Last weeks jobs initiative was broadly welcomed by the country's business tourism community, with changes to the travel tax, VAT reductions and Visa liberalization attracting the most praise.
In his speech to Dail Eireann, Finance Minister Michael Noonan highlighted the tourism sector as an important pillar of the Government's new jobs initiative – with deeper than planned cuts to VAT in tourism related areas to stimulate a recovery from the 25% collapse of inbound tourist numbers that occurred between 2007 and 2010.
Hotels, restaurants, entertainment and cultural attractions will all be affected by the new 9% VAT rate.
Highlighting the importance of the new changes to the business tourism sector specifically, Nicola McGrane, Chair of the Association of Irish Professional Conference Organisers (AIPCO) said:
“These measures will help support us in our efforts to bring more and more high spending business tourists to Ireland, and build jobs in the process”.
Visitors who attend a business event or conference typically spend double what a leisure tourist would during their visit.
“We are out flying the flag for Ireland and bringing meetings and events to this country, and every ounce of additional competitiveness we can generate as a nation helps us win more of that valuable business.”
“These VAT reductions and the proposed changes to the Air Travel Tax will add to the increasing levels of competitiveness the recession has brought to our cost base – Ireland is now one of the cheapest places in Europe to hold an international meeting.”
“The proposed liberalization of visa rules for those who already hold a visa to enter the UK also promises to facilitate wider access, especially to the high growth emerging markets of Asia and the Far East.”
“Ireland has always been a great place to do business, but increasingly we are also a great value place to do business and these changes help us continue rebuild this crucial sector and support employment along the way”
