The Irish Tourism Industry Confederation (ITIC), a major organisation representing the tourism sector, has urged Finance Minister Jack Chambers to provide increased financial support and present a VAT cut in the upcoming budget on October 1st, which they deem crucial for the Republic’s significant employment sector. The group has requested Mr Chambers to reinstate the favourable 9% VAT rate for hospitality enterprises, and to implement it across tourist attractions, caravan sites, and other tourism-related services.
ITIC, in its disclosure, has highlighted a study conducted by economist Jim Power, indicating that State-implemented labour measures could inflict an expense of up to €1.4 billion on the sector by the year 2026. The mentioned measures encompass the introduction of a living wage, rises in social insurance, sick pay, and the mandatory pension enrolment.
Given that a substantial number of tourists, nine out of ten, come by air, ITIC is advocating for the removal of the 32 million yearly passenger limitation at Dublin Airport, the nation’s largest entryway. The organisation states that insufficient support for Cork and Shannon Airports from the State jeopardises the welfare of 40,000 businesses in the tourism and hospitality sector.
The study by Mr Power estimates that each shortfall of one million passengers at Dublin Airport, due to the imposed restriction, results in a loss of €1.4 billion for the Republic. To enable the construction of a second terminal, Dublin Airport’s proprietor, DAA, is petitioning Fingal County Council for permission to raise the cap to 40 million. The ITIC is also urging Mr Chambers to raise the tourism sector’s allocation in the 2025 budget to €200 million, up from the €167 million permitted this year.
Niall MacCarthy, ITIC chair and Cork Airport’s managing director, described international demand as inconsistent while business costs rise sharply. Eoghan O’Mara Walsh, ITIC’s CEO, has called on Ministers to fulfil commitments to support domestic industries including tourism. Both have emphasised the vital necessity for solid support policies for such an essential sector.