Dáil debates

Thursday, 26 January 2023

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Tourism Industry

9:14 am

Photo of Verona MurphyVerona Murphy (Wexford, Independent)
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4. To ask the Minister for Culture, Heritage and the Gaeltacht the proactive measures her Department is taking to address and resolve the current recruitment and retention difficulties of the tourism industry; and if she will make a statement on the matter. [3848/23]

Photo of Verona MurphyVerona Murphy (Wexford, Independent)
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In May of 2022, Fáilte Ireland launched an awareness campaign on the issue of recruitment and retention in the tourism sector. This campaign was launched in May, as the busy season was just about to get under way. With those recruitment and retention issues in mind, what proactive measures is the Department of the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media taking to address and resolve the current recruitment and retention difficulties?

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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The latest research by Fáilte Ireland shows that while recruitment is still a significant challenge for tourism businesses, the situation is improving and employers are making positive strides. The number of vacancies across the industry has fallen, from 40,000 at the start of 2022 to 22,000 today. Overall, positions have become less difficult to fill while staff retention has become less difficult too. For employees, hourly rates of pay have improved, compensation for working unsocial hours has become more common and job security among workers has grown.

My Department participates in the tourism and hospitality careers oversight group which brings together industry representatives, State agencies, Departments and the education sector. My Department and Fáilte Ireland are also working with industry and across government to ensure a co-ordinated approach to addressing labour and skills shortages.

For example, in 2022, my Department and Fáilte Ireland worked closely with the Department of Enterprise, Trade and Employment to ensure processing times for work permits were significantly reduced. My Department and Fáilte Ireland have also worked with that Department to increase work permit application success rates by providing information sessions to the industry. In 2023 and the years ahead, my Department and Fáilte Ireland will continue to work with industry and recruitment experts to share best practice guidance on retention and building capability.

With regard to working conditions in the sector, Fáilte Ireland's research indicates that 70% of people within the sector see tourism as a long-term career option. Around 70% of businesses surveyed indicated they are increasing their pay and offering flexible work patterns, more stable work schedules and other benefits. Fáilte Ireland has also launched a new employer excellence programme to help participating businesses to improve their employer practices and enhance their reputation as excellent employers. This will help employers to drive great employee engagement, build the appeal of their workplace and unlock greater levels of performance across their businesses. Further initiatives undertaken include a transition year work placement programme to give transition year students a high-quality work placement and a major recruitment awareness campaign called "works for me" to encourage people of all ages to consider a career in the industry. When we look at the wider economy and the particular set of challenges facing the industry, it is clear that a collective and concerted multi-stakeholder approach to tackling these challenges is required, and that is the approach my Department and I will continue to pursue.

9:24 am

Photo of Verona MurphyVerona Murphy (Wexford, Independent)
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I thank the Minister. I appreciate there is a lot in her response and that she has committed €15 million. However, in June last year, the Irish Examinerran the headline "No 'quick fix' for hospitality staff shortages" in which Dr. Deirdre Curran, a lecturer at NUI Galway, who had conducted research on the industry, stated that the pandemic had worsened the problems but there were also significant instances where staff had been emotionally and physically abused. She stressed the importance of listening to workers in the industry. I know the Minister is hoping and is in a position to do something about it by retaining the 9% VAT rate. If it reverts to 13.5%, it will have a significant impact and put pressure on the hostelries and the hospitality sector, and the most adverse effect and impact will probably be on the employees.

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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The Minister, Deputy Coveney, and I co-chair the hospitality and tourism forum. We are convening a meeting next week with all the stakeholders. I suspect the 9% VAT rate will be one of the issues that arises in that meeting. I have made it clear that I am in favour of the extension of the lower rate of VAT for the tourism and hospitality sector. The decision ultimately lies with the Minister for Finance, but I have made clear my position on it. I am acutely conscious of the challenges the sector is facing, including cost inflation and economic uncertainty in key tourism markets. I am also aware our necessary humanitarian response to the war in Ukraine has impacted on the availability of tourism accommodation. I will continue to work with the Minister for Finance and Cabinet colleagues in the coming weeks.

Photo of Verona MurphyVerona Murphy (Wexford, Independent)
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I come from County Wexford and we host some of the country's most valuable tourism attractions, such as one of the oldest lighthouses in the world at Hook Head. That must continue to thrive. The Minister mentioned our film industry. We can expect an influx of tourists given, we hope, our success rate at the Oscars and not just the fact that Irish films have been nominated. Wexford is especially heavily dependant on tourism. We employ slightly fewer than 10,000 people in the tourism and hospitality sector. We have some of the finest hotels and we are about to develop Duncannon Fort, close to where I am from, and make significant investment, which I hope will be in the range of €2 million to €3 million. We must bear in mind that all the attractions are in rural Ireland. It is significant investment. We need to look at how we will retain jobs and ensure it is viable for the employees to work in this sector. We must not forget that we are developing Rosslare Europort. It is in Wexford. It is the hub and our most direct point to Europe and we expect an influx of hundreds of thousands of visitors in the coming year.

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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The Deputy referred to Duncannon Fort. In December 2022, the Department of Rural and Community Development announced significant funding for Duncannon Fort under the town and village renewal scheme. That is in recognition of the amazing attraction it is. I am acutely aware that the tourism industry supports 250,000 jobs and the vast majority of those are in the regions, outside the capital city. I grew up outside the capital. It is a vital industry in my remit and I am acutely aware of the need to help our towns and village to thrive. I am co-chairing the hospitality and tourism forum with the Minister, Deputy Coveney, who, as someone from outside the capital, is aware of the immense value of tourism and the concerns of the wider tourism ecosystem. That is absolutely on our radar and we will do our best to support it.