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The British government seems content to let the north’s hospitality trade go to the wall

43 0
11.04.2026

THE Easter holidays seem to have brought it home to the north’s hospitality trade that they face serious difficulties competing with their counterparts across the border. It’s the different VAT rates that do it.

At present VAT on food, drink, hotel rooms etc is 20%. In the south it’s 13.5%, but in the summer will drop to 9% for food.

To say that gives the hospitality business in the south a competitive advantage is a gross understatement.

Traders have been complaining in the past week about the fact they just can’t compete.

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Derry, as usual, is one of the worst hit. As one business woman said, tour buses come in from Donegal, a tour guide walks people round the city’s walls, they have a look at the Guildhall, then climb back on the bus and return to Donegal for lunch or dinner and stay in a hotel there.

What’s the point in Caoimhe Archibald, the Economy Minister, pressing Fáilte Ireland to let Tourism NI link up with the money-spinning Wild Atlantic Way if no visitors to the Causeway Coast are going to spend any money there?

The same goes for a €2.7 million investment under the Shared Island Brand Collaboration Project she announced in February with the Republic’s Tourism Minister.

The north's hospitality trade has been left at a competitive........

© The Irish News