Tourism body says €20m stimulus needed in budget

A €20m stimulus package from the Government is now needed to make tourism Brexit-proof, a body representing the industry has said.

The Irish Tourism Industry Confederation (ITIC) had previously called for €12m to be made available but in its pre-Budget submission, called for an extra €8m.

ITIC chief executive Eoghan O’Mara Walsh defended the call for an extra €8m, saying it was needed not just because tourist numbers were dropping from the UK, but also because Midlands and Shannon regions needed a boost in their branding.

He said that the industry supported more than 225,000 jobs but that it needed to stay competitive with other countries.

“Tourism is at a key juncture.

“Last month was the first that we saw a monthly decline in quite some time.

“Brexit is having a real and material impact. We reckon Brexit will cost Irish tourism €100m this year.

“Now is the time to retain competitiveness but also to invest to make sure we can not mitigate but grow the sector,” he said.

Mr O’Mara Walsh said that Government spending on tourism last year was €109m but that taxes related to the industry brought €1.9bn to the exchequer.

“It’s a low cost for such an industry that returns such economic gains.

“One in nine jobs are in tourism and it is one of the industries that can provide proper regional balance,” he said.

The organisation also called on the Government to “ensure that Ireland’s tourism Vat rate remains at 9% and competitive with the rest of the eurozone”.

ITIC chairman, Maurice Pratt said that it was calling on the Government to make a “sensible investment” in tourism that reflected the current challenges.