Businesses in Clare’s hospitality sector are facing the dual threat of Brexit and rising taxes.
It comes as the Minster for Transport, Tourism and Sport, Shane Ross has signalled that the special 9 per cent rate enjoyed by the tourism industry since the recession is set to change in the next budget.
While, a new report has said that businesses in the accommodation and tourism sector in Clare are highly vulnerable to economic shocks, like Brexit, putting 7% of the county’s jobs at risk.
The lower 9% VAT rate has been hailed by some of those within the industry as crucial in recent years, with the Restaurants Association of Ireland estimating that it has led to the creation of nearly 1,900 direct and indirect jobs in Clare alone.
But the Minister responsible, Shane Ross has signalled a change by saying it could be increased for larger hotels.
A decision won’t be announced until the Budget in October but Brian O’Neill of the Rowan Tree Cafe and Hostel in Ennis says even that uncertainty is problematic.
Uncertainty over the VAT rate comes at a time of uncertainty over Brexit too, and that may also hit tourism businesses here, according to a separate report.
The Drinks Industry Group of Ireland claims that of the 3,360 jobs in the hospitality and tourism industry, almost 7% are at risk in the case of a hard or no-deal Brexit.
DIGI claims that as these businesses are the primary and sometimes only employers in many parts of the county, they’re highly vulnerable to economic shocks.
It’s led to calls on the Government to safeguard the growth of the industry by implementing a ‘defensive’ alcohol excise tax reduction.
DCU Economist Tony Foley, who compiled the research, says Clare could fare badly in the case of a hard brexit.
