Shane Ross (Dublin Rathdown, Independent) | Oireachtas source

The Deputy is correct about the increase being only €2 million, but there is €36 million on top of that. It is a lot of money to spend on marketing and it has been used well. In some ways it has proved how successful it has been by having brought so many visitors to Ireland. I have no doubt it will continue to use the money successfully.

I am glad that the Deputy has acknowledged that the tourist industry and lobbying from Fáilte Ireland and Tourism Ireland on the issue of VAT has been extremely important. In discussions with the Government, my Department and I maintained that the VAT rate should remain at 9%. It is absolutely vital for the smaller hospitality part of the industry.

We must continue to warn the larger hotels throughout Ireland that if they are price gouging and taking money from people in an opportunistic way that is damaging the interests of the country, we will be obliged to reconsider the advantages from which they are benefitting. It is not intended to increase the 9% VAT rate for the tourist industry as a whole.

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