Peter Fitzpatrick (Louth, Independent) | Oireachtas source

As a member of the Joint Committee on Tourism, Culture, Arts, Sport and Media I welcome the opportunity to speak on this important Bill and will support its progress on Second Stage.

The Government has been trying to soften the impact of the Covid-19 pandemic by extending significant financial assistance to the tourism sector. This includes hospitality, travel and tourism, leisure and sporting sectors coming within the scope of its emergency credit. However, new figures from the Irish Tourism Industry Confederation ITIC, show that visitor numbers are down 20% so far this year.

The main purpose of this Bill is to increase the aggregate level of advances that may be made to the National Tourism Development Authority, Fáilte Ireland, out of capital moneys provided by the Oireachtas for the purpose of supporting enterprises and projects relating to the development of tourist traffic and the development of tourist facilities and services.

Festivals and events play a key role in attracting domestic and international visitors to Ireland. Budget 2023 allowed for continued investment in hosting large-scale events such as US college football and the development of new festivals.

In the past week I had the pleasure of announcing funding for Louth GAA’s new stadium project, thanks to a remarkable €14.8 million windfall from the Government’s Immigrant Investor Programme. This funding was very welcome and will certainly attract tourists to County Louth.

Despite the swift recovery from the impact of the pandemic and the war in Europe, the economy still faces major challenges, including rising interest rates and high inflation. The budget was a mixed one for Irish tourism and hospitality businesses. The maintenance of the allocation in capital funding of €130 million for tourism development will help Fáilte Ireland to continue to support and deliver enhanced tourism amenities in line with the objectives of the new National Development Plan 2021-30.

Night-time economy funds were also allocated to drive footfall further into towns to support performances with eight night-time advisors to lead reforms nationwide, while soundproofing grants will help night venues and nightclubs.

The funding for the tourism sector will ensure that Fáilte Ireland can continue its important work of implementing recovery programmes and campaigns to help deliver the economic growth of the industry and of individual tourism businesses. That said, there are significant challenges facing the tourism sector and the viability of some tourism businesses is a real concern.

The temporary business energy support scheme was welcomed as an important measure to assist businesses with soaring energy inflation, although concerns have been raised that it does not go far enough. Meanwhile, Government’s failure to use budget 2023 to extend the 9% VAT rate, increasing it by 50% from 1 March next year, was described as disappointing and that the Government has not fully recognised the importance of the tourism industry to every town and county in Ireland.

While budget 2023 should rightly be a cost-of-living budget, it should have also formed part of a wider roadmap towards ensuring Ireland is an attractive place to do business and not to be crucifying the tourism and hospitality sectors with a VAT increase come March 2023.

I support the amendment of section 24(2) of the National Tourism Development Authority Act 2003. I support the increase in the collective level of advance that may be made to the authority from €300 million to €500 million.

Fáilte Ireland, the National Tourism Development Authority, is the statutory body with responsibility for the encouragement, promotion and support of tourism. The tourism sector has always relied heavily on overseas visitors, especially in my constituency of Louth and east Meath, as we border the North. However, we need additional supports. We need to help the hospitality sector, not hinder it. Domestic and overseas market investment is also essential to promote tourism sales and marketing campaigns to maximise home holidays, which have proven vital in helping businesses to survive and protecting jobs. Therefore, it is vital that Fáilte Ireland receives adequate funding to support this investment.

Other pressures in tourism revolve around staff retention and sustainable tourism to our country. The budget 2023 measures announced an additional €15 million for a range of industry initiatives, including investment in skills development, recruitment and retention and the building of a pipeline of future employees. Fáilte Ireland recently launched a new employers' initiative to help to reposition how the industry is seen as a career choice, to support businesses to consistently drive good employment practices, to build the appeal of the workplace and to show good employers across the industry.

Additionally, the increase to Fáilte Ireland, if passed today, will enhance the digital capacity of tourism businesses. This will be achieved through the tailored digital programme which will provide businesses with tools to boost their online distribution and booking systems to empower them to compete in a highly competitive global marketplace. The work of Fáilte Ireland also allows us to ensure the tourism sector plays its part to help deliver Ireland's commitment under the Paris Agreement on climate change and achieve the ambition of the sustainable tourism working groups which aim to place Ireland among the world leaders in sustainable tourism practices.

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