Seanad debates

Thursday, 18 May 2023

9:30 am

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

I thank the Senators for their comments. I am aware that the impacts of using tourism accommodation to meet humanitarian needs are being felt far beyond the provision of accommodation. Accommodation will do well this summer. A number of downstream tourism businesses are experiencing reduced footfall due to a lack of tourists in their areas.My officials are engaging with a range of Departments, with input from colleagues in Fáilte Ireland. We are not working in silos. Fáilte Ireland work with me and I asked for all of its data. That request comes from my officials, so it can be fed to Cabinet colleagues in Cabinet, not the other way around. I have raised my concerns consistently with Cabinet colleagues and I have asked my officials and Fáilte Ireland to do further work on this issue. That work will focus on the emerging trends in the 2023 season, with particular focus on those parts of the country that are most affected by the loss of tourism accommodation. It will assess what mitigation measures could be considered if the scale of the impact is sufficient to warrant this. I have requested this from Fáilte Ireland, so in case Senator Chambers hears something in a few months' time about how Fáilte Ireland has done something, we have been working together and that is how it should be. It would never be that Fáilte Ireland would be working separately from the Department. We work well together and that is how we managed throughout the Covid-19 pandemic.

I will try to address as many concerns as possible. Many issues have been raised and if I do not get to all of them, I will communicate by email. Senator Boyhan raised the regional spread and it is critical we continue to ensure greater regional spread of the socioeconomic benefits of tourism. To achieve this, Fáilte Ireland has developed a regional tourism development strategy in partnership with the local authorities, the State agencies, communities and industry partners. To deliver the strategy, Fáilte Ireland is creating a destination experience development plan where there will be local area action plans across each region. There will be 24 active destination plans by the end of the year, and 36 by the end of 2025 so, in short, every part of the country will have a dedicated tourism development action plan created in partnership with the local stakeholders.

Regarding the concerns around pricing in hotels, this issue was raised by Senators Cassells, Byrne, Boyhan and Carrigy, if not by even more Senators. Businesses continue to face significant cost pressures due to inflation and other economic factors. Nonetheless, there seems to be an increase in the frequency and scale of price spikes in the accommodation sector. There is definitely an issue there. As we see this weekend, this often coincides with sporting events or concerts. These spikes damage our reputation, the reputation of the sector, and of Ireland globally in terms of offering value for money. As I have said all along, it is really important that Ireland maintains its reputation as a value for money destination. It is important that the balance is struck and for the industry to maintain that value for money proposition for Irish tourism in the longer term. As I have informed this Chamber before, Fáilte Ireland wrote to all registered accommodation providers in December asking each and every business to consider Ireland's long-term value for money. The CEO of Fáilte Ireland repeated this message at Fáilte Ireland's recent industry information events. Even today it was reported that although Fáilte Ireland has no role in the setting of accommodation prices, the increase in the frequency and scale of price spikes in the sector is damaging the industries reputation nationally and internationally, and that is not acceptable. It does damage to other hotels outside cities where the tourism industry is really important to the vibrancy and the economic and social wellbeing of rural communities.

On concerns about the knock-on impact to the wider tourism ecosystem raised by most Senators, my Department participates in the senior officials group on Ukraine. That group meets on a weekly basis and my officials raise concerns about impacts on the tourism sector arising from the humanitarian response there. I have communicated with my Cabinet colleagues on many occasions and with the Minister, Deputy O'Gorman. My officials and Fáilte Ireland have regular engagement with the Minister, Deputy O'Gorman's Department. I refer to the body of work I have asked Fáilte Ireland to do. It is really key and only prudent to be ready and not to ask, "What do we do?" when the data is gathered. Everything has to be evidence-based and data has to be gathered but we need to have those mitigation measures in place and ready to go.

As Senator Malcolm Byrne said, we developed the experience during Covid-19 of what type of targeted measures could support tourism businesses to trade and survive, such as the really successful business continuity supports for which I got funding. Fáilte Ireland was excellent in getting to the businesses that needed them, that is, that strategic tourism. That has to be considered. Other matters that may need to be considered, include rates reliefs and targeted marketing campaigns, but we have to be innovative and ready to go. That is why I have asked Fáilte Ireland to do this work and then report back. I hope to have the conclusions before the end of this Dáil term.

