reprinted from:

No decision yet on tourist tax - Minister

Copyright 1999 The Irish Times
Reprinted with permission
Article date: March 12, 1999
 

A tax on tourists visiting Ireland to fund a marketing drive will not be introduced without the support of the industry, the Minister for Tourism, Sport and Recreation said.

"I will make no decisions unless I have its backing and co-operation," said Dr. McDaid. He added that there had been consultations with the industry since the setting-up of a tourism marketing fund had been suggested in a discussion paper issued by his Department.

"I have suggested that a small, modest visitor-levy should be the way forward," he said. "It would yield approximately £17 or £18 million in the initial years and would probably increase to over £23 or £24 million in years to come, thus averaging out at £20 million a year over five years."

Dr. McDaid said the reality was that the State was facing huge competition in the tourism industry. "In the year 2006, we expect eight million people to visit the State, which will be worth £4.5 billion to the economy. If we achieve those targets, it will make tourism the number one industry. It is well worth looking after this industry and we must do so."

The Fine Gael spokesman on tourism, Mr. Bernard Allen, suggested that the Minister was contradicting himself. While claiming that the State had to be competitive, he was also saying that a tourist tax should be introduced to market Ireland effectively, he added.

"Would he not agree that any tourist tax will make this State less than competitive? Since there is a £1.1 billion tax-take from tourism, which will shortly be our largest industry, surely the Government should provide £20 million for the marketing drive without killing the goose that lays the golden egg by making the industry less competitive vis-a-vis our competitors."

Dr. McDaid said that such matters were the subject of constant discussion between the industry and himself. "As I said, I will only come to the Cabinet if the proposals are acceptable to the industry and when I have its backing."
 

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