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Fáilte Ireland chief executive Shaun Quinn has written to tens of thousands of tourism businesses across the state urging them to cut their prices with immediate effect from Friday, the day when the Vat rate on goods and services in the sector falls from 13.5% to 9%, The Sunday Business Post reports.

“Whilst we are aware of the very difficult trading environment which tourism has been through over the past three years, I would urge you to pass this saving on in full to the consumer,” Quinn’s letter says. “Doing so will encourage increased demand for tourism services and, in that way, generate increased economic gains for all enterprises in the industry.”

Quinn also warns a failure to do so would give the government a huge incentive to make the reduction a short-lived one.

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