Extension of tourism Vat rate welcomed by Cavan hoteliers

Cavan hoteliers have welcomed the Government’s decision to extend the nine per cent tourism VAT rate and reform the energy support scheme for businesses.

The decision ends months of speculation that the government would follow through with their plans to return the VAT rate for the sector to 13.5%.

Tony Walker, spokesperson for the Mourne/Boyne/Lakes Irish Hotels Federation (IHF) Branch, said the measures give tourism businesses greater certainty as they grapple with the impact of the cost-of-living crisis on Irish consumers and key overseas markets.

Mr Walker, who is also the manager of the Slieve Russell Hotel, said it was “clear recognition" by the Government of the challenges facing tourism and hospitality.

“It will go a long way in helping to sustain the recovery of our industry at a time when businesses and consumers are facing significant economic and financial headwinds.”

“A vibrant tourism industry is one of the most effective ways to spread employment opportunities and prosperity throughout the entire country. That is why the decision to extend the nine per cent VAT rate is so critical for communities and regions that rely on tourism as a major employer and driver of economic activity.”

Mr Walker noted that most European countries apply a reduced VAT rate to tourism accommodation: “When you look at the tourism VAT rates among our key European competitors, it is clear that the nine per cent rate is the right rate for Ireland. At nine per cent Ireland is in line with our European neighbours, in particular those countries where tourism plays a key role in their economy.”

Mr Walker also welcomed changes to the TBESS energy support scheme designed to provide greater assistance to businesses experiencing exceptional increases in energy costs.