Tourism industry asks for extra €50m in budget submission

The tourism industry has called for an extra €50 million to be allocated annually to the State agencies Fáilte Ireland and Tourism Ireland.

In its pre-budget submission to the Government, the Irish Tourist Industry Confederation (Itic), the sector's umbrella group, calls for an annual allocation for the tourism agencies of €164 million, up from €114 million this year.

Itic highlights that the agencies’ allocations totalled €153 million a decade ago, almost €40 million ahead of their current level. It said some of the cash could also be used to establish a Brexit “market diversification fund” for exposed tourism businesses.

The confederation has estimated that a worst-case, “no deal” exit for Britain would cost the Irish tourism industry up to €260 million next year.

State appears to be getting seven-year itch over tourism VAT rate

---

Thomas Cook confirms it’s open to a possible deal for its airline business

---

Tourism’s 9% special VAT rate is a ‘deadweight’, says report

---

Tourism industry warns no-deal Brexit would cost it €260m

---

Itic also reiterated its call for the capital budget for tourism over the next decade of the National Development Plan (NDP) to be more than doubled to about €600 million over the plan's lifetime. It said the investment was required to build new large-scale tourism attractions and "regional experiences of international appeal".

Return to State

It claims that any investment in tourism will eventually deliver a 34:1 return to the State.

On the tax side, Itic insists the Government should not take away its special 9 per cent VAT rate, which Government officials this week described a “deadweight” of limited benefit. The industry credits the rate, reduced from 13.5 per cent as a temporary stimulus in 2011, with helping to create 80,000 direct jobs.

Itic, led by its chief executive Eoghan O'Mara-Walsh and chairman Maurice Pratt, also warned increasing costs, such as labour and rates, were affecting Ireland's competitiveness.