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Tourism Agencies welcome Budget

Tourism Ireland and Fáilte Ireland  have welcomed the measures outlined in Budget 2021 for the survival and recovery of the Irish tourism sector.

 Niall Gibbons, CEO of Tourism Ireland, said: “COVID-19 delivered an immediate and devastating impact on tourism and hospitality this year. Since the middle of March, we havekellymartin had virtually no international visitors.
 “We therefore welcome the Government’s and Minister Catherine Martin’s recognition of the extremely serious challenges facing our industry right now. The measures for Irish tourism businesses outlined in Budget 2021 are an important first step on the road to recovery for Irish tourism – including the reduction of the VAT rate from 13.5% to 9% and a fund of €55 million to support tourism businesses in response to COVID-19. When international travellers are on the move again, the reduced VAT rate will ensure that Ireland is more competitive and that tourism businesses can offer good value, to help hold our market share. Tourism Ireland will be communicating the good news about the new VAT rate to our important travel trade partners around the world.
 
 Failte Ireland ceo CEO Paul Kelly said “the record level of funding for Tourism secured by Minister Catherine Martin will help meet the urgent needs of thousands of tourism businesses while providing long-term hope for the Sector.“
“Economically tourism was hit first, hit hardest and will take the longest to recover from the COVID19 crisis.  The measures announced in Budget 2021 can provide thousands of hard-pressed businesses a pathway to rebuild and recover. Fáilte Ireland worked extremely closely with Minster Martin and her officials in advance of Budget 2021 and we are extremely pleased that the overall tourism package secured by the Minister reflects the urgency and level of action required to meet the needs of a sector in deep crisis.   The increase of €59 million on the 2020 allocation for Tourism will ensure we can build on our current body of work supporting the industry on the ground,”

 

 
 
“We will begin working with Departmental officials now on the new €55million continuity supports scheme for strategic tourism businesses, so funds can be effectively deployed in addition to other Government supports announced as part of Budget 2021. We will also continue to administer our existing grant programmes including the Adaptation Fund and Restart Grant Plus for B&Bs. The continuity scheme combined with the Covid19 Restrictions Support Scheme announced will help sustain businesses while the VAT cut to 9%, will improve competitiveness and viability of businesses when recovery begins,” stated Paul Kelly.
 
“The €5million allocation focusing on training and digitalisation is also extremely welcome to help businesses boost their online presence.”
 
“Following the financial crisis, tourism got more people back to work faster than any other sector.  Tourism will recover again but to do so it needs significant Government support. Budget 2021 will deliver an injection of practical business supports that will alleviate some of the immediate financial pressures the sector is enduring while also providing long-term optimism,” concluded Paul Kelly.
 
Measures welcomed in Budget 2021 that will benefit Tourism Industry:
 
- VAT rate for the hospitality and tourism sector cut from 13.5% to 9% with effect from November 1 until 31 December 2021
- Continuity Supports Strategic Fund €55million
- Covid19 Restrictions Support Scheme (CRSS)
- Temporary Wage Subsidy Scheme extension beyond March 2021 
- Supports for Digitisation €5million
- Extension of the commercial rates holiday until year-end.
- Greenways investment
- Insurance reforms
- Extension of tax debt warehousing provisions
 
 
 
 
 
 
 

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