Mr. Cian ? Lion?in:

I am delighted to be back to discuss this important issue. Since my last appearance before the committee in June, Ireland has had a very busy summer season, certainly busier than was predicted at the time. However, the challenges we outlined five months ago are still with us and will be for some time. International travel rebounded more quickly than expected in 2022. Tourism Ireland estimates that overseas tourism to Ireland in 2022 is tracking towards 75% of 2019 levels. This represents a fairly remarkable recovery of inbound tourism since travel restrictions were lifted earlier this year.

While tourism in Ireland continues to recover steadily, supported by sustained Government supports, several key challenges remain. The combination of increasing interest rates in all major economies, rising energy and food prices, and the growing prospects of a global recession, as indicated by the World Bank and other commentators, represent major challenges for the recovery of international tourism through the remainder of this year and 2023. Hotel capacity and labour shortages, two topics that we particularly focused on in June, will continue to challenge the tourism industry in Ireland in 2023.

Notwithstanding these supply side issues, Ireland must continue to promote itself to a global audience to maintain its place in a very competitive marketplace. In budget 2023, the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Deputy Catherine Martin, secured additional funding of €15 million for overseas marketing of Ireland. The overseas marketplace is very competitive and it is vital that Ireland maintains its profile and reputation as a destination that offers value for money due to the excellence of product and the warmth of the Irish welcome. Notwithstanding these current challenges, the sector must continue to maintain a strong focus on its long-term competitiveness. This is affected by a number of factors, such as energy prices and recruitment, retention and availability of staff, but it is also affected by the choices made by every operator within the sector.

We are aware of the difficulties energy prices have presented for the industry. The Government’s temporary business energy support scheme, TBESS, will be a vital support to tourism businesses in this regard. The Department recognises the growing concern among those in the wider tourism industry about the potential impact on tourism’s longer term recovery and prospects if a large amount of tourism bed stock continues to be taken out of the system for humanitarian reasons. While the use of tourism accommodation to meet humanitarian needs has been absolutely necessary in the short term - and it is important to state that the sector has stepped up to meet these needs - we are in discussions with colleagues across Government with a view to finding more appropriate long-term solutions. The wider tourism ecosystem consists of a wide range of actors, such as local restaurants, bars, cafés, retail, art galleries, visitor attractions and activity providers. They all rely on visitors having a place to stay. ITIC has prepared a report on these issues and concerns. The Department is examining that report and has shared it with our colleagues on the humanitarian senior officials group to ensure that the longer term impacts on tourism can be taken into account in planning as we go forward.

While the availability of accommodation is challenging for the industry, it is important to recognise that other challenges still remain, including recruitment and retention of staff. Mr. Kelly, Ms De Saulles and colleagues in Fáilte Ireland are doing excellent work in that area. In addition, this committee recently published its report Working Conditions and Skills Shortages in Ireland’s Tourism and Hospitality Sector. That report makes recommendations that pertain to the responsibilities and functions of a number of Departments and agencies. Any response to the report will require detailed consideration by the Department in consultation with those other Departments and agencies.

I will highlight to members that my Department has initiated the development of a new national tourism policy that will seek to mainstream sustainability across everything we do. The development of this new policy will involve extensive consultation with the tourism industry and our communities to help set out a path for the coming years, which will support sustainable recovery and development in the sector. The Minister very much welcomes engagement with the committee in this regard. This new tourism policy will seek to support sustainable tourism development in communities throughout the country, while protecting our environment and natural resources, and will equip the sector to meet the challenges of today and tomorrow.

I thank the Cathaoirleach for her attention.