Maria Byrne (Fine Gael) | Oireachtas source

I thank the Minister of State for coming here today to discuss this all-important topic. Coming from a small business background and with my family having been in the hospitality trade for many years, I am well aware of the issues faced by people in that trade. I have received local communication from the chair of the Shannon hotels group, which operates in the mid-west, the Irish Hotels Federation , the Restaurants Association of Ireland and small businesses.There is growing concern among small businesses after Covid. The hospitality industry may have been the worst hit during the pandemic. They were closed for quite a while, opened for a short period and then closed again. Many of them are only beginning to come back now. Having spoken to people involved with small businesses, and especially restaurants and hotels, I am aware that some are not opening on Mondays, Tuesdays or Wednesdays. This is how serious the situation is. In addition, they have been hit with increased energy costs. My understanding concerning hotels is that there has been a reduction of up to 57% in tourists from the UK, one of the biggest contributors of visitors to this country. That is a very high number. Equally, the reduction in the numbers of European visitors is between 30% and 40%. Our own people are also not travelling to hotels as much as they used to. While people are beginning to move out and about, many people, especially those who are older, are still being wary. They may be dining or drinking at home. There is great concern among those in the industry.

Approximately 280,000 people were employed in the hospitality industry prior to the onset of Covid. A number of businesses have not reopened, so this number has certainly fallen but a large number of wage packets are still dependent on the sector. While we can pride ourselves on our level of unemployment, which is under 4%, and this is phenomenal, the important point is what will happen if we do not support the hospitality industry and its call for an extension of the 9% VAT rate for another while. We must look at this matter seriously. Have there been discussions between the Departments of Finance and Tourism, Culture, Arts, Gaeltacht, Sport and Media regarding how we are going to support businesses in future? I know we cannot support them forever and a day, but they have been hit with the double whammy of Covid and energy costs. We must do something to support these small businesses and keep the 280,000 people to whom I refer in employment.