Since March 2011 the Government has implemented a range of measures to support the tourism industry. VAT has been reduced to 9% on accommodation, restaurant and other services and this lower rate of VAT continues in 2013. The Visa Waiver Scheme is encouraging visitors from emerging markets to add Ireland to their trip when they are visiting the UK. The halving of employers’ PRSI for those on modest wages has reduced the cost of employing people. VAT has been reduced to 9% on accommodation, restaurant and other services and this lower rate of VAT continues in 2013. The Visa Waiver Scheme is encouraging visitors from emerging markets to add Ireland to their trip when they are visiting the UK. 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. Tourism and coach operators in particular will also benefit from the fuel rebate and small tourism businesses will benefit from the higher VAT threshold of €1.25 million.
In 2013 the Government is also providing almost €140m through the tourism agencies to support the industry, to market tourism at home and abroad and to fund product development.
The measures put in place to support tourism helped to contribute to growth of almost 8% in visitor numbers in 2011 and, although visitor numbers only experienced marginal growth in 2012, figures released last month by the CSO showed that spending by visitors to Ireland increased by 4.5% last year to €3.68 billion. In addition, according to Failte Ireland, the numbers employed in the tourism and hospitality sectors in Ireland is now 185,000, up 5,000 on their previous estimate.
Finally, as the Deputy is aware, 2013 is the year of the Gathering and this initiative will provide further support for the industry this year as well as a legacy effect for future years.