Drop in VAT for tourism and hospitality sector welcomed by NW Green Party

The drop in VAT from 13.5 to 9% for the tourism and hospitality sector from tomorrow, Sunday, November 1 has been warmly welcomed by Blaithín Gallagher, Green Party/An Comhaontas Glas spokesperson for the general election candidate in Sligo Leitrim North Roscoammon South Donegal constituency.

“The north-west is economically very reliant on a vibrant tourism and hospitality sector, and we have so much to offer here. This comes as a welcome relief for this seriously stretched and battered sector.”

“Our party is acutely aware of the devastating impact of Covid-19 on the tourism and hospitality sectors in 2020. While the impact of the VAT cut will be limited initially by the necessary public health restrictions, the VAT cut is in place for the next 14 months, until December 31, 2021, and will allow the tourism sector to improve competitiveness and help individual enterprises to survive this unprecedented crisis,” she said.

Commenting on this welcome change Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Catherine Martin TD added: “The reduction in the VAT rate was a key recommendation of the Tourism Recovery Taskforce. The immediate concern is to help tourism businesses to survive the current crisis and thereafter to improve the competitiveness of the sector.

"When recovery takes hold, Irish tourism will face unique competitiveness challenges as all countries will be attempting to win share in a market where demand has collapsed.

"Along with the €55m in continuity funding provided in Budget 2021, additional funding for training and digitalisation, the introduction of the Covid-19 Restrictions Subsidy Scheme and other economy wide supports, the reduction in the VAT rate will allow tourism to play its part in a sustainable recovery,” said the minister.