Sterling nosedive prompts further Budget 2017 urging by industry
A new push by the Support Your Local campaign group for reduced excise in Budget 2017 has cited the post-Brexit chaos as a major factor in Irish tourism
6 October 2016
Support Your Local, a campaign consisting of publicans, restuarants, hotels, off-licences and suppliers has described Sterling’s latest plunge to a 31 year low as “a major challenge,” and has called on the government to support industryin the upcoming Budget 2017 with an excise reduction.
Donall O’Keeffe, CEO of the Licensed Vintners Association says that the uncertainty around Brexit and the devaluation of sterling is a real challenge for the industry. “We are calling on Minister Noonan to cut excise in the Budget next week,” O’Keeffe said, “as it is a major tax on jobs, tourism and consumers in a time of increasing economic uncertainty.”
Ireland was 19% more expensive between January and October of 2016 due to the devaluation of Sterling, according to Adrian Cummins, CEO of the Restaurants Association of Ireland. “The combination of high excise and the uncertainty over Brexit has caused a perfect storm for the hospitality industry,” Cummins said. “Our high prices are driven primarily by our high excise levels and an excise reduction of 15% would stimulate employment, help to prevent cross border shopping and maintain some degree of attractiveness for UK tourists.”
In a recent poll, RAI members reported an average of 12% downturn for British tourists spend for July & August compared to the same time in 2015.