Hoteliers welcome 9% VAT retention

HOTELIERS in Kerry have welcomed the Government’s decision to maintain the special nine per cent VAT rate for the tourism and hospitality sector.

Chair of the Kerry Branch of the Irish Hotel Federation Patrick O’Donoghue praised Finance Minister Paschal Donohue for his decision to keep the special rate for at least another year.

Mr O’Donoghue said the rate has been instrumental in the recovery of the tourism industry, which has created approximately 60,000 new jobs since the measure was introduced in 2011.

“Tourism is an indigenous export industry which not only supports approximately 230,000 jobs - equivalent to 11 per cent of total employment in Ireland it also plays a vital role in addressing the regional imbalance in our economy,” said Mr O’Donoghue.

“The nine per cent VAT rate has been the single most important fiscal initiative for Irish tourism in the last decade and we are pleased the Government has retained the measure,” he said.

“It demonstrates that it has been highly effective in job creation and also acknowledges that we have a pro-tourism Government who see the value the industry brings to every part of our country. The decision is a critical vote of confidence in the tourism industry at a time when it faces significant risks, most notably from Brexit,” he said.

“Tourism makes an important contribution to the economy of every county and town in Ireland. While the industry has returned to growth, with Brexit looming, a weaker sterling and a continued slowdown in tourism growth, there is no room for complacency,” said Mr O’Donoghue.

He also praised Kerry TD and Tourism Minister Brendan Griffin for his role in helping ensure the rate was maintained.