Michael Ring (Mayo, Fine Gael) | Oireachtas source

The Government has implemented a range of measures to support the tourism and hospitality industry, including hotels. VAT has been reduced to 9% on accommodation and restaurant services and this lower rate will continue throughout 2013. The visa waiver scheme is encouraging visitors from emerging markets to add Ireland to their trips when they are visiting the UK. Also, the halving of employers' PRSI for those on modest wages has reduced the cost of employing people.

In 2013, the Government will spend almost €140 million through its agencies to support the tourism industry, to market tourism at home and abroad and to support product development. Fáilte Ireland also provides a range of business supports to tourism enterprises. These supports cover areas such as financial advice, business mentoring, productivity improvement, cost control, sales and marketing, e-business and customer care. They also assist tourism businesses to engage constructively with their banks. I am also glad to see that, in 2011, hotel room occupancy rose. Combined with better cost control, profits per available room before tax rose by over 22%.

In the context of recent budgets, the Minister, Deputy Varadkar, has signalled his intention to have further discussions with the Minister for Finance on the possible involvement of hotels in the extended employment and investment incentive scheme, EIIS, and the real estate investment trust, REIT, initiative. As the Deputy is aware, 2013 is the year of The Gathering and the tourism industry, particularly the hotel sector, will be able to benefit from it fully.

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