AQW 12960/22-27

Ms Sorcha Eastwood
Alliance Party
Lagan Valley

Tabled Date: 04/06/2024
Answered On Date: 10/06/2024
Priority Written: No

Question:
To ask the Minister for the Economy what further action will he take, in partnership with the Minister of Finance, to support small hospitality businesses.

Answer:

Small hospitality businesses play a vital role in our tourism sector and the economy more broadly. I recognise the importance of small hospitality businesses in delivering a regionally balanced economy, which is one of my Department’s key priorities.

I am aware one of the key current challenges for these businesses is rising energy costs. Hence, my Department is taking steps to support businesses through delivery of the Executive’s ‘Path to Net Zero Energy’ Strategy, a key objective being to ensure that all consumers have access to essential and affordable energy. Tourism NI provides a suite of advisory supports to help tourism and hospitality businesses reduce costs, improve productivity and be more sustainable, including Leaner and Greener, and Innovate Tourism.

The topic of hospitality and VAT has recently been debated in the Assembly and I know that the Department of Finance has repeatedly raised with the Treasury the negative impacts on hospitality of high levels of VAT. I will continue to engage with the Minister for Finance to push for reform of the VAT rate for our hospitality industry.

In March this year, I met with the NI Tourism Alliance to discuss concerns about the introduction of the Electronic Travel Authorisation Scheme. My Department is also actively working to establish a Tourism Partnership Board, involving Executive Departments, tourism and hospitality representatives and local authorities. The Tourism Partnership Board will develop and oversee an action plan to grow our local tourism sector.