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IHF Welcomes Budget Masures

Hotels and guesthouses across the country have welcomed the range of measures and supports announcedby Ministers Paschal Donohoe and Michael McGrath.

Irish Hotels Federation (IHF) President, Elaina Fitzgerald Kane, welcomed in particular the extension of employment supports to the end of 2021 and the rates waiver scheme along with the reduction in the tourism VAT rate, which she said would help aid the recovery of the industry. She said the new Covid Restriction Support Scheme, the Tourism Business Support Scheme and funds for tourism product development, are welcome recognition of the challenges being faced by businesses.

Ms Fitzgerald Kane said : “The extension of employment supports until the end of December 2021 is very welcome. However, we are disappointed that the rates of the EWSS scheme were not increased. This does not recognise the challenges facing tourism and hospitality businesses in retaining key staff during the difficult winter/spring months and against the backdrop of additional restrictions.

'A Lifeline' says RAI

In a statement, the Restaurants Association of Ireland said:'This budget is a life-line for the restaurant and hospitality industry. We welcome the reduction of the VAT rate from 13.5 cummins0120

% to 9%. We also are pleased to see the Covid Restriction Support Scheme (CRSS) announced offering cash payments of up to €5,000 a week for firms forced to close due to Covid-19 restrictions. While these new measures announced today won’t fix everything, there is now hope for many restaurant businesses who are struggling.'

The Vintners Federation of Ireland said 'Measures introduced in Budget 2021 to aid the sector will bring some degree of confidence to publicans, who are facing into a protracted period of uncertainty after enduring a near total shutdown for most of 2020. However, there is disappointment the budget failed to reflect the fact these outlets will have been closed for almost nine months with minimum support."

'First step on Recovery Pathway'- DIGI

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Reacting to the Budget, Drinks Industry Group of Ireland chair Liam Reid: said:

“While we welcome and await full detail of the measures announced today, including the Covid-19 Restrictions Support Scheme (CRSS) and the reduction in the hospitality and tourism VAT rate to assist the drinks and hospitality industry, we must now move to establish a pathway for the reopening and, importantly, long-term recovery of this sector.

“This is ultimately what will save this industry. We have seen signs from Government in recent weeks that the magnitude and enormity of the challenges facing the drinks and hospitality industry are being realised and accepted.

“Today’s Budget measures, coupled with the establishment of the hospitality forum, which convened for the first time last week, are necessary and essential first steps in addressing the grave challenges facing the sector.

€10m support disappoints airports

The country’s airports and airlines were left disappointed after the Budget, which included only a small measure directly targeting support for them as they continue to be hit by shannonapt the Covid crisis.

Minister for Expenditure and Reform, Michael McGrath, said that a support package of €10m is being made available for Shannon and Cork airports “to address challenges”, but did not specify what those supports would entail.

“The government is committed to supporting investment in our ports and airports, including at Dublin Port and Rosslare Europort,” said Mr McGrath.

The money earmarked for Shannon and Cork also comes after the European Council today introduced its much anticipated ‘traffic light’ system for travellers throughout the EU in response to the Covid pandemic.

It’s been heavily criticised by lobby group Airlines for Europe for not replacing quarantine with testing and falling “far short of what it was supposed to deliver”.

Vat Reduced, Support increased

Budget:

The Minister for Finance Paschal Donohue has announced a reduction of VAT on Tourism Services from 13.5% to 9% for the period 1st Noivemer 2020 to 31st December 2021.

The Minister for Public Expenditure Michael McGrath has announced a €55m Business Support Scheme for Tourism.

€5m for Tourism Product Development