Donal Minihan, general manager of the Doolin Hotel, said that there were “too many hoops” for people to jump through to avail of the tax rebate.
The staycation subsidy enables those who holiday in Ireland to reclaim a portion of their hotel or restaurant bills. The incentive is designed to give a boost to the domestic tourist industry and was announced as part of the Government's July stimulus package. It will operate between October 2020 and April 2021.
Under the scheme consumers will be able to claim a tax refund of up to €125 when they spend in the region of €600 on accommodation, food or non-alcoholic drinks.
Mr Minihan told RTÉ radio’s Morning Ireland that the scheme does not have an immediate impact on people’s pockets which is a disadvantage when compared with a scheme in Britain and Northern Ireland which offered a £10 (€11) discount on meals.
“The simplest plans are the most effective,” he said.
Mr Minihan added that people on low incomes and pensioners cannot avail of the staycation scheme because of their tax status.
The summer season was better than expected, he said, but business was still down 50 per cent, he said. With no international visitors and very few weddings there will not be much business for the rest of the year, said Mr Minihan.
Bookings are down 80-90 per cent, and it looks like hotels might have to close midweek, “to survive to next spring,” he said.
Mr Minihan hopes to pick up weekend business “because people have nowhere else to go, there will be no ski trips.”
