This week the Galway Races are taking place but they are entirely different from previous years. The Racing Festival is one of several festivals that have been curtailed or cancelled. Others include the Galway International Arts Festival and the Galway Film Fleadh as well as the Galway 2020 Programme.
All exemplify importance of tourism and hospitality to the West
According to Failte Ireland for every €1 million spent in tourism, 27 jobs are supported and every €1 spent generates 23 cent in tax (21c with planned VAT cut).
Hundreds of millions of euro in revenue has been lost, thousands of businesses are at risk and tens of thousands of jobs in this sector are in jeopardy – some are lost forever.
Covid-19 has affected all sectors and has decimated some including tourism and hospitality.
The comprehensive tourism policy: People, Place and Policy – Growing Tourism to 2025 and the corresponding actions plans – most recently the Tourism Action Plan for 2019 – 2021 are hopelessly out of date.
These policies were shaped through consultation and workshops with stakeholders – representatives from Failte Ireland, from industry, from local authorities and business groups.
We need to act and act fast to save these local businesses and the jobs they provide.
The Tourism Recovery Taskforce, set up by former Ministers Shane Ross and Brendan Griffin in May, has been a good start. It is an approach rooted in consultation and driven by stakeholders. Indeed, the work of the Taskforce can be seen in the July Jobs Stimulus.
The July Jobs Stimulus is unprecedented in terms of the support it will provide to all sectors and, given the employment-intensity of Tourism and Hospitality, is especially relevant to these sectors.
The key aim of the Stimulus is “To help businesses to protect jobs and create new ones.” It builds on supports already introduced:
- Pandemic Unemployment Payment
- Temporary Wage Support Subsidy
- Re-Start Grants
- Rates waivers
New Supports that will be introduced include:
- Employment Wage Support Scheme – to April 2021 – Direct payment to employers for each worker, including seasonal staff and new hires;
- Expansion of Re-Start Grant – payment increased to €25,000 and now includes businesses such as B & Bs;
- Expansion of the commercial rates waiver until end of September;
- Range of financial supports from direct grant schemes to the Credit Guarantee Scheme, among others;
- Expansion of the Pandemic Unemployment Payment to April 2021;
- Launch of the Stay and Spend Incentive for taxpayers spending on accommodation and dining out between October 2020 and April 2021;
- Launch of the €10 million Re-Start Fund for the Tourism Sector.
It is vital point to note, however, that the July Jobs Stimulus “is not the last action the Government will take … further steps will be taken with Budget 2021 in October.”
Covid-19 is evolving and so too are our efforts to combat it and support the economy and society.
By October we will have a better idea of the progress of vaccines and medical treatment.
By October the summer tourism season – if it can be called a season – will be over and we will know how impactful the ‘staycation’ drive has been.
The focus will be on adapting to the new normal, on reviewing the measures we’ve put in place and amending them where needed and on implementing new actions.
We must also recognise that tourism is a very broad sector.
It includes transport providers, the accommodation providers of all types and sizes, the cafés and restaurants in our communities and others. But it also includes the arts and culture – the museums, the heritage sites, the visitor attractions, the theatres and venues, the galleries and performance spaces. And behind all of these are the people in these sectors. They must be at the heart of our country’s efforts to support our economy and the different sectors it comprises.