Oireachtas Joint and Select Committees
Wednesday, 3 December 2025
Select Committee on Enterprise, Tourism and Employment
Estimates for Public Services 2025
Vote 32 - Enterprise, Tourism and Employment (Supplementary)
2:00 am
Peter Burke (Longford-Westmeath, Fine Gael)
I thank Deputy Gogarty. I really appreciate those very good questions. First of all, we have our business events strategy, which we launched a few months ago to target conferences and business events. We think there is €1 billion of opportunity contained within this strategy. We have been working very closely on it as it links into our new strategy, A New Era for Irish Tourism, which was launched on Monday.
In relation to humanitarian contracts with the State, midway through 2022 we reached about 13% of hotel accommodation being under State contract and we have got that down under 5% now. In Clare I think it was over 35%, and that is reduced below 10% now. We are now working to ensure that we bring more hotel spaces back into the economy for tourism purposes, and that is the trajectory the State is on. The Deputy will have seen recent announcements on migration and our approach in connection with that. We also have about 11,500 hotel rooms that are under construction, to be delivered next year. Some 8,660 of those are in Dublin and that will provide additional capacity, which will be very strong for the sector. There are also 36,000 more under planning permission at the moment. I think that will signal a very strong response in terms of the capacity. Outside of the main season from May to September there is a 72% occupancy rate in hotel bedrooms, so there is still significant scope for additional visitors to come in over the Lenten period. That is why we are trying to enhance those less mature markets. From St. Brigid's Day right out to Ireland as being the home of Hallowe'en we are looking to grow the less mature markets by about 7% per annum, over the next five years and this is contained in our tourism strategy. There is a huge amount of scope. St. Brigid's Day went very well but we can do a lot more. It is a new brand and it is really in its infancy in terms of the work and the promotion being done on it. I have a lot of new strategy ideas that I want to bring in with new trails, etc., and I am happy to work with the Deputy on those. I have not road-tested them as yet, so I do not want to really come forward with them. We are working under the programme for Government. I am also very happy to work with the committee on those areas. As the Cathaoirleach was saying, I would really encourage the committee to bring in State agencies. We are working together here to hold their feet to the fire as well. It is important that the committee plays its part in that. This is why the expansion of the season will be important.
Regarding energy efficiency grants, SEAI has brought in significant grants for hotels, which the Deputy alluded to. That can bring down their costs in utilities by up to 30%, so that is a very significant area. There are now 46,000 businesses providing tourism products. About one in ten jobs are supported in the economy with it. The first thing we can do to make them more viable is not to take money from them for utility bills. We want to give them grant aid to support their sustainability journey. Our LEOs also have an offering for some of the smaller businesses, namely, the energy efficiency grant, which gives a rebate of 75%, which can take €1,200 or €1,300 a month, in some cases I have seen, off bills. Businesses can do LED lighting, improve refrigeration and upgrade kitchens. All of that capital expenditure is very important.
From the middle of next year, we will have our VAT reduction. Again, that will give businesses the scope and opportunity to reinvest in their model. I see a huge horizon of more visitors coming into the country that we will working hard on. We need businesses to absorb that, businesses which can be vital to do so and that we can offer a strong value proposition. We have a lot of work to do in that regard as well.
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