Written answers

Thursday, 30 May 2024

Department of Culture, Heritage and the Gaeltacht

Tourist Accommodation

Photo of Matt CarthyMatt Carthy (Cavan-Monaghan, Sinn Fein)
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30. To ask the Minister for Culture, Heritage and the Gaeltacht her engagement with other Departments and State agencies to support hotels in rural communities. [23859/24]

Photo of Catherine MartinCatherine Martin (Dublin Rathdown, Green Party)
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When we look at the wider economy and the particular set of challenges facing the hotel industry, particularly those in rural communities, it is clear that a collective and concerted multi-stakeholder approach to tackling these challenges is required and that is the approach my department and the government will continue to pursue.

As I have stated before to the Deputy I am acutely aware of the importance of local hotels for local communities throughout Ireland. I understand the economic and societal roles played by local hotels in regional towns across the country. I recently met with the Irish Hotels Federation to discuss a range of matters in relation to to the sector.

The impacts of tourism accommodation stock displacement due to the national response to the humanitarian crises in Ukraine and elsewhere are felt across the country and the government has clearly stated its intention to reduce the reliance on tourism accommodation in this regard.

My department engages regularly with other government departments on supports for tourism enterprises, including hotels. The Minister for Enterprise, Trade and Employment and I co-chair the Hospitality and Tourism Forum which provides a platform for structured engagement between the tourism and hospitality sectors. The next meeting of the Forum is due to take place in person on 12 June. Key issues, including those impacting on hotels, are discussed with a view to identifying practical solutions and the Irish Hotels Federation is a member of the Forum.

My Department and Fáilte Ireland work with industry and across government to ensure a coordinated approach to addressing labour and skills shortages. This includes engagement with the Department of Enterprise, Trade and Employment to ensure the ongoing management of work permit processing times and to consider submissions made by industry for the review of the work permit occupations lists. A range of measures have been brought forward by that department to assist businesses, including hotels, with the current range of increased costs. Of particular significance is the €257 million Increased Costs of Business Scheme and other measures.

The Minister for Finance, Michael McGrath, has also made changes to the tax debt warehouse scheme including a reduction in the interest rate on warehouse debt to 0% which, amongst other sectors, will assist businesses in the tourism and hospitality sector.

Additionally, the government has recently announced a further substantial range of measures that will assist small and medium sized businesses and is progressing work to increase the employer PRSI threshold and to use the €1.5bn surplus in the National Training Fund to future proof workforce skills in SMEs.

My Department is currently developing a new national tourism policy framework and issues around tourism accommodation supply and sustainability will be reflected in that policy framework and subsequent Action Plans.

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