Tourism sector cuts recovery projections even in event 9% VAT retained via IrishTimesBiz
The confederation’s projections also include an “upside” scenario, which assumes the Ukraine war ends early next year, the US dollar remains strong and a continued strong recovery in leisure travel from the US. In this scenario, numbers in 2023 would be 700,000 ahead of the baseline, and 1.8 million ahead of a pessimistic “downside” scenario, which assumes reduced connectivity and “prolonged depressed demand from all source markets with Ireland losing market share”.
Hoteliers and other tourism industry businesses have been prominent in the media in recent weeks about the severe impact energy bills, which in some cases have quadrupled, are having on their viability. Itic is lobbying for energy supports, the maintenance of elevated marketing budgets for tourism agencies, and the retention of the 9 per cent.
However, there is significant opposition within the State to extending the rate. Minister of State for Skills and Further Education Niall Collins last week accused the sector of “price gouging” on hotels in the summer, while neither the State’s Tax Strategy Group or the Commission on Taxation and Welfare indicated the lower rate should stay.
Leo Varadkar, the Tánaiste and Minister for Business, insisted last week a decision on the 9 per cent had yet to be taken, although there is widespread belief it will change.
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