Dáil debates

Thursday, 26 January 2023

Ceisteanna Eile - Other Questions

Tourism Industry

10:24 am

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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14. To ask the Minister for Culture, Heritage and the Gaeltacht the steps she continues to take to ensure that tourism is given every opportunity to develop and grow in the future notwithstanding the future challenges; and if she will make a statement on the matter. [3639/23]

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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20. To ask the Minister for Culture, Heritage and the Gaeltacht the plans she has in place to protect Ireland's tourism, given that 55,000 hotel rooms are assigned to Ukrainian refugees; and if she will make a statement on the matter. [3629/23]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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My question seeks to ascertain the extent to which the Minister can encourage the tourism industry to expand to meet the widest possible market and to encourage various aspects of tourism where an advantage can be gained. I ask that in the context of our recovery from the Covid-19-related lockdowns and the industry's prospects for the future.

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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Representatives of Fáilte Ireland were recently before the Joint Committee on Tourism, Culture, Arts, Gaeltacht, Sport and Media to discuss the challenges the tourism sector is facing on the back of our response to the Ukrainian crisis. Up to one quarter of our hotel rooms are occupied by beneficiaries of temporary protection. What plans are in place to support the tourism sector in response to our humanitarian empathy towards Ukrainians?

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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I propose to take Questions Nos. 14 and 20 together.

Internationally, tourism continues to recover steadily, yet several challenges, both geopolitical and economic, remain. The combination of increasing interest rates in all major economies, rising energy and food prices, and the growing prospects of a global recession are major threats to the recovery of international tourism for 2023. Hotel capacity, energy costs and labour shortages will continue to challenge the tourism industry here in Ireland this year.

Though the strong early recovery of inbound tourism to Ireland last year was welcome, there are significant challenges facing the sector. I am, therefore, continuing to direct significant resources to support the sustainable recovery of the sector. In budget 2023, I secured an additional €15 million for the overseas marketing of Ireland. The budget also contains an additional €15 million for a range of industry initiatives, including €3 million for the continuation of the investment in skills development and retention, which is critical, as there are significant employment challenges faced by tourism businesses in attracting talent, assisting skills development and retaining staff. Additionally, a €2 million increase in funding for domestic marketing will continue to promote Ireland's tourism offering to Irish holidaymakers.

I have also secured €3 million 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 for the continued delivery of enhanced visitor experiences in line with the objectives of the National Development Plan 2021-2030. 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, social media and digital marketing, as well as working with the tourism industry at home and the travel trade overseas to facilitate sales. In the area of screen tourism, we can expect many international tourists to head for County Mayo on foot of "The Banshees of Inisherin".

Economic, social and environmental sustainability will be at the heart of Tourism Ireland's work over the coming years, driving greater economic prosperity and benefiting communities across the island, while at the same time increasing our consideration of the environmental impacts of tourism. In addition, Fáilte Ireland will announce its plans for 2023 shortly. The Government has recognised the challenge of rapidly rising energy costs for businesses and last year introduced the temporary business energy support scheme, TBESS. I recognise the growing concern among the wider tourism industry that the number of tourism beds taken out of the system for humanitarian reasons is likely to have a real impact on the industry's recovery in 2023 and beyond. In addition, hotel accommodation is not an ideal medium- to long-term solution for the accommodation needs of families. That is why the Government is actively exploring a wide range of alternative options, including the roll-out of a rapid-build housing programme to provide accommodation for families fleeing the war in Ukraine. My Department has communicated concerns to the Department of Children, Equality, Disability, Integration and Youth. That Department is working urgently across Government with agencies, non-governmental organisations, NGOs, and local authorities to bring new accommodation on board so that the State's humanitarian responsibilities can be met. My Department has initiated the development of a new national sustainable tourism policy that will seek to mainstream sustainability. The development of this new policy will involve extensive consultation with the industry and our communities to help set out a path for the coming years to support sustainable recovery and subsequent growth in the sector. The new tourism policy will seek to support sustainable economic development in communities throughout the country while protecting our environment and natural resources, with greater demand spread out across the year.

While the sector faces many challenges, I am confident that the supports the Government has put in place will ensure that Ireland's tourism industry is well positioned to maintain its current levels of recovery and to grow sustainably in the coming years.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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I thank the Minister for her comprehensive reply. There are two aspects I would like to concentrate on by way of a supplementary question. The first relates to niche tourism and particularly the use of large country houses. There is considerable scope for niche tourism in that regard. Some of those houses have taken those opportunities and others have not. I also raise the development of conference tourism. There is an enormous international market in that respect. Some countries are availing of those opportunities to a greater extent than this country. It might be possible to incentivise such tourism.

Photo of Alan DillonAlan Dillon (Mayo, Fine Gael)
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I thank the Minister for her response. "The Banshees of Inisherin" is a considerable achievement and as a result of the film, the Wild Atlantic Way is now on a global stage, which is significant for the likes of counties Kerry, Limerick, Clare, Galway and Mayo. We should not look to capitalise on the opportunity through further investment along the Wild Atlantic Way. We have an enormous product on our doorstep.

There are now more than 55,000 beds being occupied by Ukrainians in more than 250 bed and breakfasts. We certainly need to ensure we have a plan going forward to ensure that our tourism product is not impacted as a result of a lack of availability of rooms at an affordable price. We need to ensure it does not raise the price so that it is extortionate for tourists coming to this country. I also encourage Tourism Ireland to look to what is happening in Inis Mór and Achill Island and at having an exposition or a marketing campaign on the back of it.

10:34 am

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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Tourism Ireland has been quite fast off the mark. It put up a video on social media maybe three months ago. It shows the actors being interviewed about the beauty of where they worked on location in Achill and Inis Mór. The Deputy can retweet that to his heart's content. It is very aware of the immense value that this will bring to attract international tourists and is capitalising on that. That is another great reason we have tourism, arts and culture in the same portfolio. I have always talked about the links there.

In regard to the large country houses, there may be one or two in Kildare north. I can talk with Deputy Durkan afterwards about the potential of that from a tourism point of view. In regard to the conferences, I am aware of that and engage with that specific area in the tourism industry. I expect it to have someone in attendance at the tourism and hospitality forum next week, which is being convened by myself and the Minister, Deputy Coveney. I know Tourism Ireland is aware of the potential there.

In regard to the concerns about the humanitarian response, it is, of course, the right thing for us to do. As a nation, we sought refuge for generations and we should never forget that. The Government has approved the construction of 700 rapid build homes with the potential to house up to 2,800 individuals in family units. The vacant homes initiative led by local authorities aims to provide 1,000 homes while refurbishments led by the Department of House, Local Government and Heritage will provide an estimated 3,000 beds. Under those measures between 6,000 and 7,000 beds or more will come on stream in the coming months to ease the pressure. Of course, I am aware of the concerns in the industry. In particular the Irish Tourism Industry Confederation, ITIC, published reports recently and I have met with its representatives on foot of those reports. I will be engaging with the industry with the Minister, Deputy Coveney, at the tourism and hospitality forum next week.