During yesterday (Tuesday) some positive news for the Irish Tourism Sector was finally delivered by the new Irish Government as part of its jobs programme strategy.

The Irish Tourism industry has been hit pretty badly in the past few years with the worldwide recession and the falling visitor numbers. It is hoped that the Royal Visit from the UK together with the new proposals will result in a positive increase in Irish Tourism figures. While this won’t happen overnight (visitor numbers are nearly at 1998 levels) - the new plans have to foster some optimism for the future.

So - what is the new Tourism Strategy initiative as announced by the Irish Goverment on May 10th?

There will be a reduced, short term and temporary lowering of the VAT rates on those businesses that are directly involved in Irish Tourism. This rate will be 9%, down from 13.5%. The lower rate of VAT will apply to Irish hotels and restaurants and other venues such as cinemas, sporting areas and theatres. The lower rate of VAT will be in place until December 2013.

Irish Minister for Finance Mr Michael Noonan has proposed the abolishment of the controversial Irish Travel Tax from as early as July 2011 - however this is subject to an agreement with the major air carriers to Ireland. Once suspended, the travel tax will be reviewed at the end of 2012. In other good news for Irish airport authorities, there will be a reduction in airport charges.

There are new visa arrangements initiated to profit from the many thousands of extra visitors that London will attract for the 2012 Olympics. Overseas tourists visiting the UK will not need a separate visa to travel to Ireland during this period.

There will also be a brand new Tourism Marketing fund set up primarily to aid Tourism Ireland, the state body that promotes Ireland as a visitor destination.

All in all, the announcement as part of the Goverment’s Job Creation Strategy is to be welcomed, it is probably one of the strongest statements on Tourism Policy made in the past decade. Bodies such as the cheap airfares airline RyanAir together with the Restaurant Association of Ireland have warmly received the new initiative hailing it as a much welcomed boost for the industry.

What do you think of the new proposals? Please let us know your thoughts in the comments box below.