Business

New rules are a ‘ticking timebomb’ for tourism

February 9th, 2024 12:00 PM

By Siobhan Cronin

West Cork-based Máire Ní Mhurchú says tourism providers in rural Ireland are facing a 'ticking timebomb' due to new EU regulations.

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THERE’S a ‘ticking time bomb’ facing tourism providers in rural Ireland, according to West Cork-based Máire Ní Mhurchú, the chief executive of the Irish Self Catering Federation (ISCF).

In a bid to curb pressure on housing, the EU is planning a new system of registration for short-term accommodation letting, Ms Ní Mhurchú said. In December 2022 the Department of Tourism published plans for a new register to be established.

Ms Ní Mhurchú said under the proposed legislation, properties advertised for short-term lettings will need a valid registration number provided by Fáilte Ireland for short-term rentals up to and including 21 nights.

Under the Planning Acts, all development, including a material change of use, requires planning permission. The move from long-term rental to short-term rental would be considered such a change.

‘To force businesses to apply for planning permission retrospectively is an issue,’ said Ms Ní Mhurchú.

‘This is a ticking timebomb, because no planning permission means no registration number,’ she pointed out.

Local businessman Peter Warburton, managing director of Cottages for Couples, based in Skibbereen, said ‘at a stroke’ Tourism Minister Catherine Martin has ‘promised to close’ 12,000 self-catering units.

‘The Minister, whose job it is to support and nurture the tourism industry, has basically announced her intentions to shut long-standing Irish family tourism accommodation businesses,’ he told The Southern Star.

However, he says, it was stated at a joint Oireachtas tourism committee meeting last year that there was no evidence that the new legislation would bring those 12,000 units into the long-term rental market, and that this was a ‘back of the envelope’ figure.

‘The thousands of people working in my industry deserve better from their Minister of Tourism,’ he said.

‘This year, they are aiming to bring in the region of 6,000 visitors to West Cork.’

It’s estimated that these people would contribute over €2m to the area.

He added there is ‘anecdotal’ evidence that US travel firms are looking away from Ireland as a destination, citing lack of accommodation and hotel prices. This legislation will exacerbate the problem, he said.

‘This is taking a sledgehammer to crack a nut. I don’t believe many Airbnb hosts or other self-catering providers realise how serious the situation is.’

He urged all other self-catering operators to join ISCF to give ‘strength in numbers’ to their issue.

One proposal from the ISCF has gained traction from some TDs. It is for properties that have some form of quality assurance certification to be exempt from planning regulations.

‘This can be in the form of membership of Fáilte Ireland or the ISCF,’ said Ms Ní Mhurchú. Other proposals include exemptions for rural or long-established businesses.

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