Dáil Éireann Debate, Tuesday - 21 June 2022
11. Deputy Jennifer Carroll MacNeill asked the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media the plans in place to help rebuild and support Ireland’s tourism sector taking into account current difficulties highlighted with the cost of hotels, vehicle rental and pressures on Dublin airport; and if she will make a statement on the matter. [32143/22]
Amharc ar fhreagraOn a point of information, the baby rave is on this Saturday in Dún Laoghaire in the DLR LexIcon at 10.30 a.m., 12 noon, 2 p.m. and 3 p.m. I cannot believe I did not know about it before now. I thank the Minister for letting me know and I will promote it on my social media. Babies and toddlers are invited to wear sunglasses, bring glow sticks and rock away for whatever length of time. It was a useful night's work even just for that.
Separately, I have perhaps a more serious question about the rebuilding and supporting of Ireland's tourism sector taking account of the many pressure points that exist at present, between the holistic experience from the airport through to taxis, vehicle hire and the cost of hotels, which was mentioned in Questions Nos. 3 and 4.
Follow that, Minister.
I will enjoy that at the weekend.
A tourism recovery task force was established in May 2020 and delivered a tourism recovery plan with recommendations on how best the Irish tourism sector could adapt and recover in the changed tourism environment. Later that year, I appointed a recovery oversight group to oversee the implementation of this plan. This group has reported regularly to me and has provided valuable inputs to the Government on the measures required to assist the sector. The recovery oversight group is continuing its work and will report to me with updates on implementation of the tourism recovery plan and recovery in the sector more generally.
Looking to the longer term, my Department has initiated the development of a sustainable tourism policy. The development of this new policy will involve consultation with the tourism industry and with communities to help set out a path for the coming years which will support sustainable recovery and growth in the sector. In budget 2022, €288.5 million was allocated for tourism services. This allows for significant increases in domestic and overseas marketing in building a strong digital presence for the sector and in developing new and enhanced visitor experiences that will drive sustainable and dispersed visitor growth. I have referred the Deputy's question to Fáilte Ireland and Tourism Ireland for further details of their specific plans to help the tourism sector to recover in 2022 and beyond.
A significant challenge facing the sector at present is the recruitment and retention of staff. My Department and Fáilte Ireland have been collaborating with industry and other Departments to ensure there is a co-ordinated approach to addressing the labour and skills shortages. A key task in this regard is to drive the long-term repositioning of the sector as an appealing and rewarding career choice and workplace. As we enter the peak summer months and the tourism industry recovers, there are inevitably additional pressures on hotel capacity and pricing. The initial recovery phase has resulted in issues for all tourism businesses, many of which are repeated in other markets around the world.
Hotel supply in Dublin has been affected by a range of factors. Some of them are short-term, such as deferred business from the last two years and increased demand. Businesses are also facing significant cost pressures due to inflation and other economic factors, all of which have contributed to higher prices than in 2019. International supply chains are impacting on the car rental fleet. While this is not in the control of the Government and there are no short-term solutions, my Department is examining possible taxation options which might assist, with the recognition that taxation measures are a matter for the Minister for Finance.
I appreciate the points the Minister made, in particular regarding pent-up demand and the supply chain issues relating to vehicle rental. Nevertheless, the holistic experience for a tourist coming to Ireland is one of extremely high costs. Other Deputies gave the costs of hotels in different ways. I did my own analysis and the pressure is considerable in Dublin, in particular. However, there are also other examples of value questions. One can get a room in the Camden Court Hotel tonight or tomorrow night for €185. An equivalent hotel bed out in Liffey Valley is approximately the same price. I do not see that as the same value proposition - a hotel room in the centre of Dublin versus out in Liffey Valley, with every respect to Liffey Valley. There are questions about how pricing is being conducted. The questions about price gouging in different sectors are valid.
In particular, there is the pressure in Dublin Airport. It is not just the queues, it is also the actual experience there. The Department with responsibility for tourism should have a strong interest in it. It is about the availability and accessibility of taxis and, frankly, about the availability of food after 2 p.m. or 3 p.m., when most places seem to be sold out. It is simply a very difficult experience for visitors going in both directions at present.
