The Irish Spa Association Urges the Government to Reduce Service VAT from
13.5% to 5% Until the End of 2021In a bid to rescue an increasingly strained sector. The Irish Spa Association have received numerous reports from Irish salons and spas throughout the country that if they are not thrown a lifeline in next week’s budget that they will go out of business permanently. Along with several industry bodies, the Irish SpaAssociation calls for a reduction in service VAT from 13.5% to 5% until the end of 2021.
According to a recent Irish Spa Association survey, 80% of Irish Spas and Salons are experiencing a sharp decline in revenues, with three quarters of businesses reporting over 30% of a decline in revenues. Despite not one known outbreak being attributed to Irish Beauty Salons and Spas, the threat of closure in recent days and level 4 restrictions looming are severely impacting an
already stretched sector. The hair and beauty sector makes a significant contribution that is valued at €2.79 Billion in
terms of GDP. This is an industry seriously impacted by COVID 19. It is a labour-intensive
sector that supported 25,800 jobs at the end of 2019. Regional restrictions, and the uncertainty around travel, hospitality, tourism, family gatherings and events have severely impacted consumer confidence and the ability of manybusinesses to plan and secure the necessary business to keep going.
“We have been most grateful to former Minister for Business Enterprise and Innovation Heather Humphreys for all her consideration in supporting our sector this year and enabling our sector to reopen on an earlier timeline, and we are now urging Minister for Finance Paschal Donohue and Minister for Public Expenditure and Reform Michael McGrath to notunderestimate the importance of business continuity within our sector and the protection of the 25,800+ people employed across the industry,” commented Anita Murray of The Irish Spa Association.
According to a recent HABIC report, the impact of the 15 weeks of closures amounted to the region of €580m in lost turnover. These businesses are doing everything to survive and keep the sector buoyant The COVID-19 pandemic has disrupted or halted critical mental health services globally and the demand for mental health support is increasing according to a new WHO survey. The survey of 130 countries provides the first global data showing the devastating impact of COVID-19 on people's wellbeing and mental health and underscores the urgent need for continued support and relief for Ireland's spas and wellness professionals. It comes as no surprise then that massage therapy is the no 1 most requested treatment in Ireland’s salons and spas at the moment, an indication that we are all a little stressed out.