Keeping low tourism VAT rate will help create more jobs for Dublin Fingal

Employment in food and accommodation up by 23,000 since Govt reduced the rate of VAT for tourism services


Fine Gael TD for Dublin Fingal, Alan Farrell, has said that the decision by the Minister for Finance, Michael Noonan TD, to maintain the 9% VAT rate for services in the tourism and hospitality sector will directly lead to further job creation in the North County.

“The reduction of VAT on tourism services from 13.5% to 9% has had a direct and significant impact on job creation in the hospitality industry which is an important part of our local economy. The decision to retain this lower VAT rate will benefit consumers, business owners and jobseekers in Dublin Fingal.

“Figures released by the Central Statistics Office show that employment in food and accommodation services is up by more than 23,000 since the Government reduced the rate of VAT for tourism services. Over 8,000 of the 31,600 jobs created nationally in the last twelve months were in the hospitality sector. This has a trickledown effect in every town and village in the constituency.

“The reduced lower rate of VAT is worth €2,250 for every €50,000 turnover within the tourism sector, and that is a significant boost in an industry which operates with tight margins. This increase in has enabled hospitality focused businesses in Dublin Fingal to keep their prices low and, in doing so, attract more business which requires them to take on more staff. This extension of the lower rate will enable the industry to plan and to market for next year in the knowledge that Ireland will be able to offer lower-cost tourism options to tourists and local people who are frequenting our pubs, hotels and restaurants.


“I’d like to complement the local hospitality sector for their tireless work and ensuring that the value of this rate reduction was passed on to their customers.”

“We are determined that the sacrifices made by the Irish people as a result of the economic collapse under the last Government will not be wasted. The difficult measures undertaken are starting to bear fruit. However, we acknowledge that many people have not yet felt the benefits of a recovering economy in their daily lives. We will not allow the country to slip back – the mistakes of the past will not be repeated.”