Mattie McGrath urges cuts to booking fees to save B&Bs
Mattie McGrath urged the stimulus package to target booking agency commissions and boost domestic tourism, arguing that 10–20% fees drain local accommodation revenue. He called for people to book directly with B&Bs, guesthouses and hotels and for incentives under consideration by Cabinet to encourage holidaying at home.
Booking agency fees and revenue leakage
McGrath said B&Bs, farms, country guesthouses, small and large hotels and even some Airbnb listings pay between 10% and 20% in commission to booking agencies, many of them based outside the country. He warned that these charges send revenue abroad and likened the effect to an added tax on accommodation.
Direct bookings and 'holiday at home' message
He urged the public to pick up the phone and book directly with local B&Bs and guesthouses to cut out middlemen and keep more money in local communities. McGrath argued that encouraging people to holiday at home would stimulate the domestic tourism industry and support hospitality businesses.
Government measures under discussion
The speaker referenced mechanisms and incentives that are under consideration by Cabinet and a Subcommittee as part of the broader stimulus package. He said those measures should be used to develop ways to get people to spend on B&Bs and take short stays in Ireland over the coming months.
Tourism sector impact and the role of savings
McGrath noted that tourists are not travelling in anything like the numbers of a year ago and described travel, tourism and hospitality as among the most severely hit sectors. He pointed to a build-up of savings that, if triggered into local spending, could help keep businesses going through a difficult period to Christmas.
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The stimulus package has been expected this week, and we know that you're tired of coming right from Brussels, but we need to look at this bigger picture about stimulus. They're simple measures, and one is that at every B&B, every farm and country guesthouse, every small hotel, and big hotels too, and even, you know, Airbnb, when they want to get booking to booking.com, whether it be, and there are numerous booking agencies, many of them are most of them based outside the country, they're paying a charge of between 10 and 20%, up to 20%. to be in charge to them. Hotels aren't getting to B&Bs aren't getting it, it's going out of the country. So look at that area, please. Straight away, it's equivalent to the 20% VAT, up to 20%, there's 13.5% VAT, and if we could stop these charges, ask the people to holiday at home, to stay at home, ask the people to book at home, pick up the phone, and ring the friendly B&B in guesthouse, there are many in my own parish and community in the county, and many all over the country, and ask them to book directly, and cut out the middlemen, cut out the racket of everything online, and charging too, and losing too much money. I think that point is very well made, in terms of stimulating the domestic tourism industry, and also encouraging, and through various mechanisms that are under consideration by Cabinet, Subcommittee and the Cabinet, developing incentives and mechanisms to get people to spend on B&Bs, you know, to take a weekend away in Ireland, over the next number of months, because as we know, the tourists are simply not travelling into Ireland, anywhere near the numbers that they did a year ago. And of all sectors of the economy, the travel, tourism, hospitality, is I think the most severest hit, and I think we do have to take measures, to encourage people to spend locally, to holiday locally, there's for example, there's a huge build up of savings now, in quite a lot of, you know, which, if we can trigger some of that into the economy, that might help to keep people going, over what will be a very difficult period to Christmas. Thank you, Debbie.
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