Seanad debates

Tuesday, 6 December 2022

National Tourism Development Authority (Amendment) Bill 2022: Second Stage

 

Question proposed: “That the Bill be now read a Second Time.”

11:00 am

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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Gabhaim buíochas le baill an tSeanaid agus an chuireadh a bheith ina dteannta. The National Tourism Development Authority (Amendment) Bill 2022 provides the basis to enable the continued provision of capital funding to the National Tourism Development authority, Fáilte Ireland, for the purpose of supporting tourism product development and the tourism industrySection 24(1) of the National Tourism Development Act 2003 gives the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, with the consent of the Minister for Public Expenditure and Reform, the power to advance moneys provided by the Oireachtas to Fáilte Ireland. Section 24(2) limits the amount of money that can be advanced by the Minister to Fáilte Ireland for capital expenditure. Assuming the allocated funding in 2022 is drawn down by Fáilte Ireland, the current limit of €300 million will be reached close to the end of 2022. No further voted capital funding can then be advanced to Fáilte Ireland. Accordingly, I am bringing this Bill to the Houses of the Oireachtas to provide for the new spending limit of €500 million.

Before giving further details of the Bill, I pay tribute to those who form part of the tourism ecosystem and make an important contribution to Ireland's overall economic performance. I particularly recognise the way in which the tourism industry reaches across the country and its importance for the regional economy. The contribution of tourism is not confined to directly generated employment, economic activity and exports. The sector has an important multiplier effect on other employment sectors such as agriculture, transport, retail, food and beverage, which are particularly important to regional economies. Apart from its economic value, tourism also plays an important role in promoting Ireland's image abroad and generating a positive impression of Irish people, our landscape and culture for visitors.

Recent years have been challenging but I am confident that with all of those engaged with Irish tourism working together with the relevant agencies, Ministers and the Government, we can ensure the quality and competitiveness of the Irish tourist offering is continually improved and that the industry generates increased earnings and more jobs as part of our economic recovery. As with all industry, it is important that the tourism sector keeps innovating and developing in order to keep Ireland in the minds of potential travellers. In that regard, we know how important it is that brilliant visitor experiences, attractions and activities are available to visitors both international and domestic. As a significant proportion of tourists are drawn to attractions and participative experiences that bring local culture and heritage to life, Fáilte Ireland offers a range of supports to help tourism providers across the country to maximise their individual and collective offering in a way that attracts and engages tourists and enhances their overall experience.

Ireland's tourism sector provides a wealth of opportunities for great offerings for visitors. In order to enhance those opportunities from a strategic perspective, Fáilte Ireland, broadly speaking, has four main funding channels for its capital investment in tourism product development. These are the large grants schemes provided under the platforms for growth approach, the small grants schemes, which are targeted schemes usually aligned with the tourism experience brands, strategic partnerships and other collaborations, and direct investment in experience brand infrastructure. In addition, part of Fáilte Ireland's capital funding programme uses platforms for growth to drive development in specific areas. The first platform for growth was launched in May 2019 and focused on developing immersive heritage and cultural attractions. These are attractions that appeal to overseas visitors looking for experiences that help them to connect with Ireland and bring the country's culture, heritage and people to life. Through this platform, Fáilte Ireland aims to ensure strong growth in development by investing in heritage and cultural attractions of scale that will motivate visitors to travel, either to and-or within Ireland, but without displacing the existing attractions of a destination or disturbing the competitiveness already attached to mature destinations. The overall objective is to deliver brilliant experiences that allow visitors to connect with Ireland and bring the national and local culture, heritage and people to life, while also delivering a greater regional and seasonal spread of tourism.

In April last year, €19 million worth of investment was announced for the second platforms for growth strategy, to be used to develop world-class facility centres at 20 locations across the country at which water-based activities are a key visitor attraction. This includes locations such as Tipperary, Sligo and Leitrim, to name but a few. These facilities, designed to serve as a hub in each locality from which multiple water sports operators can base themselves, will provide hot showers, changing and toilet facilities, secure storage, induction spaces, equipment wash-down and orientation points. They will be fully wheelchair accessible and built using sustainability best practice such as solar heating panels. This sustainable tourism investment scheme was developed in partnership between Fáilte Ireland and local authorities.

