Hospitality Looks to Party Promises

With Fianna Fail and Fine Gael set to return to power following the General Election, the hospitality sector will focus on the pre-election promises made by the two parties and a possible partner.

Front of mind will be the campaign for a restoration of the 9% VAT rate and possible movement on other business costs such as energy and payroll.

During the election campaign, Fine Gael indicated that it would replace the existing VAT rate of 13.5% with a new rate of 11% which would apply to a broad range of SMEs including restaurants. This rate would not apply to hotel room rates.

Fianna Fail indicated that its preference was to retain the existing VAT structure but to introduce a range of measures which would reduce the cost of doing business.

All parties, including possible Coalition parties Labour and Social Democrats, favoured enhanced State support for the hospitality sector.

The incoming Government will also appoint a new Minister for Tourism following the defeat of outgoing Minister Catherine Martin in the election. Here the main point of interest will be the portfolio of the new Minister. Tourism bodies have been seeking either a stand-alone Department of Tourism or a possible move of tourism to an economic ministry such as finance or enterprise.