The Budget 2022 package for tourism and hospitality has received a mixed reaction from different quarters of the industry. The decision to extend wage subsidies to the end of
next April was welcomed, as was a package of spending tourism and hospitality spending measures of more than €100 million.
However, the failure to extend beyond the end of next summer the special 9 per cent VAT rate for the sector was labelled a “disaster” by Adrian Cummins, ceo of the Restaurants Association of Ireland.
Meanwhile, the wider tourism industry welcomed €89 million in business continuity grants and extra marketing funds, as well as €60 million to extend to the end of the year a waiver on commercial rates for hospitality tourism and arts.
The Restaurants Association of Ireland (RAI) said the budget was “disastrous, [with] no ambition to stimulate and revitalise the tourism industry”, which has been one of the worst hit by the pandemic.
Eoghan O’Mara Walsh, the chief exethe Irish Tourism Industry Confederatioutive of ITIC, said it was “very disappointing” that the VAT rate had not been extended: “It damages our competitiveness when industry will be in fragile recovery phase. Ireland to have one of the highest tourism Vat rate across European Union. ”
Mr O’Mara Walsh welcomed a further €50 million announced by Minister for Public Expenditure Michael McGrathin business continuity grants that will be administered by Fáilte Ireland, expressing the hope they will be paid “promptly” in the first quarter of the year.