Wednesday, 6th December 2000

NATIONAL HOTEL BODY WELCOMES EXTRA £12.5M FOR TOURISM MARKETING

The Irish Hotels Federation (IHF) representing almost 1,000 hotels and guesthouses, stated that the measures announced by Minister Charlie McCreevey in today's budget would have positive impacts on Ireland's tourism. Specifically, the IHF welcomes the allocation of an additional £12.5m for tourism marketing purposes. The allocation of £5m to address the emerging challenges in the British market, and for further widening regional tourism spread and supporting marketing of smaller properties, is particularly welcome.

John Power, Chief Executive, IHF stated that it goes a long way to overcoming the reduction, due to the weakness in the euro in the purchasing power of promotional activities in Britain and the US. An additional £5m allocated to extend the overseas promotion of niche products like golf, cruising etc., is an acknowledgement of the unique potential Ireland has, to offer specific products to discerning overseas customers.

The IHF welcomes the Minister's offer to discuss with employer bodies the rules applying to the exemption from benefit in kind, where childcare facilities are provided by employers. The Federation as an employer of 60,000 people looks forward to discussing these details with the Department. It hopes that the results of this review, together with other measures including additional funding of FAS for childcare training, will lead to an increase in affordable childcare places being available. The net result of these schemes should lead to a greater participation by females in the paid workforce.

The IHF welcomes the continuation of the reduction in Corporation tax to 20% and in particular the increase to £200,000 of the threshold qualifying for the 12.5% rate.

"The Federation had called on Government over the last number of years to remove the Probate Tax and is delighted the Minister has removed this invidious tax on families, which affects them at a particularly difficult time when families are going through the grief of a bereavement," says John Power.

Finally, the IHF welcomes the reduction in personal income tax and VAT. These measures should contribute to a reduction in the impact of wage inflation, particularly in an industry where labour costs form such a high proportion of turnover.

FOR FURTHER INFORMATION:
John Power, IHF 087 255 44 198
Siobhan Molloy/Ciara Sweeney
FCC Shandwick Tel: (01) 676 01 68 or (086) 817 50 66