Joe McHugh (Donegal North East, Fine Gael)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Finance the impact on the tourism industry in 2012 of the temporary reduction to the VAT rate that applies to tourism products; and if he will make a statement on the matter. [48909/12]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Finance (No. 2) Act 2011 provided for a second reduced VAT rate, of 9%, on a temporary basis in respect of certain tourism-related services and goods for the period 1 July 2011 to 31 December 2013. This measure is aimed at contributing towards boosting tourism and the creation of additional jobs in that sector. Initial analysis of the impact of 9% VAT rate indicates that employment numbers in the tourism and restaurant sector have increased and prices have reduced. In this context, I provided assurance to the tourist industry that the 9% rate will continue throughout 2013, as currently legislated for.