In addition to funding provided under the platforms for growth approach to large grants schemes, Fáilte Ireland also provides further capital supports to tourism attractions and experiences in Ireland through other channels, including small grants schemes, strategic partnerships with other State bodies and some direct investments. The strategic partnerships include entities such as Waterways Ireland, the Office of Public Works and the Department of Rural and Community Development. Fáilte Ireland supports a wide range of projects. This year alone, these have included projects in the Céide Fields in Mayo, the Blasket Islands in Kerry, Knowth in Meath and the National Famine Museum in Strokestown. From a tourism perspective, Fáilte Ireland's investment of €3.9 million is one of the largest ever investments in a visitor attraction in Ireland's Hidden Heartlands.

There is a knock-on impact on the local economy both in terms of employment in attractions such as the National Famine Museum in Roscommon and in the wider tourism sector and economy. Fáilte Ireland's capital investment in tourism product development is further enhanced by complementary programme supports, including for festivals and events, business supports and training, and marketing and promotions, which are aimed at enhancing, animating and promoting the overall visitor experience. The intention is to optimise key assets for the benefit of tourism and sustainable tourism development through increasing the geographic spread of visitors.

My Department has initiated the development of a new national sustainable tourism policy that seeks to mainstream sustainability. The development of this new policy will involve extensive consultation with the tourism industry and our communities to help set out a path for the coming years to support a sustainable recovery and subsequent growth in the sector. The policy will seek to support sustainable development in communities throughout the country, while protecting our environment and natural resources and encouraging a greater spread of demand across the year.

I will now deal with the purpose of the Bill. The National Tourism Development Authority Act was passed in 2003 to dissolve Bord Fáilte Éireann and CERT Limited and establish the National Tourism Development Authority, Fáilte Ireland. Section 24(1) of the Act gives the Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, with the consent of the Minister for Public Expenditure and Reform, the power to advance, out of money provided by the Oireachtas, such sums as the Minister may determine. Section 24(2) limits the total amount of money that can be advanced by the Minister to Fáilte Ireland as capital expenditure on projects or enterprises. However, annual funding allocations are made in the normal way through the Estimates and budgetary process. This limit on total capital funding was originally set at €65 million but was later increased to €150 million and then €300 million under the National Tourism Development Authority (Amendment) Acts 2011 and 2016.

Taking into account the 2022 capital allocation to Fáilte Ireland, investment in tourism capital projects is now approaching that limit. Once the spending limit has been reached, no further voted capital moneys may be advanced to Fáilte Ireland for tourism capital investment projects. Accordingly, it is now prudent to legislate for an increase in the limit. Is trí eispéiris agus áiteanna turasóireachta a fhorbairt gur féidir linn tairbhe a bhaint as an bhfás domhanda sa turasóireacht agus a chinntiú go bhfaigheann Éire, agus gach réigiún di, a sciar de na buntáistí a chuireann turasóireacht ar fáil go sóisialta agus go heacnamaíoch. Déantar na tairiscintí seo a phacáistiú agus a chur chun cinn faoinár mbrandaí eispéireas turasóireachta den chéad scoth chun a chinntiú go seasann Éire amach sa mhargadh idirnáisiúnta. Cuirfidh an Bille seo ar chumas an fhorbairt seo leanúint ar aghaidh. I am introducing this Bill to make the necessary legislative change and I commend it to the House.

Photo of Vincent P MartinVincent P Martin (Green Party)
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Cuirim fáilte roimh an Aire go dtí an Teach. The Bill is technical in substance and quite straightforward. Its main purpose is to permit the Minister to increase the aggregate level of advances that can be made to the National Tourism Development Authority, Fáilte Ireland, out of capital moneys approved by the Oireachtas. This funding is of use in supporting enterprises and projects related to the development of tourist traffic and tourism facilities and services.

