Stakeholders call for 'urgent' change in tourism policy
Industry Fine Between Gael Fáil Change' 'a Talks For Calling Group And Fianna Government Is Fundamental Formation The Continue As
The tourism sector has called for an “urgent legislative” intervention in order to safeguard the sector as government formation talks between Fianna Fáil and Fine Gael continue.
A joint statement by industry stakeholders — including vintners associations, the Restaurants Association of Ireland, the Irish Tourism Industry Confederation, and the Irish Hotels Federation — has said the sector is at a “crossroads” with many companies struggling to deal with very tight margins and reduced profitability.
“Businesses throughout our sector are facing a perfect storm. They are operating under exceptionally tight margins, falling food sales, and significant increases in operating costs,” the group said.
“A fundamental change in direction is now imperative if we are to stave off what can only be described as a growing commercial crisis facing many businesses.
"This is of critical importance given the integral role our industry plays within the economy as the country’s largest indigenous employer and a major engine for growth and prosperity.”
The group is calling for the introduction of a reduced Vat rate for hospitality food services as well as measures to tackle the cost of doing business and a Government department for tourism and hospitality.
During the campaign, Fine Gael pledged to reduce the Vat rate to 11% for food based hospitality, entertainment, and hairdressers.
They are also seeking the removal of the passenger cap at Dublin Airport. Last week, a challenge to this issue was referred by the High Court to the Court of Justice of the European Union.
The group said that enhanced air access is “vital for the long-term development of our economy”, adding that the passenger cap is a “major barrier” to the sector’s recovery and growth.
This call from the sector comes as Fianna Fáil and Fine Gael seek the support of a third party or a series of Independent TDs in order to shore up the numbers in the next Dáil.
As it stands, the two parties have 86 seats with 88 needed to get a majority.
Last week, the Labour Party said it will continue talks with the two parties — but leader Ivana Bacik said it was “unlikely” they will enter Government.