Big boost to tourism as 9% VAT rate retained and air travel tax scraped – Bannon

Fine Gael TD, for Longford Westmeath, James Bannon, has today (Tuesday) said that the retention of the 9% VAT rate for tourism services will be a great boost to the tourism sector in Longford/Westmeath. DEPUTY, Bannon, has also warmly welcomed the scrapping of the air travel tax, as part of Budget 2014. This will hope to bring more visitors into Longford Westmeath.

 

“I am delighted that Minister Noonan has decided to retain the lower VAT rate for tourism services, which has no doubt played a significant role in boosting visitor numbers to Longford Westmeath over the last two years. This Government has identified the tourism industry as a sector with considerable growth potential, and as a result, a number of measures have been introduced to encourage as many people as possible to holiday in Ireland.

 

“In tandem with the Gathering, the lower VAT rate has boosted the Shannon regions reputation as a high quality, yet affordable destination for visitors from across the globe. The Government’s approach has yet again been vindicated by the latest figures from the CSO, which show that trips to Ireland increased by 4.2% in the second quarter, compared with the same period the previous year. Tourism and travel earnings from overseas visitors are up 5.2%.

 

“There has been a particularly encouraging increase in visitors coming here from North America and from other long haul markets, including New Zealand and Australia. We are also attracting visitors from emerging markets like China at an increasing rate. The slashing of the air travel tax will no doubt help to open up more routes and make flights to and from Ireland more affordable.

 

“The boost in tourism figures is having a direct impact on job creation here in the midlands. Employment in food and accommodation services is up by more than 13% since this Government took office, meaning thousands of additional jobs are being created in the tourism industry. This has a trickledown effect in every town and village in the country.

 

“The 9% VAT rate was originally introduced a short-term interim measures, to provide a boost to the tourism sector. But Minister Noonan has clearly listened to my representations on behalf of restaurant and hotel owners, and has taken the pragmatic decision to extend the VAT rate and slash the air travel tax. This will safeguard jobs in the sector and come as very welcome news to everyone involved in the tourism industry in Longford Westmeath.”