THE TRANSPORT MINISTER Leo Varadkar has announced that the 9 per cent VAT rate for the tourism industry will remain in place until the end of 2013.
Speaking in the Dáil today, Varadkar said the temporary rate was working well and would remain for services such as restaurant meals and hotel accommodation.
The rate has contributed to an increase in employment in the sector, lower prices, and would be good news for the year-long The Gathering Ireland 2013 festival – he said.
The move was welcomed warmly by groups within the sector.
Michael Vaughan, President of the Irish Hotels Federation said: ”Already, it has provided a vital boost to tourism, particularly around job creation. It provides much needed visibility and clarity which will enable international tour operators to plan their 2013 trips to Ireland with greater certainty on pricing
“The nine percent VAT rate gives tourism enterprises a key competitive advantage when marketing Ireland as a tourism destination, particularly in the run up to the Gathering in 2013 which is to be Ireland’s biggest ever tourism initiative,” he added.
The Restaurants Association of Ireland (RAI) also welcomed the decision, saying it would help the sector to grow at a time when visiting tourist numbers were increasing and the country is trying to create jobs. ”The next 18 months or so is an important time for our sector with The Gathering taking place throughout 2013 and also other important events to take place nationwide, including The Heineken Cup,” said Adrian Cummins, RAI Chief Executive.
“This is the perfect occasion for Ireland to showcase what it does best and that is welcoming visitors to our island and showing them a good time,” Cummins added.
Niall Gibbons, Tourism Ireland chief executive welcomed the move, saying that, in recent years, perceptions of the value available in Ireland among overseas consumers had improved and that Dublin hotels are now the least expensive in Europe.
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