Peter Fitzpatrick (Louth, Independent)
Link to this: Individually | In context | Oireachtas source

I welcome the witnesses. I agree that tourism plays a big part in this country, especially with the small SMEs. I agree also that the sector is facing serious challenges. I read through all of the presentations and put together a bit of a presentation of my own. I will read it out and then ask for comments from the witnesses.

Given business costs, ongoing energy crisis and inflation, which have been well highlighted, the tourism industry has been hit very hard, as we all agree. The tourism sector has always relied heavily on overseas visitors, especially in my constituency of Louth and Meath as we are in the Border area. However, we are having a big problem with overseas competitiveness in light of higher prices and these constraints are a risk to Irish tourism.

I agree that the sector needs investment. There are incredible challenges across businesses and the SME sector. The Ukraine credit guarantee provided €1.2 billion in low-cost lending to business. These have dovetailed with other measures announced in the budget, such as TBESS, to support businesses through the energy crisis. The funding for the tourism sector will ensure that Fáilte Ireland can continue its important work of implementing a recovery programme and having campaigns to help deliver the economic growth of the industry and individual tourism businesses.

That said, there is a significant challenge facing the tourism sector. The viability of some tourism businesses is a real concern. New figures from ITIC show that visitor numbers are down 20%, which is a high figure. Reduced tourism activity in certain areas will affect business, including group tour businesses, visitor attractions, gift shops, outdoor activities, restaurants and pubs, and, therefore, will have a negative impact on the local economy. I live in Dundalk. I have spoken to many tourism businesses there and in the surrounding area. They are flabbergasted by the reduction in tourism and they are very concerned about the costs they are experiencing. While budget 2023 rightly dealt with the cost of living, it should also form part of a wider roadmap towards ensuring that Ireland is an attractive place in which to do business. I commend the Government on extending the 9% VAT rate.

On supply versus demand, Tourism Ireland notes the lack of available tourist accommodation and states that as this is coupled with strong demand, it is likely to drive rising costs. The war in Ukraine, combined with the high number of international protection applicants, continues to put real pressure on the Government’s ability to offer humanitarian accommodation. On top of this, accommodation demand is sky-high, especially considering the decision last week to lift the eviction ban, which I am sure is going to cause a lot of problems after 1 April.

The State is utilising the tourism sector, such as hotels and bed and breakfasts, to address the accommodation shortfall. These options are necessary to provide shelter to international protection arrivals, to meet basic needs and to prevent homelessness. The most up-to-date figures for the number of beds contracted by the State for international protection and beneficiaries of temporary international protection in Fáilte Ireland-registered accommodation is 48,046, which is equal to just over 26% of all registered accommodation. Government plans to free up an additional 12,000 rental properties have been affected by the EU delaying plans for a new Airbnb registration process until the end of the year.

This very issue raised concerns within the sector, specifically the intertwined implications and the confusion that will undoubtedly arise with planning obligations if a tourist register for short-term lets is introduced. While there is some merit in registration and planning compliance for empty lets, local tourism industry representatives have huge concerns about the whole question of accommodation being bundled into this remit. These short-term lets provide facilities to students, professionals, relocators, doctors, nurses, interns and IT personnel who arrive in our country needing a short-term base before they secure their longer-term accommodation needs. It is very important that this legislation is not a one-size-fits-all instrument and that consideration is given to these types of short-term stays. The twinning of planning legislation checks and registration requirements has every probability to cause confusion and will have huge ramifications for home-stay accommodation providers. It will most definitely result in hosts either exiting the market or retreating offline, which will decrease transparency, safety and security for guests, as well as decreasing both the short-term and long-term availability of beds in Ireland.

Overall, additional supports are required. We need to help the hospitality sector, not hinder it. Domestic and overseas market investment is also essential to promoting tourism. Sales and marketing campaigns to maximise home holidays have also proved vital in helping businesses to survive and protecting jobs. It is vital, therefore, that Fáilte Ireland receives adequate funding, and I will support that investment.

Much has happened in recent years. For example, there is a ferry in Carlingford that started operating in 2017. It has invested €10.5 million and, all of a sudden, between Brexit and other issues, problems have arisen. There is a problem with communication. People think that when they come to the Border area to cross into Northern Ireland, they need a passport, and many tours have been cancelled, even from Dublin and our own wee county. There are many issues and problems at the moment. Can the witnesses tell me how the tourism industry is going to combat these? What kind of communications are the tourism organisations putting out, even for a simple thing like people thinking they cannot cross the Border without a passport?