Sector representatives are advocating for a return to the reduced rate from the Covid-19 pandemic, stating the industry is struggling with the current 13.5 percent rate.

The Irish Tourism Industry Confederation, Restaurants Association of Ireland, Vintners Federation of Ireland, Irish Hotels Federation, and Licenced Vintners Association will meet TDs and Senators on Wednesday ahead of Budget 2025.

In a joint statement before the meeting, the groups said businesses are at a crossroads, “struggling with very tight margins and reduced profitability due to ever-increasing operating costs.”

“To a large extent, this is driven by the Government’s economic policies, including a series of employment-related cost increases. The impact of these measures is particularly severe for hospitality businesses given the labour-intensive nature of our industry.”

The groups noted that businesses are forecasting “worrying” cost increases over the coming year.

“Meanwhile, these businesses are grappling with last September’s VAT increase and significant pressures on consumer finances, all of which continue to reduce profitability and erode competitiveness.”

The statement added: “While the Government has repeatedly assured us that it understands the challenges facing hospitality businesses, this has not yet resulted in meaningful supports.

“It is now crucial that the Government does everything possible to stabilize our sector and the wider tourism industry.

“At a minimum, this must include reinstating the 9 percent VAT rate for food-related hospitality services.”