Mr. Cian ? Lion?in:

I am joined by Ms Orlaith Gleeson, principal officer with responsibility for tourism development. I welcome the opportunity for further engagement with the committee on the current challenges facing providers of tourist accommodation in Ireland. The importance of the sector is well known, both for the economy and communities in every corner of Ireland. It is timely that we are looking at the challenges facing both providers and the wider tourism ecosystem. The challenging environment for tourism, as outlined at the Department’s last appearance before the committee in December 2022, has continued despite a strong inbound tourism recovery in 2022. The heightened levels of economic uncertainty, price inflation and supply and labour issues are going to make 2023 a competitive environment for both overseas and domestic tourism. The war in Ukraine, combined with the high number of international protection applicants, continues to put pressure on the Government's ability to offer humanitarian accommodation as part of the largest humanitarian effort in the State's history. Between those fleeing war in Ukraine and international protection applicants, Ireland is now accommodating more than 79,500 people in State-provided and pledged accommodation. The equivalent figure in February 2022 was 8,300. We have never seen so many people arrive in such a short timeframe, and the tourism sector, despite the other substantial challenges it is experiencing, has proven to be a critical part of the State response to the humanitarian accommodation emergency. The use of tourism accommodation to meet humanitarian needs, while necessary in the short term, has led to concerns for those involved in tourism, with impacts being felt beyond the provision of accommodation. Officials in the Department are in ongoing contact with the Department of Children, Equality, Disability, Integration and Youth as it works urgently across government with agencies, NGOs, and local authorities to bring new accommodation on board. We are also engaging with a range of other Departments, with input from colleagues in Fáilte Ireland, on how the potential impacts on the wider tourism ecosystem of long-term use of tourism accommodation might best be mitigated.

With regard to other challenges, recruitment and retention of staff continues to be an issue and Fáilte Ireland is continuing its excellent work in that area. I know Mr. Kelly and Mr. Wall from Fáilte Ireland have more information on initiatives like the excellent employer programme. The Department participates on the tourism and hospitality careers oversight group, which brings together industry representatives, State agencies, Departments and the education sector. The group has pivoted to focus on supporting the industry to address some of its immediate recruitment challenges this year. The Department and Fáilte Ireland are also working with industry and across Departments to ensure a co-ordinated approach to addressing the labour and skills shortages in the sector across all roles. The committee has also produced its own report on working conditions and skills shortages in Ireland’s tourism and hospitality sector. It makes recommendations pertaining to the responsibilities and functions of a number of Departments and agencies. The Minister, Deputy Catherine Martin, wrote to the committee in response to this report last month. While several recommendations therein are addressed, further insights from the committee regarding the recommendations would be helpful. I know the committee has recently written to the Department in that regard. The Department has also met with the Department of Enterprise, Trade and Employment to discuss the recommendations. We have also written to the Department of Further and Higher Education, Research, Innovation and Science to seek their views on specific recommendations. The Government's commitment to supporting the tourism and hospitality sector over past years during the Covid pandemic, and the current economic challenges is clear and consistent. The decision to extend the lower 9% VAT rate for the sector until 1 September is further evidence of this support. The Minister has made clear her view that the lower rate needed to be extended for another period to enable the sector to deal with the various headwinds facing the sector, and the certainty provided by the extension is most welcome. When we look at the wider economy and the particular set of challenges facing the tourism industry it is clear that a collective and concerted multi-stakeholder approach to tackling these challenges is essential. That is the approach the Department will continue to pursue.