Tourism is a hugely important indigenous and labour-intensive sector that generates substantial export earnings and tax revenues. Apart from its economic value, tourism also plays an important role in promoting Ireland's image abroad and generating a positive impression of Irish people and our landscape and culture for visitors, which no doubt plays a big part in attracting tourists. Fáilte Ireland has used the platforms for growth strategy to drive development in specific areas. For example, using funding provided by the Government, Fáilte Ireland has provided €90 million to 20 locations throughout the country for water-based activities, which are key visitor attractions.

In respect of sustainable tourism, Ireland's commitment to pursue a climate-neutral economy will help us to realise our ambition to be among the world's leaders in sustainable tourism. The Minister has initiated the development of a new tourism policy that seeks to mainstream sustainability.It will seek to support sustainable development in communities while protecting our environment and natural resources with a greater spread of demand across the full year. In addition, the creation of an all-Ireland walkways development plan to establish long-distance off-road walking and cycling routes as well as to promote sustainable outdoor adventure and tourism and develop food trades, to name but two examples, will build on our reputation of high-quality produce, which is renowned throughout the world.

I think of how the roll-out of supports would really help my home county of Kildare. Our walkways and canals are second to none. We have three racecourses in County Kildare as well as the Irish National Stud and Gardens. We have huge potential, which is largely untapped, to reach a global audience by celebrating our patron saint, Saint Brigid. We have our forests and bogs. Now, of late, we can add Féile Liam O'Flynn, the annual music festival in Kill and Naas, which celebrates the legacy of Liam O'Flynn but also the legacy and celebration of music in County Kildare. That has reached a national audience and it is hoped it will reach an international one in the years to come. That is just one microcosm of an example in my own county. I am sure other counties have that rich bank of heritage and tourism potential and attractions. I welcome, support and commend the Bill on Second Stage.

Photo of Sharon KeoganSharon Keogan (Independent)
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The Minister is very welcome. I understand the need for this Bill but I wonder how much difference this funding will make when it comes to solving the problems facing tourism in Ireland. It seems the biggest barrier facing the future of tourism in this country is hotels. The Irish Hotels Federation warned that a return to the 9% VAT rate may be needed as the hospitality industry faces very turbulent times, with forward bookings from Britain and continental Europe running below 2019 levels.

The contracting of hotels for use as emergency accommodation by Ukrainians has created unprecedented levels of hotel scarcity in the country's top tourist destinations, as attested to by the chief executive of Fáilte Ireland, Mr. Paul Kelly. A breakdown of the contracts awarded by the State reveals deals worth €337 million with 270 hotels and bed and breakfast accommodations between April and September this year. A spokesperson for the Department of Children, Equality, Disability, Integration and Youth said the actual figure is far higher because of the deals awarded in the last quarter of 2022, details of which would not be released until January 2023. Tourism hot spots such as counties Kerry, Donegal, Clare, Cork and Galway have a significant number of hotels and bed and breakfast accommodation in use by the State, with contracts ranging from €20,000 to €12.5 million. From late November to the end of the year, the Government plans to take in 11,000 more Ukrainians, bringing the total to 72,000 alongside more than 17,000 persons who have arrived here this year seeking international protection.

Contracts for 360 of the 500 hotels in contracts with the State are up for renewal this month, and the Department is expecting the majority to extend their deals. The Irish Tourism Industry Confederation said "nearly one in every four tourist accommodation bedrooms is currently being used to fulfil Government contracts and the number seems to ... [be growing week by week]". Hoteliers and hostel owners accommodating more than 1,000 Ukrainian refugees are owed millions by the State. Many have not been paid in three months and are threatening to kick their guests out onto the streets unless this issue is resolved soon.

