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Ireland's tourism sector "in crisis"
The tourism
Operators see revenue falls after dramatic decrease in inbound figures
sector and VAT
By Pete Hayman
The UK is still suffering
Ireland's tourism industry is "in crisis" due
to a fall in inbound visitor numbers and a
from heavy-handed taxation
decrease in revenue during 2009, according
to the Irish Hotels Federation (IHF).
Speaking at the launch of the federa-
tion's annual report for 2009 at its annual
an
kurt janson is
conference in Galway, chief executive John
/
nut
policy director
Power said hoteliers are finding it increas-

ireland
of tourism
ingly difficult to cope with tough trading
alliance
ourism
conditions. According to the IHF, total
:
t
tourism revenue for 2009 decreased by 17 image
per cent, compared with the previous year, Which way out of trouble for Irish tourism?
while new figures from the Central Statistics
Office revealed an 11.6 per cent fall by the fact that their costs had not
inbound visitor numbers. significantly reduced or even adjusted to T
he UK has, for some considerable
time, had VAT rates on tourism
products and services that were
Power said: "Throughout the year, our the economic reality on the ground. much higher than the European average.
members struggled to deal with decimated "As a vital indigenous industry, it is vital A study in 1998 by the British Tourism
revenues caused by the combination of that tourism receives the recognition and Authority put the taxation paid by
lower prices, excess capacity and low support which it merits given its scale and overseas visitors at 18 per cent (VAT of
capacity utilisation rates, further intensified overall contribution to the economy." 17.5 per cent and Air Passenger duty
that averaged £10). The UNWTO's
Tourism Tax Barometer in 2004 found
No new runway planned for Gatwick Airport
that visitors to the UK were taxed the
second highest in the world.
By Martin Nash The danger at the moment is that the
disadvantage faced by the UK tourism
The new owner of London Gatwick – the sector has been masked by the economic
UK's second largest airport – has ruled out downturn. With the Pound down against
a second runway for the foreseeable future. the Euro and UK resident fearful of
Global Infrastructure Partners (GIP), loosing the jobs, the UK tourism
which also owns a majority share in London industry grew by around 3 per cent in
City Airport, bought Gatwick from BAA in 2009 and the UK's tourism deficit
December 2009 in a deal worth £1.51bn. declined from 20bn to around 15bn as
GIP chair Sir David Rowlands, said he people took a "staycation" rather than
had "not a shred of interest" in developing an overseas holiday. This figures will
a second runway at the airport. Gatwick's give politicians the false idea that the
current runway handled nearly 30 million UK tourism sector is in a pretty healthy
Gatwick currently operates two terminals passengers during 2009. state. As the economy gradually
improves and the exchange rate with
the Euro comes back into balance, most
Stena Line confirms £200m Scotland proposals
of the people who holidayed in the UK
last year will begin to look overseas
Passenger ferry operator Stena Line has 26-acre (10.5-hectare) waterfront site in again and the tourism deficit will grow
confirmed its intention to move from the Dumfries and Galloway town. accordingly. Only this time the deficit
Stranraer to the new Loch Ryan Port as Announcing the scheme, Scottish First will be even bigger than before due to
part of a £200m scheme to boost Minister Alex Salmond said: "Relocation the reduced cost of visiting France and
Scottish tourism. of the port to the new Loch Ryan Port Germany and the increased cost of
The project is expected to reduce will aid tourism with faster crossings staying in the UK.
crossing times between Scotland and between Scotland and Northern Ireland So it's vital to fully understand the
Northern Ireland, while also pushing and help the regeneration of Stranraer as impact of VAT rates on tourism if we are
forward plans for the regeneration of a a major marine leisure area." emerge from the recession with a
competitive tourism sector.
© Cybertrek 2010 Read Leisure Opportunities online www.leisureopportunities.com/digita l 15
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