An increase in the number of Irish hospitality and tourism jobs over the last year shows that the industry's "special" 9 per cent VAT rate is working, according to the government.

Central Statistics Office figures show that nearly 115,000 jobs were created within the sector between October and December 2011, up from 107,200 between April and June.

The lower 9 per cent rate of VAT on tourism and hospitality firms was introduced last summer as part of the Jobs Initiative, which also included the implementation of a Visa Waiver scheme.

Varadkar said: "Tourism was identified as a key priority by the government when we first came to power one year ago, and it is encouraging to see that government policies seem to be having a positive result."

Details: www.transport.ie

Image: Tourism Ireland/Holger Leue