Dáil Éireann Debate, Tuesday - 5 December 2023
288. Deputy Bernard J. Durkan asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the extent to which her Department continues to monitor the tourism sector in order to identify trends with particular reference to targeted assistance to the most needed areas of the industry; and if she will make a statement on the matter. [53862/23]
View answerThe tourism sector continues to play a significant role in supporting the State’s humanitarian effort in response to the Russian war against Ukraine. However, I recognise that this very necessary humanitarian support has had downstream impacts on tourism businesses in particular parts of the country.
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 (BOTPs) and International Protection applicants (IPs). This established that 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-type accommodation stock is also contracted.
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.
The overall programme of supports will include investment in sustainable tourism development and promotion, industry digitalisation, promotion of domestic tourism and festivals and recruitment and retention initiatives. The programme will focus on those key tourism businesses, such as visitor attractions and activities that are a critical building block underpinning the tourism sector.
I have 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. My officials and Fáilte Ireland are engaging intensively on this and I hope to see the details of this scheme finalised and published soon.
Fáilte Ireland is also in the process of conducting an analysis of current data provided by DCEDIY concerning tourism accommodation under State contract. This data in addition to evidence from impacted downstream businesses will be critical to fully understanding how tourism accommodation stock displacement has impacted the tourism sector.
The Government has strongly supported the tourism and hospitality sectors through a range of fiscal supports, particularly during the period of the Covid pandemic, and more recently in dealing with the challenges facing the sector. These supports included the retention of the lower VAT rate since November 2021 until 1 September 2023 as well as horizontal supports such as the Employment Wage Subsidy Scheme, the Covid Restrictions Support Scheme and the Temporary Business Energy Support Scheme.
When we look at the wider economy and the particular set of challenges facing the tourism industry, it is clear that a collective and concerted multi-stakeholder approach to tackling these challenges is required and that is the approach that my Department and the Government will continue to pursue.
