Jack Chambers (Dublin West, Fianna Fail) | Oireachtas source

Businesses are facing cost inflation and other economic stresses, including rising costs in food and energy, increased wages in a competitive recruitment market and the cost of insurance. The aim in budget 2023 is to support the tourism industry to recover and grow in a sustainable way. A total of €214.762 million is being provided for tourism. We have secured €15 million in continued additional funding for overseas marketing of Ireland as a leading holiday destination. This includes €5 million to develop further a new tourism initiative aimed at stimulating international demand, namely, the Year of the Invitation. The budget contains an additional €15 million for a range of industry initiatives, including a €3 million fund for the continuation of investment in skills development and retention and a €2 million increase in funding for domestic marketing. We have also secured additional funding of €3 million for the hosting of American college football. Additional funding of €3 million was secured to allow Fáilte Ireland to continue its work in the area of sustainability. Other allocations include €36.5 million in capital funding for tourism product development in terms of the continued delivery of enhanced visitor experiences in line with the objectives of the National Development Plan 2021-2030.

As the Deputy will be aware, the Minister for Finance announced in Tuesday's budget a package to help businesses with escalating energy costs and to plan for the future. This included a temporary business energy support scheme, TBESS, providing qualifying businesses with up to 40% of the increase in electricity or gas bills up to €10,000 per month. It will be administered by the Revenue Commissioners.

I am conscious that the reduced VAT rate has been an important element of the business supports secured for the tourism and hospitality sector. Taxation is a matter for the Minister for Finance, Deputy Donohoe, and he has extended the reduction to February 2023. All measures and supports will be kept under review in the months ahead, given the current uncertainties in the market.

The hospitality and tourism forum, which is co-chaired by the Tánaiste and the Minister, Deputy Catherine Martin, is the appropriate arena in which to discuss issues with the industry and other key questions arising as the sector rebuilds.

Additional information not given on the floor of the House

The most recent meeting was held on 12 September 2022.

I am acutely aware of the importance of the tourism sector throughout the country. It is woven into the fabric of Irish cultural and social life and is critical to the regions. I will continue to work and argue for this important industry.

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