Ken O'Flynn (Cork North-Central, Independent Ireland Party)
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620. To ask the Minister for Enterprise, Trade and Employment the measures his Department is taking to address the impact of sustained inflation, labour policy changes and wage pressures on hospitality and tourism-related enterprises, which employ over 330,000 people nationwide. [59628/25]

Peter Burke (Longford-Westmeath, Fine Gael)
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Tourism and hospitality play a vital role in Ireland’s economy, contributing significantly to local communities and regional growth. Last year, tourism accounted for nearly 1 in 10 jobs, underscoring its importance as a major indigenous employer, supported by 46,000 tourism-related businesses.

Through Budget 2026, I have introduced several targeted measures to support tourism and hospitality businesses including reductions in VAT for hospitality which is particularly important for small and family-run businesses who operate on very low profit margins, increases in R&D tax credits, a significant benefit which will underscore Ireland’s commitment to FDI, and enhanced entrepreneur relief, designed to support growth, innovation and job creation.

In addition, funding has been increased for our Tourism Bodies and Local Enterprise Offices, enabling communities across the country to develop local economies and build more sustainable futures.

Budget 2026 also provides for a 65 cent increase in the National Minimum Wage from January 2026, in line with the unanimous recommendation of the Low Pay Commission. This measure ensures that our lowest-paid workers receive a meaningful increase in their earnings, while maintaining an appropriate balance between fair pay and employer competitiveness.

In response to the ongoing challenges around pay and job quality in the tourism and hospitality sectors, my Department, together with Fáilte Ireland, continues to support businesses in developing the talent and skills needed to remain profitable, competitive, and resilient.

A central priority is to encourage the adoption of high-quality employment practices, ensuring that the sector is regarded as an attractive and rewarding career choice. This includes enabling individuals working within tourism and hospitality to enhance their expertise, broaden their skills, and build sustainable long-term careers.

Fáilte Ireland plays a key role in this work, providing comprehensive support for tourism jobs nationwide through training programmes, targeted funding, regional development initiatives, and measures that promote inclusive and high-quality employment.

Together, these measures will help ensure a stronger, more resilient tourism sector that offers quality employment and continues to contribute meaningfully to Ireland’s economy and communities.