| 10.6°C Dublin

Troubled waters: Rising VAT eats into Parknasilla resort's revenues

Close

‘Cost of doing business rose across the board in 2019’

‘Cost of doing business rose across the board in 2019’

‘Cost of doing business rose across the board in 2019’

The 50pc VAT increase to 13.5pc on the hospitality industry last year contributed to revenues declining by 5pc at one of the best-known four-star hotels in the country, Parknasilla in Co Kerry.

That is according to the managing director of the hotel, Tony Daly, who said that the VAT increase "has had a negative impact on business".

Mr Daly said the hotel did not pass on the VAT hike to customers "and our revenues for 2019 have taken a 5pc decrease as a result".

He added: "Many smaller businesses such as restaurants have closed primarily due to this VAT hike that was ill-conceived by the Minister of Finance."

He continued: "The cost of doing business increased across the board in 2019, impacting on operational profit. UK business has decreased due to a weak sterling exchange rate."

Mr Daly was commenting on new accounts for Parknasilla which show that the hotel's Silork Ltd recorded an operating profit of €1m in 2018.

This followed revenues increasing by 6pc, to €8.5m from €8m.

Mr Daly said: "2018 was a bumper year for tourism throughout Ireland.

"Our revenues increased significantly during the full season. International business was consistent and domestic business grew, aided by a beautiful summer."

Silork recorded a pre-tax loss of €631,481 and Mr Daly said this was due to a €1.6m unrealised cost that does not impact on the operation.

Staff costs increased to €2.9m as numbers employed rose to 94 from 90.

Irish Independent