9,000 New Jobs Created in the Restaurant and Tourism Sector Since the Introduction of 9% Vat Rate


The Restaurants Association of Ireland (RAI), the representative association for restaurant owners, revealed the employment in the tourism industry has expanded by 9,000 jobs since the VAT rate was reduced in 2011 before the Oireachtas Committee for Jobs today.

The figure comes from a Deloitte/Failte Ireland August 2013 report analysing the impact of the reduction of the VAT rate on Irish Tourism and Tourism Employment.

The RAI is campaigning to get Government to retain the current VAT rate of 9% to support the Restaurant industry and to keep Ireland competitive as a tourist destination and sustain jobs in local communities.

Chief Executive of the Association, Adrian Cummins says that the 9% VAT rate is crucial to the survival of restaurants the length and breadth of the country. “We took our Keep VAT at 9% campaign on the road in the past few months, meeting hundreds of restaurateurs all over the country. We are one of the only industries creating employment in every corner of the country, and if the 9% VAT rate is increased, unfortunately jobs will be lost everywhere as well.”

Restaurateurs are entrepreneurs; When a restaurant opens or expands, they will create several jobs and generate business for the area and their suppliers. Restaurants all over Ireland are relying on the VAT to remain at 9% for the survival of their business.”

  • Irish restaurateurs pay the highest catering wage rate in Europe
  • Ireland has the highest excise duty on wines in Europe
  • Irish food costs inputs are 18% above the European average


With these challenges facing the industry, and the economic downturn resulting in significantly less disposable income, disproportionally affecting this sector, it is imperative that the government gives it’s full support by maintaining the current VAT rate of 9%


The Irish restaurant industry employs 64,000 people (1 in 4 tourism jobs) and contributes €2 billion to the Irish economy each year.

For further information please contact the Restaurant Association on 01 6779901

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