asked the Minister for Trade, Commerce and Tourism if he is concerned at the serious decline in the hotel industry; if so, the measures he intends to introduce to help arrest this decline; and if he will recommend a reduction in VAT on food and accommodation in hotels.
Written Answers. - Hotel Industry.
335.
I am aware of the decline in profitability in the hotel industry which has led to inadequate levels of return on investment and also to job losses in the industry. The Government in recognition of the industry's difficulty have granted relief and assistance through a number of recent measures. In particular, hotel accommodation was exempted from the increased VAT rates introduced in the last budget; secondly, £20 million at concessionary interest rates has been made available to the industry through European Investment Bank loan schemes managed by the Industrial Credit Company. Thirdly, the employment incentive scheme was reintroduced for hotels; and, fourthly, additional moneys were made available to Bord Fáilte in 1983 for tourism promotion.
In relation to the VAT issue, I would refer the Deputy to my predecessor's reply on 24 November 1983 to Dáil Question No. 7 (columns 293-296, volume 346 of the Official Report).