Irish tourism VAT subsidy creates 46k jobs

Fri 19th Aug 2016

The reduced Irish VAT rate on tourism services (hotels, restaurants etc) has been credited with the creation of over 45,000 jobs since its 2011 implementation. The VAT rate was dropped from 13.5% to 9% mid-2011.

The claim is controversial since the economy and visitor numbers increased anyway. And other countries (e.g. UK), which didn’t have such a VAT subsidy, have shown similar job boosts.

The Restaurant Association of Ireland produced the Irish figures, and claimed the benefit in payroll taxes was €695m.  “There is further good news for Ireland’s tourism sector regarding Ireland’s Value for Money (VFM) rating as the number of visitors rating Ireland ‘good’ or ‘very good’ VFM has increased from 28% to 58% from 2009 to 2015 and the number of visitors rating Ireland ‘very poor’ or ‘poor’ for VFM has fallen sharply from 40% in 2009 to 8% in 2015,” it said.