Last month, the Department of Children, Equality, Disability, Integration and Youth, which is responsible for housing the Ukrainians, nearly all of whom are women and children, admitted to difficulties in paying people and expressed regret. One hotel owner expressed how he was owed more than €1 million. He is housing between 100 to 200 refugees and is feeding them every day. He had to borrow money from the bank so he could keep the Ukrainians on his premises. A Department spokesperson said more than 650 contractors are providing accommodation for Ukrainian beneficiaries of temporary protection for the Department of Children, Equality, Disability, Integration and Youth. The Government admitted that some providers are still waiting for payments due to a backlog but said the additional staff had been allocated to process payments to hotels as soon as possible. Really, this is the elephant in the room when it comes to tourism. How is it going to be dealt with? How does one resolve this? I sense modular homes might be involved in the solution. Where will we put these? What supporting infrastructure will be put in place around them? How will this Government manage to make it sustainable? These are the questions that need to be answered. Will the Minister provide any updates on this?

There are also energy costs for hotels, restaurants and businesses, and the tax warehousing will be up by the end of this year. Many of those businesses may just close their doors next year. There are many issues affecting our tourism trade before the end of this year that the Minister might need to address very quickly in 2023.

Photo of Shane CassellsShane Cassells (Fianna Fail)
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I thank the Minister for bringing forward the National Tourism Development Authority (Amendment) Bill 2022. I commend her on using her Second Stage speech to set out in detail the ecosystem of the tourism industry and explain why this Bill and the increase in extending the limit of capital expenditure is so critical and why it will make a major difference. That capital investment broadens our appeal as a destination. People who are spending their money in this sphere want quality. We must ensure the nature of the offer that is put forward is of the highest quality.

From our work as members of the Joint Committee on Tourism, Culture, Arts, Sport and Media, we see the benefits across the board at a national level, not just economically but socially and culturally. In terms of that capital investment, being from County Meath, I see a substantial part of that expenditure by Fáilte Ireland in my county around the heritage offering to our international and, most importantly, our domestic tourists, who, maybe because of staycations in recent years, are appreciating the heritage offer on their doorstep. On that doorstep is a wealth of internationally rated heritage sites in which Fáilte Ireland has invested in the past year. I commend it and the Minister on that.

The Minister touched on some of those sites in her speech, in particular the investment at Brú na Bóinne. Everyone knows of Newgrange but, as a child growing up in County Meath, I always found Knowth a more interesting site to explore. Fáilte Ireland, working with its partners in the Office of Public Works and the Minister, has now invested €5.5 million in the Brú na Bóinne site. This year, it invested almost €1.4 million in the new tourist attraction at Knowth. That is greatly significant for the broader attraction of the whole Brú na Bóinne area, reimagining that Boyne Valley drive to connect the historic points that exist in County Meath and making sure more international and domestic visitors come. That Boyne Valley drive is being reimagined from a point-to-point journey between some of Ireland's most important and compelling heritage sites to a wider immersive visitor proposition that becomes a 5,000 year journey through time.

One of the big initiatives launched this year by Fáilte Ireland in conjunction with Meath County Council and the Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media was the Trim destination town, on which nearly €500,000 was spent. I was delighted to be there with members of Meath County Council, Fáilte Ireland, and Councillor Aisling Dempsey, our chairperson from that region, on the Porch Field project, which will provide outdoor performance spaces in County Meath. It will use that natural heritage in our town of Trim and the carefully chosen spectacular views of the River Boyne beside Newtown and Trim Castle as a backdrop to the performance area. That is very important.

In conjunction with that we have the Púca Festival, which is an international festival celebrating our heritage in terms of Hallowe'en and the ancient tradition of Samhain over 2,000 years. This three-day vibrant and contemporary festival in places like Trim, Athboy and Ráth Chairn is supported by Fáilte Ireland to make sure our centre of County Meath is highlighted on an international stage.

