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Tourism businesses welcome retention of lower VAT rate

Killarney Chamber and the Kerry branch of the Irish Hotels Federation (IHF) have this week welcomed the Government’s decision to retain the 9% tourism VAT rate.

Bernadette Randles, Chair of the IHF Kerry branch, said that the measures announced now give tourism businesses greater certainty as they grapple with the impact of the cost-of-living crisis on Irish consumers and key overseas markets.

“[The] announcement is a clear recognition by the Government of the challenges facing tourism and hospitality, Ireland’s largest indigenous employer which currently supports over 250,000 livelihoods. It will go a long way in helping to sustain the recovery of our industry at a time when businesses and consumers are facing significant economic and financial headwinds," she said.

“A vibrant tourism industry is one of the most effective ways to spread employment opportunities and prosperity throughout the entire country. That is why the decision to extend the 9% VAT rate is so critical for communities and regions that rely on tourism as a major employer and driver of economic activity.”

Ms Randles noted that most European countries apply a reduced VAT rate to tourism accommodation.

“When you look at the tourism VAT rates among our key European competitors, it is clear that the 9% rate is the right rate for Ireland. At 9%, Ireland is in line with our European neighbours, in particular those countries where tourism plays a key role in their economy.”

Killarney Chamber of Tourism and Commerce officials said the move will be very significant in helping the tourism industry to continue its post-pandemic recovery.

Former Chamber President Niall Kelleher, whose two-year term ended earlier this month, said he had made the VAT issue his number one priority during his recent discussions with the Minister for Finance, Michael McGrath, and he thanked him for the positive outcome.

“The reality is that hospitality needed that support and if the 13.5% rate was reintroduced, it would have created a major disadvantage as consumers and overseas visitors would have been paying the third highest tourism VAT rate in Europe if visiting here,” he said.

The first cycleway will link the Cleeney Roundabout with the town centre via Rock Road.

Killarney Municipal District staff began work on the Rock Road section this week. They are building ducting so overhead electricity and telephone wires can be positioned underground.

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