Dáil Éireann Debate, Thursday - 19 October 2023
8. Deputy Robert Troy asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the action she is taking in relation to the reduction in tourist accommodation resulting from the refugee crisis. [45705/23]
View answer18. Deputy Cathal Crowe asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if she will elaborate on the "targeted measures to support downstream business impacted as a resulted of the war in Ukraine" announced on budget day. [45069/23]
View answer31. Deputy Alan Dillon asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media if she will provide an update on the impacts of stock displacement within the tourism sector, with 30,000 beds now under contract to the Department Children, Equality, Disability, Integration and Youth, of which 25,000 are hotel beds; if she will consider a business support scheme in regional areas with the highest occupancy; and if she will make a statement on the matter. [45524/23]
View answerI wish to ask the Minister about the Ukrainian war. We are quickly approaching its second anniversary. I think it was around 20 March 2022 that it began, so we are coming close to the two-year mark. The response from Ireland has been immense. In the main, we have done a good job as a country but our response has had its struggles. One of the fallouts from our response has been a major withdrawal of accommodation across the country. Our response has been tied into providing accommodation. I would like to know if there is a medium- and long-term response to that, specifically for those businesses locked out of and not benefiting from the lucrative contracts. Is there any support that could be given to them?
I propose to take Questions Nos. 8, 18 and 31 together.
The tourism sector continues to play a significant role in supporting the State’s humanitarian effort in response to the unjust Russian war against Ukraine. In June 2023, Fáilte Ireland carried out a detailed analysis of data provided by the Department of Children, Equality, Disability, Integration and Youth concerning the bed stock under contract to accommodate Ukrainian beneficiaries of temporary protection and international protection applicants and established that 13% of the tourism accommodation stock nationally that is registered with Fáilte Ireland was under contract to the Department. An additional quantum of tourism-type accommodation that is not registered with Fáilte Ireland is also contracted to the Department of Children, Equality, Disability, Integration and Youth.
The data identified that in five counties more than 20% of the registered stock is used for humanitarian purposes, peaking at 33% in County Clare. The analysis shows that in certain counties, such as Offaly, Mayo, Leitrim, Meath and Clare, the scale of accommodation stock displacement is significant and is a factor in downstream economic impacts. Recent research undertaken by Fáilte Ireland looked at the impact of stock displacement on tourist attraction and activity providers operating within those regions most affected. The overall findings are that most attractions, experiences and activity providers experienced a drop in business volume compared to 2019 across all three markets and that nearly 20% of businesses surveyed have been substantially impacted, with a decline of at least 30% in business volumes compared to 2019. The evidence collated suggested that bed stock displacement was one of the main factors that has led to the decline in business volumes.
As the businesses impacted are varied and range from small and micro-sized enterprises to family-run businesses, there is no one-fits-all solution to address the issues they are facing. For this reason, I have secured funding to implement a broad range of supports. As part of the budget settlement that I have secured for tourism in 2024, up to €10 million has been identified for a comprehensive programme of supports targeted at downstream tourism businesses experiencing particular trading challenges linked to the reduction in footfall to activities and attractions in regions most impacted by tourism bed stock displacement. This programme of supports includes investment in sustainable tourism development and promotion, industry digitalisation, promotion of domestic tourism and festivals and recruitment and retention initiatives.
I have also asked Fáilte Ireland to engage with impacted businesses to consider the scope for a specific business support scheme that could help the most affected tourism activities and attractions and to report back to me on options and recommendations in four weeks’ time. A strong evidence base will be critical in this regard, and I have asked the tourism sector, particularly activities and attractions, to engage with Fáilte Ireland to provide direct and verifiable evidence of how tourism accommodation stock displacement has negatively impacted their businesses.
While the precise breakdown of the €10 million in funding I have secured to support downstream tourism businesses will not be finalised until I have received Fáilte Ireland's report, I will be ring-fencing specific funding to the organisation for sustainable tourism development to help tourism businesses improve their energy efficiency. This investment will help businesses to reduce overheads and dependency on fossil fuels while supporting the sector in the delivery of its climate targets by reducing carbon emissions.
Examples of the types of activity that can be supported under this sustainability heading include assistance to activity providers to extend their season, encouraging visitors to travel in April, May, September and October. Such businesses range from surfing providers to walking and cycling operators and an extension to their seasons greatly benefits them and their surrounding communities who provide supporting services. I refer as well to media partnerships with specialist websites, brands and publications in key markets such Germany and the United States, plus media visits by key travel and tourism journalists, and building linkages between Irish tourism industry providers and large tourism travel associations. Additionally, there is building awareness of the move by inland cruisers on the Shannon away from fossil fuels to the use of hydrogenated vegetable oil, which will reduce carbon emissions by 92%, and help to extend season business for the inland cruisers sector. I also intend to target additional funding to support ongoing work under Fáilte Ireland's employer excellence programme, which aims to address the current recruitment and retention issues.
Tourism businesses are in every region of the country and sustain people living and working in areas where often there is no other industry operating.
