Joe Costello (Dublin Central, Labour) | Oireachtas source

That is correct. I am delighted to have the opportunity to speak on the National Tourism Development Authority (Amendment) Bill 2015. It is a short Bill but is quite important because it will double the amount of the State subventions that can be made available for enterprises and projects relating to tourism traffic and tourist facilities nationwide. That is important because although we had a good year in 2015, for which I offer congratulations to the Minister of State and his senior Minister, nevertheless it is a sector that can be highly fragile and that always has received good support from the State. This was demonstrated in 2011 when the Government entered office through the reduction by one third in the VAT rate charged in the hospitality sector from 13.5% to 9%. This was welcome and certainly incentivised and stimulated much tourism and tourist activity and I note we have reached a figure of approximately 8 million visitors per annum. However, I do not believe the hospitality sector has responded in kind. At the time the Government introduced the VAT reduction, Ireland was one of the cheapest hospitality sectors in Europe but is now one of the dearest. In particular, the price of hotel accommodation has shot up and I note figures from Trivago suggest an increase of 28% in a 12 month period in Dublin, making it the ninth most expensive city in Europe. Moreover, when one considers the exorbitant charges that are being put in place by the hotel sector, I am sure this is getting worse by the day.

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