Dáil Éireann Debate, Thursday - 1 October 2020
134. Deputy Bernard J. Durkan asked the Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht the extent to which she continues to explore ways to assist the tourism sector at home and internationally in an effort to address issues caused by Brexit; and if she will make a statement on the matter. [28050/20]
Amharc ar fhreagraBrexit poses significant challenges to our tourism sector. The impact of the drop in value of sterling since the UK referendum on EU membership in 2016 has been that from a tourism perspective, Ireland has become a more expensive destination for UK visitors. The number of British visitors to Ireland in 2019 was 3.5% less than in 2016 and the associated revenue generated by British visitors was 7.9% less in 2019 than in 2016.
A No-Deal Brexit, combined with impacts of Covid-19, will have very significant negative impacts for Irish tourism. It will mean fewer tourists, lower revenues, less employment and a lost in Exchequer earnings from the sector. These losses will impact Ireland as a whole but will be felt hardest in regional areas where there are few alternatives to replace the economic benefits generated by tourism.
In 2019, the Government allocated almost €8 million in additional funding to the tourism agencies specifically to respond to the impact of Brexit. Furthermore, additional Government supplementary funding of €7 million was provided to the agencies at the end of 2019, primarily to support accelerated tourism marketing initiatives aimed at mitigating the impacts of Brexit.
Budget 2020 saw an allocation of almost €186 million for tourism, up 10% (over €17m) on the 2019 allocation. This has helped to ensure that the agencies remain equipped to deal with the challenges caused by Brexit as the situation evolves. Budget 2020 also included a €40m contingency fund for tourism, which would be available in the event of a no-deal Brexit.
GB is a vital market for Ireland’s tourism sector. It provides the best seasonal and regional dispersion of visitors across the country. GB is Ireland’s single largest source market, accounting for 35% of all overseas tourists in 2019.
Fáilte Ireland will continue to support businesses to access relevant Brexit business supports, to cut and contain costs, build value and drive competitiveness. Through its ‘Get Brexit Ready’ programme, Fáilte Ireland offers a set of supports, to help tourism businesses meet Brexit-related challenges such as development supports, training programmes, and insights and market intelligence. Tourism businesses can also avail of Fáilte Ireland’s ‘Brexit-check’ online tool allowing them to assess their own level of Brexit readiness.
Tourism Ireland is undertaking an extensive programme of research in our major markets – to identify when consumers are ready to consider holidaying again and which of our markets offer us the best short-term prospects. The insights gained will inform Tourism Ireland’s new business plan and will ensure that Tourism Ireland’s promotional plan is as targeted and as motivational as it possibly can be – in order to drive a strong recovery for tourism to the island of Ireland as quickly as it is possible to realise it.
Officials from my Department and the tourism agencies remain in close contact as regards ensuring that appropriate contingency plans and other necessary resources are in place to assist in preparing for the end of the transition period.
The Government has put in place a range of supports and other resources to assist in preparing for the end of the transition period. Businesses are encouraged to avail of these supports, and to get ready now if they have not already done so. Acting now can help to mitigate the risks of disruption, delays and increased costs.
The Tourism Recovery Taskforce has completed its final report this week, which includes a set of recommendations on how best the Irish Tourism sector, can adapt and recover. In the context of framing Budget 2021 and our impending National Economic Plan, I am reviewing the recommendations of the Taskforce with my colleagues in Government, as we consider the policy measures needed to facilitate sector growth in what will be a highly competitive and uniquely challenging environment for Irish tourism in a Post COVID-19 and Post Brexit world.
