Dáil Éireann Debate, Wednesday - 18 April 2012
1435 Deputy Terence Flanagan asked the Minister for Transport, Tourism and Sport the number of jobs that have been created since the introduction of the lower VAT rate; and if he will make a statement on the matter. [19244/12]
View answerIn relation to the tourism sector — which is my area of responsibility — the temporary lower 9% VAT rate applies to a range of services, including hotels and restaurants. This initiative was aimed at supporting the creation and maintenance of employment within the tourism sector as well as helping tourism businesses to lower their cost base, thereby allowing them to offer a more competitive product offering to tourists.
At this stage I believe that it is still too early to accurately assess the impact of the lower VAT rate and it will be later this year before we can form a view on the effect of this and other measures on employment. I am, however, pleased to report that overseas tourism numbers have increased by 6% in 2011. I am also encouraged that seasonally adjusted employment in accommodation and food service activities, as measured by the Central Statistics Office, increased by 11,000 over the nine month period to end-December 2011. In addition, a recent survey of restaurant owners by the Restaurants Association of Ireland showed that 30% had hired new staff because of the VAT reduction. The Irish tourism industry is cautiously optimistic about its prospects and performance for the year ahead. Tourism Ireland is targeting growth in overseas visitor numbers of 4.5%. I would hope that this will result in improved job creation over the course of the year.
