Tourism industry wants freeze on insurance and taxation

THE tourism industry yesterday demanded that the Government freeze insurance, VAT and excise prices to ensure we keep attracting foreign visitors.

This follows the revelation we are the most expensive country in Europe with consumer prices 12% ahead of our EU neighbours.

Tourism Ireland marketing and communications manager Brian Twomey said the report on prices will not influence tourists coming here this year because most of them have already booked their packages.

“The problem will arise if the tourists find the price of goods here are way ahead of prices at home and this will damage us next year because the word will spread,” Mr Twomey said.

The main costs that fuel high prices in the tourist industry are insurance, VAT and excise duties on drink, cigarettes and fuel.

“The Government will have to freeze these costs to ensure that prices do not increase any further,” he said.

Tourism Ireland is worried the report about rocketing prices could have a more negative effect on Irish people who see that we do not compare favourable to other European countries.

But people in the tourist industry are doing their best to reduce prices and keep the domestic market happy, Mr Twomey said.

The launch of the Value Restaurant Menu Guide last month was the first step in tackling this negative image and giving people better value for money.

The guide shows consumers where they can get value-for-money meals.

It is aimed at the domestic and foreign market.

The Tourism Review, due to be published next month, is expected to recommend further reductions in prices.

It was ordered by Tourism Minister John O’Donoghue in a bid to counter the effects of the Iraqi war which stopped many Americans coming to Europe.