As Minister with responsibility for tourism, my statutory functions relate to the tourism sector and tourism-specific businesses operating therein, primarily providers of activities, attractions and accommodation. While elements of the hospitality sector are important parts of the wider tourism ecosystem, I do not have responsibility for the general hospitality or food services sector, which are, ultimately, important segments of the wider enterprise economy. However, the Minister for Enterprise, Trade and Employment and I co-chair the hospitality and tourism forum, which brings together regularly these two important and interrelated sectors. That forum is due to meet again next week, on 13 December, in person. That will be the first in-person meeting since the group was established.
In June 2023, Fáilte Ireland carried out a detailed analysis of data provided by the Department of Children, Equality, Disability, Integration and Youth concerning the bed stock under contract to accommodate Ukrainian beneficiaries of temporary protection and international protection applicants. This established that 13% to 14% of all Fáilte Ireland registered tourism bed stock is currently under contract to the State. An additional quantum of non-registered tourism-type accommodation stock is also contracted. This level of tourism bed stock displacement has inevitably led to challenges for downstream tourism businesses.
As part of the budget settlement that I have secured for tourism in 2024, up to €10 million has been identified for a comprehensive programme of supports targeted at those downstream tourism businesses experiencing particular trading challenges linked to the reduction in footfall to activities and attractions in regions most impacted by tourism bed stock displacement. This programme of supports includes investment in sustainable tourism development and promotion, industry digitalisation, promotion of domestic tourism and festivals and recruitment and retention initiatives.
I asked Fáilte Ireland to engage with impacted businesses to consider the scope for a specific business support scheme that could help the most affected tourism activities and attractions. My officials and Fáilte Ireland are engaging intensively on this and I hope to see the details of this scheme finalised and published soon.
In budget 2024, the increased costs of business scheme was introduced by my colleague, the Minister, Deputy Coveney, as part of budget 2024, and he announced further developments on that today.
Additional information not given on the floor of the House
It provides for a once-off grant to benefit up to 130,000 small and medium-sized businesses at a cost of €250 million. The aim of the scheme is to provide financial support to those firms which have been most impacted by additional business costs, by providing a tiered grant equivalent to up to half business rates for this year. This will also go some way to helping businesses meet the increase in the minimum wage to €12.70, which is obviously an important step towards the Government’s commitment to introducing a living wage. This is a welcome initiative, which embodies a whole-of-government approach to assisting small and medium-sized businesses, particularly with the extraordinary challenges of recent years.