Minister Paschal O'Donohoe is likely to retain the concessionary 9% VAT rate on tourist-related services for another year when he announces his much-leaked Budget to-day.The Minister is believed to have been swayed by the threat of Brexit in his decision to continue the subsidy, despite representations from SIPTU that the concession is no lo
nger necessary given the high profit levels announced by some hotel companies and the record room rates achieved by Dublin hotels Some industry sources are however not ruling out a marginal increase in the rate as part of the revenue-generation side of the Budget.
The industry will also watch the Budget allocation to Fáilte Ireland and Tourism Ireland which have declined substantuially since the crash of 2008. There have been argum
ents in favour of additional resources to develop tourist attractions in areas with low tourist numbers and to beef up Ireland's capacity to compete in overseas markets.