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Tourism industry to benefit from continued business supports, reduced VAT rate and investment in aviation – Dillon and Carrigy

12th October 2021 - Fine Gael Press Office

A range of business supports, a reduced 9% VAT rate and infrastructural investment will help the tourism sector as the Covid-19 recovery continues, Fine Gael TD Alan Dillon said.

Deputy Alan Dillon, Fine Gael’s Dáil spokesperson for Tourism & Sport, said: “Covid-19 has had a devastating impact on tourism and I welcome measures contained in Budget 2022 which will support the sector and encourage consumer activity through this challenging time.

“An additional €50 million for further Business Continuity Supports and €39 million for Enhanced Tourism Marketing & Product Development will assist the sector.  The funding is required to underpin the pandemic recovery, in addition to the benefits that will come with the continued easing of restrictions.

“The reduced VAT rate for hospitality and tourism sector of 9% will continue until the end of August 2022.  This will help to reduce the cost of restaurant supplies, tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, and hairdressing.

“Around €60 million is also being provided to extend the commercial rates waiver for quarter four this year for the hospitality, arts and certain tourism related sectors.” Deputy Dillon said.

“Fine Gael in Government is committed to supporting the tourism and hospitality sector through this challenging period by promoting the industry and helping restore jobs, as well as creating new opportunities.”

“I particularly welcome that the Employment Wage Subsidy Scheme (EWSS) will remain in place in a graduated form until 30th April 2022.  During recent meetings with employers within the tourism and hospitality sectors, the extension of the EWSS was of paramount importance. It is great to now see this clarity being provided for businesses who wanted the EWSS to continue toward Summer 2022” Deputy Dillon added.

Senator Michael Carrigy, Fine Gael’s Seanad spokesperson on Media, Arts, Sports & Tourism, said: “I would like to commend my colleague, Minister Hildegarde Naughton for securing the supports announced for the aviation industry in Budget 2022.

“Budget 2022 provides for a new €126 million package in direct support to aviation for the remainder of this year and 2022.

“Funding of €36 million will be provided in 2022 to support regional airports through the Regional Airports Programme (RAP). It will deliver current and capital funding to support regional airports of Shannon, Cork, Ireland West in Knock, Donegal, and Kerry.

“Separately, Government has approved additional funding of €90m in 2021 for our State airports, subject to State Aid approval. The purpose of this funding is to stimulate the restoration of air routes and competitiveness. The fund will also provide flexibility to the airport authorities to provide route incentives and rebates on specific types of airport charges.”

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