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 (DCEDIY) concerning the bed stock under contract to accommodate Ukrainian Beneficiaries of Temporary Protection and International Protection applicants and established that around 13 to 14% of all Fáilte Ireland registered tourism bed stock is currently under contract to the State. An additional quantum of non-registered tourism-tupe accommodation stock is also contracted.
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 vs 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 and this is why 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 examine 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 in order to provide direct and verifiable evidence of how tourism accommodation stock displacement has negatively impacted on their businesses.
