The Irish Tourism Industry Confederation (ITIC) is calling for the lifting of the Dublin Airport passenger cap, increased Government spending, as well as the restoration of the 9% hospitality VAT rate in order to boost tourism in the country, which it said is at a “tipping point”.
In its Budget submission, the ITIC warns of “double-digit” declines in tourists coming to Ireland and that the country is overdependent on US visitors.
In order to address this, the confederation – which represents 20,000 tourism and hospitality businesses – wants to see annual Government spending on tourism services increased by €90 million to around €340 million.
This funding, it said, would support a market diversification strategy to reduce the reliance on American tourists.
In addition, the ITIC not only wants the restoration of the 9% hospitality VAT rate, but also said it should be extended to visitor attractions and adventure operators.
In relation to the passenger cap at Dublin Airport, the organisation notes that 70% of the tourist economy is dependent on international visitors.
The cap limits the number of passengers travelling through the airport terminals to 32 million per year.
The ITIC is calling for this limit, which is included in the Programme for Government, to be lifted and said this “should happen in tandem with supporting the regional state airports of Cork and Shannon”.
ITIC Chief Executive Eoghan O’Mara Walsh said that “with unprecedented geopolitical and macroeconomic uncertainty, now is the time for Government to control the controllables and focus on domestic home-grown sectors”.
“Tourism is the largest indigenous industry and biggest regional employer, and needs to be supported in October’s budget.”
“The case for investment in tourism is indisputable with a return on investment unparalleled by other sectors,” he added.
ITIC members employ around 250,000 people across the country.