Promoting the tourism industry in Northern Ireland through the tax system Contents

Contents

Terms of Reference

Summary

1 Introduction

Northern Ireland tourism: performance and potential

Our inquiry

2 Northern Ireland’s unique position

Taxes on Tourism: North and South

VAT

Air Passenger Duty (APD)

Exchange Rates

Tourism Ireland

Price Competitiveness

The price of being competitive

Tour Operators

Weddings

Conclusion

3 Value Added Tax

European Union rules

Post-Brexit considerations

Tourism VAT Reduction in the Republic of Ireland

The economic case for a VAT reduction

What has been proposed?

How a VAT reduction would be spent

Estimating the cost of a VAT reduction

Alternatives to cutting VAT

UK competitive advantages: relevance to Northern Ireland

Building the evidence base

4 Air Connectivity

Air Passenger Duty

Former Inquiries into Air Passenger Duty

The impact of APD on the airline industry

NI Executive reluctance to abolish APD

An air route development fund

Conclusions and recommendations

Appendix 1: Rates of VAT in the Tourism Sector in EU Countries

Formal Minutes

Witnesses

Published written evidence

List of Reports from the Committee during the current Parliament





17 March 2017