Irish threaten price-rise boycott

Hotels and restaurants in the Irish Republic are facing a Greek-style boycott in protest against rising prices since the introduction of the euro.

A "buy nothing" day, which would hit retailers as well as the service sector, may be ordered by the Irish Consumers' Association in response to public pressure. "Since the Greek action, we have been inundated with calls for a similar boycott," said association chairman Michael Kilcoyne.

"People are feeling increasingly powerless over price rises. They want some way of hitting back, of showing that they won't take it any more." The Greeks had made their point by cooking at home rather than eating out, and by boycotting hotels and shops. The protest, he claimed, resulted in a 70% drop in business.

According to the Irish Consumer Price Index, hotel and restaurant charges in the Republic have increased by 7.2% so far this year, 3% ahead of inflation. Kilcoyne has already accused the sector of "pure greed" and of scaring off tourists with sky-high prices.

However, hotels and restaurants feel they are being unfairly pilloried. The Irish Hotels Federation claims margins are under "enormous pressure" because of escalating wages and insurance costs. It also points out that at 12.5%, the Irish VAT rate is the second-highest in the euro area.

Source: Caterer & Hotelkeeper magazine, 19-25 September 2002