merrion street

Marking the introduction of the new lower 9% VAT rate for tourism products today (Friday) as part of the Jobs Initiative, Minister for Transport, Tourism & Sport Leo Varadkar called on businesses to pass the reduction on to customers, and welcomed the lead shown by the Restaurants Association of Ireland and the Irish Hotels Federation.

"This measure has the potential to significantly boost jobs in the tourism industry. It’s one of the single most important measures in the Government’s Jobs Initiative. But it will only work if businesses pass on the benefits of the lower VAT rate to customers.

"The Restaurants Association of Ireland and the Irish Hotels Federation are fully behind this initiative, and have called on their members to lower prices accordingly. And I would urge customers to support those businesses that are passing on the lower VAT rate.

"That’s why I am calling on tourism right operators across the country to act in the spirit of this measure, and pass on the VAT cut in full."

Minister Varadkar said the aim of the lower VAT rate for tourism products is to reduce costs in the sector, improve competitiveness and create jobs. It will help to make Ireland an even more attractive destination for tourists.