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reprinted from: 
Reduced capital allowance 'will halt new hotels'
Copyright 2002 The Irish Times The Irish Hotels Federation said the reduction in the Capital Allowance write-off for hotels from seven years to 25 years will virtually end the development of new hotels in the State. It stated it would also be a major disincentive for existing hotels to upgrade their properties. This would result in a deteriorating hotel product which in the long-term would do serious damage to the tourism industry. The group also expressed disappointment at the increase in VAT from 12.5 to 13.5 per cent which, it said, would further erode Ireland's competitiveness. The increase placed Ireland with the second highest VAT rate in the euro zone. However, the group welcomed the additional €209
million allocated towards the national roads infrastructure and the extra
€5 million to further tourism marketing activities
in the recent estimates. |