Tourism industry hails retention of 9% VAT

THE TOURISM industry has welcomed the retention of the lower 9 per cent VAT rate across the sector until the end of next year.

The VAT rate on services sectors such as hotels, restaurants, leisure centres and attractions was reduced from 13.5 per cent last year as a “temporary measure” to boost demand. Minister for Tourism Leo Varadkar yesterday confirmed the lower rate would continue until the end of 2013 at least.

Adrian Cummins, chief executive of the Restaurants Association of Ireland, said the next 18 months would be crucial for the sector.

The Irish Hotels Federation said the news meant hotel managers could now plan properly for next year. Its president, Michael Vaughan, said the rate cut had already provided a huge boost to the sector.

“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 9 per cent 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.”

Niall Gibbons, chief executive of Tourism Ireland said that in recent years, "perceptions of the value available here among overseas consumers have improved and we know that a recent survey by hotels.comshowed that Dublin hotels are now the least expensive in Europe.

“Tourism Ireland is placing significant emphasis on value, to drive home to potential holidaymakers everywhere our message about the superb range of offers and value available in Ireland.”