Budget 2026 restored the 9pc VAT rate for food services, effective mid-year, providing relief to Ireland’s hospitality sector, valued at €9.4bn in total package spending.
Increased funding for Fáilte Ireland and Tourism Ireland aims to diversify markets, reducing reliance on North American visitors, amid rising business costs and mixed demand.
Tourism lobby groups welcomed that they described as Minister Peter Burke’s pro-business approach, with expectations for a robust national tourism policy to be revealed soon.
Legislative progress to lift the Dublin Airport passenger cap is also addressing a key industry concern, supporting tourism growth.
The tourism industry supports 270,000 livelihoods, with 70pc of jobs outside Dublin, contributing €10bn in annual revenue and €2.9bn in taxes.
Eoghan O’Mara Walsh of the Irish Tourism Industry Confederation shared, “The 9pc VAT rate is a clear acknowledgement of the challenging trading environment faced by hospitality businesses.”
Michael Magner shared, “This measure goes a long way toward putting Irish tourism on a more stable footing, aligning our VAT rate with most European competitors.”
The Departmenr shared shared, “Additional funding for Fáilte Ireland and Tourism Ireland will help us compete in an exceptionally competitive global environment.”
