Dáil Éireann Debate, Thursday - 21 January 2021
112. Deputy Bernard J. Durkan asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the steps she proposes to take to further alleviate the impact of Covid-19 on the tourism sector in the course of 2021; and if she will make a statement on the matter. [3513/21]
View answer113. Deputy Bernard J. Durkan asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if her Department has engaged in a sector-by-sector evaluation of the tourism industry with a view to putting in place measures most likely to be in a position to facilitate recovery from the impact of Covid-19; and if she will make a statement on the matter. [3514/21]
View answer114. Deputy Bernard J. Durkan asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the extent to which her Department is prepared for a longer than expected Covid-19-related negative impact on the tourism sector; and if she will make a statement on the matter. [3515/21]
View answer116. Deputy Bernard J. Durkan asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media her plans for the regeneration of the tourism sector in the coming year notwithstanding Covid-19; and if she will make a statement on the matter. [3517/21]
View answerI propose to take Questions Nos. 112 to 114, inclusive, and 116 together.
I am fully aware of the impact COVID-19 has on tourism nationwide and I also acknowledge that public health restrictions continue to be very challenging for the tourism sector. The recently commenced rollout of the national vaccination programme is a welcome development and provides hope that in 2021 we will see the beginning of the recovery for the sector but this will not happen overnight. For now, the focus remains on helping businesses and jobs in tourism to survive the pandemic.
Across the economy, a range of financial supports have been put in place to give businesses the best possible chance of surviving this difficult period. The most significant of these supports is the Employment Wage Subsidy Scheme (EWSS). According to Revenue Commissioners, over €4.5 billion worth of such payments have been made to employers since the pandemic began through the EWSS and its predecessor the Temporary Wage Subsidy Scheme (TWSS). As of 14 January 2021, the Revenue Commissioners have received 18,000 registrations for the Covid Restriction Support Scheme (CRSS) covering 20,700 premises, with €200.6 million CRSS payments processed. Tourism businesses and employees have been significant beneficiaries of these measures. There are a number of other horizontal supports which have also benefitted tourism businesses, including: the Restart Grant; the €2 billion COVID-19 Credit Guarantee Scheme; the package of liquidity and enterprise investment measures to support small and micro companies; corporation tax refund and income tax relief for the self-employed; and the warehousing of tax liabilities.
Last year, a Tourism Recovery Taskforce was appointed to prepare a Tourism Recovery Plan with recommendations on how best the Irish Tourism sector can adapt and recover in a changed tourism environment as a result of the crisis. The taskforce did a widespread consultation whereby all sectors within tourism had an opportunity to contribute to the taskforce’s deliberations. In addition, the taskforce met with stakeholders from all of the main sectors in tourism which helped inform the recommendations in the Tourism Recovery Plan. The taskforce presented its Tourism Recovery Plan 2020-2023 to me on 30th September last. The Plan makes a number of recommendations to help tourism businesses to survive, stabilise and recover from the COVID pandemic. It has been a very useful input for me and my colleagues in Government in considering measures to assist the sector and will remain so as we move from survival to recovery.
The Tourism Recovery Plan was taken into consideration for Budget 2021, where substantial measures were put in place to support and strengthen the tourism sector. There was a record level of funding for Tourism overall, an increase of €59 million over 2020 allocation, to just under €221 million. The VAT rate for the Sector was reduced to 9% to help improve competitiveness and viability of businesses. In addition, a €55million business continuity scheme was introduced to help strategic tourism business survive the pandemic and drive recovery. Funding of €5 million has also been provided for upskilling training and to improve digital presence.
Other Tourism Specific and Horizontal Supports Available include:
- Fáilte Ireland’s €26 million COVID-19 Adaptation Fund;
- The Stay and Spend Initiative;
- A €10m Coach Tourism Business Continuity Scheme;
- An €8m Restart Grant Plus to include B&B accommodation; and
- A €10m fund to support Ireland based inbound agents who package, sell and distribute Ireland’s tourism product overseas.
As recommended in the Recovery Plan, an independently chaired Recovery Oversight Group has now been established to oversee the implementation of the recommendations in the Plan and monitor the sector’s recovery from the Covid-19 crisis. I expect that this Group will submit its first report to me in the coming weeks with an update as to how the sector is faring and where the focus should lie in respect of the Plan’s recommendations. I will take this Group's findings into account as I consider any further measures which may need to be adopted to support the sector in the short term. Subsequent measures to promote the sustainable recovery of the sector will be considered in the context of the National Economic Plan.
