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

I welcome the opportunity to address the Seanad this evening to speak about tourism and, in particular, the report of the Joint Committee on Tourism, Culture, Arts, Sport and Media entitled Working Conditions and Skills Shortages in Ireland's Tourism and Hospitality Sector. I want to thank Deputy Niamh Smyth and all the members of the joint committee for their work in this report. I would also like to thank the Senators today for their contributions and views on this report and its recommendations.

Before I continue, I want to address the east Galway issue that Senator Dolan raised; my tourism officials brought it up with them on Monday and asked for it to be addressed. In relation to the Beara-Breifne Way, Fáilte Ireland is undertaking a development plan for this walking route.

A number of senators also mentioned the figure of 40,000 on vacancies in the sector. That figure is actually from the first half of 2022. I am glad to say the figure is now down to 22,000. There is more to do but at least it is definitely moving in the right direction.

I will return to the recommendations made by the committee shortly, but I would first like to look at the challenges and opportunities for the tourism season ahead. As many Members here have said today, tourism has always been a vital industry for Ireland. It has sustained communities and regional development in a manner that no other sector has done. Apart from its economic value, tourism also plays an important role in promoting Ireland's image abroad, generating a positive impression of Irish people, our landscape and culture for our visitors. There is no doubt that 2020 and 2021 were extremely challenging for the industry but tourism rebounded more quickly than we had expected in 2022, finishing at an estimated 75% of 2019 levels of business. While we head into 2023 in a relatively strong position, I am conscious that are there are still significant challenges facing the industry. Notwithstanding this, we must continue to plan for further recovery in the sector and building for a sustainable future.

I had made it clear in recent months that I favoured the extension of the lower rates of VAT for the tourism and hospitality sector. In supporting the retention of the lower rates for the coming tourism season, I am acutely conscious of the challenges the sector is facing, including cost inflation, as well as economic uncertainty in key tourism markets. I am also aware that our necessary humanitarian response to the war in Ukraine has impacted on the availability of tourism accommodation. This Government's commitment to supporting the tourism and hospitality sector over the past few years of the Covid pandemic and the current economic challenges has been clear and consistent. The decision yesterday to extend the lower 9% VAT rate for the sector until the end of August is further evidence of this support. However, industry must play its part in ensuring that Ireland maintains its reputation as a value for money destination. It is important that a balance is struck and for the industry to maintain the value for money proposition for Irish tourism in the longer term. Businesses need to be able to make a sustainable trading margin, but must pay attention to their pricing and how they can deliver added value. Businesses should consider both their pricing levels and the value added, so that they can continue to attract customers and attract them back again and again.

In budget 2023, I secured additional funding of €15 million for overseas marketing of Ireland. As global competition heightens, sustaining extensive marketing campaigns will be vital to support the ongoing recovery effort this year. In the budget we also obtained an additional €15 million for a range of industry initiatives including €3 million for the continuation of the investment in skills development and retention. There is also a €2 million increase in funding for domestic marketing to promote Ireland's tourism offering to Irish holidaymakers.

Other secured funding included €36.5 million in capital funding for tourism product development, for the continued delivery of enhanced visitor experiences in line with the objectives of the National Development Plan 2021-2030. This is against the backdrop of cross-departmental initiatives such as the temporary business energy support scheme, TBESS. This will provide vital support to businesses that have experienced a significant increase in their natural gas and electricity costs. In this regard, I am pleased that the Government has looked at how TBESS could be adjusted to improve takeup and has announced those adjustments yesterday. This has been welcomed by the sector and, as Senator Conway referenced earlier, a grant scheme is being developed now to assist those businesses in rural Ireland that currently cannot access the TBES scheme.

In respect of what our tourism agencies will be concentrating on this year, Tourism Ireland will roll out an extensive and targeted programme of activity with a marketing budget of €78 million. Tourism Ireland aims to rebuild revenue from overseas holidaymakers to pre-pandemic levels by attracting visitors who stay longer, spend more in the regions and by focusing on markets that deliver the greatest revenue. This will be achieved through a wide range of promotional activities, including major marketing campaigns, publicity and programming, social media and digital marketing, as well as working with the tourism industry at home and the travel trade overseas to facilitate sales.

Tourism Ireland's new global campaign, "Fill your heart with Ireland", will go live from St. Patrick's Day in our top four tourism markets; Great Britain, the United States, Germany and France. It will also be rolled out in other important tourism markets around the world.

