Dáil debates

Wednesday, 6 May 2020

Covid-19 (Tourism): Statements

 

4:00 pm

Photo of Frank FeighanFrank Feighan (Sligo-Leitrim, Fine Gael) | Oireachtas source

I hope to speak for five minutes and the Minister of State might answer my questions for five minutes, if that is okay. I very much welcome the Minister of State's address to the House on the impact of Covid-19 on Irish tourism and his plans to support the sector in recovering from this crisis. First, we must think of the more than 1,300 people who have passed away from Covid-19 and our thoughts are with their families and friends, as well as those who are recovering. Again, I want to pay tribute to the front-line staff and all who are working so hard in this crisis.

To come back to the tourism sector, in Sligo-Leitrim, where I come from, tourism makes a vital contribution to the local economy. Before the crisis, it supported 4,900 jobs and generated €178 million in local tourism revenues. Sadly, some 90% of hotels are now closed, which is creating enormous uncertainty for the owners, employers and employees. We know what the Wild Atlantic Way has done in recent years but when I look at Enniscrone, Strandhill, Rosses Point, Sligo town, Mullaghmore, Bundoran, Ballyshannon, Rossnowlagh and Carrick-on-Shannon, I can see there is huge uncertainty. One area where I was involved is Lough Key Forest Park, where the local authorities have become very involved with what I will call the necklace of tourism providers in the region, and Roscommon County Council and Sligo County Council have worked with Coillte and others. We need to be very conscious of this aspect.

With regard to caravan and camping sites, there is a huge issue in that they were the first to close and, unfortunately, they will be the last to reopen. Many hoteliers and restaurant owners have been in contact with me as they are very unsure about the future of their businesses, as things stand. They welcome the business supports, the wage subsidy scheme and the rates alleviation but they need greater clarity to plan ahead. We need to help them to understand the measures better.

I have several questions. Will the Minister of State support calls from the different industry bodies for a 0% VAT rate for the hospitality sector until Covid-19 damage has been rectified? Knowledge of this is vital in order to plan ahead. Tour operators are looking for rates for 2021 and 2022. I appreciate that VAT was reduced from 2011 but we are already 4.5% ahead on VAT when compared to countries such as Germany. Does the Minister of State believe that, following on from the crisis in this sector, and as we are about to enter Government formation discussions, there is a need for a dedicated Minister for tourism, given the sector's importance to the economy, especially in rural areas such as along the Wild Atlantic Way? We need to start thinking of a dedicated Minister for tourism.

With regard to the roadmap, there are a number of outstanding issues which the industry does not understand and on which it needs clarity. These include the question of the opening of hotels on a limited occupancy basis, with a number of people per square metre, and with this number increasing over time. We do not know what this means for the bars in those hotels and there is also a huge issue in regard to social gatherings and weddings.

The Minister of State said he will work with the sector, which I have no doubt he will, but we need people at the table who are able to make these decisions. I hope a Government will be formed, and in whatever Government we have, we definitely need a dedicated Minister for tourism at the Cabinet table.

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