263. Deputy Seán Ó Fearghaíl asked the Minister for Enterprise, Tourism and Employment the key measures taken to support the tourism and hospitality sector since January 2025; his priorities for same for the rest of 2026; and if he will make a statement on the matter. [53462/26]

My Department’s primary responsibility in the tourism and hospitality sectors is the development of policy. In December 2025, I launched A New Era for Irish Tourism, the Government’s new tourism policy framework to 2031. This ambitious and forward-looking policy sets out a clear vision for increasing visitor numbers, tourism revenue and employment, while ensuring balanced regional development and supporting sustainable growth across all parts of the country.

To drive implementation of the policy, a new Tourism Policy Oversight Group has been established. On 8 July, I chaired the Group’s inaugural meeting, marking an important step in overseeing delivery of the policy’s objectives. In addition, progress across the key priority areas will be advanced through five thematic delivery streams: Culinary, Data and Insights, Sustainability, Market Development and Capacity, and State Assets and Strategic Enablement.

The policy identifies a range of strategic priorities, including digital innovation, culinary tourism, strategic air access, off-peak and regional tourism growth, skills development, improved employment quality, and investment in sustainable tourism infrastructure. Increased funding provided through Budget 2026 is enabling the tourism agencies to expand initiatives across these areas and support the successful implementation of the policy.

A key priority under the framework is the development of a new Culinary Strategy. This strategy aims to strengthen Ireland’s food and drink offering, enhance the visitor experience, support regional and year-round tourism, and further position Ireland as a leading food and drink destination. The initiative will deliver benefits for businesses throughout the country and will be closely aligned with both domestic and international tourism marketing programmes.

In August 2025, the Government launched its Action Plan on Market Diversification, which sets out targeted measures to expand tourism from mainland Europe and other international markets, reducing over-reliance on any single source market. While maintaining strong performance in the United States and Great Britain, Tourism Ireland is increasing its focus on mainland Europe, developing Canada as a key growth market, and laying the foundations for long-term growth in markets such as China.

To support these efforts, Budget 2026 allocated €7.5 million under the Overseas Tourism Marketing Fund for market diversification initiatives. This investment will enable Tourism Ireland to expand activity in strategic source markets and attract higher-value visitors to Ireland. As part of this allocation, €1.25 million has been secured for the Strategic Air Access Fund. Working with airports and airline partners, Tourism Ireland has identified opportunities for new and expanded air services, including long-haul routes from Asia. The fund will support cooperative marketing and route development initiatives designed to stimulate demand and maximise economic returns. This includes leveraging new connectivity such as the China Eastern Airlines Shanghai to Dublin service, due to commence this month. As the first direct air link between Shanghai and Dublin, this route presents significant opportunities to grow tourism from China.

The Government also continues to support festivals and events as important drivers of regional tourism. Under the 2026 Regional Festivals Fund, administered by Fáilte Ireland, €623,250 is being provided to 31 local authorities, supporting approximately 250 festivals nationwide. This represents an increase on 2025 funding levels and ensures that every local authority receives a minimum allocation of €10,000 to support local festival activity.

Furthermore, an additional €310,000 has been made available in 2026 specifically to support food festivals, helping to strengthen Ireland’s evolving culinary tourism offering and further develop regional tourism experiences.

The Government recognises the significant challenges faced by the hospitality sector in recent years, including rising operating costs and wider economic pressures. A competitive economy requires a tax policy that supports enterprise and employment. Accordingly, Budget 2026 introduced a range of targeted measures to strengthen the sector, including a reduction in the VAT rate for hospitality services from 13.5% to 9%, effective from July 2026. This measure is particularly important for small and family-run businesses, many of which operate on very tight margins.

Supporting small businesses, sustaining employment and ensuring the continued growth and resilience of Ireland’s tourism and hospitality sector remain central to the Government’s commitment to building a strong and competitive economy.