Dáil Éireann Debate, Wednesday - 28 April 2021
51. Deputy Imelda Munster asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media her plans for tourism and hospitality for the 2021 season; the additional supports or initiatives she plans to introduce to support the sector when it reopens in the coming months; and if she will make a statement on the matter. [22308/21]
View answerI ask the Minister to outline her plans for tourism and hospitality for the 2021 season, the additional supports or initiatives she plans to introduce to support the sector when it opens in the coming weeks, and if she will make a statement and outline those supports.
I am fully aware of the impact Covid-19 has had on tourism and hospitality nationwide and I also acknowledge that public health restrictions continue to be challenging for the tourism sector. The national vaccination programme is critical 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 and be ready for recovery.
In line with the plan set out in The Path Ahead and after taking full account of the current status of Covid-19 in the community and the public health advice, the Government has been implementing a limited phased easing of some level 5 restrictions through the month of April. The Government is due to make further decisions and announcements tomorrow regarding the position to apply for May and beyond, that will allow for the phased reopening of tourism and hospitality for the critical season, as the public health situation permits. While I will not pre-empt the Government's decision in this regard, I have been working closely with the sector, including meetings today, to ensure its voice is heard and perspectives understood.
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, of just under €221 million and there have been additional measures to support tourism, such as the VAT rate reduction to 9%, as well as the €55 million tourism business continuity scheme, the Covid-19 adaptation fund and other tourism sector-specific schemes.
I am committed to continuing support for tourism through this difficult period and to working towards reopening and recovery. I am working on a survival, stabilisation and recovery programme for the sector. As part of the national economic recovery plan, the Government will outline how it will help people to return to work and further support sectors which have been disproportionately affected by the pandemic. Along with my colleagues in government, I will consider more targeted measures to help reboot those sectors, such as tourism.
I am also aware that Fáilte Ireland, at the appropriate time, will be launching its "Keep Discovering" campaign to inspire more people to take a break in Ireland this summer and in the shoulder season. The initial campaign will include promotions for each of the regional brand areas, including Dublin, the Wild Atlantic Way, Ireland's Ancient East and Ireland's Hidden Heartlands, and will be supported by substantial marketing campaigns.
The Minister did not mention the stay and spend tax incentive. I hope that is not on the cards for this season again. Last year, it was a complete flop. I think the Minister will acknowledge that herself. Just 10,000 people benefited from it. There were thousands of low earners who were excluded from benefiting from it, which was a shame. The total amount that was claimed was under €2 million and the tax expenditure recorded on the receipts was under €9.7 million. The fact that it was brought in off-season excluded families totally. What use is having an incentive for tourism if it excludes the entire school holiday period? I hope that the Minister will consider something that would benefit people more significantly than the flop that that was. Will the Minister consider the Sinn Féin proposal of the staycation voucher which would benefit every man, woman and child in the State and local economies?
The stay and spend scheme was set up late last summer to stimulate demand for accommodation and hospitality business during the off-season. It was set up by my colleague, the Minister for Finance, Deputy Donohoe. It was quite an innovative approach to incentivise spending. However, the public health conditions beyond our control have clearly prevented that incentivisation of spending because of the stop and start nature of the pandemic. The unpredictability and consequences of the pandemic have resulted in the scheme being completely underutilised. A review of the stay and spend scheme was one of the recent recommendations of the tourism recovery oversight group. I have urged Cabinet colleagues to give this and other recommendations of the report serious consideration to facilitate the reopening of the sector. It is anticipated that the Minister for Finance will then take stock and look at what additional measures might be appropriate. I am cognisant of the seasonal nature of the industry, financial challenges and the leaner shoulder and off-season months. I believe that supports will need to consider that impact on the off-season. I am open to all supports that can help the tourism sector.
Will the Minister include the summer months, if that is what the Government is going ahead with, to ensure that families could benefit from it?
She did not respond to my question regarding the Sinn Féin proposal of a voucher scheme that would benefit every man, woman and child in the country and local economies.
I also want to touch on the outdoor dining grant. As she said, it was a positive move with €12 million for local authorities to use in respect of adaptations for outdoor dining. The concern, however, is the €5 million allocated for individual businesses. She does not need me to tell her that the sector is on its knees. For the most part, and especially for June and July, it seems certain that it will be a case of outdoor dining. The sector will need every assistance to prepare for that, whether that involves weatherproofing, seaters and-or heaters. The sum of €5 million is insufficient in that regard. The sector is looking for the Minister to fight its corner. Will she insist that this allocation is increased? There are more than 10,000 premises affected between restaurants, pubs and hotels in the State. Not all of them will be able to adapt or claim the support, but-----
I call the Minister to reply.
-----under this scheme, the €5 million will only cover 1,250 businesses.
Regarding the voucher scheme, I will work with my colleagues to consider all necessary targeted measures to help reboot tourism, which we agree will face particular challenges during the recovery phase when the economy reopens. I reiterate that I am open to considering everything and anything that will help the tourism sector to reboot.
On the outdoor dining grant, we had this conversation last week. It has been very well-received by the sector. I am not hearing this cry for help from the sector that the Deputy mentioned. The grant has been well received. The applications are open. Of course, if it all dried up then we would look at it again. However, I have not received any communication from anyone in this sector who feels there is not enough money. I just want to make that point clear to the Deputy.
