Written answers

Thursday, 11 November 2021

Department of Culture, Heritage and the Gaeltacht

Tourism Industry

Photo of Joe FlahertyJoe Flaherty (Longford-Westmeath, Fianna Fail)
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119. To ask the Minister for Culture, Heritage and the Gaeltacht the planned allocation of the €50 million provision announced in Budget 2022 for business continuity support for strategic tourism businesses that can help drive the sustainable recovery of the tourism sector; and if she will make a statement on the matter. [55127/21]

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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The COVID-19 pandemic had a devastating impact on the tourism industry. As we rebuild this vital sector, which supports livelihoods all across Ireland, we have an opportunity to ensure that the sector recovers and grows in a way which delivers social and economic gain to cities, towns and villages all across Ireland, more evenly spread throughout the year, and in a manner that protects our unique environment. The significant additional funding that I have secured for tourism services in Budget 2022 will help address immediate survival-related concerns while also enabling further resilience and recovery across industry as we reopen to international tourism and transition to a more sustainable future. 

The  funding for Tourism in Budget 2022 amounting to €288.5m represents an increase of €67.6m over the 2021 allocation. This includes €50m funding for further Tourism Business Continuity Supports to assist strategic tourism businesses with their survival and recovery.  This funding will assist vulnerable tourism businesses to survive until summer 2022 when it is expected that inbound tourism will recover. Fáilte Ireland is finalising its detailed plans for 2022 which will include the allocation of Tourism Business Continuity Funding. 

The 2022 funding is in addition to the €55m in Tourism Business Continuity supports which were made available in 2021. Five phases of this Scheme have been launched since the beginning of 2021. Phases 4 and 5 closed for applications on 24 September 2021. By  the end of 2021 hundreds of tourism businesses will have received vital funding to help them survive the impacts of the pandemic. Hundreds more will again receive support in 2022. 

In addition to the €50m for the Tourism Business Continuity Scheme, the budget measures include a €35m increase in the Tourism Marketing Fund in 2022 to enable Tourism Ireland to support the delivery of a marketing strategy to help restore inbound tourism to Ireland. Funding is also being provided for a range of initiatives including domestic marketing and festivals, supporting the digitalisation of tourism businesses as well as skills development and staff retention.  €36.5m is also being  provided in capital funding for tourism product development for the delivery of enhanced visitor experiences in line with the objectives of the National Development Plan 2021-2030.

The supports for Tourism also include a range of cross-Government measures which will assist the sector in its recovery and growth. Tourism enterprises continue to benefit from measures such as the continuation of the Employment Wage Subsidy Scheme to April 2022, tax warehousing and a commercial rates waiver while the 9% VAT rate for hospitality remains in place until September 2022.

I am committed to continued support for tourism through this difficult period and to working towards a sustainable recovery. 

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