Written answer
Budget 2027
287. Deputy Danny Healy-Rae asked the Minister for Enterprise, Tourism and Employment if he will give consideration to a pre-Budget 2027 submission (details supplied); and if he will make a statement on the matter. [54308/26]
Comment on this
My Department plays a key role in business tax policy development, with close engagement at both Ministerial and official level with the Minister for Finance and the Department of Finance on matters affecting enterprise. This is an ongoing process, and my officials are currently preparing the Department’s Pre-Budget Submission, which will inform discussions with the Department of Finance and contribute to the Government’s consideration of Budget 2027 measures.
In line with the Programme for Government, I published A New Era for Irish Tourism, Ireland’s National Tourism Policy to 2031. The policy provides a clear framework for sustainable tourism development, with targets to increase overseas tourism revenue by 50%, grow domestic tourism revenue to €5.8 billion annually, achieve total annual tourism revenue of €14.8 billion, and support employment of at least 250,000 people across the sector. The policy includes commitments to support tourism SMEs, address capacity and connectivity constraints, promote year-round tourism, and advance regional growth and climate action.
I recognise that a strong, sustainable, and regionally balanced tourist accommodation base is essential to a competitive and resilient tourism sector, underpinning the visitor experience, providing value for money and for wider business growth. The Government has followed through on its commitment in the Programme for Government 2025 to change the VAT Rate for the Hospitality sector, as announced in Budget 2026. The VAT rate applying for businesses operating in the Food & Catering and Hairdressing sectors was reduced from 13.5% to 9% with effect from 1 July 2026. This will be of significant benefit to the many small and family-run hospitality businesses across Ireland who operate on low profit margins and will inject viability into the sector.
The forthcoming Tourist Accommodation Strategy will set out a framework to strengthen, diversify, and expand Ireland’s accommodation base by optimising existing infrastructure and facilitating appropriate new development. The Strategy will focus on improving access to accommodation across a range of price points, unlocking development in areas with untapped tourism potential, supporting balanced regional growth, addressing seasonal pressures, enhancing competitiveness, and contributing to climate and community objectives.
Addressing workforce challenges is also a Government priority and essential to building a resilient and competitive tourism sector. A coordinated, cross-Government approach is in place, working with industry, State agencies, and education providers to improve skills, career pathways, and employee retention.
In relation to investment in tourism marketing; Tourism Ireland is responsible for promoting the island of Ireland overseas as a compelling tourist and business events destination. In 2026, €71.423 million is being provided through the Overseas Tourism Marketing Fund to support marketing across more than 14 markets. Tourism Ireland estimates that this investment delivers a return of approximately €25 to the Irish economy for every €1 invested. Tourism Ireland continues to support SMEs and local industry partners through overseas sales platforms, enabling 35,000 commercial meetings in 2026 and delivering an estimated €300 million business pipeline.
Tourism Ireland continues to actively promote Kerry overseas through international media engagement, social media channels with more than 7 million followers, and co-operative marketing with airlines serving regional airports, including Kerry Airport. It also provides important overseas platforms for Kerry tourism businesses to connect with international tour operators and travel trade partners who bring visitors at scale to Ireland.
County Kerry also benefits from substantial Fáilte Ireland investment and programme supports across capital development, outdoor activity infrastructure, destination development, festivals, digital capability, marketing, and strategic partnerships. These supports align with the Wild Atlantic Way Regional Tourism Development Strategy and Kerry’s Destination Experience Development Plans, with a focus on sustainable growth, visitor dispersion, season extension, and local economic impact.