Recovery in local tourism supported by 9 tourism vat rate

Cavan hoteliers has credited low tourism VAT as a key factor in the boost of over 10% in visitors to Ireland.

The latest figures from the Central Statistics Office revealed an 11.7% increase in trips to the country by overseas visitors during the first six months of the year. 

Tony Walker, chair of the Cavan Branch of the Irish Hotels Federation states that the county is benefiting from an increase in overseas visitors, though to a lesser extent than seen across the rest of the country. He notes that while overseas tourism is very important to the region, the local economy remains heavily reliant on home-grown business – which still accounts for over 80% of revenues for many hotels and guesthouses in Cavan. 

“We’re seeing increases in visitor numbers from Britain, North America and continental Europe which is providing a boost to local hoteliers,” says Mr Walker. “The domestic market is also beginning to recover as more people holiday and take short breaks at home. This is a very welcome development for the many local tourism businesses in Cavan that rely on the home market to remain viable.” 

Mr Walker states that the upturn in tourism is being underpinned by a number of important measures from the Government. He says that the 9% tourism VAT rate in particular is of critical importance in terms of growing domestic tourism and attracting more overseas visitors. The measure is enabling revenues to be reinvested within the sector, thereby supporting additional jobs growth locally.

Mr Walker cautions, however, that growth in hotel revenues in Cavan is from a low revenue base following the downturn. He says that many hotels and guesthouses continue to face challenging conditions and are still a number of years away from achieving sustainability. In particular, Mr Walker points to the high cost of doing business in Ireland as a significant challenge, including excessive local authority rates which stifle cost competitiveness within the sector.