Business lobby group Ibec has called on the government to provide extra support to businesses in the ‘Experience Economy’ in Budget 2023.
The experience economy encompasses businesses and sectors that include hospitality, retail and tourism, amongst others, that provide experiences to visitors. This also includes ancillary suppliers and contractors that intersect with our food and drink industry.
Ibec says that the key steps in helping the experience economy would be supports in the face of rising energy bills, the revitilisation of city centres, and the careful unwinding of existing Covid supports.
The organisation believes that the Brexit Adjustment Reserve, which totals some €600m for 2023, should be used to future proof the sectors most impacted by the impacts of Brexit, with half reserved for investment, skills and trade for Brexit impacted businesses.
Among Ibec's demands is the continuation and permanency of the 9% VAT rate. Failure to do so, the lobby group claims, would add 0.5% to the inflation rate in 2023.
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Ibec is also calling for an increase of €20m in funding for overseas tourist promotion, while also making sure that a continued review of the debt warehousing scheme is in place to ensure that viable businesses’ growth are not impacted by excess debt from struggling enterprises.
“Embedding competitiveness is critical to building resilience in businesses across the economy as the global trading environment continues to shift in the aftermath of Covid and Brexit,” said Ibec executive director of Membership and Sectors, Sharon Higgins.
“Ibec believes that there is a need for direct supports for those households and industries most exposed to spiralling energy costs,” she added. “Fiscal policy must also be flexible over the winter and potentially into 2023 should a continued deterioration of the inflationary environment occur.
“Budget 2023 must also see continued investment and support to promote the Experience Economy through funding for tourism, festivals, events, conferences, public realm improvements and wider entertainment industry promotion and product development – with a renewed focus on town and city centres in the post-Covid era.”
The experience economy employed an estimated 330,000 people prior to Covid, with the purchase of over €4 billion yearly on goods and services. It also provided an estimated €4.5 billion in wages, salaries, and employment taxes pre-pandemic.