Another concern raised by Senator Boyhan was around what I am doing to support the development of marketing campaigns. In budget 2023, I secured additional funding of €15 million for overseas marketing of Ireland. That was after 2022's once-off pump-prime investment of €35 million. Of course, additional money has gone in. Senator Boyhan mentioned the domestic market because that is a critical part of our tourism economy and we might even need to rely on it more under the current circumstances.

In recruitment and retention, there is the employer excellence programme. Senator Boyhan might be interested to know that Fáilte Ireland designs and delivers a diverse portfolio of Fáilte Ireland's own and co-created festivals that are critical for developing tourism in rural areas. Senator Dolan mentioned a new festival funding stream that is open. That is actually under the arts section and not under Fáilte Ireland. That is separate again but it shows why those two sections work well in this Department.

Local transport options are vital to regional tourism, covering all modes of transport. That has been identified as an issue to be covered in the new tourism policy.

As for skills and conditions, Fáilte Ireland has invested significantly in measures to improve attractiveness. I mentioned the employer excellence awards, the first edition of which was last month. Regarding pay issues and employment law, that is not within my remit but I co-chair the hospitality and tourism forum with the Minister for Enterprise, Trade and Employment, Deputy Coveney, and I will raise those points with him.

The online passport service is fast and excellent. The majority of people use that but whether there is a strategic need for a physical office in Belfast is something my officials can raise with the Department of Foreign Affairs. Senator Wall mentioned the night-time economy. There is huge potential here for breathing life into rural towns and communities. I hope the €1 million I announced yesterday for museums and galleries, of which there are more than 80 dotted across the country, will be wonderful for breathing life into rural Ireland.

In regard to forest parks, there is great potential in this area and Fáilte Ireland is developing a positive partnership with Coillte. I refer to the treetop walk in Avondale. Outdoor experiences - slow tourism based on walking and cycling - have great growth potential. I really look forward to pushing this as a priority. I agree that building links with the national parks has massive potential and my officials have discussed this with the Minister of State, Deputy Noonan's Department.

On just transition, the challenge will be to utilise the full value of the €68 million within the four-year window but Fáilte Ireland is looking at the tourism activators and we can feed Senator Dolan's observations back to it. On any information I can get the Senator on those schemes and grants, I will make sure my officials contact her. I will also feed the information on trail developments back to Fáilte Ireland.

Senator Malcolm Byrne raised short-term lettings. I am waiting for an outline from the Department of Housing, Local Government and Heritage as to what its planning guidance will say. I know that seems to be the burring issue coming from my engagement with stakeholders and from engagement with the committee of which the Senator is a member. I received a communication this week from the Oireachtas joint committee. It is awaiting communication from the Department on the planning guidelines, and getting that clarity is absolutely essential. I agree a sensible proportionate approach needs to be taken, especially in rural areas where short-term properties do not have a significant impact on housing availability. The EU standstill on consideration of our proposals until December gives us time to get this right and I fully understand that short-term lets are a key part of the rural tourism offering.

I agree with Senator Boyhan's concerns that we need to tap into the wealth of our culture and arts. When I am on trade missions abroad, I find that is the attraction of coming to Ireland. Our wealth of culture and arts is among the great tourism offerings we have but we are also developing the new tourism policy that will mainstream sustainability. Senator Boyhan talked about our food and so on. All of that will come into that policy as well as longer stays and the regions.

Senator Carrigy mentioned car hire. Officials from my Department and Fáilte Ireland meet the representatives from the tourism sector, including the Car Rental Council of Ireland monthly. These meetings are hosted by Fáilte Ireland.Also, there is the hospitality and tourism forum the Minister for Enterprise, Trade and Employment, Deputy Coveney, and I co-chair. The forum is due to meet again in the coming weeks. Representatives of the Car Rental Council of Ireland will be present at this forum. It is not within the immediate control of Government and there are no quick solutions but I continue to urge all components of the wider tourism community to be mindful of the long-term impact of pricing on the value proposition which is critical to Ireland's ability to attract and retain tourists. We want tourists to come back again.

Gabhaim buíochas leis na Seanadóirí as a gcuid ionchuir maidir leis an gceist thar a bheith tábhachtach seo. Is tionscal tábhachtach dúchasach é an turasóireacht agus teastaíonn cur chuige comhbheartaithe agus coiteann chun aghaidh a thabhairt ar na dúshláin.

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