The reduction in the tourism VAT rate and the extension of the Employment Wage Subsidy Scheme have been broadly welcomed by the hospitality sector.
Irish Hotels Federation President, Elaina Fitzgerald Kane, welcomed in particular the extension of employment supports to the end of 2021 and the rates waiver scheme along with the reduction in the tourism VAT rate, which she said would help aid the recovery of the industry.
The Restaurants Association of Ireland described the measures as a vital step in supporting a struggling and flattened sector. However, CEO Adrian Cummins has warned that the VAT reduction is only a competitive driver if businesses are open and able to trade.
"This budget is a life-line for the restaurant and hospitality industry. We welcome the reduction of the VAT rate from 13.5% to 9%," Mr Cummins said.
Irish Tourism Industry Confederation acknowledge the VAT reduction as an important measure that will benefit many businesses once demand improves.
Eoghan O'Mara Walsh, CEO of ITIC expressed disappointment that the wage subsidy scheme, although extended in timeline, had not been enhanced in value. "Tourism businesses are clinging on by their fingertips and will struggle to maintain staff numbers over the winter months".
Similarly, the Restaurants Association expressed its disappointment that the EWSS and PUP wage supports were not restored to their previous rates, especially for the hospitality sector "which is essentially locked down again".
The Vintners Federation of Ireland says measures to aid the sector will bring some degree of confidence to publicans. However, there is disappointment the budget failed to reflect the fact these outlets will have been closed for almost nine months with minimum support.
The announcement of the Covid Restriction Support Scheme, which will provide weekly cash grants to businesses based on 2019 turnover until March 2021, has been welcomed as an meaningful support to keep businesses alive.
Ms Fitzgerald Kane, IHF, said the new scheme is a welcome recognition of the challenges being faced by businesses.
VFI Chief Executive, Padraig Cribben, says: "The CRSS provides a degree of hope in that it will supply much needed grant support to publicans for the next five months if we remain at Level Three or higher."
"The new scheme provides a bridge to the future where Covid is over and normal life resumes. Publicans have paid a huge price for closing their businesses so this announcement is the least they deserve. Government needs to address the fact these businesses have been closed for a protracted period and reflect that in the support package.
Mr Cummins said restaurants are also pleased to see the Covid Restriction Support Scheme. "While these new measures announced today won't fix everything, there is now hope for many restaurant businesses who are struggling," he said.
Drinks Industry Group of Ireland said measures announced in the Budget were welcome but a new pathway is now required for reopening and long-term recovery to save the industry. "Every week of closure makes it even more difficult and costly to reopen, to trade, and to recover," said Liam Reid, DIGI chair.
"Compounding that issue, Ireland's excise tax on drinks remains the second highest in the EU, which means that the publicans, restauranteurs, hoteliers, brewers, distillers, and other industry businesses are losing money that could be invested in recovery.
The extension of the Commercial Rates waiver until the end of 2021 has also been welcomed by the hospitality sector.
The €55 million announced for a tourism business support scheme and €5 million for tourism product development is welcomed and specific details of how the scheme will impact hospitality businesses are eagerly awaited.
Ms Fitzgerald Kane also welcomed the announcement that the Government is to introduce a compensation scheme for businesses forced to close due to Government restrictions.
"We welcome the recognition of the enormous hardship that these businesses face," Ms Fitzgerald said, "including those in the tourism sector and we look forward to seeing the full details."