Representatives from the Irish Hotels Federation, IHF, appeared before the tourism committee last week and we had a good discussion. I have a question about car hire prices. Will the Minister call in the industry? Just because one can charge something does not mean one should charge it. Right now, the gouging that is happening is going to do enormous reputational damage to this country. A select number of hoteliers are doing the same. The reputable hoteliers are providing excellent value for money in most cases, but there are a small number who are spoiling it for everyone else and giving this city, in particular, a very bad name and also giving the country a bad name. I suggest that the Minister call in those who are causing reputational damage to Ireland in both sectors and tell them it is not good enough. In addition, I believe we need to consider regulatory interventions if they will not toe the line and behave.
With regard to the hotel prices the Deputy mentioned, my officials have engaged with the Department of Enterprise, Trade and Employment, Fáilte Ireland, Tourism Ireland, the Irish Tourism Industry Conferation, ITIC, and the IHF. They are also working with the tourism agencies. The Tánaiste and I co-chair a tourism and hospitality forum. That will be convening next week and we will raise those issues with it. I wrote to the DAA at the time, although it is not under my remit. I could see the potential and I wrote to express my concerns about the reputational damage to Ireland as a tourism destination as we seek to rebuild.
Regarding car rental, I am aware of the difficulties and the potential impact on the recovery of the tourism sector or the reputational damage. My officials have met the Car Rental Council of Ireland, which recommends that people can contact hire companies directly. However, neither my Department nor Fáilte Ireland has control over prices set by service providers in the tourism industry.
We have no regulatory or other functions in regard to the car rental industry. Each operator decides on its level of charges, having regard to its costs and the requirement to make an adequate return on its investment. My Department is examining possible taxation options which might assist car rental companies to rebuild their fleet in order to meet tourism demands, while recognising that taxation matters are ultimately a matter for the Minister for Finance.
I appreciate the points the Minister makes. I wish to return to the matter of Dublin Airport in particular. I appreciate that, strictly speaking, it is under the remit of the Department of Transport. Nevertheless, as Minister for Tourism, it is associated with her because of the visitor experience attached to Dublin Airport as our main port of entry. I want to highlight again the impact of the issue there. It is as if we have outgrown the infrastructure, but we cannot have done so yet. It cannot be the case that one cannot get food after 2 p.m., 3 p.m. or 5 p.m. in the afternoon and evening in terminal 1, as my constituents are telling me is the case. It cannot be that restaurants are closing down at that point, either because they do not have enough food in for the day or they have run out, whatever it happens to be. It cannot be that places are not cleaned as the day goes on. It cannot be that the pressure of people, not just in queues but all the way through the airport, is creating an environment that is unpleasant for tourists. It is the last impression they have as they leave Ireland. There must be a better way of organising taxis on the way in to the airport so that there is not a big group of taxis stuck in a pen and a big group of people waiting for taxis at the airport. I ask the Minister to engage again with Dublin Airport as Minister for Tourism, Culture, Arts, Sport, Gaeltacht and Media to highlight these points again.
As I said, the smooth running of Dublin Airport is of critical importance in terms of the recovery of the tourism sector. The DAA has the statutory responsibility to operate, manage and develop Dublin Airport, including all the operations associated with security screening at the airport. The passenger experience at Dublin Airport is falling far short of the service that citizens and visitors should expect at our largest State airport. The Government recognises the undue stress that these unacceptable delays are having on passengers. The Minister for Transport, Deputy Eamon Ryan, and the Minister of State, Deputy Naughton, continue to hold meetings with the CEO, Dalton Philips, and his management team in this regard. From a tourism perspective, I am concerned. If this situation were to continue, it has the potential to cause significant reputational damage to the country abroad, and as a result hinder the recovery of the tourism sector. That is the reason I wrote to Dalton Philips to express my concern. In his reply, he outlined some key measures being rolled out, which aim to substantially mitigate the risk of a repeat of recent days. My time is short, but I can send the communication to the Deputy. I am informed that regular meetings will continue with the DAA at ministerial level with the Department of Transport until the Minister is satisfied that difficulties persisting at the airport are satisfactorily resolved. I will keep in contact with the Minister and Minister of State.
