TD's fears over VAT impact on Offaly tourism
The work of Offaly County Council in promoting local tourism has been praised by the Independent TD for Laois-Offaly, Carol Nolan. However, a number of threats to the future viability and growth of the sector were also identified by her during a Dáil debate on the National Tourism Development Authority (Amendment) Bill 2022 which proposes to increase Fáilte Ireland’s funding from €300 to €500 million.
The Independent TD said that while Offaly and the wider midland regions region has significant tourism potential it urgently needs to see an increased focus on improving transport links and a reassessment of the decision by Government to increase the VAT rate for the hospitality sector to 13.5% from the current rate of 9% from the end of February 2023:
“I want to acknowledge the hard work in my constituency, over many years, by Offaly County Council which works continuously to promote tourism in Offaly. We have had our own tourist office in Tullamore for the past few years which is great to see. It is also great to see that progress is being made but that is down to the work of Offaly County Council and not Fáilte Ireland per se. I commend each and every one of its staff and, indeed, the county councillors who are constantly advocating for the county and promoting it in every way they can,” said Deputy Nolan.
“Despite the treasures that we possess, the tourism sector and the coach sector, in particular, have been crippled in the past number of years. Our rural transport infrastructure remains disjointed, and it is not served by adequate levels of trains or buses. My colleagues and I in the Rural Independent Group have had a number of engagements with the largest representative body for commercial bus operators. As a collective, it carries more than 75 million passengers per year while supporting 11,000 regional jobs and contributing more than €600 million annually to the Irish economy and yet it is on its knees and it needs urgent supports.”
“What is a point in promoting tourist destinations if people struggle to get to them?”
“The decision to increase the VAT rate for hospitality from 9% to 13.5% will also add to the massive financial burden under which many businesses and hotels find themselves. I am especially concerned about this because one cannot compare a region such as the midlands to Dublin. One cannot compare a small, family-run hotel in Offaly to a hotel in Dublin city and it is unfair to do so. I believe the fair way to do it, if everyone will be treated the same, is to reduce this VAT rate to 9% or we will see many hotels having to close their doors. We will then see a loss of jobs and I am very concerned about that. I ask for an immediate intervention in both these areas so that Offaly tourism potential can be nurtured and not smothered by Government inaction.” Deputy Nolan concluded.