Review of Airport Tax and Tourism VAT in Westminster Deal Welcomed

26 June 2017

Speaking after the deal between the DUP and Conservative Party was published, Colin Neill, Chief Executive of Hospitality Ulster, welcomed the review of tourism VAT and NI Airport Tax.

TOURISM VAT RATE:

"Hospitality Ulster has been calling for some time for a reduction in the tourism VAT rate in Northern Ireland and so today’s announcement that the levy will be reviewed is to be welcomed.

"At its current 20% it puts us at a competitive disadvantage and acts as a brake on the growth of our hospitality sector, which is a crucial part of the NI economy, employing more than 60,000 people. Given the Republic of Ireland’s tourism VAT rate is set at 9 percent, less than half our rate, it is imperative that the rate is cut in Northern Ireland also as we continue to grow a vital part of the regional economy."

AIRPORT TAX:

"Hospitality Ulster also welcomes the review of airport tax. It is in everyone’s interests to make Northern Ireland as competitive a destination as possible, for both business and leisure travellers.

"The Republic of Ireland abolished their airport tax a number of years ago and we would urge any review to likewise abolish the airport tax for Northern Ireland. Tourism is a growing part of the NI economy and we need to have a level playing field if we are to grow the sector further.

"Abolishing the airport tax would allow Northern Ireland to better compete for more flights and routes into the region and grow visitor numbers.’’