Thomas Byrne (Meath East, Fianna Fail) | Oireachtas source

The Deputy raised the issue of support schemes and compensation measures to help businesses and individuals that are dependent on seasonal tourism, which could be adversely affected by the reduction in capacity available this season due to hotels and other tourism accommodation being used to house international asylum seekers and Ukrainian people fleeing war. I thank her for relaying the constructive tone of the meeting at Rosses Point and the constructive tone also shown by her and Deputies Feighan and MacSharry.

We are approaching the first anniversary of the start of the war in Ukraine. Since then, the people of Ireland have welcomed more than 90,000 people between those fleeing that war in Ukraine and other applicants for international protection. This is, by some distance, the largest humanitarian operation ever undertaken by the State and the Irish people, and tourism accommodation has played a highly significant role in the national response to the crisis. This has placed a strain on the availability of tourism accommodation, with knock-on impacts for other tourism businesses and businesses in the wider local economy.

Officials in the Department with responsibility for tourism are engaging with a range of Departments, with input from Fáilte Ireland, to consider how best to mitigate the potential impacts on the wider tourism ecosystem of the long-term use of tourism accommodation. Analysis is being done in those towns or areas most impacted by the unavailability of tourism accommodation.

In addition, I can confirm the Government has approved the construction of 700 rapid-build homes with the potential to house up to 2,800 individuals in family units. These rapid-build homes will be constructed on State-owned land. The OPW is leading this in conjunction with the Department of Children, Equality, Disability, Integration and Youth. The objective is to install 500 units by March or April of this year.

The strong early recovery of inbound tourism to Ireland last year was very welcome but it is fair to say that the tourism industry faces a number of challenges this year. The combination of increasing interest rates in all major economies, rising energy and food prices and the growing prospects of global recession are major threats to the recovery of international tourism for 2023.

In Ireland hotel capacity, energy costs and labour shortages will continue to challenge the tourism industry. In budget 2023 the Minister, Deputy Catherine Martin, who apologises for not being here, secured €15 million in additional funding for overseas marketing of Ireland. As global competition heightens, sustaining extensive marketing campaigns will be vital to support the ongoing recovery effort, building on the initial inbound tourism demand seen in 2022.

The budget also contains an additional €15 million for a range of industry initiatives, including a continuation of the investment in skills development and retention, which is €3 million. This provision will facilitate the continuation of work with Fáilte Ireland to address the employment challenges faced by tourism businesses in attracting talent, helping skills development and retaining staff. There is a €2 million increase in funding for domestic marketing to promote Ireland's tourism offering to Irish holidaymakers. The Minister also secured additional funding of €3 million to allow Fáilte Ireland to continue its work in the area of sustainability.

Tourism agencies are working hard to help those in the tourism sector. Tourism Ireland will roll out an extensive and targeted programme of activity in 2023 with a total marketing budget of €78 million. A wide range of promotional activities will be undertaken, including a new global marketing campaign, publicity and programming as well as working with tourism industries at home and overseas to facilitate the sales. Fáilte Ireland will announce plans shortly for work in the area of recruitment and retention of staff and sustainability.

The temporary business energy support scheme, TBESS, which is designed to help businesses to cover their energy costs in the winter months, will run until 28 February. The Government is looking at reviewing the operation of the scheme. The Minister has received extensive feedback from the tourism sector, in written form and in person at the hospitality and tourism forum that she co-chairs. She is also aware that the 9% VAT rate is to the forefront of tourism businesses and individuals at present. A strong message was taken away from the recent hospitality and tourism forum meeting on the need to ensure there is no cliff edge with regard to the supports that have already been put in place. The Minister will continue with her regular interaction with Government colleagues to communicate the concerns of the industry about the long-term effect these issues could potentially have on the tourism sector.

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