Ireland Cheaper for Tourists?

July 6, 2011 at 2:55 pm 1 comment

Ireland has long been one of the most expensive countries in the world, making it a pricey destination for a holiday. A few years ago this didn’t seem to matter, with over a million people visiting its shores in 2007. Since then, however, the number of visits has been tumbling, reaching a 12-year low in 2010; as the world tries to pull itself out of an economic slump, luxuries such as foreign holidays are often the first thing to be sacrificed.

Now the Irish government is stepping in to tempt people back to the Emerald Isle by offering visitors a drop in VAT, from 13.5% to just 9%. The reduction will apply to all products and services that attract tourists – accommodation, restaurants, theatres etc. – and was supposed to take effect from the 1st July this year, but some service providers have their reservations.

The Irish radio station Newstalk asked B&B owners around the country if they would be passing on the VAT reduction to their customers. In Dublin and Cork, 8 out of 10 owners said they could afford to reduce their rates, while in Limerick and Galway, this number was only 2 out of 10.

Dublin Airport have also said there are a number of retailers there who have dropped their prices in accordance with the new VAT rate.

 

Would you be more likely to visit Ireland now it’s cheaper? Vote in our poll or leave us a comment and let us know. If you’re a B&B owner, how will the VAT reduction be affecting your business?

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1 Comment Add your own

  • 1. Brian Whelan  |  July 14, 2011 at 8:23 pm

    Completely agreed – there has never been a better time to visit Dublin and Ireland – restaurants,theatres,transport and especially accommodation has reached rock bottom prices.

    Regarding the B&B question – we at Almara B&B Dublin had heard that this reduction was coming so we adjusted our rates a long time ago.

    Reply

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