Pictures: Don MacMonagle
THERE could be opportunity to reintroduce the lower VAT rate for tourism in the event of a significant downturn or a major economic crash in the sector, tourism chiefs in Kerry have been assured.
There was uproar when the government hiked the rate from nine to 13.5% from January 1 last with Finance Minister, Paschal Donohue, insisting that a review of the lower rate had found that the measure had “done its job”.
He said the new economic reality was that it was appropriate to increase the rate to its original 13.5% and that it would generate €466 million this year.
But Minister of State for Tourism, Brendan Griffin, told the annual Let’s Talk Tourism forum in Killarney that the lower rate can again be “implemented overnight” if an urgent need arises.
“We have kept it on the agenda in the event of a serious downturn,” he said.
Minister Griffin,who delivered the opening address at the forum in the Great Southern Killarney, said he had argued long and hard that the nine per cent rate should be retained prior to the 2018 Budget as he was conscious of the challenges facing the industry.
He said sustainability has to be at the heart of Irish tourism and businesses must embrace it by striving to make a major difference in day to day life.
“The prospect of a no deal Brexit is very difficult for anyone to consider but we have a €40 million contingency budget to support Irish tourism in that event,” the Kerry TD tolfd the forum which wad chaired by vastly experienced tourism professional Margaret Cahill and moderated by broadcaster Olivia O’Leary.
“That is something that will help to offset some of the very negative impact that would arise in that scenario but I hope not to have to ever call on that fund and I hope that common sense will prevail”.
The minister said the development and expansion of greenways was key to sustainable tourism with €23.5 million already allocated for such projects and another €4.5 million now provided for the greenways network.
“In terms of our old canals and old railways, we have these marvellous gifts from the past that previous generations sweated blood and tears to put in place and we owe it to those people to make the most of those brilliant pieces of infrastructure, many of them from the 19th century and Victorian times,” Minister Griffin told forum delegates.
“My vision for this country is that we would have an integrated network of greenways all over the island so that someone can literally get off a plane, rent a bike and never have to get into a car or a bus or anything else ” he added.
The minister of state also highlighted the approval major roads projects, including the €450 million Adare motorway project – currently at planning stage – and the €280 million investment on the N22 Ballyvourney-Macroom bypass, which is due to commence this month, and he described the latter project as the most exciting socio economic development in his lifetime.
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