The Irish hotels sector has called for reform of taxation and improved marketing spend to boost the tourism industry, especially outside of Dublin.
The Irish Hotels Federation (IHF) says Government can do its bit to end "the perception that Ireland is a 'Rip-off Republic'" by addressing issues relating to VAT and local authority charges in the forthcoming budget.
In its pre-budget submission, the industry lobby has also called for an additional €15 million in Government spending on marketing initiatives.
"The tourism industry is now at a crossroads in its development," the IHF says, warning that there will be "severe consequences" for the industry's success in the future if its proposals are not implemented.
IHF chief executive John Power says tourism employs almost 150,000 people, making it one of the State's largest industries.
Its main concern is the 13.5 per cent VAT rate - the sixth highest in Europe - which it says puts it at a competitive disadvantage.
"Ireland's tourism industry is further disadvantaged as it does not allow businesses registered for VAT reclaim the VAT paid on hotel and restaurant expenditure," says Mr Power. He says this situation "prevents Ireland from attracting a reasonable proportion of the €40 billion global conference, corporate meeting and incentive travel business".
The IHF is calling on the Government to allow such business reclaims on VAT. It also wants a "more equitable" system of local authority charges.
