Fáilte Ireland welcomes Budget 2021 support for tourism and hospitality sectors
Budget 2021 coverage in association with Flynn & Lynch Life & Pensions Ltd
Fáilte Ireland has welcomed the tourism specific and wider economic measures announced in Budget 2021.
CEO of the National Tourism Development Authority, Paul Kelly stated: "The record level of funding for Tourism secured by Minister Catherine Martin will help meet the urgent needs of thousands of tourism businesses while providing long-term hope for the Sector."
“Economically tourism was hit first, hit hardest and will take the longest to recover from the Covid-19 crisis. The measures announced in Budget 2021 can provide thousands of hard-pressed businesses a pathway to rebuild and recover. Fáilte Ireland worked extremely closely with Minster Martin and her officials in advance of Budget 2021 and we are extremely pleased that the overall tourism package secured by the Minister reflects the urgency and level of action required to meet the needs of a sector in deep crisis. The increase of €59 million on the 2020 allocation for Tourism will ensure we can build on our current body of work supporting the industry on the ground,” added Paul Kelly.
“We will begin working with Departmental officials now on the new €55million continuity supports scheme for strategic tourism businesses, so funds can be effectively deployed in addition to other Government supports announced as part of Budget 2021.
"We will also continue to administer our existing grant programmes including the Adaptation Fund and Restart Grant Plus for B&Bs. The continuity scheme combined with the Covid19 Restrictions Support Scheme announced will help sustain businesses while the VAT cut to 9%, will improve competitiveness and viability of businesses when recovery begins,” stated Paul Kelly.
“The €5million allocation focusing on training and digitalisation is also extremely welcome to help businesses boost their online presence.
“Following the financial crisis, tourism got more people back to work faster than any other sector. Tourism will recover again but to do so it needs significant Government support. Budget 2021 will deliver an injection of practical business supports that will alleviate some of the immediate financial pressures the sector is enduring while also providing long-term optimism,” concluded Paul Kelly.
Measures welcomed in Budget 2021 that will benefit Tourism Industry:
- VAT rate for the hospitality and tourism sector cut from 13.5% to 9% with effect from November 1 until 31 December 2021
- Continuity Supports Strategic Fund €55million
- Covid-19 Restrictions Support Scheme (CRSS)
- Employment Wage Subsidy Scheme extension beyond March 2021
- Supports for Digitisation €5 million
- Extension of the commercial rates holiday until year-end.
- Greenways investment
- Insurance reforms
- Extension of tax debt warehousing provisions.
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