Michael Collins (Cork South West, Independent)
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5. To ask the Minister for Culture, Heritage and the Gaeltacht the plans in place to give relief to the hotel sector at this time with the ongoing energy costs; and if she will make a statement on the matter. [3880/23]

Michael Collins (Cork South West, Independent)
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What plans is the Minister's Department putting in place to give relief to the hotel sector at this time with the ongoing energy crisis?

Catherine Martin (Dublin Rathdown, Green Party)
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Internationally, tourism continues to recover steadily, yet several challenges remain, from geopolitical to economic. 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 is very welcome, significant headwinds face the sector in 2023. To assist businesses, including hotels, the Government introduced the temporary business energy support scheme, TBESS, in budget 2023. The TBESS is designed to support businesses, including hotels, with their energy costs over the winter months and will run until 28 February 2023. The TBESS is administered by the Revenue Commissioners who have designed a special online platform for businesses to register for, and claim under, the scheme.

From a tourism perspective, I am continuing to direct significant resources to supporting the sustainable recovery of the sector. I secured €15 million in additional funding for overseas marketing of Ireland. This budget also contains an additional €15 million for a range of industry initiatives, including €3 million in continuation of the investment in skills development and retention. This provision will facilitate the continuation of work by Fáilte Ireland to address the employment challenges faced by tourism businesses in attracting talent, assisting skills development and retaining staff. My Department and Fáilte Ireland will continue to work with the industry and across Departments to ensure a co-ordinated approach to addressing the labour and skills shortages in the sector across all roles. A €2 million increase in funding for domestic marketing was also secured to promote Ireland's tourism offering to Irish holidaymakers. I have secured additional funding of €3 million to allow Fáilte Ireland to continue its work in the area of sustainability. While the hotel sector faces many challenges, I am confident the supports the Government has put in place will ensure Ireland's hotels are well positioned to maintain current levels of recovery and to grow sustainably in the coming years.

Michael Collins (Cork South West, Independent)
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I thank the Minister for her reply. Many of the hotels in west Cork are closed at present due to energy costs and overheads. Those who are not housing refugees, and many hotels in west Cork do not, cannot afford to open their doors. I am pleading on their behalf. I see that they are closed Mondays, Tuesdays, Wednesdays and Thursdays. It is an astonishing situation we find ourselves in. It is spread across cafés and pubs. They are not opening their doors. Something is wrong. The Minister stated she is putting help for energy costs in place until 28 February 2023. The costs will still be there. A gentleman with a business contacted me recently who said his electricity bill for two months was €13,000. His profits from last year will pay that bill but he was shuddering in fear about the next bill coming in the door. What are businesses doing now? They are shutting their doors. They will not open the door. It is shocking for west Cork and other places in dire trouble and in need. I plead with the Minister to continue the TBESS and to put further measures in place to enable them at least to open their doors during the week.

Catherine Martin (Dublin Rathdown, Green Party)
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The Deputy will be aware that I am familiar with the beauty of west Cork. I met him there when my family and I were on holidays. I am conscious of the impact on the wider tourism ecosystem, including the businesses he referred to. As regards the TBESS finishing on 28 February, the Government is discussing what will happen next, the supports that are needed and looking at detailed analysis.

We in Ireland are absolutely resolute in our solidarity with and support for Ukraine and we are honouring our commitment to help people who have been displaced by this horrendous war. We have never seen so many people arrive in such a short timeframe as we welcomed the population size of Galway city in under a year. It is time to remember that Irish people have, over generations, sought shelter and opportunities abroad. Ireland has a long history of supporting other nations in times of trouble and this is the right thing to do.

My officials are engaging with several Departments, with input from colleagues from Fáilte Ireland, on how best to mitigate the potential impacts on the wider tourism ecosystem of the long-term use of tourism accommodation. It was never meant to be long term. It was meant to be short to medium term. This is not just from a hotel's point of view but also for the families in the hotels.

Michael Collins (Cork South West, Independent)
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I remember meeting with the Minister, and she is most welcome at any time, in west Cork which is the tourism capital of Ireland as far as I am concerned. We have fantastic hotels. I have met with the sector. It includes such hotels as the Celtic Ross Hotel, Fernhill House Hotel, the Emmet Hotel, the Parkway Hotel, the Schull Harbour Hotel and the Blue Horizon Hotel in Kinsale. The bottom line, according to some people running these hotels, is that their family members are working for free. They are not taking any money now because they are losing and haemorrhaging money very badly. Their biggest worry is keeping the door open and the only way they can do that is if family members work free of charge. This is an unbelievable situation in which they find themselves at this time.

I refer to the 9% and 13% VAT rates that would be a cushion, about which I wanted to ask a question today but it was not accepted. It will be a huge issue if the 9% VAT rate is not retained. We will see closures left, right and centre in west Cork and other areas. Unfortunately, we find ourselves in such a situation as it is happening anyway. I see it myself. When I go back today, I will see restaurants and pubs closed in each of the beautiful towns of west Cork. Something is wrong somewhere. They cannot keep begging for the Government to do something about it. I certainly believe further help is needed in west Cork.

Catherine Martin (Dublin Rathdown, Green Party)
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I assure the Deputy that the Government did not put such extensive supports in place during Covid for those businesses to close now. My Department and I have extensive and ongoing engagement with the sector. As I said earlier, the Minister, Deputy Coveney, and I will convene and co-chair the tourism and hospitality forum next week in order to engage and hear concerns.

On the 9% VAT rate, as I made clear to Deputy Verona Murphy, I have always said I am in favour of an extension to the lower rate of VAT for the tourism and hospitality sector, that I am acutely conscious of the challenges facing the entire sector and I will be engaging with the Minister for Finance and Cabinet colleagues in the coming weeks.