The Irish Hotels Federation (IHF) has given Mr McCreevy’s budget a guarded welcome, saying they would have a positive impact on tourism on the industry and assist the sector return to growth.
Specifically, the IHF welcomed the allocation of €11 million for tourism marketing purposes in regional and sports tourism and international marketing, which they say will help address the decrease in visitor numbers.
It has also positively greeted the Government's stated commitment to infastructural improvements for transport and waste management under the National Development Plan.
In particular, the Governments allocation of €1billion to improving roads and €450m to improving public transport,
Mr John Power, Chief Executive of the IHF also said that the reduction from 12 per cent- 10.75 per cent in employers PRSI contributions would also assist reduce payroll costs.
"The tourism industry has undergone a turbulent year with both FMD and the atrocities of September 11th, these measures are a first step to assist in the recovery of the industry," Mr Power said.
"The projected loss this year alone from the decrease in American tourists is over 200,000 visitors, equating in excess of £105 million in lost revenue to the economy.
However, the IHF expressed disappointment the budget did not provides rebates on local authority rates for hotels and guesthouses, that are experiencing a large decrease in turnover in the current difficult economic environment.