WHILE Northern Ireland is to benefit from an additional £660 million, conspicuous by its absence in yesterday's Budget speech was a lack of meaningful action in relation to the tourism VAT rate and Air Passenger Duty (APD).
Chancellor Philip Hammond has promised a review into both issues before the next Budget, but stopped short of any reduction. At present the tourism VAT rate stands at 20 per cent, more than double the rate in the Republic, while the latter also benefits from no APD, previously described as a "anchor" on tourism growth in the north.
Hospitality Ulster chief executive, Colin Neill welcomed the reviews, but said decisions must now be made in a "reasonable timeframe".
"Independent research earlier this year showed that more than 2,000 jobs would be created in our hospitality sector if the VAT rate on accommodation and visitor attractions was cut to 5 per cent."
"The abolition of APD would allow the region to better compete for more flights and routes into Northern Ireland, thereby helping grow tourism numbers," he added.
Budget airline Flybe expressed its disappointment the Chancellor has missed the opportunity to lower APD.
"The UK's APD is among the highest in the world and it is a highly damaging tax which penalises domestic travellers," a company statement read.
"However, we are encouraged that in Northern Ireland in early 2018 the Chancellor is to call for evidence regarding the impact that Air Passenger Duty and VAT is having on local tourism."