Finally, one of the big and really significant projects being invested in is the Boyne greenway and navigation restoration scheme.This would link the heritage towns of Navan and Drogheda and use the national heritage there. It would also bring places like Slane Castle and the international visitor centre that will be happening there into play. Fáilte Ireland and the Minister are working with partners on that multimillion euro investment. Work to date has included identification and topographical studies, surveys and constraint identifications of the area because of the sensitivities involved. That will be a game changer for the towns of Navan and Drogheda. When we talk about capital investment and allowing the thresholds to increase, these are the examples where real and significant change is happening because of investment by Fáilte Ireland and the Minister in a heritage county like Meath. It will make sure that, in a county where I started out as a public representative 24 years ago and was lucky to be a member of the board of Meath tourism, we were way down the rankings as a tourist destination in Ireland. As a result of investment like this, we have grown steadily by using what is on our doorstep, namely, our heritage. We have risen up the rankings as a result of that investment.

I commend the Minister and Fáilte Ireland. I look forward to the Bill progressing.

Photo of Micheál CarrigyMicheál Carrigy (Fine Gael)
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The Minister is welcome. I also commend and fully support the Bill.

Tourism has been one of the major success stories in the country with significant investment being made. It is important that we insulate and nurture it because the figures seem to be going in the right direction but we have to make sure that continues. We have so many things going positively for tourism, but there are also some negatives. Around each corner there are many beautiful amenities. In the midlands, where I come from, we have the Hidden Heartlands brand, The latter showcases our natural environment, scenery, culture, history, dance and music. I was involved with former Deputy Kevin Boxer Moran in having the Hidden Heartlands brand developed. There was a certain level of resistance from Fáilte Ireland to add another brand to its offering. When it looked into the and carried out feasibility studies, however, it found that it was what people were looking for. People want slow and easy tourism in the natural environment among our lakes, waterways and rivers. Those are things we have plenty of. We have the development of the Royal Canal, which has been completed from Cloondara on the River Shannon right up to Maynooth. Ultimately, the plan is to redevelop it all the way from Maynooth right up to Spencer Dock. When I was a member of Longford County Council - and I am still involved with Longford tourism - we had plans to try to connect with the western greenway in order that there would be an off-road walkway the entire way from Dublin to Achill Island.

The Minister mentioned Platforms for Growth. I was disappointed because we had a submission in last year for a project on the former Army barracks site in Longford, which made it to the last 11, but, unfortunately, which was not one that was picked. We have lots of fantastic initiatives that have been supported by Government, however, including the Knights and Conquest Heritage Centre in north Longford, which is in receipt of over €3 million, between rural regeneration and Fáilte Ireland funding, to develop a project on the site of the highest moat in Ireland. We also have the Maria Edgeworth Centre in Edgeworthstown and we have Corlea Trackway Visitor Centre. A great deal of investment has gone into a county that has had the lowest tourist numbers for many years. The development of the Hidden Heartlands brand has given us an opportunity to showcase what we have. Centre Parcs brought an investment of more than €230 million to the county, with an extra €90 million to be invested with the additional planning application it put in to increase the number of lodges on-site. Ultimately, this will bring the number of visitors to County Longford each week up to more than 3,500. It is up to Longford County Council and its tourism group to make sure that they show what we have and that people will stay and visit other sites in the county so we will get the benefit of that. I want to put on record my thanks to the Hidden Heartlands team, led by Paddy Matthews. They have done a fantastic amount of work. Post Covid, that team will drive those figures up and increase the tourist numbers coming into the county.

There are risks to the industry too. We have skill shortages, a lack of hotel accommodation and increased costs due to the economic uncertainty. Government has put in place the scheme for high additional energy costs, which was only opened in the last week.

