Catherine Martin (Dublin Rathdown, Green Party) | Oireachtas source

Gabhaim buíochas leis na Seanadóirí go léir a labhair sa díospóireacht seo agus a chuir a dtuairimí faoi fhorbairt earnáil turasóireachta na hÉireann in iúl. It is proof of the importance of the tourism industry, which reaches into all parts of the country, rural and urban, and is a valued source of employment for many thousands of people in Ireland. In the time given to me, I will try to address some of the issues raised today. If I do not get back to Senators, I will ask my officials to follow up with them.

Some Senators raised concerns about hotel accommodation. I wish to point out, firstly, that since Russia's illegal and immoral invasion of Ukraine in February of this year, more than 65,000 people who have been forced to leave their homes in the most horrific circumstances have sought refuge here. Approximately 50,000 of them are being provided with accommodation by the State. It is by far the largest humanitarian operation ever undertaken by the Irish State. Tourism accommodation has played a vital part in this national response. I should highlight, at the outset, that tourism accommodation should be seen as a short-term solution not just for the tourism industry but also for the families who reside in those hotels. It cannot be seen as a long-term solution. I recognise the growing concern among the wider tourism industry and sectoral bodies for the 2023 season. As we know, St. Patrick's day kicks off the peak season, although Senator Wall might argue that St. Brigid's day will mark the start of the season. I am aware that the contracting of tour group accommodation is significantly down on normal levels, and of the potential knock-on effect that the lack of availability of tourism accommodation could have on the wider tourism economy. Officials from my Department have communicated these concerns to the Department of Children, Equality, Disability, Integration and Youth, and I know that the Department is working urgently across Government with agencies, NGOs and local authorities to bring new accommodation on stream. I am aware that alternative modular housing will come on stream from January, with a number of sites in place. Allied to that is the increase in the monthly recognition payment to €800, effective from 1 December. The local authorities have launched a new initiative, appealing to those who have unoccupied properties to offer them as temporary homes for those fleeing the war in Ukraine. Senators will be aware that the Irish Tourism Industry Confederation has published a report outlining the consequences of an overdependence on tourism accommodation stock and its proposed policy recommendations. I met with representatives of the confederation last week to discuss this issue in particular and the report. My officials have also highlighted the recommendations of the report at the meetings of the senior officials group that is engaged in the humanitarian accommodation effort. At all times, we remain resolute in our solidarity and support for Ukraine. We are honouring our commitment to help people who have been displaced by this horrendous war.

A number of Senators raised the issue of VAT. Obviously, the responsibility for VAT lies with the Minister for Finance. When the 9% VAT rate was introduced, it was initially planned to be for a period of 14 months. The rate was then extended for another eight months to 31 August 2022, and extended again to 28 February 2023. The Minister for Finance stated, on budget day, that he was not going to extend the lower rate of VAT beyond 28 February. I really believe, given the uncertainty ahead, that we must remain vigilant and we must keep reviewing the situation in case there are any downturns in the recovery in the coming months. We will keep that under review after Christmas.

The issues of the recruitment, training, development and conditions of staff were raised by a number of Senators. The recruitment and retention of staff continues to be a significant challenge for the tourism sector not just in Ireland, but in many countries around the world. Prior to Covid, the sector had registered consistent increases in the numbers employed in Ireland's regions, and was an important driver of greater regional balance and dispersed economic activity. A sustained and sustainable rebuild is essential, as tourism supports communities and drives regional development in a manner unlike other sectors. I have worked with colleagues across Government to secure funding supports to keep the tourism sector alive during Covid, and to support the initial rebuild phase in 2022 and beyond. My Department participates in the tourism and hospitality careers oversight group, which brings together industry representatives, State agencies, Government Departments and the education sector. My Department and Fáilte Ireland are also working with industry and across Government Departments to ensure a co-ordinated approach to addressing the labour and skills shortages in the sector across all roles.

With regard to the working conditions in the sector, Fáilte Ireland's research indicated that 70% of people within the sector see tourism as a long-term career option. While this is a good proportion, Fáilte Ireland has arranged programmes to build skills and capability for businesses and individual employees, including a suite of online self-directed professional development courses. The number of vacancies across the industry has fallen, and is now estimated to be 22,000, down from the previously estimated 40,000. Around 70% of businesses that are recruiting are increasing pay and offering flexible work patterns, more stable work schedules and other perks such as compensation for working unsocial hours, which is becoming increasingly common. The research also shows that staff retention has become less difficult, with employers reporting improvements in day-to-day operations. As part of the drive to promote tourism as an attractive sector, Fáilte Ireland has risen to the challenge and has launched the new employer excellence programme to help all participating businesses to improve their employer practices and enhance their reputations as excellent employers. This will help employers to drive great employee engagement, build the appeal of the workplace and unlock greater levels of performance across businesses. Hopefully, this programme will also lead to greater retention of staff and improve the view of the industry as a career choice.

Senator Cassells spoke of the value of the Fáilte Ireland investment to date and the ongoing work in County Meath and south Louth. Senator Carrigy spoke of the development of hidden heartlands as a brand. It has been and is making a difference. I will ask my officials to communicate Senator Currie's suggestions on the potential of Dublin 15 to Fáilte Ireland . On Senator Ward's comments on St. Brigid's day, central to it will be Kildare County Council's plans which are being developed at present. Fáilte Ireland, through its Ireland's ancient east brand, is engaging with Kildare County Council to offer advice and support with promotion, particularly through Fáilte Ireland's Discover Ireland platforms.

Finally, to conclude, I would like to take the opportunity acknowledge the work of two tourism State agencies, Fáilte Ireland and Tourism Ireland. While this legislation does appear technical in nature, it has an important outcome in that that allows the continued funding of Fáilte Ireland's work in the area of tourism, the value of which Senators have commented on. We continue to further develop Ireland's tourism offerings in order to entice visitors to come to Ireland and to return time and again. However, that is dependent on continued innovation in the experiences we offer, and that is where Fáilte Ireland comes into play. This Bill will allow the channel of funding to Fáilte Ireland to continue its incredibly important work in this area. I thank Senators for their engagement.