Debate contribution: Hospitality VAT Harmonisation

Debate contribution by Miss Jemma Dolan on 10 February 2025.

MLA

Miss Jemma Dolan

Party at the time

Sinn Féin

Date

10 February 2025

Type

Debate contribution

Business

Private Members' Business

Heading

Hospitality VAT Harmonisation

Assembly identifier

Official Report component 4790953

Read the official Assembly record

Text

I thank my constituency colleague for proposing the motion. We are both MLAs for a border constituency, and we know that the tourism and hospitality sector plays a significant role in our local economy. I am therefore acutely aware of the detrimental impact that different VAT rates can have on businesses. Every year, thousands of visitors make their way to sites such as the Marble Arch Caves, take a boat trip to the historic ruins at Devenish Island, tour the world-famous Belleek Pottery site or go for a hike on the Cuilcagh boardwalk trail, which is aptly named the stairway to heaven. Local hotels, restaurants and cafes all benefit from the footfall that the natural beauty spots of Fermanagh generate. There is no doubt, however, that the higher VAT rate in the North means that businesses in my constituency that have that additional financial burden are at a competitive disadvantage to those in neighbouring counties, meaning that people may visit our numerous tourist attractions yet choose accommodation in hotels that are just a short distance away in Donegal, Cavan, Monaghan, Sligo or Leitrim. Tourism is one of six areas of North/South cooperation under the Good Friday Agreement. The sector is already concerned about the impact that the British Government's decision to introduce the electronic tourism authorisation scheme may have on all-island tourism, and the growing gap in VAT rates is a further tool that acts as a barrier to marketing all parts of the island equally. It also has a knock-on effect on attracting tourists to the north-west region as a whole, and I note the comments of one hotelier in Donegal, who said that he would also welcome a VAT reduction for visitors from Northern counties, as it would increase the overall package on offer to them. Currently, that part of the country is not receiving its market share of tourists who come to our shores annually, with 70% of international tourists who arrive in Dublin heading southwards. VAT harmonisation would therefore be another positive step in developing the all-island economy, ensuring an equal playing field for hospitality businesses. Of course, having different VAT rates not only impacts on our ability to attract tourists but means that local people and organisations have the option of travelling short distances to choose venues in neighbouring counties for events such as conferences and weddings, as those venues are likely to offer more value because of lower taxation. As a major employer, the hospitality sector makes a significant contribution to the local economy, with many livelihoods depending on it. We need to see action from the British Government that supports our hotels, restaurants, pubs and cafes, all of which have struggled in recent years with increasing costs. I welcome the commitment from the new Finance Minister to highlight the issue with the British Treasury later this month. As the important work of strengthening our all-island economy continues, a harmonised VAT rate would represent a positive step forward and ensure a level playing field for all hospitality businesses in Ireland.

506 words. Text as published by the Northern Ireland Assembly.

Assessment

Not qualifying

Jev’s structured answers

Assessed 21 October 2026 at 11:56 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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