Domestic tourism chiefs have welcomed the formal formation of the new Dáil, and – in particular – the new ministers that will be looking after the national tourism, travel and hospitality interests.
Former housing minister Darragh O’Brien has been appointed Transport, Climate, Environment and Energy Minister; while Peter Burke is the new Tourism Minister by dint of the tourism brief switching to the Department of Enterprise and Employment, where Mr Burke was before the election.
The two ministers replace the Green Party duo of Eamon Ryan and Catherine Martin, respectively; and domestic tourism bosses have already had their say.
The Irish Tourism Industry Confederation (ITIC) said: “It is welcome that tourism is listed within the ‘Growing Our Economy’ section of the Programme for Government. This shows that tourism is now explicitly being treated as an economic engine of growth and this is reflected in the newly created Department of Enterprise, Tourism and Employment.
“Whether there is a supporting Minister of State for Tourism will become clearer in the coming days. The Programme for Government, entitled Securing Ireland’s Future and set to be implemented this Dáil term, has a number of tourism priorities highlighted within it.
“Overall the Programme for Government is welcomed by the Irish Tourism Industry Confederation who wish Minister Burke every success in his important role. In addition the appointment of Fingal TD Darragh O’Brien suggests a more pragmatic approach to resolving the Dublin Airport passenger cap which is a handbrake on tourism’s growth.”
“Tourism faces many opportunities and certain challenges in the years ahead and business working with agencies and Government can maximise tourism’s potential for the country.”
A review of the effectiveness of Rent Pressure Zones could suggest a more balanced approach to support the holiday home and the self-catering tourism sector in regional Ireland. Nonetheless the short term tourism rental legislation must be enacted before May 2026 in line with EU requirements.
“On the issue of the hospitality VAT rate there is a key paragraph on page 14 [of the Programme for Government publication: ‘The Government will bring forward measures to support SMEs, in particular the retail and hospitality sectors, acknowledging the increased cost pressures on these sectors and this will entail changes to VAT, PRSI and other measures. These measures will be implemented as part of the normal budget process’.
“Although not explicit this points to a lower VAT rate for the hospitality sector and some employer PRSI relief for all SMEs in the next Budget.“
Irish Hotels Federation (IHF) President Michael Magner thanked former Tourism Minister Catherine Martin for her commitment to the sector and her work through the pandemic and congratulated Peter Burke.
Mr Magner said Mr Burke takes up the tourism portfolio at a critical juncture for the industry, with businesses facing enormous pressure in relation to ever-increasing operating costs.
Mr Magner said: “On behalf of hotels and guesthouses throughout the country, I would like to congratulate Peter Burke on his appointment and expanded remit covering tourism – our largest indigenous employer, supporting over 270,000 livelihoods. He has been a strong supporter of Irish tourism during his career to date, and we look forward to continuing to work with him and his colleagues in Government to address the challenges now facing our industry.”
“With the right policies in place, we believe that tourism and hospitality has a bright future ahead. Minister Burke will have a pivotal role to play in creating a positive business environment for enterprises throughout our sector and ensuring tourism remains at the heart of Government economic policy. This will require a shift in mindset over the next five years to put our industry on a more stable footing.”
Commenting on the repositioning of the sector within a reconfigured Department of Enterprise and Tourism, Mr Magner said: “This is a very welcome development and will facilitate a more joined-up and coherent approach to best support tourism businesses. It will also ensure a greater focus on creating the optimum conditions for business viability and maximising our potential as a key driver of growth and prosperity.”
Mr Magner welcomed the commitment as part of the programme for Government to bring forward measures to support SMEs within the hospitality sector.
He said: “We see enormous opportunities for further growth and development of tourism and hospitality. A permanent reduction in the rate of VAT for food service businesses would be a very welcome and important first step. This would greatly assist the many vulnerable food-led businesses that have faced an uncertain future and mounting cost challenges in recent years.”
