A new report calls for reducing VAT to 9% for camping parks, adventure tourism, and attractions.
A new report recommends restoring the VAT rate for visitor attractions, activity tourism and camping parks. The Irish government permanently reduced the VAT rate from 13.5% to 9% for food and catering services, alongside hairdressing. However, other parts of the visitor sector insist they are being hit by high operating costs which threaten their livelihoods.
According to Jim Power – the economist behind the report who was commissioned by the Irish Tourism Industry Confederation (ITIC) – reducing the rate for these three sectors would cost €17m per year. However, he says, the benefits would outweigh this cost.
The economic contribution of tourism.
In 2024 over 8m out-of-state visitors came to Ireland to Ireland and there were over 16m domestic trips. Total out-of-state revenue was €6.55 billion and domestic tourism expenditure amounted to €3.6 billion. In the third quarter of 2025, 193,200 people were employed in the accommodation and food services sector. 237,056 people were employed in the broader tourism sector.
Concurrently, tourism businesses have been squeezed by: operating costs (labour, energy, and insurance); global nervousness over international travel caused by the war in Iran and instability in the Gulf region; and hotel beds being taken out of the Irish market due to humanitarian reasons.
Power analysed the nature of the three sectors and their benefits to employment and the economy.
Adventure activity
Adventure activity tourism typically consists of family businesses “offering kayaking, biking, hiking, rafting, horse-riding, whale watching, boat tours, surfing, and other activities”. Ireland’s Association for Adventure Tourism (IAAT) represents 205 members, which vary from sole traders to large operations with up to 140 employees.
Power estimated the sector to employ around 8,000 people and turnover €50m per annum. He describes 69.3% of adventure activity businesses as turning over “less than €125,000”. 10.2% are “small with turnover between €125,000 and €250,000”; 8.8% are “medium’ with turnover between €250,000 and €500,000”; and 11.5% have over €500,000 turnover.
Power argues that visitors to adventure businesses support local cafés, restaurants, pubs, and accommodation providers and indirectly contribute to the development and provision of pathways. According to Fáilte Ireland, these visitors “spend on average 40 per cent more during their trip than other visitors”. The nature of the adventure industry has strong physical and mental health benefits, Power suggests.
According to Brendan Kenny, CEO of Ireland’s Association for Adventure Tourism, whose members include Fota Island Adventure Centre and Connemara Wild Escapes, “recurring feedback from members is that demand is mixed but that costs remain stubbornly high. With such geopolitical and macroeconomic uncertainty out there, Government must do all it can to help manage costs and a move to a VAT rate of 9% would be very welcome”.
Visitor Attraction
The second sector on Jim Power’s list – attractions – extends to museums, galleries, historic sites, visitor heritage centres and parks, brand experience, visitor gardens, leisure and theme parks, zoos, aquariums, open farms, boat tours, distilleries, and science centres. It attracts between 26 and 27 million visitors per annum.
Fáilte Ireland data suggests that 37% of visitors visit historic sites; 15% visit heritage centres; 15% museums and galleries; 9% brand experience; 8% visitor gardens; 7% zoos, aquariums and open farms; 6% natural attractions; and 4% heritage, leisure and theme parks. The sector employed 6,615 people in 2025 and generated €458m in the same year.
According to the Association of Visitor Experiences and Attractions (AVEA), attractions have been impacted by rising labour costs (52% of their operating expenditure) particularly due to the seasonal nature of their business. Insurance premiums, meanwhile, have risen by an average of 12% each year for the last three years.
Jim Power argued that the popularity of the attractions sector supports a reduction of the VAT rate on admission tickets to 9%. 28m visitors are expected to come to Irish attractions in 2026. The average ticket price (including 13.5% VAT) is currently €14.89, leading to total ticket revenue of €354 million. If a 9% VAT rate were to be applied, the average ticket price would be €14.30, generating revenue of €340m. The €14m loss in value to the Exchequer, Power argues, would be offset by more visitor interest.
Caravan and Camping
Thirdly, the economist made the argument for a 9% VAT rate for the caravan and camping sector. A total of 78 caravan and camping parks are registered with Fáilte Ireland in Ireland. They have a capacity of 5,975 units or pitches, translating into 24,000 bed spaces.
Power breaks down the data. The South Wild Atlantic Way has 34.6% of these campsites; the North Wild Atlantic Way has 21.%. Ireland’s Hidden Heartlands has 9%; Ireland’s Ancient East has 32.1% and Dublin has 2.6%. The sector, represented by the Irish Caravan & Camping Council, employs around 650 people (345 full-time, 305 part-time employees).
The bulk of business within the caravan and camping sector appears to come from the domestic market, which accounts for 596,000 trips (1.6m bed nights and over €170m to the local economy in 2025). Overseas travel accounts for 74,000 visitors, and over 1m bed nights, contributing €95m to the local economy.
“Caravan parks stimulate rural and suburban economies by creating seasonal and full time employment while driving foot traffic to local businesses,” states Power. “Visitors staying in these parks regularly spend money at nearby grocery stores, restaurants, and activity centres, which keeps revenue circulating within the community.”
The VAT rate for letting pitches to tourists who use their own camping equipment currently stands at 13.5%. The Caravan and Camping Council have called for this to be reduced to 9%, “in line with several EU countries, such as the Netherlands, France, Germany, Belgium, Spain and Portugal, who apply a reduced VAT rate to camping pitches, and who recognise camping as a distinct, sustainable, and family-friendly tourism product.”
Con Quill, owner of Blarney Caravan & Camping Park, said: “Escalating costs of business remain a significant concern for the caravan and camping sector up and down the country. Restoring VAT on registered camping pitches to 9% would boost competitiveness, support affordable family holidays, and drive vital spending in rural communities”.
A VAT reduction for this sector might also help offset high ferry and transport costs for overseas visitors, improve competitiveness in the European camping market, and promote an active lifestyle.
Eoghan O’Mara Walsh, CEO of ITIC, told Hotel & Restaurant Times the report forms a key part of ITIC’s Budget 2027 submission. The Confederation met in early September with Simon Harris, Minister for Finance, and Jack Chambers, Minister for Public Expenditure, to discuss the report and large visitor experience businesses such as EPIC museum in Dublin have offered their support.
“Tourist attractions are traditionally labour intensive and operate with low margins,” said Aileesh Carew, CEO of EPIC. “They are a key part of the Irish tourism economy. A reduction in VAT, she argued, would signal support for a key indigenous industry. and a reduction on the VAT charged on admission tickets would be a strong signal of support for such a key indigenous industry”.
