Call for 5% VAT rate on tourism tax in Northern Ireland
Tourism tax in Northern Ireland should be cut to 5%, hoteliers said.
The relatively high VAT rate of 20% puts the region at a disadvantage compared to other regions.
A reduction would stimulate the industry and leave it well positioned to benefit from strengthening consumer and business confidence in the UK economy, the Northern Ireland Hotels Federation (NIHF) added.
A report for the Federation said: "Lowering the VAT rate could make Northern Ireland a more accessible destination for tourists."
The 139 hotels in Northern Ireland brought in £340 million in revenue last year.
The report, Tourism 2020 – Investing In Our Future, said tourism could double its contribution to GDP to £1bn in tourism spend.
More tourism will mean more construction, increased retail spending and greater demand.