Written answers

Thursday, 24 February 2022

Department of Culture, Heritage and the Gaeltacht

Tourism Industry

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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246. To ask the Minister for Culture, Heritage and the Gaeltacht the extent to which she expects the tourism industry to recover as Covid-19 recedes; if inflationary tendencies have been detected in the industry; and if she will make a statement on the matter. [10749/22]

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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Fáilte Ireland estimates that in 2022, if COVID-19 remains under control, the domestic tourism market could return to 2019 levels. This estimate is based on the strong performance of the domestic market during the pandemic and the pent-up demand that remains in the market. Furthermore, the overseas market could return to approximately 70% of 2019 levels based on the air access outlook for 2022.

As the Deputy will be aware, in Budget 2022, I secured a record level of funding for tourism. This funding will help to address short-term survival-related concerns and also enable recovery across industry as we reopen to international tourism and begin to transition to a more sustainable future. The funding allocated to the tourism agencies in 2022 includes €50 million for further business continuity support for strategic tourism businesses and a €35 million increase in the Tourism Marketing Fund as well as €36.5 million in capital funding for tourism product development.

As part of its marketing strategy, Tourism Ireland has established a recovery framework which will be underpinned by an extensive programme of promotional activity throughout 2022. The organisation has a flexible, three-phase plan to RESTART, REBUILD and ultimately REDESIGN demand. Over €80 million will be invested in the programme in 2022 which will allow Tourism Ireland to ramp up its campaigns in key international markets.

This year, Fáilte Ireland is doubling its domestic marketing investment to €10 million to drive domestic demand including short breaks all year round. Fáilte Ireland will also deliver four new Regional Tourism Strategies, setting out a 10-year vision and 5-year action plan for each region, and aim to ensure tourism businesses are visible, searchable and most importantly bookable through its "Digital that Delivers" programme.

I can assure the Deputy that I am continuing to work closely with the sector on recovery. The Tourism Recovery Oversight Group, which I appointed in 2020, continues to oversee the implementation of the Tourism Recovery Plan and monitor the sector’s recovery more generally. This Group reports to me on a regular basis and its work will inform future policy considerations as I continue to work alongside my Government colleagues to support the tourism sector over the coming year and beyond.

There is no doubt that the global pandemic has left our tourism sector in a weakened state but we have an opportunity now to address sustainable tourism development in a more meaningful way during the recovery and rebuilding phase following this crisis. In line with our Programme for Government commitments, officials within the Department have initiated the development of a new national tourism policy which will seek to mainstream sustainability. The development of this new policy will set out a path for the coming years which will support a sustainable recovery and subsequent re-growth in the sector.

Regarding the second part of the Deputy’s question, as the Deputy will be aware the Government is acutely aware of the increase in consumer prices in recent months, especially the increase in fuel and other energy prices. On 11 February 2022, the Government announced a support package totalling €505 million to mitigate the rise in the cost of living that is currently being experienced. It is hoped that measures such as these will help to alleviate and mitigate the current inflationary effect on the overall economy.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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247. To ask the Minister for Culture, Heritage and the Gaeltacht if she and her Department propose to offer any further incentives to the tourism sector while keeping in mind the necessity not to contribute to inflation; and if she will make a statement on the matter. [10750/22]

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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In Budget 2022, I secured an additional allocation of €67.6 million for tourism, thereby bringing the overall tourism services budget to €288 million. This funding will enable the tourism agencies to assist in the recovery of the sector.

The funding allocated to the tourism agencies in 2022 includes €50 million for further business continuity support for strategic tourism businesses and a €35million increase in the Tourism Marketing Fund as well as €36.5 million in capital funding for tourism product development.

My priority is to ensure the survival and recovery of the tourism sector and I am continuing to engage closely with the wider tourism and hospitality sector, in close consultation with Fáilte Ireland and Tourism Ireland in this regard.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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248. To ask the Minister for Culture, Heritage and the Gaeltacht the extent to which she expects growth to take place in the tourism sector in 2022; and if she will make a statement on the matter. [10751/22]

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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Fáilte Ireland and Tourism Ireland estimate that overseas tourism to Ireland in 2022 could return to approximately 70% of 2019 levels. This is based on the current air access outlook which suggests that seat capacity in 2022 will be 83% of 2019 levels.

