Dáil Éireann Debate, Wednesday - 6 December 2017
229. Deputy John Lahart asked the Minister for Transport, Tourism and Sport his plans to stop price gouging in the tourism industry especially with regard to hotel rooms; and if he will make a statement on the matter. [52181/17]
Amharc ar fhreagraNeither my Department nor Fáilte Ireland has any function with regard to controlling pricing for the various products and services on offer within our tourism industry. With specific regard to hotels, however, it is a statutory requirement that every hotel in Ireland must register its maximum rates with the National Tourism Development Authority (Fáilte Ireland) and display them in the premises. Hotels must then operate within the maximum rates set and any customer who feels that they have been overcharged may make a complaint to Fáilte Ireland.
While I welcome the improved viability of the tourism sector, not least because it is a large employer and a significant contributor to the economy, hotels must ensure that this is done at an appropriate rate and in a sustainable way that visitors perceive as reasonable. If the industry does not continue to provide value for money, the growth it is now experiencing will be undermined. These are points Minister Ross and I constantly stress in our engagements with the industry.
Higher rates at times of high demand are a feature of competitive markets, including the accommodation market. In the specific case of Dublin, a shortage of available hotel bedrooms in the city has caused hotel room rates there to increase in recent years. I am informed by Fáilte Ireland that the most recent information available to it indicates that the rate of increase in hotel room pricing is slowing.
Given that the issue is fundamentally one of supply and demand, I welcome the results of Fáilte Ireland's assessments of hotel accommodation in Dublin, which indicate that there should be sufficient stock to meet projected demand after 2018, with approximately 5,500 bedrooms coming on stream by 2020. This should moderate price increases.
Furthermore, the Government has continued a range of supportive measures, such as the reduced VAT rate, aimed at enhancing Ireland's tourism competitiveness. With specific regard to factors within the Department's and Fáilte Ireland's remit, changes introduced in the revised Hotel Regulations introduced in August 2016 should also make investment more attractive by allowing hotel operators provide more rooms and operate at a lower cost base, thus improving hotel capacity, competitiveness and profitability. Consumers should also benefit from the resulting increased availability, competition and range of accommodation.
Finally I would like to assure the deputy that this is a matter I keep under constant review. I personally check hotel prices on a regular basis and while I will am concerned some room prices seem excessive it can be said that excellent value can still be found throughout the country.