This week I helped Fáilte Ireland launch its 2023 plans through which it will continue to support businesses, communities and regions in what will be a critical year for tourism recovery. Fáilte Ireland will undertake a range of measures to support the sector, including transforming the digital capabilities of tourism businesses, boosting the industry's recruitment and retention efforts. It also has ambitious plans to increase domestic tourism revenue this year. To do this, it will continue to focus on and invest in its regional brands and grow the numbers of domestic consumers through the "Keep Discovering" campaign, RTÉ weather sponsorship and other media channels. Sustainability will be at the heart of both agencies' work over the coming years. This aligns with the work my Department is carrying out through the development of a new national tourism policy. The new policy will seek to support sustainable economic development in communities throughout the country while protecting our environment and natural resources and with a greater spread of demand across the year.

I now turn to the report from the joint committee and I am grateful to the committee, and its Cathaoirleach, Deputy Niamh Smyth for their work on this important issue and I would like to join with Senators in thanking the secretariat for their immense work on this too.

The people who work in our tourism and hospitality industry are central to our céad míle fáilte, which is the cornerstone of our tourism offering. I have responded formally to the report and I hope to continue engagement with the committee on its key recommendations.

I now turn to the specific recommendations. The committee recommended that I engage with Cabinet colleagues on the establishment of an independent body with specific oversight of, and responsibility for, Ireland's hospitality sector. The committee also recommended nominating a single Government Department to retain direct oversight of and responsibility for all aspects of Ireland's tourism and hospitality sector. In responding to the committee, I have suggested that we might have further engagement on these recommendations. It is not clear to me that all of the areas of responsibility with these sectors can be encompassed in one agency or Department. It has also been instructive that in working together through current structures and forums such as the hospitality and tourism forum, we have come through the greatest challenge in living memory. Nevertheless, I would welcome further engagement with the committee on these recommendations.

The committee has also made a recommendation on joint labour committees, with a view to improving pay and conditions in the tourism and hospitality sectors. Such matters, as Senator Gavan pointed out, come under the remit of the Minister for Enterprise, Trade and Employment in the first instance. His Department has confirmed that certain matters relevant to these recommendations are before the courts. Separately, that Department is also carefully considering the final report of the labour-employer economic forum high-level working group, which reviewed the collective bargaining landscape in Ireland and made recommendations for its improvement.The Department will consult with stakeholders and develop proposals for Government in respect of its implementation.

A further recommendation from the committee relates to the expediting of work permit, visa and public personal service, PPS, number applications for tourism and hospitality workers. It also recommends that any changes to visa processing must include a provision that migrants are fully informed, supported and supplied with all relevant documents pertaining to their employment, including their contracts, conditions and pay, before their visas are granted.

In 2022 my Department and Fáilte Ireland worked together to make the case to the Department of Enterprise, Trade and Employment for chef employment permit applications to be expedited ahead of the tourism season in 2022. On foot of this, 2,036 employment permit applications for chefs were processed and processing time was reduced from 21 weeks to two weeks. Furthermore, the Department of Enterprise, Trade and Employment continues to keep the employment permits system under review in light of changing labour market circumstances and the timing of the next review of the occupational lists is under consideration. When open, submissions will be invited from sector representative bodies and interested parties through the public consultation form, which will be accessible on the Department’s website throughout the consultation period. On PPS numbers, the Department of Social Protection has confirmed that the average processing time for all counties is between one and four weeks, with most counties processing applications within two weeks.

The committee also recommended that I engage with Cabinet colleagues with a view to advocating for an increased resourcing of the Workplace Relations Commission, WRC. This would help increase the number and prioritisation of WRC inspections of all tourism and hospitality businesses, with increased inspectorate staffing and an enhanced complaints mechanism for workers in the sector, whereby workers’ anonymity can be respected. The WRC comes under the remit of the Minister for Enterprise, Trade and Employment, and I am informed that his Department is committed to ensuring that adequate resourcing is provided to the WRC. The Minister, Deputy Coveney, is satisfied that the resources provided to the WRC for 2023 are sufficient to enable it deliver on its important work.

The committee also recommended that my Department commission further research to meet the need for detailed research and empirical evidence on working conditions, and on the implementation of employment legislation, in Ireland’s tourism and hospitality sector. This would have a particular focus on how women, minoritised groups, and migrant workers are affected. Since 2021, Fáilte Ireland has been undertaking the most comprehensive research to date in the area of skills and working conditions, which includes interviews with more than 3,500 employees with direct experience working in the sector and up to 800 employers. I am aware that Fáilte Ireland has written to the committee in this regard.

Fáilte Ireland’s latest research findings show that employers have made positive strides over the past year, with approximately 70% of businesses increasing pay and providing more flexible work patterns and more stable and predictable work schedules to their existing staff and new recruits. The data also shows that employees recognise the improvements that have been made in the last year to pay, perks and working conditions. Workers also report that more still needs to be done to make working in the industry as appealing as possible, particularly in such a competitive labour market. Many employers appreciate this too. This research also reveals that 70% of people working in the industry see tourism as a long-term career option, which is hugely encouraging for the long-term viability of the industry. This is a strong figure and shows that the work we are doing with industry to build the appeal of careers in the sector is proving impactful. For many others, a job in tourism and hospitality offers the flexibility they need. The research also shows that recruitment and retention of staff in the industry is still a significant challenge for tourism and hospitality businesses. Fáilte Ireland will continue to provide these insights and support the cross-sector and concerted effort required to make the industry a more appealing and attractive place to work. My Department will explore with Fáilte Ireland how the implementation of the employment legislation and impacts on women, minoritised groups, and migrant workers in particular, can be reflected in its research and insights.

