A new initiative by the Irish government is expected to lead to new tourism jobs and other employment opportunities in the country.

Proposals to boost the labor market have been announced by finance minister Michael Noonan, including investment in school building and additional skills training and work experience placements.

Outlining plans on behalf of the Fine Gael-Labour government, he unveiled plans to cut travel and tourism levies and scrap the air travel tax in order to boost visitor numbers.

VAT charged on hotels, restaurants, attractions and sports tickets, among others, will be reduced from 13.5 per cent to nine per cent until the end of 2013 as part of the scheme.

"Tourism can make a substantial contribution to our economic recovery and to the creation of employment in all parts of the country," Mr Noonan declared.

Ireland witnessed a drop in joblessness of 0.1 points to 14.6 per cent in April this year, the Central Statistics Office recently revealed.

Posted by Alex Donnell