Budget 2025: Rural tourism will be ‘hurt most’ by failure to support industry

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Rural tourism will be worst hit by the Government's refusal to reduce the hospitality VAT rate in Budget 2025.

Budget 2025: "The rural tourism offering is still very seasonal and they are the ones that are going to be hurt."

Bars, cafés and restaurants across the country were pleading for support from the Government in yesterday’s package – after hundreds of businesses were forced to close in recent months.“We have been clear with the Government about the immense pressure pubs are under, yet they have failed to deliver any meaningful support.The VAT rate was set at 9% for much of the last decade in the wake of the financial crash and the COVID pandemic; however, it was returned to 13.5% last September.

“So the sector - which is the largest indigenous industry the country has and the biggest regional employer - is under a lot of pressure.Pints outside a County Clare pub. Image: Paul Quayle/Alamy“I think it will be most felt in regional Ireland,” he said,

 

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