Beggs presses for lower VAT on tourism

Ulster Unionist MP, Roy Beggs is mounting a UK-wide campaign to reduce the level of VAT on tourism.

With Northern Ireland’s tourism industry struggling to compete with the rest of the EU because the UK’s level of VAT on tourism, Mr Beggs has tabled an early day motion in the House of Commons that aims to push the Government into lowering the level of VAT charged on tourism.

At present, Tourism Ireland and the NITB are committed to increasing tourist arrivals by 7% per year and grow tourism revenues by 9% yearly for the next three years. However, both groups admit that high VAT rates on tourism are a huge obstacle to achieving their targets.

Mr Beggs said: “With the exception of Denmark and Germany, the UK is the only country within the EU that does nor apply a reduced level of VAT for tourism. In fact the VAT rate applied to tourist accommodation in the UK is more than twice the EU average. This immediately puts our tourist industry at a disadvantage.

“Lowering VAT on tourism would improve our attractiveness to visitors and help us to fully develop a globally competitive tourist industry," he added.

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