Tourism chief says Stay-and-Spend scheme has fallen 'flat on its face'

Irish Tourism Industry Confederation chief executive Eoghan O'Mara Walsh said the scheme had "fallen flat on its face" in its current guise, claiming it was too narrow, cumbersome and off-putting for many people. Picture: Andy Gibson

A major tourism body has called for the Government's Stay and Spend scheme to be revamped and simplified in time for the summer season in order to help prevent much of the industry's small businesses from going to the wall.

Irish Tourism Industry Confederation (ITIC) chief executive Eoghan O'Mara Walsh said the scheme had "fallen flat on its face" in its current guise, claiming it was too narrow, cumbersome and off-putting for many people.

He added that the October to April timeframe had rendered the scheme mostly redundant in any case, with lockdown restrictions of movement taking up most of that period.

If vaccines take-up goes to plan and movement restrictions can be eased, a simpler voucher scheme to stimulate domestic tourism could save many businesses, Mr O'Mara Walsh said.

According to Revenue, the Stay and Spend tax credit is a new tax credit available for 2020 and 2021 which may be used against income tax or universal social charge (USC) liability in a year of assessment.

📢#5 of our 9 key policies - Current restrictions, allied to poor design, means Stay & Spend scheme should be
redesigned & relaunched for use against ANY tourism & hospitality business. Full report here https://t.co/dFgKZpaHEU @cathmartingreen @LeoVaradkar @Paschald @mmcgrathtd pic.twitter.com/aJ4xsZrA1E

— ITIC (@Irishtourismind) January 27, 2021

Claimants can use the credit for holiday accommodation food and drink with a minimum spend of €25 per transaction, and a receipt submitted with the claim. The maximum tax credit available under the scheme is €125 per person. 

Mr O'Mara Walsh said that with high-spending international visitors from the likes of the US and Canada unlikely to return to Ireland until at least the latter months of the year and possibly later, the domestic market was dependent on so-called 'staycations' to get over the lean months.

He called on tourism minister Catherine Martin to make the scheme more straightforward, such as a voucher per household system.

"The Stay and Spend scheme has fallen flat on its face, unfortunately, with a minuscule uptake. It partly fell down because of restrictions, but its design as a complex tax rebate was very off-putting. 

The Government needs to redesign and relaunch the scheme as an upfront household voucher that tourists can redeem against any tourism or hospitality product. 

"It was announced last July and valued at €270m, but the latest Revenue figures show a very low return. The average person isn't familiar with claiming back taxes against your hotel stay. The UK did a household voucher which worked for them last summer. If the Government uses it properly, it has real potential."

Group brand manager of Cork's Trigon Hotels Sandra Murphy said that while it is difficult to predict what will happen over the coming months, international travel looked unlikely.

She added the domestic market would again be key to businesses like Trigon, which includes The Metropole Hotel, Cork International Hotel, and Cork Airport Hotel.

"We are now focused on that glimmer of hope for the summer of 2021. Health and safety of our guests and team is always of paramount consideration and so this is something that we will continue to focus on. 

"We certainly had missed welcoming guests into our hotels, however, we are acutely aware of the pain, suffering and hardship experienced by so many over the last year. We understand the feeling that people are looking forward to and are very much in need of a break to detach and decompress."