Good News for Tourism in Budget 2014

michael noonan good News for Tourism in Budget 2014

Finance Minister Michael Noonan

With the prospect of another austerity budget for 2014 the tourism industry was bracing itself for the possibility of harsh measures which could  affect the industry adversely.

However as it turned out there was good news for Tourism in Budget 2014 when Minister Noonan announced that he was retaining the special 9% VAT rate which he had introduced in 2013. This was great news for the industry as it had been widely acknowledged that this measure had greatly contributed to the stability of  tourism in the past year. Industry chiefs had been lobbying for the retention of the special rate for months prior to the budget.

As well as that the minister announced that travel tax will be reduced to zero from April 2014. It is hoped that this will encourage more people to travel to Ireland as it will reduce the cost of airfares somewhat.

The hospitality industry was severely hit since the collapse of the economy but over the past year there have been indications that recovery is underway. This was as a result of improvements in the economy in general, the gathering initiative for 2013, and the budgetary measures taken by the minister last year. There has been a steady decline in prices for hotel accommodation and, to a lesser extent, the cost of eating out and this has also made it more attractive for visitors to come to  Ireland.

The exceptionally good weather in the summer of 2013 also encouraged more people to holiday at home and hopefully 2014 will see continued growth in the tourist industry in Ireland