The subsistence allowance scheme is too complicated, says hotelier



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A Co Clare hotelier has said the government’s “home vacation allowance” system is too complicated and called for a “simpler and clearer” plan.

Donal Minihan of the Doolin Hotel said there were “too many obstacles” for people to jump in to benefit from the tax refund.

The stay-at-home allowance will allow those on holiday in Ireland to claim a portion of their hotel or restaurant bills.

The incentive is designed to boost the national tourism industry and was announced as part of the government’s stimulus package in July.

It will operate between October 2020 and April 2021.

Under the program, consumers will be able to claim a tax refund of up to € 125 when they spend around € 600 on accommodation, food or non-alcoholic beverages.

Mr Minihan told RTÉ radio Morning that the plan does not have an immediate impact on people’s pockets, which is a disadvantage compared to a plan in the UK and Northern Ireland that offered a discount of ten pounds in meals.

“The simplest plans are the most effective,” he said.

Mr. Minihan added that low-income people and pensioners are not eligible for the stay plan due to their tax situation.

The summer season was better than expected, he said, but business was still down 50%, he said.

Without international visitors and very few weddings, there won’t be much business for the rest of the year, Minihan said.

Bookings are down 80-90%, and it looks like hotels may have to close midweek, “to survive until next spring,” he said.

Minihan hopes to resume business over the weekend “because people have nowhere to go, there will be no ski trips.”

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