I propose to take Questions Nos. 9, 36, 55, 75, 78, 81, 319 and 320 together.
These questions all concern supports provided by the Government for the tourism industry. Since March 2011 the Government has implemented a range of measures to support hotels and the wider tourism industry. VAT has been reduced to 9% on accommodation, restaurant and other services and this lower rate continues in 2013. The visa waiver scheme is encouraging visitors from emerging markets to add Ireland to their trip when they are visiting the United Kingdom. The halving of employers’ PRSI for those on modest wages has reduced the cost of employing people.
More recently, the Government has confirmed that the extended employment and investment incentive scheme, EIIS, and the new real estate investment trust, REIT, initiatives will apply to tourism accommodation.
Subject to the requirements of the legislation, the EIIS should encourage investment in the renovation of existing accommodation by allowing investors in such projects to avail of tax relief, whereas REITS will facilitate investment vehicles in tourism accommodation. Tourism and coach operators in particular will also benefit from the fuel rebate, while small tourism businesses will benefit from the higher VAT threshold of €1.25 million.
During 2013, the Government will provide almost €140 million to tourism agencies to support the industry, to market tourism at home and abroad and to fund product development. Fáilte Ireland is also providing a range of business and training supports to tourism enterprises, including assistance to tourism businesses to engage constructively with their banks. The measures put in place to support tourism helped to contribute to growth of almost 8% in visitor numbers in 2011. While visitor numbers increased only marginally in 2012, figures released last week by the CSO showed that spending by visitors to Ireland increased by 4.5% last year to €3.68 billion. In addition, Fáilte Ireland reports that the number of people employed in the tourism and hospitality sectors in Ireland is now 185,000, which represents an increase of 5,000 on the previous estimate. That is good news.
As Deputies are aware, 2013 is the year of The Gathering which initiative will provide further support for the industry this year as well as a legacy effect for future years.