Dáil Éireann Debate, Thursday - 13 July 2023
66. Deputy Paul McAuliffe asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if her Department has engaged with the hotel sector in Dublin in order to discourage high price increases during busy tourist periods; and if she will make a statement on the matter. [34737/23]
View answerAs I said in my earlier response to Deputy Munster, my position on the general issue of hotel pricing and indeed the wider value for money proposition within Irish tourism remains unchanged. While Ireland is not a low-cost destination, it is vital that the sector keeps the value for money proposition to the fore across all its segments to ensure that our high quality reputation is maintained and that new and repeat visitors continue to come here. The long term impacts of short-term thinking need to be carefully considered by all tourism businesses in setting their prices.
While there is fair value to be had in tourism accommodation, including hotels, around the country for much of the year there are specific price spikes at specific times and locations, often coinciding with concerts and sporting events. These spikes, or compression events that occur when demand is highest, have the potential to cause reputational damage for the sector. I am advised by Fáilte Ireland that this is not necessarily representative of the wider hotel sector in general but, to bring some definitive facts to bear on the situation, I have asked Fáilte Ireland to commission independent research to better understand the potential scale and frequency of any pricing issues based on the best-available available empirical evidence with recommendations for actions arising, as appropriate.While I have not specifically met with the hotel sector, as represented by the Irish Hotels Federation, on this matter, I have raised the issue at a whole of sector level as recently as 28 June at the Hospitality and Tourism Forum which I co-chair with the Minister for Enterprise, Trade and Employment. My officials continue to engage on an ongoing basis with Fáilte Ireland on a range of issues relating to the tourism sector, including potential concerns around pricing. The issue has also been discussed in detail by the Joint Oireachtas Committee on Tourism, Culture, Arts, Sport and Media at a number of hearings with the Irish Hotels Federation, the Irish Tourism Industry Confederation, Fáilte Ireland and my own officials. In addition, a letter from the Fáilte Ireland CEO, Paul Kelly, was sent to to all registered hotels in December 2022 emphasising how decisions made on pricing policies by individual businesses have a reputational effect on the both the hotel sector and the wider tourism economy.I think it is recognised that businesses, including hotels and others within tourism, continue to face significant cost pressures due to inflation and other economic factors. Rising costs however are not unique to the tourism industry and are a challenge for the wider economy. Businesses need to be able to make a sustainable trading margin but they must also pay attention to their pricing and how they can continue to deliver added value to ensure their long-term viability.