I recently met the Minister for Further and Higher Education, Research, Innovation and Science, Deputy Harris, to discuss skills shortages.. While great strides have been made under the apprenticeship scheme, we need to do more. We have seen the opening in the Cathaoirleach's county of Kerry of a tourism and hospitality link with the college of further education there. Another such college needs to be opened in the midlands. We even have the ideal site at the Connolly Barracks site in our county, next door to the college of further education, where we could develop a college of culinary excellence in tandem with courses in tourism and hospitality. In so doing, we could make sure we service the tourism and hospitality industry with people who are qualified and make sure that people look on it as a good career. The Joint Committee on Tourism, Culture, Arts, Sport and Media has been hearing that all businesses are struggling to get employees, so that is something that needs to be looked at. I spoke with Tús, the Longford and Westmeath Education and Training Board, the local authority, the Irish Hotels Federation, the Restaurants Association of Ireland and Centre Parcs about this matter. Everyone knows that this needs to be done; we just need to make it happen. I would welcome any support from the Minister on that.

Tourism was a success story after the recession. We built it up to provide over 260,000 jobs in our economy. We need to continue to support it. We heard anecdotal evidence that the numbers will be down next year. I am not an opponent of the 9% VAT rate; that needs to be kept for another year. I ask that this be considered. We also have to take a serious look at hotel accommodation. There are certain towns, including my county town, where if you want to get a hotel bed, you cannot do so. That needs to be looked at. I know we have a situation whereby we have to provide support, but we also need to have a maximum percentage limit on the number of beds that can be taken up by the State in order to have at least a certain number of beds available for the tourism industry or for people coming into a town. I ask that this be considered. There has been a lot of negativity towards hotels because a small number of them engaged in price gouging. However, many did not do so. I know that from experience. I went west to Enniscrone during the summer, in August, and had a three-night break for under €700 for a family of five. That was quite reasonable. We should not knock the entire industry for what a small number of hotels did, but we need to look at the availability of rooms if we want our tourism industry to continue next year.

Photo of Fintan WarfieldFintan Warfield (Sinn Fein)
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I welcome the Minister. This short and technical Bill will provide the statutory basis to allow the Minister for Public Expenditure and Reform to increase the aggregate level of funding that will be made available to Fáilte Ireland. As has been said, the current ceiling is €300 million and the Bill will see it increase to €500 million. Sinn Féin will support the Bill.

I have said in the past that our heritage projects and communities that save and protect our heritage should never have to justify their heritage on the basis of visitor numbers. When Fine Gael was alone in government for many years, the Heritage Council lingered without its funding being restored during the period of austerity. A very Fine Gael-like approach to heritage was that communities would have to justify their heritage projects. This was because Fáilte Ireland was the only State agency funding heritage on the basis of visitor numbers and tourism offering. That is problematic because heritage is extremely important to our country and to communities that protect and save it.

Tourism is Ireland's biggest indigenous industry. Hundreds of thousands of people are employed in tourism. It is especially important along the west coast and in the midlands. Fáilte Ireland is integral to that. It has played a central role in the development of tourism and its work should be commended. It would not be possible, however, to speak about tourism without referencing the pandemic and the resultant restrictions. The years 2020, 2021 and 2022 were among the most difficult ones for the industry and as we know, the industry was the first to close and the last to reopen.Despite Government funding for wages and overheads, it was a very difficult time for the industry. We emerged from the crisis and went straight into the cost-of-living and energy crises. Some parts of the sector, especially restaurants, face a very difficult winter. Some will have warehouse debt to deal with, along with energy bills and difficulties with recruitment. This is before they contend with staff shortages due to the large number of workers who left the sector during the Covid-19 pandemic.

We all know that hotels, especially those in our cities, engaged in significant price gouging during the summer months this year. However, it is important to recognise that this is a very wide-ranging industry and that different sections will have different experiences. The actions of some hoteliers should not be allowed to tarnish the entire industry. We must not punish one section of the industry for the actions of another. Despite various Ministers having commented on the VAT rate for the industry, it is, in Sinn Féin's view, possible under European law to apply different tax rates to different sections of the tourism and hospitality sector. Hotels could have one tax rate and other tourist attractions or restaurants could have another. We need to consider this seriously. I ask the Minister to investigate that further. We cannot continue to allow price gouging to go unchecked. A failure to act would only add to the reputational damage that has affected Irish tourism recently and allow the actions of a small minority to have an impact on the industry as a whole. We need to act now before businesses' livelihoods and reputations are damaged beyond repair.

