asked the Minister for Industry, Commerce and Tourism if he has any plans to provide financial assistance for, and encourage the development of, small family-run hotels in rural Ireland.
Ceisteanna—Questions. Oral Answers. - Development of Small Hotels.
39.
At present Bord Fáilte operate two grant schemes for hotels, one to encourage the upgrading of bedrooms through the addition of private bathroom facilities and the other to meet estimated bedroom requirements over the next couple of years as to numbers and location. Small hotels in rural areas are benefiting under both schemes. In addition, accommodation providers benefit very substantially from Bord Fáilte expenditure on marketing and promotion.
Is the Minister aware of the serious financial difficulties in which some of those hoteliers are? Has he spoken to any of them and has he any plans to alleviate those difficulties in order to enable them to remain in business?
The Deputy asked if there were any plans for financial assistance. There are and I thought he was aware of them. The last grants for bedroom requirements were on what could be described as a selective scheme. They are not being channelled to the larger built-up areas but to the smaller hotels. In regard to the future, I am quite well aware of the situation. I have met a lot of those people. There will be a report coming to my office in the not too distant future and I will be looking at this. In the meantime, I do not want to say what will be in the report. It will deal with the whole area of the tourist business.
While appreciating the grant structure, which is more of a capital nature, does the Minister appreciate that from the point of view of carrying on their business with the falling number of tourists that many of those hoteliers are in difficulties? If the Minister met them I am sure they must have told him, the same as they told me, that they are in difficulty at the moment. Has the Minister any plans in relation to the current financial difficulty they are facing, not the long term one of extra bedrooms, to alleviate the present situation and get them out of their difficulties?
All this goes back to the question of bringing in tourists and tourist promotion.
I am referring to interest on capital which they have borrowed and to some of the suggestions made by Deputy O'Toole. Has the Minister any plans in relation to capital grants?
(Interruptions.)
Would the Minister agree that family hotels perform a very useful function for the tourist industry and are, as Deputy O'Keeffe has said, the backbone of the industry? Would he accept that the number of tourists, small as they are, who come here seeking accommodation can only get it at a price within their reach in family hotels? Day by day it is becoming more obvious that the family hotel is more in line with the type of tourists who come here. Would the Minister make sufficient money available to ensure that family hotels are kept in the industry? As Deputy O'Keeffe said, the type of problems they have at the moment do not relate to extra bedroom accommodation but to financial restraints. Would the Minister, as a matter of urgency, meet the small hoteliers and listen to their plight?
I am well aware of the marvellous service small family hotels are giving the tourist industry and our people here. It would be a very sad day if they went downhill or were not there at all. I am aware also that they have many problems and I am looking around to see what can be done for them. Some may have problems and others may not.
(Interruptions.)
Will the Minister make money available for any hotels in trouble at the moment?
If they were forwarded to him would the Minister consider the serious suggestions put forward by Deputy Hegarty in relation to tourist development on behalf of our party at the weekend? Would he give the suggestions, which were made in good faith, his earnest consideration?
I will read and listen to anything. I have not got any indication of what Deputy Hegarty said.
I am calling Question No. 40. We cannot continue this question any longer.
In the light of what has been said, that there is a problem which seems to be a money one, would the Minister consider granting a subsidy for capital expenditure by small hotels? Does he agree with the principle of a subsidy in such cases?
The Deputy referred to small hoteliers and I appreciate them very much. I cannot see anything happening in relation to subsidies this summer. I am not saying what may happen after that because people have to budget for a year. When this matter of bedroom grants came up I thought it would be a good thing to make it selective and to channel these grants to the small family hotels. That is what we are doing.
(Interruptions.)
Questions Nos. 40, 41 and 42 have gone for written reply.