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Seanad Éireann Vol. 270 Tuesday, No. 8 28 July 2020 DÍOSPÓIREACHTAÍ PARLAIMINTE PARLIAMENTARY DEBATES SEANAD ÉIREANN Insert Date Here 28/07/2020A00100Tourism: Statements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 424 28/07/2020GG00100Teachtaireacht ón Dáil - Message from Dáil � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 452 28/07/2020GG00300Gnó an tSeanaid - Business of Seanad � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 452 28/07/2020GG00500Education: Statements � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � 452 28/07/2020LLL00100Civil Law and Criminal Law (Miscellaneous Provisions) Bill 2020: Order for Second Stage � � � � � � � � � � � � 481 28/07/2020LLL00500Civil Law and Criminal Law (Miscellaneous Provisions) Bill 2020: Second Stage � � � � � � � � � � � � � � � � � � 481 28/07/2020DDDD00300Civil Law and Criminal Law (Miscellaneous Provisions) Bill 2020: Committee and Remaining Stages � � � � 501 SEANAD ÉIREANN Dé Máirt, 28 Iúil 2020 Tuesday, 28 July 2020 Chuaigh an Cathaoirleach i gceannas ar 10�30 a�m� Machnamh agus Paidir. Reflection and Prayer. 28/07/2020A00100Tourism: Statements 28/07/2020A00200An Cathaoirleach: I welcome the Minister to the House and thank her for coming in to- day at an important time for the tourism industry, needless to say not only in my own county of Kerry, but throughout the country� Many people are visiting Ireland who have never visited before and most of them are from Dublin� The Minister is more than welcome to come to Kerry� When Senator Ned O’Sullivan gets into the Chamber I am sure he will also extend this invitation� As the Minister knows, tour- ism is one of the big economic drivers in Kerry and Donegal and is the main industry in many towns, none more so than in Kenmare and Killarney� They are concerned about pubs reopening because many of them may never reopen as a result of the pandemic� We welcome the Minister both to the Dáil Chamber and the Seanad simultaneously and look forward to her statement on tourism� 28/07/2020A00300Minister for Culture, Heritage and the Gaeltacht (Deputy Catherine Martin): Gab- haim buíochas leis an gCathaoirleach agus fáiltím roimh an deis seo labhairt leis an Seanad inniu faoi earnáil na turasóireachta agus faoi na dúshláin atá roimpi faoi láthair mar thoradh ar phaindéim Covid-19� I welcome the opportunity to address the Seanad today to speak about the tourism sector and the challenges it is facing as a consequence of the Covid-19 pandemic� It is right and proper that the primary focus of the Government is on the public health crisis response� Nevertheless, we must ensure that we do our utmost to help our economy to recover from the worst short-term economic shock in the history of the State� The tourism sector has made a huge economic and social contribution in recent years and played a leading role in driving the recovery from the last economic downturn� Tourism plays a pivotal role, particularly in rural and regional Ireland, with most earnings retained within the country� Heretofore, as a labour-intensive sector directly contributing to over 11% of employ- ment, tourism has been a leading job creator, supporting 260,000 jobs in 2019 - Ireland’s largest 424 28 July 2021 indigenous sector� In normal circumstances, tourism provides diverse employment opportunities, including for those unable to work full-time� Tourism also provides employment in rural communities and other economically disadvantaged locations where alternative opportunities can be limited� Approximately 70% of tourism jobs are located in regional and rural areas outside of Dublin� Tourism is a significant exporting sector, with the majority of tourism spending being gener- ated by overseas tourists� In 2019, international tourists spent more than €5 billion in Ireland compared with approximately €2�4 billion spent by residents of Ireland, North and South� Tourism is one of the most directly affected sectors in this current crisis. The impact of Covid-19 on tourism globally has been overwhelming and immediate, with unprecedented con- sequences for Ireland’s tourism industry� Over the past four months, the Irish tourism industry has been decimated� The devastation being experienced in the sector is unprecedented, and I sincerely empathise with those who have lost their jobs or livelihood as a result� Both international and domestic tourism has been very severely impacted by the Covid-19 crisis� International tourism has collapsed, and the OECD estimates that the impact of the crisis on the tourism industry could result in a 60% to 80% decline in international tourism in 2020, depending on the duration of the crisis and the speed with which