While international tourism remains uncertain, domestic tourism continues to drive recovery of the sector in an increasing number of destinations. According to experts, domestic tourism and travel close to home, as well as open-air activities, nature-based products and rural tourism are among the major travel trends that will continue shaping tourism in 2022. Fáilte Ireland estimate that Irish domestic tourism could return to 2019 levels in 2022. This is based on the strong performance of the home market during the pandemic and the pent-up demand they are seeing.

In Budget 2022, the Government allocated €67.6m in additional funding for tourism, thereby bringing the overall tourism services budget to €288m. This funding will enable the tourism agencies to assist in the recovery of the sector. The funding allocated to the tourism agencies in 2022 includes €50 million for further business continuity support for strategic tourism businesses and a €35m increase in the Tourism Marketing Fund as well as €36.5 in capital funding for tourism product development.

Tourism Ireland will invest over €80 million in an extensive programme of promotional activity in key international markets throughout 2022, while Fáilte Ireland are doubling their domestic marketing investment in 2022 to €10 million to drive domestic demand including short breaks all year round.

I can assure the Deputy that I am continuing to work closely with the sector, the Tourism Recovery Oversight Group and with Fáilte Ireland and Tourism Ireland, to ensure a sustainable recovery for the sector in the context of the pandemic.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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249. To ask the Minister for Culture, Heritage and the Gaeltacht the extent to which she and her Department propose to support and promote the tourism sector at home and abroad in 2022; and if she will make a statement on the matter. [10752/22]

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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As the Deputy is aware, the tourism sector has been severely impacted by the COVID-19 pandemic so I was pleased to secure a record level of funding for tourism in Budget 2022 of €288.5 million in total, an increase of €67.5 million over the 2021 allocation. The allocation includes €50 million for business continuity supports and a €35 million increase to the Tourism Marketing Fund to support the delivery of a marketing strategy to help restore inbound tourism to Ireland.

With regard to the Tourism Business Continuity Programme, this funding will be allocated to assist strategic tourism businesses to recover in 2022. The Strategic Tourism Transport Business Continuity Scheme opened for applications on 11th January and closed on 8th February. The Strategic Ireland Based Inbound Agents Tourism Business Continuity Scheme opened for applications on 12th January and closed on 9th February. The Attractions and Activity Tourism Operators Business Continuity Scheme will launch on 8th March with the Tourism Accommodation Providers Business Continuity Scheme launching on 9th March.

Tourism Ireland will invest over €80 million in an extensive programme of promotional activity in key international markets throughout 2022. Its Green Button campaign will drive demand throughout the year, with its largest-ever TV campaign running in our top four markets, namely Great Britain, the United States, Germany and France.

Tourism Ireland will continue to work with airlines and ferry companies through a programme of jointly funded marketing initiatives to support the restoration of air and sea access routes which are so vital for tourism’s return to growth.

St Patrick’s Day offers a unique opportunity to promote the island of Ireland around the world and once again this year, hundreds of iconic landmarks and buildings around the world will take part in Tourism Ireland’s Global Greening initiative. This year’s programme will include a new campaign, The Green Button Festival.

Tourism Ireland will also leverage the tourism opportunities presented by a number of key events and global opportunities. These opportunities include "The Aer Lingus College Football Classic", which takes place in Dublin in August.

As part of its ongoing efforts to drive domestic demand in Ireland, Fáilte Ireland is investing approximately €10 million in domestic marketing in 2022, which is a doubling of its investment in this regard. Fáilte Ireland’s consumer research indicates very positive feedback for its Keep Discovering marketing campaign, which is being channelled through TV, Digital, Radio and Press to encourage people to take additional short breaks in all parts of the country. The marketing campaign is designed to both inspire visitors to travel and then offer world-class tourism regions and destinations in Ireland to visit and experience.

Fáilte Ireland is also using its sponsorship of RTÉ Weather as a platform to promote its Keep Discovering campaign. This platform serves as a means to remind viewers of opportunities to take short breaks, such as bank holidays, festivals and events.

I am continuing to work closely with industry representatives, the Tourism Recovery Oversight Group and with Fáilte Ireland and Tourism Ireland, in supporting the sector through these difficult times and to ensure its sustainable recovery.

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