VAT boost for Mayo tourism sector ahead of summer season
The Economic Recovery Plan launched by government sets out a range of supports and investment for the tourism industry in Mayo including the extension of the 9% tourism VAT rate.
The plan includes targeted supports for the tourism sector such as pilot events for arts, culture, sports, and live entertainment, as well as restart payments up to a maximum of €30,000 for businesses reopening in time for the tourist season this summer.
Welcoming the plan, Deputy Dillon Alan said, “From double CRSS payments to a lower VAT rate, the tourism industry in Mayo is set to get a real boost over the coming months with the launch of the government’s Economic Recovery Plan.
“I know that some businesses haven’t had the opportunity to take full advantage of the reduced tourism VAT rate to date, so I’m delighted to see the extension of the tourism VAT rate of 9% until September 2022.
"This will give businesses across Mayo the opportunity to claw back some of their much-needed lost revenue.
“Many restaurants, shops and local attractions in Mayo have faced huge challenges over the past 15 months, but today’s announcement marks a new chapter on our road to recovery post-pandemic.
“Our economic recovery is going to be rapid; businesses are going to reopen, and people are going to return to their jobs.
“Summer 2021 is a summer we can look forward to, with tourists returning to visit our local attractions and businesses here in Mayo We’re going to see people back in our restaurants and pubs, our parks and beaches, and our local shops and attractions.
In his statement on the announcement, Deputy Michael Ring said: “The job creation element of the plan is significant. We know from past experience that this is the way to rebuild our economy. It includes in excess of €3.5 billion in further labour market and enterprise supports, intense and comprehensive activation and accelerated training, reskilling and upskilling opportunities, and just under €1 billion additional funding under the National Recovery and Resilience Plan (NRRP).
“Crucially these jobs will be more productive, innovative, resilient and in new areas of opportunity, aligned with the government’s green and digital ambitions.
"This reflects the acceleration of many trends, in particular increased online working and shopping, coupled with the urgent challenges we face in meeting our climate and housing targets.
“At the very beginning of the pandemic, Fine Gael in government responded decisively to support people’s income, putting in place an extraordinary range of supports for workers and businesses including through the Pandemic Unemployment Payment (PUP), the Employment Wage Subsidy Scheme (EWSS) and the COVID Restrictions Support Scheme (CRSS).
“These supports have been vital in sustaining businesses and workers, ensuring we are now at a point where they can plan to reopen and resume work again."