Hoteliers call for abolition of travel tax
The Irish Hotels Federation (IHF) today called on Finance Minister Brian Lenihan to abolish the €10 departure tax in order to reverse the disastrous decline in visitor numbers to Ireland.
The IHF made the call as part of its pre-budget submission, which urged Minister Lenihan to improve the trading environment in Irish tourism by promoting cost competitiveness, maintaining current levels of tourism marketing activity and addressing the capacity and credit problems facing hotel and guesthouse owners.
The IHF said priorities for the tourism industry must be to survive the downturn and thereafter begin to increase market share in both domestic and international tourism.
"In the absence of supportive policy measures, the hotel and guesthouse sector will not be in a position to actively participate in an ambitious medium term economic growth strategy which is clearly needed," said IHF CEO Tim Fenn.
“As an island destination the range, cost and quality of access is absolutely critical to tourism and its export earning potential," Mr Fenn added.
"It is now clear that the departure tax is doing more harm than good, with the exchequer forgoing substantial revenue including lost VAT and employment tax.”
The IHF also called for an increase in the current level of activity funded by Fáilte Ireland and Tourism Ireland; a four-year freeze on all public sector charges at the 2009 level; the introduction of a scheme to waive 30% of local authority rates on hotels and guesthouses; and to ensure the urgent availability of appropriately priced credit to the hotels sector.
"Budget 2011 provides Minster Lenihan with an opportunity to address the needs of tourism businesses which continue to struggle through a perilous trading environment," Mr Fenn said.
“Given the unprecedented collapse in visitor numbers, we’re calling on the Government to ensure that levels of marketing activity by tourism bodies are increased in real terms. This must include targeted support for marketing drives to reverse the collapse in the arrival numbers from Britain and attract corporate conference business to maximise the benefits of the Convention Centre Dublin.”
