IHF welcome 9 per cent tourism VAT retention in Budget 2018
BRIAN McNamara, the Chair of the Wicklow Branch of the Irish Hotels Federation (IHF), has welcomed the retention of the 9 per cent tourism VAT rate in the Budget.
The 9 per cent VAT rate for tourism-related activities such as restaurants, hotels and cinemas was introduced to encourage growth and employment in the sector.
Mr McNamara feels that the rate has been instrumental in the recovery of the tourism industry, with 60,000 new jobs created since the measure was first introduced in 2011.
He said: ‘ 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. The 9 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.
‘It demonstrates that it has been highly effec- tive 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.’
Mr McNamara, who is General Manager of the Glenview Hotel, believes that tourism plays a vital role in the Irish economy, providing over 230,000 jobs and set to create a further 40,000 new jobs by 2021.
‘Direct actions by the government including the 9 per cent VAT rate and the zero rate travel tax have helped level the playing field for tourism businesses to compete for visitors with other European destinations and are vital in underpinning and sustaining that growth. 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 and a continued slowdown in tourism growth, there is no room for complacency.’