Budget 2014 VAT for Tourism 9%
Save Irish businesses, Save Irish Jobs, Save 9% VAT Rate
Gardiner Street Accommodation Cooperative
The Gardiner Street Accommodation Cooperative is calling on the Government to maintain VAT at 9% in the tourist sector.
Irish Restaurant Association of Ireland
Falling in behind similar calls from The Restaurant Association of Ireland, we are calling on the Government to maintain the 9% VAT rate as it has shown the potential to create and sustain jobs that might otherwise have been at risk from the higher VAT rate of 13.5%.
The 13.5% VAT rate which is being touted as a potential new rate to be set in the budget for 2014 would penalise the tourist industry to the tune of an employee wage of €450 for every 10K earned and this would spell disaster for the tourist industry, that industry is only now in 2013 beginning to see some light at the end of the recession tunnel.
Recommended Accommodation in Dublin City Centre:
It is clear from the research of Economist Anthony Foley of Dublin City University (DCU) Business School, that thousands of new jobs have been created in the tourist industry due to the 9% VAT rate when compared with the devastating impact of the 13.5% VAT rate.
The pain of a VAT increase would be more acutely felt in the Accommodation sector, as Online Travel Agencies (OTAs) are already milking 15 < 25% commission from every room booking made through OTA websites. The majority of SMEs in the accommodation sector are barely breaking even as multi-billion Dollar OTAs continue to dominate the online market with multi-million Dollar marketing campaigns, and that monopolisation is putting Irish businesses and jobs at risk.
We are calling on The Government to stand firm on those policies and initiatives that have shown a Return on Investment for the Exchequer and the Irish economy in general.
Anchor House, Townhouse, Globetrotters Tourist Hostel, Maple Hotel, Avondale Bed and Breakfast, Glen Guesthouse, Abbington House, Abbott Lodge, Hazelbrook House, Hazelbrook Lodge, Ned Keenan’s Bar.