New jobs in tourism and an increase in visitors vindicates Govt’s VAT reduction – Fitzpatrick

Fine Gael TD for Louth, Peter Fitzpatrick, has said that CSO job creation figures and the latest data on tourism figures represent a vindication of the Government’s decision to retain the 9% VAT rate for tourism services and the scrappage of the air travel tax.

“Over than 31,600 jobs were created nationally in the last twelve months and 8,000 of these jobs were in the hospitality sector. Today we also learned that from May to July the total number of trips to Ireland increased by 11.1% to 2,315,700.

“In Louth in particular we have a lot to offer tourists with Carlingford, the Cooley Mountains, isolated beaches and the Boyne River Valley at our disposal. Tourism has a direct and significant impact on the economy in Louth so it is very positive to see that the reduction of VAT on tourism services from 13.5% to 9% has reaped rewards for our local area.

“Reduced VAT on tourism services and the slashing of the Air Travel Tax to zero have ensured that the tourism sector is a key driver of economic growth and employment. The suspension of the air travel tax to zero in Budget 2014 encouraged airlines to establish new routes into Ireland and make flights to and from Ireland more affordable. We have subsequently seen the creation of a multitude of new routes by Ryanair, directly attributable to this measure, which has in turn led to the creation of many jobs.

“Tourism is a key driver of jobs, especially in rural areas. In 2013, almost seven million overseas trips were made to Ireland, and overseas travel to Ireland generated earnings of €4.1 billion. Since the Government came to office, the number of international visitors coming to Ireland has increased by more than a million per annum and is almost certain to exceed seven million this year.

“The reduction in the VAT rate from 13.5% to 9% was originally introduced as a short-term interim measure, to provide a boost to the tourism sector. But Minister Noonan has clearly listened to those involved in the industry, and has taken the pragmatic decision to extend the VAT rate and slash the air travel tax. As these figures show, this has safeguarded existing jobs in the sector and led to the creation of many thousands more.”