Tourism sector groups have written a hard hitting letter to Minister for Tourism Catherine Martin, stating that the government’s budget shows that tourism is not a priority.
The letter points out that the special 9pc VAT rate for hospitality was ended in August, and the number of tourists visiting the Republic has dropped by 40pc compared to 2019.
The budget speeches by government ministers gave only one mention to tourism, which industry chiefs interpret as a sign that the sector is not a priority for the government, despite its significant contribution to Irish livelihoods.
The letter seeks an urgent meeting with Minister Martin to discuss the sector’s poor treatment in the budget, including tax hikes and spending cuts that pose challenges for the industry.
The tourism industry is concerned about potential budget cuts for Tourism Ireland and Fáilte Ireland, and the lack of mention or review of the recently increased VAT rate.
The letter also highlights that the number of Irish people flying abroad and government humanitarian contracts are inflating airport figures and hotel occupancy, but the actual number of tourists is far below pre-pandemic levels.
