-regulation in the Sector. (A tourist levy would help in funding this)

2. Increase Revenue from Levies and Duties

Luxury Goods Levy:

Raise levies on luxury goods such as high-end alcohol, premium imports, and non-essential items like luxury vehicles or designer products. This will target high-income earners without affecting everyday consumers.

Tourist and Event Levies:

Introduce small levies possibly 2% of ticket value (preventing price gouging) on tickets for major events* and festivals, especially those that attract large numbers of international tourists. The revenue generated can be funneled back into local infrastructure and hospitality development & development and upkeep of the real-time reporting platform.

Environmental Levies:

Increase levies on plastic packaging, single-use plastics, and other non-recyclable goods at events & tourist attractions to both raise funds and drive environmentally conscious behavior.

3. Fines and Enforcement for Price Gouging

Legislation:

Introduce specific legislation to make price gouging during peak demand periods a punishable offense, with tiered fines based on the scale of the offense.

Transparency and Public Awareness:

Require businesses to disclose price structures during key events, making it easier for consumers to identify sudden unjustified increases.

Build a public awareness campaign to encourage reporting of these practices.

4. Revenue Redistribution

Windfall Taxes:

Continue using windfall corporate taxes (such as from the tech and pharmaceutical industries) to support public services and infrastructure while implementing levies that don’t disproportionately affect lower-income groups.

Reinvestment:

Reallocate funds from duties and levies on luxury goods and events to programs benefiting low-income families (such as a bianually/quarterly night out voucher…) . This ensures the hospitality sector grows, while protecting low-income families from the cost-of-living squeeze.

I think this approach would promote responsible economic growth while generating more revenue and safeguarding the hospitality industry’s recovery.

(* let’s take the Coldplay in Croke Park as an example – the average pice of a ticket was approx €120, 2% would add €2.40per ticket. 80,000 per night X 3 = €576,000 to be spent as set out)