The next Government must double investment in domestic and inbound tourism, immediately scrap the passenger cap at Dublin Airport and move departmental responsibility for tourism to an economic portfolio after the upcoming General Election.
That is the view of industry representative group, the Irish Tourism Industry Confederation (ITIC), which has laid out its government support wish-list in a General Election manifesto entitled Voting for Tourism.
After a disappointing October Budget for inbound and domestic tourism, ITIC has called for a fresh start from whatever new Government is formed from the upcoming General Election – which is likely to be held before the end of this year.
ITIC wants a doubling of investment in tourism; calling the current €226m budget “wholly inadequate for one of the few sectors that can provide regional economic balance.”
“New product development is required to create experiences of scale and international appeal; a step-change is needed in marketing investment, and additional sustainability budgets will be required to help the industry on the path to decarbonisation. An appropriate proportion of the National Training Fund, which stands at €1.5bn, should be earmarked for tourism and hospitality for upskilling and training needs,” ITIC said in its manifesto.
On improving connectivity, ITIC said: “Government needs to develop all state airports to enhance connectivity and infrastructure in a sustainable manner to meet our country’s future travel needs. The passenger cap at Dublin needs to be lifted without further delay. Ireland’s state aid rules for regional airports need to be aligned with EU permissible levels. Connectivity around the country must be improved and rail links to Dublin and Shannon airports must be prioritised, as well as enhanced public transport to Cork Airport in order to optimise access to all three state airports.”
The organisation also wants a new “bold” and “ambitious” national tourism policy to reflect the industry’s aspirations for the sector.
“A whole of Government approach is needed due to the strategic importance of tourism to the Irish socio-economic fabric – from public realm to transport to the environment.”
ITIC also wants tourism to come under a recalibrated Department of Enterprise, Tourism, Trade and Employment and a dedicated Minister of State for Tourism to be re-installed.
On improving Ireland’s competitiveness, ITIC is revisiting its call for the restoration of the 9% VAT rate for the tourism and hospitality sector as well as a moderation of additional labour increases in line with inflation.
“The Government’s own analysis identifies hospitality as being most impacted by payroll legislation changes, and, for labour-intensive sectors such as tourism, this results in elevated prices that damage demand or squeezed profit margins that damage viability.”
“Reform is needed in the areas of excise tax, insurance and retail tax-back thresholds. All future policy changes must pass an SME stress-test before implementation,” ITIC said.
