Tourism VAT rate
Senator Coghlan asks the Finance Minister to maintain tourism’s reduced VAT rate, especially for businesses outside Dublin, while noting rising hotel prices.
There is concern among people about the VAT rate for the tourism industry. Businesses in Dublin might not need it, as evidenced by the huge increase in the rates charged for hotel rooms here. I admit that there are not enough hotel rooms in Dublin and hope there will be expansion in the number through another building programme. I am concerned about areas beyond the Pale and ask the Leader to use his good offices to make representations to the Minister for Finance on the matter. If it can be afforded, I hope the Minister will be able to ensure, in the forthcoming budget, the VAT rate to which I refer will remain in place. This is very important for the future of the tourism industry. I do not want to refer to Brexit; we will wait to see how matters turn out on Thursday. I would hate to think of what could happen to the tourism industry if the British were to leave the European Union. The value of sterling would decrease; visitors from the United Kingdom are getting great value here at present and we know what would happen otherwise. I hope Britain will remain in the European Union.