The representative body for Ireland’s inbound tourism industry has called for the reintroduction of the 9% hospitality VAT rate, the lifting of the passenger cap at Dublin Airport and increased funding for tourism services in the October Budget.
The Irish Tourism Industry Confederation (ITIC) – which represents 20,000 tourism and hospitality businesses in Ireland – said, in its pre-Budget 2025 submission to Government, that Irish tourism is at “a tipping point” and the budget needs to provide support.
ITIC’s Budget 2025 Wish-List:
- Restore the 9% VAT Rate: “Business viability is under real pressure in the food services sector and the 9% VAT rate needs to be restored and this should be extended to vulnerable downstream sectors, such as attractions, activity providers, and caravan parks.”
- Reduce Capacity Blockages to Enable Tourism Growth: “With 70% of the tourism economy dependent on international visitation the passenger cap at Dublin Airport needs to be lifted and regional airports of Cork and Shannon must be supported by the exchequer. The State must lessen its dependence on hotels for humanitarian reasons and appropriate supports are needed for the short-term tourism rental and car hire sectors.”
- Increase current funding for tourism services: “The current tourism budget was reduced, this year, to €167m. This needs to be reversed and increased next year to €200m if sustainability initiatives, international marketing, domestic promotion and industry supports are to be properly funded.”
In its pre-Budget submission, ITIC said: “Budget 2025, to take place on October 1, is of particular importance to Ireland’s tourism and hospitality industry. With demand mixed and costs of business at unprecedented levels, Irish tourism is at a tipping point and Budget 2025 needs to provide support to Ireland’s largest indigenous industry and biggest regional employer.
“With 69% of the tourism industry outside of Dublin, the sector is of fundamental importance to rural Ireland and the national economy.”
Quoting the Central Statistics Office (CSO)-compiled Tourism Satellite Account, ITIC noted in its submission that tourism accounted for 4.4% of Gross Value Added (GVA) in the Irish economy last year; was responsible for 13% of the country’s employment (compared to 6% from construction and 4% from agriculture); and generated approximately €2,000 per head of population.
Domestic tourism consumption amounted to €10bn – with 73% coming from inbound tourists and 27% from domestic staycationers.