Another issue that needs to be addressed is the pay and conditions of workers in the industry. I, like others, have mentioned this at meetings of the joint committee. We have written a report on this matter that is due to be published soon. We held hearings that exposed some outrageous behaviour by certain parts of the sector, with hospitality workers being treated terribly, abused, overworked and underpaid. There was much talk last year about staffing crises in the sector. It should come as no surprise that retention is such a struggle in the industry when one sees how poor conditions are in some places. I urge the Minister to get involved. It is not right that industry lobby groups, but not workers, would be represented. I hope the Minister will bat for ordinary workers in the industry.

I hope the Minister will consider taking responsibility for this in her own Department and consider the report that our committee has compiled. Some very serious issues were raised in the report. Unless action is taken, the situation will remain the same and the industry will suffer from constant staff recruitment and retention problems. Sinn Féin will support the Bill; however, I ask the Minister to consider the pay and conditions of those who work in the industry. I probably do not need to tell her that heritage should not have to be justified on the basis of visitor numbers and the tourism offering; it is important in its own right. The Heritage Council has an important role in that regard.

Photo of Mark WallMark Wall (Labour)
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I, too, welcome the Minister to the House and the chance to speak about this Bill. It is a relatively short technical Bill that will provide a statutory basis to allow an increase in funding to Fáilte Ireland. The current ceiling is set at €300 million and the Bill will see that increase to €500 million. The Labour Party will, of course, support the Bill, as it did in the Dáil.

There can be little doubt that the Irish tourism industry has gone through a devastating time in the past two years or so. However, every attempt must be made by the Government and sector to rebuild this powerful industry, ensuring it provides sustainable pay and employment throughout the sector while developing our tourism offering across the State. As colleagues have said, it is clear from having spoken to many in the sector over the past two years that the recruitment and retention of staff has been identified as a major challenge as we come out of Covid. I have previously raised the need for a comprehensive review of how we train staff in the sector. We must use, expand and develop the various courses provided by our technical colleges and universities. I am aware this is an area on which both Fáilte Ireland and the Minister have engaged, and I am also aware it is one that many in the industry would like continued support with. Many I have spoken to want to invest, and reinvest, in rebuilding their tourism offering and developing their excellent hospitality; however, many recognise that, without properly trained staff, this will be very difficult.

The opportunity presented by this Bill allows me to speak about the terrific tourism and hospitality offering in my county, Kildare. I am sure the Minister and her office will be aware of the forthcoming tourism offering in Kildare, Brigid 1500. Brigid 1500 is a programme of national and international events and initiatives to celebrate and commemorate St. Brigid – the woman, the life and legacy. Launched very recently at St. Brigid's Cathedral, Kildare town, Brigid 1500 will culminate in 2024, when many experts agree marks the 1,500th anniversary of the death of St. Brigid. Thus, St. Brigid's Day, 1 February 2024, will be a key date in the programme. The main aim of Brigid 1500 is to create a meaningful cultural and societal legacy that appeals to a diverse contemporary audience. The project is being delivered by Kildare County Council and supported by a steering committee of leading experts across the fields of arts and culture, academia, tourism, industry, spirituality and faith, community education and much more. The Minister's ongoing support for this very important initiative for County Kildare will, as always, be appreciated.

Our close ties with St. Brigid are not the only attraction we can offer to potential tourists in the short grass county. The developing equine tourism offering in Kildare needs to be supported in every way. The linking of Tipperary and Kildare as a tourism offering is something I have discussed with my colleague, Deputy Kelly, since I attended the launch at the Irish National Stud. The Irish National Stud is, of course, a magnificent and expanding jewel in the crown of the tourism offering in County Kildare.

