Hotel And Restaurant Times calls on The Government to consider the statistics when addressing the forthcoming budget.
The year marches on and the next major event on the horizon is Budget 2027. All in all, it has been a positive year for tourism. Ever since tourism was ensconced in a more appropriate brief within government, that support is more readily available and consistent. The sector employs over 300,000 people (directly and indirectly). It contributes in excess of €11 billion in earnings to the country and returns over €3 billion in revenue taxes. The government must consider these statistics when addressing the forthcoming budget.
The cost of doing business continues to be a major challenge for the industry. Rising energy costs show no sign of abating and support is essential. The cost of energy is estimated at between €70 and €100 million: unsustainable in our current climate.
The Irish Tourism Industry Confederation (ITIC) recently commissioned a report that sets out the benefits of restoring VAT to 9% for branches of the visitor attraction, activity tourism and camping sectors. This report forms a key part of ITIC’s budget submission. The report analyses the three sectors, each a key part of the Irish tourism economy. The report estimates that the cost of the 9% VAT initiative would be €17m to the Exchequer but there would be significant benefits for largely SMEs, rural-based businesses.
Tourism has proven time and again to be a net contributor to the public purse and it’s crucial this contribution is acknowledged and supported in Budget 2027. People employed in this sector can be found in every town and village throughout country and they represent a crucial role in sustainable employment. As I have often said, big corporations move at a whim, but you cannot take away the lakes of Killarney or the mountains of Mourne. That’s the reality. It is important we protect our national assets – and tourism is one such asset.
The recent Aer Lingus College Football is one example of how important tourism is for the country. Padraic O’Kane, co-founder of the Aer Lingus College Football Classic, said: “North Carolina won an extremely close football game, but Ireland-US relations were the real winner from the week. The game provided the platform to bring together leaders from Ireland, Texas and North Carolina, and to create new relationships across business, tourism, education, healthcare, government and culture. That is what ‘Much More Than a Game’ is all about. College football brings people to Ireland, but its lasting value lies in the relationships formed, the ideas shared, and the partnerships that continue long after the final whistle.”
Peter Burke, Minister for Enterprise, Tourism and Employment, described the event as “strengthening Ireland-US relations at sporting, economic and social levels. The game brought huge numbers of American visitors to our shores and the connections made at the many business and tourism-related events held last week will generate investment in the years to come. I am already looking forward to next year’s fixture and am delighted that my Department continues to be a partner in bringing the Classic to Ireland.”
