Dáil debates

Thursday, 18 May 2023

Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions

Tourism Industry

9:00 am

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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1. To ask the Minister for Culture, Heritage and the Gaeltacht the details of any concerns she has communicated on behalf of the tourism sector regarding tourist accommodation availability for peak season, and any economic effects this may have on the wider tourism sector for 2023, to the Minister for Children, Equality, Disability, Integration and Youth; and if she will make a statement on the matter. [23340/23]

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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Will the Minister provide the details of any and all concerns she has communicated on behalf of the tourism sector regarding tourist accommodation availability for the peak season and any economic effects this may have on the wider tourism sector for 2023 to the Minister for Children, Equality, Disability, Integration and Youth, and will she make a statement on the matter?

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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The arrival of refugees from the war in Ukraine, combined with the high number of international protection applicants, has resulted in the largest humanitarian effort in the State's history. The national response to this challenge is underpinned by an all-of-government approach. As part of this effort, Ireland is now accommodating more than 83,520 people, compared with 8,300 in February 2022. This is equivalent to the population of Galway city and serviced accommodation within the tourism sector, primarily hotels, has been to the fore in meeting this immediate need.

The Government is focused on how to continue the sustained support for those fleeing the war in Ukraine, including those already here as well as those likely to be further displaced by the ongoing conflict. As part of this, the Government has agreed that a move from an emergency response to a more mainstreamed approach, including a reduced reliance on serviced accommodation, is appropriate.

Demand for Irish tourism from abroad and at home is strong and the sector, supported by the Government, has shown great resilience in rebuilding after Covid. However, I am concerned about the potential downstream impacts on tourism businesses of the removal of one third of registered tourism accommodation from the tourism market. Fáilte Ireland research shows that, for every €1 spent on tourism accommodation, the average overnighting tourist spends another €2.50 in the local economy on visitor attractions, tourism support services, hospitality and retail.

I have raised this concern with the Minister for Children, Equality, Disability, Integration and Youth, Deputy O'Gorman, and other Government colleagues and I have asked my officials and Fáilte Ireland to do further work on this issue as we approach peak season. That work will focus on emerging trends in the 2023 season, with a particular focus on those parts of the country that are most affected by the loss of tourism accommodation. It will also assess what mitigation measures could be considered if the scale of the impact is sufficient to warrant this.

The State has invested heavily over the decades in helping the tourism sector to become a key employer of scale in large parts of the country and in ensuring a strong pool of tourism attractions, activity providers and related tourism businesses. While it is to be hoped that intervention and mitigation measures will not be needed and that key tourism businesses will be able to trade successfully throughout the season, it is prudent to assess the potential impacts of tourist accommodation displacement and to consider potential measures.

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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We are fast approaching peak tourism season. Notwithstanding the pressures we have been under in seeking accommodation for asylum seekers over the past 15 months or so, the use of hotel accommodation and the problems this might cause for the tourism sector have been flagged for at least the past year. We are right in the thick of it now. Nationally, the average use of tourist accommodation for asylum seekers is a little under one third. It is 34% when Dublin is excluded. In places like Longford, 71% of tourist accommodation is being used for asylum seekers. The figures for Offaly and Donegal are 59% and 53%, respectively. Tourism will be seriously affected. If accommodation is not available when tourists look for it, our tourism potential for 2023 will be greatly reduced. Does the Minister accept that proper long-term planning was not done in sufficient time to deal with this issue?

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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My focus now is on examining whether there is a need for mitigation measures. At a senior officials group, my Department has communicated the potential challenges arising for the tourism ecosystem, particularly in the parts of the country where, as the Deputy pointed out, a high proportion of the tourism accommodation stock has been directed to humanitarian purposes.

This is the largest humanitarian effort in the State's history. We are giving refuge to those fleeing horrific circumstances, and that is the right thing to do, but speaking as the Minister with responsibility for tourism, I have concerns, which I have consistently stated in the Chamber and to my Cabinet colleagues, about the potential knock-on impacts on the wider tourism ecosystem. My officials and Fáilte Ireland have regular engagement with the Department of Children, Equality, Disability, Integration and Youth and I have asked Fáilte Ireland to consider what potential mitigation measures might need to be examined.

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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The over-reliance on the tourism sector has been well flagged. The Minister told me in January:

I can confirm 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 rapid-build homes will be constructed on State-owned land. The Office of Public Works, OPW, is leading the development of this accommodation in conjunction with the Department of the Minister, Deputy O'Gorman. [The Minister, Deputy Catherine Martin, is part of the cross-departmental group that is supposed to handle this.] The objective is to install 500 units by March-April 2023.

We are now in mid-May and we are hearing that there may be 200 in June. Does the Minister accept that the Government's level of planning has put our tourism potential at risk this year?

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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I need to, have been and am raising my concerns about the wider tourism ecosystem, but it is only right that we give refuge to those who need it. This time last year, we were giving refuge to 8,300 people. That number is now approximately 83,500. This brings its own challenges. It is the largest humanitarian effort in the history of the State.

I am considering mitigation measures that might be needed. Any mitigation measure must be underpinned by clear data and a full understanding of the issues arising. This is what I have asked my departmental officials and Fáilte Ireland to do. We will revert to Cabinet colleagues with potential mitigation measures.

Question No. 2 taken after Question No. 3.