Call for business tourism tax breaks

Annual revenues from business tourism in the Republic could double to €1 billion by 2010 if measures are taken now to encourage the sector, according to Fáilte Ireland.

The tourism development authority yesterday called on the Government to remove VAT for business travellers to create a regime similar to that of the UK.

Fáilte Ireland, which has created a new business tourism brand, wants Aer Lingus to make it easier to make group bookings and for construction to start on the National Conference Centre.

Peter Malone, chairman of the Fáilte Ireland Business Tourism Forum, pointed out that people visiting the Republic for business tended to produce a 50 per cent higher yield than holidaymakers.

Visitors coming for conferences, incentive trips or business meetings are also less dependent on seasons, he said.

Mr Malone said the removal of VAT for costs such as accommodation and meals would significantly boost the tourism sector. He is hopeful that it might be addressed in December's Budget, having been reassured by the Minister for Finance Brian Cowen it is "very high on the agenda".

Fáilte Ireland estimates that the measure would result in an annual tax loss of €25 million for the Exchequer, but argues that this would be more than outstripped by the additional tourism spending that would result. "It's very important - it sends a great message," said Mr Malone. "I would be disappointed if by 2010 we weren't at €1 billion in revenues," he added.

Last year, business tourism grew by 5 per cent to 857,000 visits, according to Fáilte Ireland figures. This was worth some €457 million. Incentive trips to Dublin increased by 26 per cent.

Mr Malone welcomed progress in plans for the National Conference Centre, expressing optimism that the first sod would be turned next year. This would allow agents to begin bookings for the venue from 2009.

He also encouraged Aer Lingus to position itself more in the business travel market so that agents could "work more closely" with the airline. A facility for group bookings would, he said, make it easier to book conferences.

Fáilte Ireland does not have an official view on the future of Aer Lingus but Mr Malone, a former chief executive of Jurys Doyle, believes "semi-privatisation" is the best option.