VAT REDUCTION WELCOMED BY IRISH HOTELS FEDERATION

30^th June 2011

• Irish Hotels Federation fully behind passing VAT reduction on to customers 

• VAT initiative will provide a much needed boost to tourism industry

• Tourism could act as a significant driver of growth and job creation in the economy

The Irish Hotels Federation (IHF), representing some 1,000 hotel and guesthouses with over 54,000 employees in the tourism sector, welcomed the new 9% reduced VAT rate for tourism related goods and services including hotel accommodation which comes into force tomorrow. Tim Fenn, Chief Executive, IHF stated that the hotels sector is fully behind the initiative and that the IHF is calling on all its members to pass on the benefit of the reduction in full to customers.

Welcoming the Government’s recognition that tourism could act as a significant driver of growth and job creation in the economy, Mr Fenn stated that the VAT cut will improve cost competitiveness and help tourism businesses provide even better value to visitors: “It is very important that all businesses within the tourism sector pass on the reduction in VAT to customers and make it very transparent that they are doing so. We believe the initiative will provide a much needed boost in trade with knock on effects in terms of job creation within the tourism industry.”

ENDS

FOR INFORMATION:

Eoin Quinn / Siobhan Molloy                       Tel: 01 6760168

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