Reduce VAT on tourism accommodation says MP

A leading Ulster Unionist MP has called on the Government to have VAT reduced on tourist accommodation in Northern Ireland.

East Antrim MP, Roy Beggs, who plans to table such a motion in the House of Commons, said he would be revealing estimated figures detailing the potential economic benefits from reducing VAT on tourist related activities.

"The rate of Value Added Tax (VAT) applied to the tourism and leisure industry in Britain is substantially higher than the vast majority of European Union states," he said. "In particular, the VAT rate applied to tourist accommodation in the UK is more than twice that of the EU average.

"Northern Ireland, as the only part of the UK to share a land border with another EU state, is clearly weakened by variant levels within the EU of VAT on tourism. Being isolated and therefore more expensive to reach from Great Britain it struggles to attract large numbers of UK residents."

Mr Beggs said price was a crucial factor for most tourists when choosing a holiday destination.

"Price is a crucial factor for most tourists when choosing a holiday destination," the Ulster Unionist Chief Whip said. "By attracting more visitors through cheaper accommodation, tourists would be encouraged to spend more money in our restaurants and shops and at our visitor attractions and to make use of our public transport or car hire facilities. With more business generated, more jobs will be created," he concluded.

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