Tourism sector body calls on Govt to restore competitiveness

The Irish Tourist Industry Confederation (ITIC), the representative body for the tourism industry in Ireland, has called on the Government to do nothing in the December Budget that could make the economic situation in the country worse.

In its pre-Budget submission to Finance Minist Brian Lenihan the ITIC said the most urgent priority for the tourism industry is the restoration and enhancement of Ireland’s competitiveness.

"The Budget should stimulate economic activity, and avoid making expenditure cuts that damage enterprise and employment," the body said in a statement.

The ITIC backed reform of the public sector including a reduction in pay and the imposition of a 10% reduction on all public sector and local authority charges and prices, including commercial rates.

"The avoidance of additional charges, fiscal measures or new regulations that worsen the competitiveness of tourism are all urged."

The group said that reform of the public sector was "long overdue".

"Now is the time to deliver in a significant way," it said in the statement.

The ITIC also urged the Government to immediately scrap the €10 departure tax, which they describe as a barrier to travel, an unnecessary disincentive to tourism and a move in the opposite direction to many other EU member states.

It also called for the introduction of a car scrappage scheme to allow consumers to trade in older cars against 2010 car-hire registered vehicles, claiming such a move would be self-financing due to the VRT and VAT revenues generated by the sale of ex-rental fleet cars.