Oireachtas Joint and Select Committees

Wednesday, 7 December 2022

Joint Committee on Tourism, Culture, Arts, Sport And Media

Rising Cost of Tourist Accommodation: Discussion (Resumed)

Photo of Micheál CarrigyMicheál Carrigy (Fine Gael) | Oireachtas source

I apologise for being late. I was dipping in and out of the televised proceedings while at other meetings. I concur with what Senator Cassells said regarding the welcome for the legislation he mentioned. I was in the Seanad last night for the debate on the increased funding that will be coming from the Government to support the tourism industry. It has been recognised that significant supports were also provided all the way through the Covid-19 pandemic. Now, with the cost-of-living crisis and energy costs, the Government is again providing supports for the sector.

One member mentioned price gouging, and the reality is we all know this happened. It is also important to note, however, that a significantly large percentage of hotels did not engage in this practice. I mentioned before that I went on a trip to the west in the middle of August. For three nights in August, during the high season, for a family of five, the cost of accommodation was €700. I think that was quite reasonable. It is important, therefore, to note that this price gouging was not experienced countrywide. The reality, though, is that it did happen.

Ultimately, however, we are in a position now where we have a difficulty for 2023. A significant number of towns now have no hotel accommodation at all. This is the situation with my county town in Longford. It is the same situation with a significant number of towns where businesses - hotels - are closed and have signed up to IPAS with 100% contracts. There is a knock-on effect on the local economy, be it on the pubs, restaurants or coffee shops. I can also see a reduction in the number of weddings coming into these hotels as well. There is a great impact on the hinterlands of these areas as a result, including, for example, bed and breakfast accommodation.

I am involved with the local tourism committee at home. To be honest, it is hard to find a bed in the county now with the contracts that have been put in place. I do not blame the people in the businesses because they are looking to stabilise their own enterprises financially. However, if we want to save our tourism business for the year ahead and the longer term, we must examine a situation where there are no 100% bed contracts with hotels. I honestly believe this. I say this because we must have bed availability for visitors attending whatever event or conference is being held and that we are trying to promote. I would like to get the views of the witnesses on this point. Is this something that could be put in place? I honestly believe it should be put in place because I think we are damaging the tourism industry. We only have to look to the post-recession period some years ago to see it was the tourism sector that really rebuilt the economy. I will reiterate the figures the witnesses already know and state there are 260,000 jobs in this sector. I would like to get the views of the witnesses on this issue and the possibility of a proposal like this being put forward to the Department of Children, Equality, Disability, Integration and Youth in the context of IPAS contracts.

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