I propose to take Questions Nos. 1044, 1054 and 1059 together.
The Jobs Initiative introduced a reduced 9% VAT rate from July 1st on a range of services, including hotels and restaurants. The Government also halved employers' PRSI for those on modest wages and introduced a visa waiver scheme that makes Ireland more accessible for tourists from important new and emerging markets. These measures were aimed at supporting the creation and maintenance of employment within the tourism sector as well as helping tourism businesses lower their cost base, and allowing them to offer a more competitive product to tourists. Finally, the reduced VAT rate for tourism and leisure related products and services was important in order to correct a perception of Ireland being an expensive place to visit. This latter point is particularly important in terms of the British tourist market, which is our main source of visitors and the market from which we have lost most share in the past number of years.
At this stage it is too early to accurately assess the impact of these measures on either tourism numbers or on employment in the sector. With regard to tourism numbers, we will need to consider the figures over a longer period of time to properly assess the impact of the initiative. In relation to the impact of the measures on sustaining employment in the tourism sector, the most recent figures from the CSO only relate to Quarter 3 of 2011 and do not fully measure the impact of the Jobs Initiative. It will be later this year before we can begin to properly form a view on the effect of these measures on competitiveness and employment.
I am, however, pleased to report that overseas tourism numbers have increased by 6.8% to the end of November in comparison to the same period last year. I am also encouraged that employment in accommodation and food services increased by 6,000 over the six month period to end September, 2011. I have every confidence that the tourism industry will have exceeded the targets set for 2011 when the full year statistics are available in approximately one month from now.
Furthermore, as mentioned above improving the perception amongst both domestic and overseas visitors that holidaying in Ireland offers good value for money was an important part of the Jobs Initiative measures. In this regard, I would draw the Deputies attention to the most recent Consumer Price Index which shows that in the year to November 2011, the price index for Restaurant and Hotels is down 0.9% and for Recreation and Culture related products and services is down 1% for the same period. The overall CPI was up 2.9% during that same period. Furthermore, it should be noted that the Restaurant and Hotels index is at its lowest level since March 2007, whilst the Culture and Recreation index is at the lowest level since March 2006.
These price reductions were driven by a wide number of factors, including the VAT reduction, and are showing the increased competitiveness of the Irish tourist market. Delivering value for money is a crucial to the recovery of the Irish tourist market, and this improving cost competitiveness is an important part of that.