2026-03-26

6. Deputy Matt Carthy asked the Minister for Rural and Community Development and the Gaeltacht his engagement with other Departments and State agencies to support hotels in rural communities. [22908/26]

I am taking this question on behalf of Deputy Carthy.

The Deputy is a super sub today. Under my Department’s rural development investment programme, a range of schemes provide capital funding with a focus on the economic and social development of our rural areas. The schemes do not, however, include a specific focus on the provision of hotel accommodation. A limited number of projects have been supported by the rural regeneration and development fund, RRDF, and the town and village renewal scheme, which have seen short-stay accommodation facilities included, as part of a wider, multifunctional project. Similarly, while LEADER does not generally support hotel-based projects, it has supported projects related to tourist accommodation, for example, through support for glamping projects and other tourism-focused initiatives. In all cases in terms of funding, many of those tend to be towards community, co-operative-based initiatives. More widely, the sustainability of rural businesses including tourism and hospitality is clearly enhanced by the provision of public and community infrastructure. The funding made available by my Department through a range of schemes such as RRDF and the outdoor recreation infrastructure scheme, ORIS is clearly having positive impacts in this regard. At cross-governmental level, responsibility for business enterprise and tourism resonates with my colleague, Deputy Burke, Minister for Enterprise, Tourism and Employment. This includes responsibility for the national tourism policy statement, A New Era for Irish Tourism, which was published in December 2025 and sets out the Government's long-term approach to the development of tourism. I can confirm as part of my Department's ongoing work developing the successor policy to Our Rural Future, my officials are engaging with the Department of Enterprise, Tourism and Employment in respect of its remit. My officials are engaging with the Department of Enterprise, Tourism and Employment in respect of its remit. The next iteration of Our Rural Future will include a focus on both rural tourism and rural enterprise generally. Work on the development of the policy is ongoing. It is drawing on a wide-ranging consultation process and I hope to be in a position to publish it before the summer.

It is very welcome that this issue is under consideration and forms part of the Minister's engagement with the Department of Enterprise, Tourism and Employment. This issue is impacting rural communities in particular. The lack of tourist accommodation, be it hotel, hostel accommodation or other kinds of accommodation such as glamping pods, is hampering economic development and economic diversification in rural areas that come under the remit of the Minister. It is also adding to the rural housing crisis that is of concern for many Departments. It is of concern to all of us here in the House but it has a particular resonance with the Minister's responsibilities. The move to short-term lets because of the absence of suitable hotel accommodation in many areas is having a disproportionate impact on those rural and coastal communities that are already under huge housing pressure. I am thinking of Gaeltacht areas such as Ardmore in my constituency. The measures that were announced a number of weeks ago to address the mushrooming of short-term lettings do not cater for towns such as Dungarvan and Tramore that are under the 20,000 threshold. We need to see action on this. I welcome that there is an understanding of the seriousness of the situation but we need to see action.

We want to try to promote enterprises and improve and promote the attractiveness of rural areas so we have developed the specific outdoor recreation infrastructure scheme. This is one of the schemes for enhancing the attractiveness of trails and of visitor attractions that in turn make a rural area more attractive or more feasible for hotel investment. Since 2020, we have invested €110 million in over 1,300 outdoor recreation projects across the country. Through LEADER, we invested over €52 million across the country, and over €9 million of that was invested in tourism-related projects and rural tourism and recreation projects. We are having discussions with the Department of tourism in the context of the preparation of the next Our Rural Future. Fáilte Ireland has a very strong capital programme to role out at major visitor attractions. For instance, in the Deputy's constituency, the Waterford greenway is seen as the standard for greenways nationally. That has probably opened up a huge number of opportunities in the more rural parts of his constituency. That is the kind of thing we want to do. The investment in infrastructure opens up the investment for enhancement and attractiveness for tourism investment.

The Minister is right that the attractions are there. The greenways are of really high standard and the greenway in Waterford is a classic example. Unfortunately, the availability of tourist accommodation has not kept pace. On top of that we also see the use of tourist accommodation, and particularly hotels, for the State's responses to the various refugee crisis over the years. The Minister for justice has signalled a move away from that approach in the coming time. There is a concern, however, that many of the hotels that have been used will not return to tourist accommodation. There are examples of that in Dungarvan and in other areas. There has also been no recognition for the economic impact of the loss of tourist accommodation. We have the community recognition fund, for example, and many great things have come from that scheme, but there is no similar scheme to address the enterprise loss or the difficulties that have been experienced because of the loss of tourist accommodation. Perhaps it could be a conversation worth having between the Minister and the Minister for Enterprise, Tourism and Employment, Deputy Peter Burke, to see if a similar scheme could operate on that basis that would somehow support this tourist accommodation coming back on stream when possible to do so, and that there would be some recognition for those tourism operators and people operating in that space who have lost business over the last years.

I agree with the Deputy. In our engagements with the Department of Enterprise, Tourism and Employment we are looking at how we can maximise it. Deputy McGuinness referred to making an area more attractive as tourism accommodation comes back on stream. I do not see the Department getting involved in investing in commercial hotel projects. I would not like to create an expectation that there will be that kind of investment. Many hotels have reinvested the proceeds they received under the various international protection contracts back into facilities. What we will do is invest in the community-led infrastructure that makes it attractive for an operator to invest. I am looking and I am interested. We have a number of projects that are community-led and community co-operative-led. The Deputy mentioned glamping. We are looking at that kind of process, which might work in terms of social enterprise in the more rural areas. I am certainly anxious to do more in that space around community-led tourism projects and community-led tourism conservation projects.