The Irish Hotels Federation has called on the Government to introduce measures in the forthcoming budget to aid the tourism sector.
In its pre-budget submission, the federation calls on the Minister for Finance Brian Lenihan to remove the air travel departure tax and to increase the current level of activity funded by Fáilte Ireland and Tourism Ireland.
It also urges the Government to impose a four-year freeze on all public sector charges at the 2009 level and for the introducti9on of a scheme to waive 30 per cent of local authority rates on hotels and guesthouses.
Lastly, the federation has said that tax increases on tourism-related products and services should be avoided.
“Irish tourism is capable of substantial and rapid growth relative to other export sectors provided we have a cost-competitive economy and a commitment to strong international promotion of our product,” said Tim Fenn, the federation's chief executive.
“Unfortunately, the Government’s policy framework has been too slow in recognising cost competitiveness and this has been intensified by the international economic slowdown. Budget 2011 provides Minster Lenihan with an opportunity to address the needs of tourism businesses which continue to struggle through a perilous trading environment.”
According to official figures, the Exchequer receives €1.3 billion in taxation from tourism and it accounts for 3.8 per cent of GNP.
