Dáil debates

Wednesday, 28 April 2021

Ceisteanna (Atógáil) - Questions (Resumed) - Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Tourism Industry

8:00 pm

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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52. To ask the Minister for Culture, Heritage and the Gaeltacht if a five-year commitment will be given to businesses in the tourism sector; and if measures such as a 9% rate of VAT, insurance reform, grants and other measures will be introduced to ensure the recovery of the sector in the wake of the Covid-19 pandemic, in particular in areas such as west Cork (details supplied). [22306/21]

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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Will a five-year commitment be given to businesses in the tourism sector? Are measures such as a 9% rate of VAT, insurance reform, grants and other measures being introduced to ensure the recovery of the sector in the wake of the Covid-19 pandemic, particularly in areas such as west Cork? I met the Minister some time ago when she was on holidays down in Ballydehob, so she knows the beauty of west Cork. Hotels are under massive pressure such as the Celtic Ross Hotel in Rosscarbery, West Lodge Hotel in Bantry, West Cork Hotel in Skibbereen, Eldon Hotel in Skibbereen, the Blue Haven Hotel and Actons Hotel in Kinsale, Fernhill House Hotel in Clonakilty and Schull Harbour Hotel. These and other hotels are under serious pressure in the hospitality sector and I would appreciate the Minister's answer.

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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I did indeed spend a lovely holiday in west Cork with my family, where I bumped into the Deputy. It is a beautiful part of the world. The tourism sector has been devastated by the Covid-19 pandemic and the necessary public health restrictions introduced to control it. Since my appointment as Minister, I have been fully engaged with stakeholders in seeking to identify and implement supports to ensure the sector’s survival and recovery. I appreciate fully the impact in an area as dependent on tourism as beautiful west Cork.

A tourism recovery task force was appointed last year to prepare a tourism recovery plan, which includes a set of recommendations on how best the domestic tourism sector can adapt and recover in a changed tourism environment as a result of the Covid-19 crisis. That task force presented its plan for 2020 to 2023 to me in September last year and it has been an important input for myself and my colleagues in government in considering the measures to assist the tourism sector. Together with horizontal measures implemented to support businesses across the economy, such as the employment wage subsidy scheme, EWSS, and the Covid restrictions support scheme, CRSS, the sector-specific supports I have introduced have been key in helping tourism businesses to survive and employees to remain engaged in the sector.

The recovery oversight group I appointed last December is keeping me informed of progress on the implementation of the recovery plan and developments in the tourism sector more generally. As part of the national economic recovery plan, the Government will also outline how it will help people return to work and further support sectors such as tourism.  We will consider more targeted measures to help with the reboot in that sector. In line with our programme for Government commitments, the development of a new national tourism policy, which will have sustainability at its core, will commence later this year when the sector begins to recover from the Covid-19 crisis.

The advent of the Covid-19 crisis meant that the work of the sustainable tourism working group was temporarily suspended but it was re-established early this year to complete its work in identifying the steps that can be taken to promote sustainable tourism practices which can be implemented from 2021 to 2023.  Tourism has proven itself resilient before, and I am confident that with the key support of the Government it will recover from this crisis and thrive again.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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Hotels and tourism businesses flagged that tourism is one of the major employers in rural regions such as west Cork. It has been one of the sectors hardest hit during the pandemic. Many businesses are making decisions about whether they can survive, and if they can, they are cutting back on services and operating hours. We need a commitment for a minimum of five years to make these SMEs, restaurants, tourism attractions, pubs and shops feel that it is worth trading for the hours that will ensure visitors have things to see and do when the recovery happens. A VAT rate of 9%, insurance reform, grants and more such measures are needed to stem the rising costs of doing business. Otherwise, these SMEs will not be able to realise a living from what they do.

We need a plan regarding when music venues, arenas, etc., will be allowed to open so we will have an offering that will continue to attract people and support jobs and spending in our local economies. Many of these music venues, pubs and GAA, soccer and rugby matches are attractions in their own right and part of the fabric of Irish life. Cork Airport is estimating that it will take four to five years for passenger numbers to recover. Therefore, that length of time needs to be mirrored in targeted supports. Hotels are negotiating rates with tour operators and businesses for 2023. Can the Minister give us up-to-date information regarding what the Government has planned for the hospitality and tourism sector for the coming four to five years?

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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The focus is on supporting tourism now to ensure the sector reopens safely and as soon as possible, as the vaccination roll-out continues. There is a €55 million tourism business continuity scheme and phase 1 was announced on 1 February. In Cork, we can look at some of the benefits in respect of the supports being put in place. A wide variety of businesses in west Cork will be eligible to apply for assistance from Fáilte Ireland's tourism business continuity scheme.

In response to Covid-19 as well, Fáilte Ireland, in collaboration with local authorities, established a destination recovery task force. In respect of strategic tourism locations across the country, it will bring together stakeholders to form a co-ordinated and sustained collective response. Among those responses, I am sure the Deputy will be aware of the West Cork Calling tourism network, which oversees the implementation of two destination experience development plans that are being developed for west Cork for the long term. Those visitor experience plans are the west Cork coast, including Kinsale and Ballydehob, and The Three Peninsulas - West Cork and Kerry, and it will be ensured that the plans are aligned and that tourism and hospitality providers across both geographies work together.

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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After many good years of Fáilte Ireland supporting regionality and seasonality, the winters will now see businesses going back to shutting up shop to preserve money. Hospitality will have nothing to entertain and attract guests off-season and people will be out of work again for the four to five autumn and winter months. Employees in the sector must also be supported and incentivised to stay in this wonderful business.

Currently, many of these employees are laid off and-or are on reduced hours. They face prejudice when seeking loans or mortgages, even when in full employment. They have had a tough time. They are representing Ireland and supporting the economy in this important industry. Yet, they are out of pocket and at a disadvantage. Their skills are being lost to the industry, and when we are recovering we may not have the resources to deliver. What plans are being put in place to protect the employees of the hospitality sector?

I have only seven seconds left, but the Minister is most welcome to west Cork again this year. Please God, she will again come down to see the beauty of the region. Regarding the tourism task force, I am just disappointed that no one from west Cork was on it. I am talking about one of the biggest and strongest tourism areas in Ireland, and perhaps in the world. It was a major disappointment to us that did not happen.

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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From my engagement with the sector, I am acutely aware of the retention of skills being an issue. That is why we have invested money from the budget in this endeavour and that is why Government work is going on in this area. The work being done in apprenticeships by the Minister for Further and Higher Education, Research, Innovation and Science, Deputy Harris, is evident. Two such programmes launched recently in collaboration with the Irish Hotels Federation.

Regarding the Deputy's concerns about approaching the winter season, that is why I am looking at more targeted approaches to support the industry during that off-peak season. We are entering the peak season for the domestic industry now, but I am concerned about that shoulder season. We should invite people to go to west Cork, like I did, in that shoulder season as well. Therefore, we are continuing the supports and we are very aware of the retention of skills issue and that is why we are investing in upskilling, training and the digitalisation of the industry.