The Restaurants Association of Ireland has said more than 31,000 direct jobs have been created in the food, tourism, and hospitality sectors since the VAT rate for those areas was lowered from 13.5% to 9% in July 2011.
A report commissioned by the RAI – and conducted by economist Jim Power – also found €695m was contributed to the Exchequer from accommodation and food services in the first three months of the year.
In addition, the RAI research found an additional 14,260 indirect jobs were created in the wider economy as a result of increased employment in tourism and hospitality.
It also said increased employment in these sectors has helped reduce social welfare payments by €620m since July 2011.
Chief Executive of the RAI Adrian Cummins said the study shows “31,000 direct jobs and 14,260 indirect jobs have been developed in this sector since July 2011.
“It is a substantial number of new jobs to result from just one government action. The 9% VAT rate has benefited regions greatly across the country and we would like to see that maintained,” he added.