My home town, Athy, is currently developing two terrific tourism offerings that I know the Minister will continue to support. The Barrow blueway is due to open next year, offering a tourism and recreation attraction extending 47 km all the way from the beautiful town of Athy, through the spectacular landscape of south Kildare, to the picturesque village of Robertstown. Many cannot wait for its opening. It is already attracting tourists, not only from Ireland but also from many other European countries. Indeed, I met a couple from Holland on the tourist trail only this weekend.

The development of the Shackleton Museum in the town will create a world-class attraction celebrating the life of the world-famous explorer and exposing the town and rest of south Kildare to many new tourism markets that we all hope will create much-needed employment and opportunities.

There are many parts of this country, such as rural south Kildare, that will not see the major manufacturing outlets that are more likely to locate in large urban areas. The potential for tourism and employment and other opportunities that can be realised in these areas must be maximised, developed and, most important, supported. As such, we welcome this legislation. I look forward to working with the Minister on these important projects as they are rolled out in the coming years.

Photo of Mark DalyMark Daly (Fianna Fail)
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By order of the House, I must call the Minister at 4.33 p.m., so Senators Currie and Dolan have two minutes each.

Photo of Emer CurrieEmer Currie (Fine Gael)
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I thank the Minister. I very much welcome this Bill and the increased availability of capital. I worked for Fáilte Ireland. It was my client when I worked in advertising and marketing. I was part of the team that started the process of marketing home holidays with the Right Here, Right Now and The Fun Starts Here campaigns, so I recognise the multiplier effect and how much our tourism proposition has changed over the years. It is not just about attractions but also about experiences and packaging them in light of the unique selling points that Ireland has to offer. The domestic market is important. After Covid, the local market has been also.

Over the past couple of years, there has been capital expenditure on larger projects such as Westport House. I wish to signpost places such as Dunsink Observatory, Dublin 15. The Liffey valley is another potential tourism project in Dublin 15 that should be considered. Fingal has its own marketing proposition but the whole area of Dublin 15, stretching from the starting point of the Phoenix Park, has much potential. As the Minister says, one could have strategic partnerships and collaborations involving the likes of cycling and the Dublin Institute for Advanced Studies. We had our own time zone in Ireland at one stage and Dunsink Observatory was at the meridian line. There is much potential in Dublin 15 that I would urge the Minister's team to look in that direction.I thank the Minister for being here today, and particularly for mentioning the National Famine Museum in Strokestown Park. It is an amazing facility. Over €3 million in funding has been granted to the museum and the Minister was there at the opening of it. I like the joined-up thinking between Departments. Strokestown has also benefited from Town Centre First investment and the €200 million investment in the N5 Ballaghaderreen to Scramogue road project, which will bring more visitors to the region and will also take the heavy traffic out of the middle of the town. Christmas markets were on in Strokestown last week and the place was absolutely hopping. It is great to see it.

I want to focus on how we can increase accommodation capacity in these regions. One can travel long distances in many rural areas and there is no access to accommodation capacity for tourists to stay in the region. It is enough to bring them there, but we would like them to stay and to enjoy what we have to offer in the west of Ireland. In Ballinasloe we are very fortunate to have the new investment coming with the Dublin to Galway cycleway. That will bring more visitors to the area, which will be a benefit to our communities. I ask the Minister to comment on how we can maximise the potential that this groundbreaking piece of infrastructure will bring in the next three to five years.

Last Sunday I was invited to go on a battlefield walk in Aughrim, which is a few miles outside Ballinasloe. As we know, the battle of Aughrim was fought in 1691 and changed the history of Ireland and Europe. We need more investment. Currently, the site is owned by Galway County Council. It would be great to look at opportunities for how Fáilte Ireland might support the development that particular site for tourism.

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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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.

Question put and agreed to.

Photo of Mark DalyMark Daly (Fianna Fail)
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When is it proposed to take Committee Stage?

Photo of Shane CassellsShane Cassells (Fianna Fail)
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Next Tuesday.

Committee Stage ordered for Tuesday, 13 December 2022.