Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I welcome the opportunity to comment on the forthcoming negotiations on the withdrawal of the United Kingdom from the European Union and the impact of Brexit, particularly on tourism and sport. On 23 January, the Minister for Transport, Tourism and Sport, Deputy Shane Ross, and I hosted an all-island dialogue on the impact of Brexit, particularly on the tourism and hospitality sectors. The feedback from industry participants at the event reaffirmed the Government's analysis on the importance of Brexit for tourism. The Minister and I are committed to an ongoing dialogue with the tourism and hospitality industry as the Brexit negotiations proceed.

For tourism, the priority issues for the Government are preserving the common travel area, avoiding a hard Border on the island and minimising the impact of Brexit on the tourism industry and national and local economies. Notwithstanding the record performance in attracting overseas visitors in 2016, the most recent quarterly visitor numbers from Britain showed a 6% decline. While it is too early to be definitive about this development, it reflects feedback we have been receiving from our industry partners, including hoteliers and visitor attractions which have experienced some softening in visitors and bookings from Britain. We are also seeing the impacts of a difficult underlying trend in the British market. These include a drop in air access to the island of Ireland this summer, with 4% less capacity on cross-channel routes. Since the United Kingdom's referendum on Brexit, the decline in the value of sterling has made holidays and short breaks here more expensive for British visitors. Economic uncertainty is making British travellers more cautious about their discretionary spending, which is impacting on travel to Ireland.

Research commissioned by Tourism Ireland indicates a decline in overseas holiday activity by British consumers in 2017. In addition, the exchange rate movement has increased Britain's competitiveness as a destination. We will continue to closely monitor developments around Brexit to better understand and plan for the implications for travel. Competitiveness and value for money will be more important than ever given the decline in the value of sterling. The maintenance of the 9% VAT rate for tourism services, which was opposed by many parties, including one Opposition party during the most recent budget, and the 0% air travel tax are critical in maintaining Ireland's tourism competitiveness. They are policies I will strive to have maintained and I hope Opposition parties will support us in that endeavour.

The tourism sector has been an important jobs engine in the period since 2011. In that time, according to Central Statistics Office data, the rate of job creation in the sector significantly outperformed the overall rate of creation elsewhere in the economy. Drawing on the alternative approach, an estimate of all jobs in the tourism and hospitality industry based on previous Fáilte Ireland surveys of businesses indicates that total employment in the sector stands at approximately 220,000. This estimate includes an additional category of tourism services and attractions which is not covered by the Central Statistics Office. It is further estimated that every 1,000 additional tourists supports 14 jobs in the tourism industry. Unfortunately, negative growth in tourism may be expected to result in tourism enterprises shedding employment at a comparable rate.

The Government's Action Plan for Jobs includes a number of tourism-related actions. Implementing these will mitigate some of the risks arising from Brexit. Accelerating diversification of overseas tourism to Ireland to reduce the impact of a possible decline in visits from Great Britain is vital for the sector. Other actions reflect the higher relative importance of tourism in rural and regional economies, as I am acutely aware as a representative of a rural constituency. These include the implementation of the Ireland's Ancient East brand, the continued development of the Wild Atlantic Way and the introduction of new initiatives such as a partnership between Fáilte Ireland and the National Parks and Wildlife Service which seeks to bring more visitors to our national parks and nature reserves. This initiative was recently complemented by the local authorities.

The response to Brexit must be across the tourism sector, not only from central government and its agencies. To this end, I was pleased to be able to launch the local authority tourism conference recently. I welcome that, for the first time, 31 local authorities now have tourism strategies, statements and work plans in place. This is in line with the aims of the tourism action plan and is a recognition of the importance of tourism for local economies. We must be cautious about the road ahead for the tourism industry given the risks arising from Brexit. The challenging negotiations which will take place in the coming two years will be closely monitored by the Department, its agencies, Fáilte Ireland and Tourism Ireland, local authorities and all those involved in the hard-working tourism industry. In that regard, I single out those who work at the coalface of the tourism industry. The people working in our hotels, restaurants, visitor attractions, transport services are also at the front of house for Ireland. They are not only ambassadors for their enterprises and sectors but in many ways for the country and their role cannot be overstated.

On sport, the other side of the Department for which I have responsibility, the impact of Brexit is still subject to considerable uncertainty. However, anything that would impair or impede the free movement of sportspersons, their sports equipment and animals, for example, in the case of equestrian events, has the potential to present logistical difficulties that do not exist currently. We will work towards minimising and, if possible, eliminating any such disruption. I am particularly aware of the importance of cross-Border co-operation with Northern Ireland in the area of sport. In that context, it is appropriate to emphasise that 45, or approximately 70%, of our national sports governing bodies operate on an all-Ireland basis. This illustrates the extent of the very welcome co-operation in sport throughout the island.

As Deputies will agree, sport has been a unifying force that helps to bring together the two traditions and eliminate some of the doubt, uncertainty and suspicion among both communities on the island. My officials regularly meet their counterparts in Northern Ireland and engage in extensive and effective dialogue on topics of mutual interest relating to sport. I cite, for example, the valuable ongoing work between the Department and its opposite number in Northern Ireland on preparing the bid for the Rugby World Cup in 2023. This event has the potential to be transformative and a power of good for the island. It is being facilitated by both Governments and the unparalleled generosity of the GAA which has made the aspiration of lodging an application to host the event in 2023 a reality. This engagement will continue. By means of these contacts with the Department for Communities in Northern Ireland and the Department of Culture, Media and Sport in London, we have an effective mechanism in place to monitor the impact of Brexit on the sporting landscape.

Through bilateral meetings with my opposite number in Westminster, Parliamentary Under-Secretary of State, Ms Tracey Crouch, I had the opportunity to discuss some of the issues of concern to us, particularly in the areas of tourism and sport. The hospitality industry has come through a tumultuous period. Many of the measures introduced by the previous Government, including the 9% VAT rate, 0% air travel tax and separation of Shannon Airport, were opposed by the Opposition for naked political reasons. We are now reaping the benefits of these measures.

However, had we not reduced VAT, abolished the travel tax, given Shannon Airport its independence and pursued The Gathering and its associated events, which were lampooned by members of the Opposition for naked political reasons, our tourism industry would not be in its current position. It covers all parts of the island and has the potential to create employment, which is of major importance and has been a driving force for our economic growth following the carnage and wreckage that the Government was left with in 2011.

The Minister, Deputy Ross, our departmental officials and I are acutely aware of the needs in tourism and sport and we are ensuring that every and all opportunities to enunciate these concerns on behalf of the industries and participants involved are taken in the most effective fashion.

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