Dáil Éireann Debate, Tuesday - 21 February 2023
88. Deputy Joe Carey asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media her views on the extension of the 9% VAT rate for the hospitality sector; and if she will make a statement on the matter. [8569/23]
View answer107. Deputy Pádraig O'Sullivan asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the engagement she has had with the Minister for Finance regarding the need to extend the 9% tourism VAT rate beyond February 2023; the engagement she has had with industry representatives; and if she will make a statement on the matter. [8589/23]
View answerI propose to take Questions Nos. 88 and 107 together.
I have previously made clear my views that the lower 9% rate of VAT needed to be extended for the tourism and hospitality sector. This Government's commitment to supporting the tourism and hospitality sector over the past few years during the Covid pandemic, and the current economic challenges, is clear and consistent and today's decision to extend the lower 9% VAT rate for the sector until 1 September is further evidence of this support.
I am acutely conscious of the challenges the sector is facing including cost inflation as well as economic uncertainty in key tourism markets. I am also aware that our necessary humanitarian response to the war in Ukraine has impacted on the availability of tourism accommodation.
Today's decision to extend the lower VAT rate recognises that the headwinds facing tourism are very strong at the moment due to a range of factors such as reduced international and domestic demand, primarily due to the cost of living crises at home and overseas, and increased costs of business due to rising interest rates and increased energy costs and other inputs.
However, industry must continue to play its part in ensuring that Ireland maintains its reputation as a value for money destination in the face of these challenges to ensure that visitors continue to be attracted to Ireland and indeed to return again and again.
