Dáil Éireann Debate, Thursday - 25 February 2021
104. Deputy Verona Murphy asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the additional supports being considered for the tourism sector in view of the extended restrictions on the industry; and if she will make a statement on the matter. [10910/21]
Amharc ar fhreagraThe July Stimulus and Budget 2021 provided a significant package of tax and fiscal measures to build the resilience of the economy and to help vulnerable but viable businesses across all sectors. In regard to tourism these measures include:
- The first phase of the Tourism Business Continuity Scheme was launched on 11th February by Fáilte Ireland to help strategic tourism business survive the pandemic and drive recovery. The Scheme will contribute to the fixed costs of identified tourism businesses that are not eligible for CRSS to support their survival. It will provide an equitable level of payment to the CRSS for qualifying businesses and the first phase will cover businesses such as tourism attractions, activity providers, and caravan and camping sites.
- The VAT rate for the Sector was reduced to 9% to help improve competitiveness and viability of businesses.
- Two separate funds of €10million each were introduced for Coach Tourism Operators and Ireland Based Inbound Agents Business Continuity Scheme in the last quarter of 2020.
- Funding of €5 million has also been provided for upskilling training and to improve digital presence.
- A €26m adaptation fund for the tourism sector to adapt their premises to meet COVID-19 safety requirements.
- In addition, the Government has introduced a number of horizontal measures that have been of assistance to the tourism sector including the Employee Wage Subsidy Scheme (EWSS), the Covid Restrictions Support Scheme (CRSS), tax warehousing, and the Commercial Rates waiver. In regard to the CRSS, as at 25 February 2021, Revenue Commissioners’ data shows that €329m was paid out under CRSS, of which approximately 63% (€206m) was in respect of the tourism and hospitality sector.
The measures introduced have been critical in assisting tourism businesses to survive the hugely challenging situation brought about by the pandemic. Unfortunately, the evolution of the pandemic in Ireland and elsewhere has meant that our tourism sector has remained in survival mode.
The Deputy will be aware that on 23 February the Government published "COVID-19 Resilience and Recovery 2021 The Path Ahead". The Government also decided to support businesses, including tourism businesses, by extending the COVID Restrictions Support Scheme, the Employment Wage Subsidy Scheme, and the current commercial rates waiver for a further three months.
The Government has also committed to publishing a National Economic Recovery Plan. As part of the Plan the Government will consider more targeted measures to help re-boot those sectors, such as tourism, who will face particular challenges during the recovery phase when the economy reopens.