This is a three-year programme that has, since 2022, supported 390 tourism businesses and Fáilte Ireland will now be extending the scope of the programme to engage and support businesses with fewer than 20 employees, with a particular focus on attractions and activity providers. This funding will get more small businesses into the programme, which will help them to attract and retain workers. With this investment Fáilte Ireland will continue to build on this important work through a range of innovative initiatives to support industry in the recruitment, retention and upskilling of staff across the sector. This will comprise of multifaceted campaigns to target key cohorts of talent and to reposition the industry as an attractive workplace, the roll-out and development of the new learning management system, including an extensive programme of skills and professional development, and a programme of activity to target second-level students and their key influencers.
Most funding directed towards Fáilte Ireland’s digitalisation initiative will continue to assist businesses to tackle low levels of digitalisation, which result in poor online visibility and, by extension, low levels of e-commerce activity. An effective way to assist destinations to increase dwell time is by enabling visitors to book more product in advance of arriving in destinations. Fáilte Ireland will commence a further intake of tourism businesses into its digitalisation programme over the next year. In addition, it will prepare an industry digitalisation strategy to support businesses to harness the power of new and emerging technologies such as AI and virtual and augmented reality. On the ground this will help Irish tourism businesses to maximise sales from online channels and increase reach and bookings through connected distribution. Officials from my Department, Fáilte Ireland and Tourism Ireland continue to engage with the sector to support tourism development at home and among overseas visitors, while supporting the continued recovery of the sector.
I thank the Minister for her comprehensive reply. One third of tourism accommodation is pretty much tied in providing refuge at this time for people who are fleeing the war in Ukraine and other humanitarian crises. It is felt in County Clare more than anywhere. There is a larger cohort of accommodation in Clare committed to these schemes than anywhere else in the country. There are, however, many businesses locked out of this. Businesses such as surf schools, open farms and restaurants or offering pony trekking as well as the four- and five-star hotels that are not configured to take in Ukrainian refugees or international protection refugees have seen their business model totally collapse. People just cannot book in County Clare for weekend weddings or long-term trips. I know of one fleadh cheoil group that was coming to Clare from the United States. They were going to stay for a while but could not get accommodation and had to cancel their entire trip. We are seeing this repeatedly.
I am particularly keen to hear more on the business support scheme. I want to home in on the types of businesses that are locked out of what we have just spoken about. Hotels in County Clare have received, I believe, in the region of €23 million so far for engaging in the scheme but so many businesses have seen their income go the opposite way. I would love to hear what the Minister can do for those businesses to pick them up a little and ensure they survive this crisis.
As I said, €10 million has been identified for the comprehensive programme of supports. The key element is that I have written to Fáilte Ireland to see if there is scope for a specific business support scheme similar to the supports we provided during Covid. We cannot devise a scheme based on anecdotal evidence. If the Deputy is aware of businesses such as activity providers or tourism experiences, he should ask them to engage directly with Fáilte Ireland. Last week, I asked Fáilte Ireland to get back to me within four weeks so that response will be provided in three weeks. It is key that businesses engage with Fáilte Ireland in order that we can devise a scheme, if one is identified as needed, and have the evidence to do so.
I thank the Minister. When I submitted this parliamentary question I was thinking of Lisdoonvarna in County Clare, made famous of course by the Christy Moore song. Almost every September, the town hosts an incredible festival to which people from all over Ireland flock, certainly the single people of Ireland. Ordinarily there are 300 or 400 people in the town but that figure has increased fourfold. No other place in Ireland has had a fourfold increase in population. The people of Lisdoonvarna have been incredibly welcoming and we can be very proud of receiving refugees. On the accommodation front, nearly every hotel in the town has availed of the scheme but one or two four- and five-star hotels are not configured for it. Outside the town, there is pony trekking and there are surf schools over in Lahinch. These are not businesses that can reap the benefits - if I can put it that way - that hoteliers can reap. They are seeing their businesses collapse. I hope the Minister can push on with a business support scheme. I believe a lot more than €10 million is needed. The scheme needs to be targeted at places like Lisdoonvarna and other towns along the west coast that have had thousands of people funnelled through them without supports. As we head into the winter period, we need to fund these businesses so they start 2024 in good shape.
I have concerns about that impact on those businesses. My colleague, the Minister for Enterprise, Trade and Employment, Deputy Simon Coveney, has put in place a scheme that would benefit up to 130,000 small and medium-sized business at a cost of €250 million. Hopefully, through engagement with the sector, including activity and tourism experience businesses, the Fáilte Ireland scheme will give the support that is needed and which the Minister, Deputy Coveney's scheme, has not been able to reach. Between the two Departments, we will be able to reach out to them. I have allocated that €10 million specifically in recognition of the knock-on effect on downstream tourism businesses.
I emphasise again that engagement is key. If the Deputy is aware of any specific tourism businesses in County Clare, he should ask them to engage with Fáilte Ireland in the coming weeks.