The committee also recommends that my Department, in engaging in any interdepartmental group or forum concerning Ireland’s tourism and hospitality sector, advocates for and ensures, or both, insofar as is possible, that the interests of trade union groups and workers are equally represented alongside those of employers and their representative groups. This is a principle that I am happy to support and it is worth noting how it has been given effect within the hospitality and tourism forum, which was established in 2020 in response to the Covid crisis. I co-chair this forum with the Minister for Enterprise, Trade and Employment. The general secretary of the Irish Congress of Trade Unions attends the forum and Patricia King, and most recently, Owen Reidy, have made a valuable contribution to the work of the forum. The committee will also be aware that Labour Employer Economic Forum provides a space to discuss areas of shared concern that are affecting the economy, employment and the labour market on a thematic basis, such as: competitiveness; sustainable job creation; labour market standards; and equality and gender issues in the workplace.

The committee further recommends that my Department engage with the tourism careers oversight group, with a view to nominating a body accountable for the delivery of any recommendations made by the group. The careers oversight group supports sustainable employment in the Irish tourism and hospitality sector and was formed in March 2016 following a recommendation from the 2015 expert group on future skills needs report. The careers oversight group works on a collaborative basis and includes industry representative bodies, education and training providers, State agencies and Departments. It provides a forum for practical action and collaboration to address the skills needs of the tourism and hospitality sector in Ireland. The careers oversight group works to co-ordinate the relevant bodies to agree and implement a work programme to address current and future labour supply and skills in the tourism and hospitality sector. My Department is represented on the careers oversight group and is happy to engage further with the group on ensuring appropriate action is taken on foot of its recommendations.

The committee also recommends that my Department engages with the Department of Further and Higher Education, Research, Innovation and Science on the delivery of further apprenticeship, traineeship, and third level diploma and degree programmes. These should be geographically accessible to as wide a range as possible of prospective apprentices, trainees or students, and should be directly relevant to the tourism and hospitality sector. On this recommendation, it should be noted that a previous analysis conducted by SOLAS and the Higher Education Authority, in its audit of hospitality courses in further and higher education from November 2017, indicated there was an excess in the provision of courses. The underlying challenge, which has existed over the last decade, is that there is not sufficient demand for existing courses and that the wider appeal of courses and careers in the sector needs to be addressed. There are a significant number of programmes in place to drive key audiences to consider a course or career in tourism. However, if the root issue of the appeal of careers in the wider sector is not addressed then the issue of the relatively low uptake of tourism and hospitality courses will persist. Fáilte Ireland views the employer excellence programme as the key vehicle for the industry to collectively work together to drive positive change in how careers in the sector are seen by the future pipeline of talent and by their key influencers.

In a related recommendation, the committee recommends that Fáilte Ireland further enhances its employer development and excellent employer programmes to encourage employers to grant uninhibited access to trade unions, and that Fáilte Ireland co-ordinates a publicity campaign to highlight such initiatives. I note the committee’s recommendation and I pleased to confirm that I allocated an additional €3 million in budget 2023 towards skill development and staff retention initiatives. Fáilte Ireland will develop its new employer excellence programme to support the industry to meet evolving employee expectations and to drive better employment practices across the sector. As part of the drive to promote better employment practices and to showcase good employment in the tourism sector, Fáilte Ireland launched the employer excellence programme to help all participating businesses to improve their employment practices and drive great employee engagement. The focus of the programme is on capturing feedback from employees and helping businesses to interpret and action this feedback to improve employment practices and drive greater levels of employee engagement. If the issue of accessing trade union membership is highlighted as an action area by employees then employers will be made aware of this when they see their results from the employee feedback. As part of this programme, all people managers undertake new best-in-class people management training, covering everything from best practice induction and performance management to managing high performing teams. The voice of the employee is at the heart of this programme and all employers signing up to the programme commit to carrying out an independent survey of their employees as well as implementing an action plan to continuously improve the workplace and action feedback from the survey.

I will move to the recommendation on discrimination and producing a national and standardised code of conduct that is mandatory and legally binding for the hospitality sector. Discrimination is covered by the Employment Equality Acts 1998 to 2015, but notwithstanding existing legal provision, my Department will further examine the issue of a code of conduct in collaboration with relevant stakeholders, similar to what we have done in the arts sector.