travel and tourism rebounds� Ireland’s tourism sector is deeply dependent on overseas visitors, who account for 75% of overall tourism revenue� While increased domestic tourism will undoubtedly help make up for some of this, only a proportion of this activity could be expected to be offset by domestic tourism� Fáilte Ireland estimates that a write-down of 2020 overseas tourism business would mean an overall loss to the economy of €2�1 billion this year, with associated job losses of up to 180,000� The July stimulus measures agreed at Cabinet last Thursday are a significant part of our response to the Covid-19 crisis and will help ensure Ireland’s businesses get back on their feet and that as many people as possible can return to work when it is safe to do so� The Govern- ment is working on a longer-term national economic plan to be finalised in October, but the new supports are critical for the sustainability of the tourism sector and for the Irish economy as a whole over the coming months� They provide vital supports for businesses to retain existing jobs and to create new jobs, and they will help build confidence in consumers and communities throughout Ireland� I worked very closely with my ministerial colleagues in Cabinet, and the measures an- nounced provide much-needed supports to the tourism sector� The new employment wage support scheme will greatly benefit tourism enterprises, especially due to the labour-intensive nature of the sector� Both the temporary wage subsidy scheme and the new employment wage support scheme will run in parallel from 31 July until the temporary wage subsidy scheme concludes at the end of August. This will provide additional flexibility for employers with new hires and seasonal workers who were not previously eligible. The inclusion of seasonal staff and new employees is particularly welcome for the sector, which provides employment to thou- sands of seasonal staff, especially in rural areas. To help businesses stabilise, reopen and redeploy their staff, enhanced direct grants will be provided from a revised restart grant� This grant was increased and extended, with an ad- ditional €300 million in funding being provided� These changes mean that a grant of up to 425 Seanad Éireann €25,000 is available to more enterprises in the tourism sector� A number of businesses, such as bed and breakfast premises not previously included in the scheme, are also now eligible� I am pleased that the Government found a way to assist the hard-hit bed and breakfast sector� Combined with Fáilte Ireland’s adaptation fund, the restart grant will now greatly assist many more tourism businesses� Covid-19 is having a devastating impact on tourism demand� The stay and spend initia- tive will help stimulate demand in the very challenging shoulder and off-peak seasons. This incentive, which will run for the period from 1 October 2020 to 30 April 2021, will incentivise taxpayers to support domestic providers of accommodation, food or both during the off-season, providing much-needed support to a particularly impacted sector� Revenue will provide an in- come tax credit of up to €125 per taxpayer, or up to €250 for a jointly-assessed married couple for spending on accommodation, food, and non-alcoholic drinks� The tourism and hospitality sector depends on high footfall and businesses are highly aware of the importance of imple- menting public health measures in preventing the spread of Covid-19� However, the social nature of the businesses means that adapting premises is another expense in a sector that has already suffered more than most. I was therefore very pleased to announce an adaptation fund of €26 million to help tourism and hospitality businesses to cover the costs of adapting their premises to meet public health requirements and make them safer for customers� I am aware of how badly the coach tourism sector has been impacted by the crisis� These businesses are a vital part of Irish tourism and we will need them when our overseas visitors return� That is why I have asked Fáilte Ireland to develop a business continuity scheme to help these businesses through this very difficult period. Fáilte Ireland will now engage with the sec- tor to develop this scheme, which has been allocated €10 million in funding� Further measures which will benefit the tourism sector include the €2 billion Covid-19 credit guarantee scheme, the package of liquidity and enterprise investment measures to support small companies and microenterprises, the corporation tax refund, the income tax relief for the self-employed, the warehousing of tax liabilities and the extension of the waiver of commercial rates for a further three months� These
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