Written answers

Thursday, 13 July 2023

Department of Culture, Heritage and the Gaeltacht

Tourism Industry

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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77. To ask the Minister for Culture, Heritage and the Gaeltacht what efforts her Department is making to tackle to reduce costs in the tourism sector in an effort to keep Ireland competitive as a destination; and if she will make a statement on the matter. [33505/23]

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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Businesses continue to face significant cost pressures due to inflation and other economic factors. Rising costs however are not unique to the tourism industry and are a challenge for the wider economy.

In relation to energy costs, the Temporary Business Energy Support Scheme supports qualifying businesses with increases in electricity or natural gas costs. Amendments to help more businesses to qualify and to increase the level of support were brought forward in the Finance Act 2023 as part of the Government’s cost-of-living measures announced in February. My colleague, the Minister for Enterprise, Trade and Employment, recently received Government approval for the development of a separate scheme to also assist businesses that use kerosene as an energy source.

Wage costs for businesses continue to increase as hourly rates of pay improve and compensation for working unsocial hours has become more common. My Department and Fáilte Ireland are working with industry and across Government to ensure a co-ordinated approach to addressing labour and skills challenges. My Department and Fáilte Ireland are continuing to work with industry and recruitment experts to share best practice guidance on retention and building capability. Fáilte Ireland also launched the “Employer Excellence” programme in September 2022 to help participating businesses to improve their employer practices, and enhance their reputation as excellent employers.

The Government continues to prioritise insurance reform and is undertaking reform through the Action Plan for Insurance Reform. While my Department has no role or remit in influencing the insurance market, the Department and Fáilte Ireland engage with the Departments of Finance and Enterprise, Trade and Employment and with industry stakeholders on input into solutions for the tourism sector.

A collective and concerted multi-stakeholder approach to tackling the challenges of rising costs is required and that is the approach that my Department and the Government will continue to pursue. The Hospitality and Tourism Forum, which is co-chaired by Minister Coveney and myself, provides a platform for structured engagement between the tourism and hospitality sectors and the relevant Government Departments where key issues, including rising costs, can be discussed with a view of identifying practical solutions. The Forum met most recently on 28 June and that engagement will continue.

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