Overseas tourism will drop by 25 per cent next year, according to a new report.

The Irish Hotels Federation says there are huge challenges for hotels and guesthouses in the new year.

It's calling on the government not to increase the VAT rate in the tourism sector, with 94 per cent of hoteliers concerned about the economic outlook.

President of the federation, Denyse Campbell, says if the VAT rate goes up, it will put Ireland in the top three highest rates in Europe..

 

 

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