Tourist bodies welcome retention of 'job-friendly' VAT rate
Fáilte Ireland and the Restaurants Association of Ireland have said that the retention of the 9% VAT rate for the hospitality sector will help to maintain the sector's current level of employment growth.
The body said that up to 30,000 extra tourism jobs have been created since the measure was introduced in 2011, and has added to the perception overseas that Ireland is a destination which is good value for money.
Fáilte Ireland’s CEO, Shaun Quinn, said: "It has been demonstrated time and again in recent years that when the Government invests in tourism the country gets a healthy return, economically, socially and culturally.
"With regard to employment growth in the economy, tourism has shown, being a labour intensive industry, that it can generate jobs like no other – if the conditions are right. Today’s retention of the lower rate of VAT will ensure that those conditions remain job-friendly and will help to sustain the current levels of employment growth in the sector.”
The Restaurants Association of Ireland also praised the Government’s decision to retain the VAT rate, but has pointed out that some aspects of Budget 2015 will have a negative impact on the restaurant sector.
The association said that the lower rate of VAT has lead to 34,052 new jobs and savings to the Exchequer of €699.72m in the past three years.
Adrian Cummins, Chief Executive of the Restaurants Association of Ireland, said:"This is the correct decision by the Government; it keeps Irish tourism competitive, attracts overseas visitors and most importantly allows for the creation of a further 50,000 jobs in the tourism and hospitality sector in the upcoming years."
However, Mr Cummins felt the decision not to reverse excise on alcohol is a missed opportunity.
He claimed that the high cost of alcohol when dining out is one of the main reasons tourists will not return to Ireland.
He said: "In their move to not reverse Excise Duty, the Government have actively ignored the RAI’s motion to have the below-cost selling of alcohol in supermarkets and off licenses tackled."
Mr Cummins went on to say that the budget would bring a mixed response from the industry.
