Tourism chiefs slam 'disastrous' non-EU visitor tax plan 

Proposed changes to the Retail Export Scheme are moving through the Oireachtas via Government’s Brexit Omnibus Bill

Popular spots like The Burren could feel the effects with tourists if tax breaks for tourists are revoked. The Irish Tourism Industry Confederation says the south-west region has already lost around €1.2bn this year due to the lack of international tourists.  

Tourism groups have said the passing of a bill proposing changes to the tax-free shopping status of non-EU visitors would be an “own goal” and “disastrous” at a time when in-bound tourism is already on its knees due to Covid flying restrictions.

Proposed changes to the Retail Export Scheme are moving through the Oireachtas via the Government’s Brexit Omnibus Bill. The scheme currently allows non-EU tourists to claim Vat refunds on Irish-made craft and gift items purchased here.

The proposed legislation aims to exclude all purchases under €175 from inclusion, meaning tourists would have to spend at least that amount to qualify for a refund.

As nearly 85% of refunds are purchases of less than €175, such a move could seriously endanger the livelihoods of small retailers in tourist areas — particularly along routes such as the Wild Atlantic Way, which are disproportionately dependent on tourism revenue.

An economic assessment report, published last weekend and carried out by economist Jim Power on behalf of a group of independent retailers, warned the tax changes could “decimate” Irish tourism along the west coast.

It also said the move would put 1,200 jobs in the tourism and retail sectors at risk.

One of the country’s main industry groups has now added its voice of opposition to the bill.

The Irish Tourism Industry Confederation (ITIC), which counts Fáilte Ireland and Tourism Ireland as members, said such a tax move would be counterproductive and “disastrous”.

“Irish tourism and retail is at a very vulnerable point and this self-enforced change will only serve to reduce demand and weaken our international competitiveness at a critical time,” said ITIC chief executive Eoghan O’Mara Walsh.

He said the south-west region has already lost around €1.2bn this year due to the lack of international tourists and that everything should be done to underpin the sector, rather than undermine it next year.

“Tourism has the real potential to add jobs and employment quickly in a post-Covid world, but own goals like this would be disastrous and the bill must be amended in the Dáil,” Mr O’Mara Walsh said.

On publication of his report, Mr Power said tourism and retail operators need as much support as possible and increasing the Retail Export Scheme threshold would not represent support, but would “totally fly in the face of the ongoing efforts to promote Irish tourism”.

Meanwhile, another ITIC member, the Association of Visitor Experiences and Attractions (AVEA) has called on the Government to reconsider the current restrictions in place for cultural attractions, which render these businesses closed even at level 3 lockdown.

"Other tourism and hospitality sectors have been provided with the option to open at level 3 and we should be afforded the same opportunity to reopen as safe, spacious attractions for the public to visit,” said AVEA chairman Sean Connick.