Tuesday, 10^th May 2011

JOBS INITIATIVE WILL HELP REVITALISE TOURISM INDUSTRY, SAYS IHF

Hoteliers Welcome Specific Measures to Place Tourism as Driver of Growth

• Strongly welcome measures on VAT and PRSI
• Plans to abolish the €3 travel tax welcomed
• Welcomes common VISA treatment with UK

The Irish Hotels Federation (IHF), representing some 1,000 hotel and guesthouses with over 54,000 employees in the tourism sector, welcomed the broad range of initiatives announced today to assist revitalise the tourism sector. The IHF acknowledged the Government’s recognition that tourism could act as a significant driver of growth in the economy and states that today’s announcement is one of most comprehensive policy initiatives supporting the tourism industry in the last decade. 

VAT and Employer’s PRSI

Tim Fenn, Chief Executive strongly welcomed the introduction of a new 9% VAT rate for tourism-related goods and services including hotel accommodation which will improve cost competitiveness and help tourism businesses provide even better value to visitors. Mr Fenn also welcomed plans to reduce employers’ PRSI by 50% for lower paid workers, saying it will act as an important incentive toward employment retention and growth in troubled sectors of the economy.

Removal of €3 Travel Tax

Mr Fenn welcomed the Government’s plans to abolish the €3 travel tax. He stated that, combined with significant discounts on airport charges and the setting up a fund to market new routes, the move would form a sound basis for building a more coherent strategy for Irish tourism.

VISA Flexibility for Olympics

The IHF welcomed opportunities offered by having a simpler visa process for visitors entering the UK and wishing to visit Ireland. It hopes that marketing initiatives to persuade these visitors will be aligned with the new common visa treatment.  The IHF has long called for an initiative of this nature to attract overseas visitors from crucial emerging markets.  It is particularly significant that it will be in place to accommodate the thousands of visitors to the London Olympics next year.

Joint Labour Committees

The IHF welcomes the Government’s commitment to a substantial overhaul of the Joint Labour Committees (JLCs) system which is severely undermining the viability of Ireland’s tourism industry. Mr Fenn, states: “Hotels and guesthouses, many of which are operating at a loss, are being forced to pay a premium over and above the national minimum wage. We await further details of the nature of the radical reform being mooted and would hope that the reforms will assist hotels and guesthouses can compete effectively with other destinations.”

ENDS

FOR INFORMATION:

Siobhan Molloy/Eoin Quinn                         Tel: 01 6760168

Weber Shandwick                                       Mob: 086 817 50 66/087 233 2191