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16.11.2012

 

Friday, 16th November 2012

 

HOTELIERS WELCOME REPORT ON 9% VAT IMPACT

  • 9% VAT rate has been a very positive influence on tourism in terms of job creation and retention
  • Call to retain 9% rate in 2014 which would provide greater medium term certainty on pricing of hospitality products.

 

The Irish Hotels Federation (IHF) has welcomed the Department of Finance’s report into the impact of the nine per cent tourism VAT rate as part of the Medium-Term Fiscal Statement.  Michael Vaughan, President of the IHF broadly welcomed the report’s endeavours to analyse the Government’s pro-tourism policy and its confirmation that the reduced VAT rate has had a positive and meaningful role in the creation and retention of jobs in the industry.

 

He states that the hotels sector is fully behind the initiative and called on Minister Noonan to retain the proven positive contribution of the reduced rate into 2014, in the upcoming budget in December.

 

“Our research shows that nine out of ten (93%) hotels and guesthouses believe that the measure will continue to have a positive impact on business into 2013 with some 50% saying they are likely to take on additional staff over the next year as a direct result. This is aligned with the findings of this report today.  The introduction of the rate was a much needed economic and job stimulus and provided the industry with a vital boost. In addition, it has given us the much needed key competitive advantage when marketing Ireland as a tourism destination.”

 

“2013 is undoubtedly going to be another challenging year, the retention of the VAT rate beyond The Gathering, will help to avoid any further retraction of the sector, and allow tourism to continue to be an indigenous driving force of the economy,” he continued.  

 

The Irish Hotels Federation represents almost 900 hotels and guesthouses throughout the country, which in turn employ 54,000 people.

 

Click HERE to read the Medium Term Fiscal Report

 

ENDS

FOR INFORMATION:

Eoin Quinn/Siobhan Molloy                                         Tel: (01) 676 01 68

Weber Shandwick                                                           087 233 2191 or 086 817 5066

 

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