Hospitality industry of Northern Ireland, which is worth more than £1 billion, is asking protection and a special status after Brexit. That includes the right for citizens of the Republic of Ireland to work in the UK. According to the industry insiders, the contribution of hotels, restaurants, and pubs is so big that they deserve the “unique status”.
Tourism remains one of the key sectors in the economy of Northern Ireland. In 2015, it welcomed more than 4.5 million overnight visitors. In 2016, hotels in Northern Ireland sold more than 2 million nights. Currently, 1 out of 20 workers in the region are employed in hospitality. As a part of Brexit related activities, the UK would leave the Customs Union and Single Market. Northern Ireland asks a special status that would enable free movement of people, services and goods between it and the Republic of Ireland, which is a part of the EU. Hospitality Ulster also asks for simple import of goods from the Republic without any taxes and fees, and recognition of qualifications. According to Northern Ireland hotels, their land is unique as they share a land border with the Republic of Ireland, which is an EU state, so they need a separate post-Brexit approach. In order to support the hospitality industry, NI asks extra funds to promote tourism in the UK and encourages the introduction of a new regional VAT for tourist involved industries. Currently, VAT in the Republic of Ireland for tourism companies is 9%, while in the UK the hospitality sector has the general VAT rate of 20%.
Tourists from the Republic remain a significant group for NI hotels. In 2015, they spent more than £61 million in Northern Ireland, and January September 2016 data showed a 27% boost.