Tourism industry calls for system of deferring VAT

The Irish Tourist Industry Confederation (ITIC) has today called on the Government to introduce a VAT deferral system to help…

The Irish Tourist Industry Confederation (ITIC) has today called on the Government to introduce a VAT deferral system to help Irish tourism recover from the effects of foot-and-mouth - following Northern Ireland's example.

Speaking on RTÉ radio this afternoon the chairwoman of the organisation Ms Eileen O'Mara-Walsh said the industry had never sought compensation since the outset of the crisis.

But now she said the tourism industry wanted the Government to take a leaf out of the Northern Ireland administration's book and introduce VAT deferral so that people could gradually recover financial ground.

Earlier today the Minister for Tourism Dr McDaid said it would be a "logical impossibility" to compensate the tourism industry for losses incurred during the foot-and-mouth crisis.

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"I have never contemplated compensation - neither has the government at any stage. It would be a logical impossibility.

"Tourism is a very resilient industry, and the vast majority of people in it are not looking for compensation. They would prefer more money was put into marketing to increase the figures towards the latter end of the year - and I believe we will do that.

"While we may take a hit in July and August I think we will make up for it later and I am expecting a bumper year in 2002."

The Minister for Tourism Dr McDaid.

Dr McDaid was speaking to reporters before a Cabinet meeting being held in Killarney to highlight the Irish tourist industry's return to normality. Today's Cabinet meeting is the first to be held in Co Kerry.

This afternoon a £2 million increase in marketing and promotion for Irish tourism was agreed focusing on the UKmarket and Ms O'Mara-Walsh said the ITIC welcomed this.

Dr McDaid said most of the £2 million was set to be spent on the British market, adding: "We have a huge problem there. That is where are suffering most at the moment and we need particularly to put money into air and sea carrying areas."

The chairman of the Killarney of the Welcomes (KOTW) organisation Mr Seán Coyne said: "The international media gave the impression that Ireland was over-run with foot-and-mouth."

"This added to the closing off of the countryside to protect the Irish food industry was taken up - entirely erroneously - by many potential visitors to Ireland to mean that there was some sort of health danger in coming to Ireland and that our food was unsafe to eat.

"Having the Taoiseach and his Ministers savouring some of the uniqueness of Killarney will send out the clearest message that rural Ireland is open for visitors and that there is a huge range of things for them to do in one of the most beautiful environments in the world." Additional reporting PA