Tourism taskforce calls for Vat cut and new bank holiday to help struggling sector

The report comes as aviation representatives, including Aer Lingus, Ryanair, the daa, and Shannon PLC prepare to appear before the Dáil's Committee on Transport and Communications Networks. File Picture.

An immediate Vat cut to 9%, the establishment of a €120m loan scheme to help ailing businesses, and the introduction of a new bank holiday in the off-season are among the key recommendations to help save the tourism and hospitality sector.

Resuming international travel and removing quarantine restrictions are also viewed as key elements in the sector's recovery by the Tourism Recovery Taskforce, which has published its tourism recovery plan (scroll down for full plan) following widespread consultation with stakeholders in the industry.

The taskforce, which includes representatives from the tourism, hospitality and travel sectors, met 16 times since it was established in May with the purpose of identifying ways to sustain and strengthen the sectors worst affected by the Covid-19 lockdown.

The report found that of the 260,000 jobs in the sector prior to the pandemic, 180,000 are either lost or vulnerable.

Among the recommendations of the taskforce are:

• Deliver business continuity grants of €120m to help tourism businesses survive;
• Facilitate the resumption of overseas tourism to Ireland as soon as is practicable;
• Remove the period of quarantine for arrivals and replace it with rapid testing and tracing;
• Adopt the EU 'traffic light' travel system;
• Reduce Vat for tourism and hospitality from 13.5% to 9%;
• Consider the merits of introducing an additional bank holiday in the off-season;
• Review Ireland's tourism product to identify gaps or weaknesses in the offering.

Catherine Martin, Minister for Tourism, Culture, Arts, Gaeltacht, Sport, and Media, welcomed the report.

"I am under no illusions about the scale of the challenge and the many competing priorities facing Government," she said.

"However, as we work towards the Budget and the National Economic Plan, I will be pushing hard for further support for the sector following on from the measures I introduced as part of the July Stimulus package.” 

Ruth Andrews, chairperson of the taskforce, said: "The impact of Covid-19 on tourism has been existential, devastating employment, businesses, and livelihoods across the sector. Nevertheless, even in these incredibly difficult times, I and my colleagues on the Taskforce are confident that the Irish tourism industry can recover and develop as a world leader in sustainable tourism practices."

The report comes as aviation representatives, including Aer Lingus, Ryanair, the daa, and Shannon PLC prepare to appear before the Dáil's Committee on Transport and Communications Networks. 

Among the key priorities for the committee is scrutiny of Ireland’s connectivity.