The retention of the nine per cent VAT rate for the hospitality and tourism sector is a much-needed counter inflationary measure, a Kerry TD has said.
Deputy Brendan Griffin described the move to extend the lower rate period until next year as “a crucial intervention” as it had been due to expire in August.
“We all know what happened over the last two years with the worldwide pandemic. Businesses closed and international tourism for 2020 and 2021 was practically non-existent. The hospitality and tourism sector suffered immensely,” Deputy Griffin said.
Hospitality and tourism interests, like all other sectors, have to contend with ever increasing inflation and escalating energy costs which is a worldwide issue not just an Irish problem.
“Times are tough and I am glad to see government is responding to their needs with the retention of the nine per cent rate,’ said Deputy Griffin.
“This will help maintain and secure future employment for many while ensuring hospitality and tourism businesses have sustainable futures,” he added.
Prior to, during and after the pandemic, tourism and hospitality lobby groups had persistently called for lower VAT rates to enable them to be competitive and to help build visitor numbers.
Hoteliers say without the support of the Government, the industry would not have survived the pandemic but there is there now optimism returning in the sector.
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