GREAT NEWS FROM THE IRISH TOURIST BOARD

We are delighted to inform you of 3 major reforms the Irish Government have just announced for the tourism industry. The Summary of the Irish Tourist Board statement follows below:

1) UK Visa Waiver

The procedure of applying for and paying for 2 separate visas for the UK and Ireland tour has been quite prohibitive to growth from these markets. The Irish Department for Justice, Equality & Defence have just announced a new initiative whereby nationals from 14 countries who have already obtained a visa to enter the UK for a short term visit for up to 180 days and want to continue their journey to Ireland will not require an additional visa for entry to the Republic.

This is a pilot scheme and will run from July 2011 until October 2012; presenting us with a great opportunity particularly during the Olympics period next year to welcome more visitors to Ireland. *Countries included: Belarus, Montenegro, Russian Federation, Serbia, Turkey, Ukraine, Bahrain, Kuwait, Qatar, Saudi Arabia, United Arab Emirates, India, Peoples Republic of China, Uzbekistan

2) Reduction in VAT on tourism services

As part of Government measures to support the tourism industry, a VAT reduction will be introduced for many services relating to tourism. In this context, a new temporary second reduced rate of VAT at 9% will be introduced with effect from 1 July 2011 until end-December 2013. The new 9% rate will apply mainly to restaurant and catering services, hotel and holiday accommodation and various entertainment services such as admissions to cinemas, theatres, museums, fairgrounds, amusement parks and sporting facilities. In addition, hairdressing and printed matter such as brochures, maps, programmes and newspapers will also be charged at the new rate. All other goods and services to which a reduced rate currently applies will remain subject to the 13.5% rate.

3) Reduction of Air Traffic Tax to ZERO

To encourage overseas visitor numbers, the Irish Government will provide for the air travel tax rate to be reduced to zero on a date to be fixed by Order. To be clear, the commencement of this measure is subject to an agreement being reached with the airlines to bring in additional passenger numbers. The Minister for Transport, Tourism and Sport is holding discussions in that regard. Furthermore, as with the targeted VAT reductions, a review of this measure will be conducted before the end of 2012 to evaluate its success in bringing in additional passenger numbers; if it is not being successful, the air travel tax will be reapplied. Consequently, the relevant legislation will remain in place to allow the tax to be recommenced if so decided.

It is hoped that the above 3 measures will greatly increase the numbers of visitors to Ireland in the future, and indeed that the UK inbound sector will find it much easier than ever before to sell Ireland to your clients as an add-on to a UK holiday or as a mono destination. With all the great events and activities taking place in Ireland, new attractions opening up, some of the cheapest hotels in Western Europe now available and with two of the most important Heads of State visiting this month, the profile of Ireland has been significantly raised around the globe….there really has never been a time to programme Ireland!