Discount meals and hotel breaks will be available until the start of the next summer season under plans being considered for the Government's July stimulus package.
Tourism Minister Catherine Martin has insisted any measures she introduces for the sector should be extended until next spring.
"I would be looking at sustaining the sector and keeping the sector going through to the start of the 2021 tourism season - it could be March or April," she told the Irish Independent.
This includes plans for a tax rebate scheme for hotel and restaurant bills, which is at the centre of the negotiations on the soon to be announced stimulus package.
The staycation subsidy will not be applied to alcohol - but pubs that serve food will be able to take part.
The Irish Independent has also learned Department of Tourism officials are trying to develop an app or an online system which would allow customers to claim their rebate immediately after they have paid their bill.
A number of proposals are being discussed, including putting bar codes on bills which can be read by mobile phones.
Ms Martin said nothing had been finalised on how the rebate scheme will operate, but insisted it must be customer friendly.
Meanwhile as the Government urges people to holiday at home, it last night published the long-awaited 'green list' of countries with similar or lower levels of Covid-19 to Ireland.
People travelling to Malta, Finland, Norway, Italy, Hungary, Estonia, Latvia, Lithuania, Cyprus, Slovakia, Greece, Greenland, Gibraltar, Monaco and San Marino will not have to quarantine on their return to Ireland.
Referring to the staycation subsidy, Ms Martin said: "We are exploring everything to make it as easy as possible for the customer and incentivise them to spend in hotels and restaurants," she said.
"My thinking is that any measure that can incentivise demand during this period really needs to be considered as part of the July stimulus package," she added.
She also insisted that the Temporary Covid-19 Wage Subsidy Scheme be extended into 2021 and be available to seasonal workers who previously couldn't claim the payment.
She has also pushed for the existing waiver on commercial rates to be extended into the new year.
The Tourism Minister is also looking for more State-backed financial supports for businesses
"I think another way we can help the tourism industry is look at the higher costs arising from having to adapt and adhere to public health guidelines on social distancing," she said.
"There is a cost to that and how you adapt your premises."
Meanwhile, the Government is going to spend €15m on laptops, tablets and wi-fi dongles for college students who may be forced to study from home due to the Covid-19 pandemic when the new term starts.
The investment is set to benefit around 10,000 students.
Higher Education Minister Simon Harris will today announce €160m for third-level education institutions and new student supports in the wake of the coronavirus crisis. This includes doubling funding for Student Assistance scheme to €15m. The scheme run by the Higher Education Authority and offers financial supports to students.
"There is an increased demand as a consequence of Covid-19. Students have incurred additional costs as the lockdown commenced and will incur costs when they return in the autumn," a spokesperson said.
Yesterday, the Government also introduced legislation which will give effect to the €2bn Covid-19 Credit Guarantee Scheme.
The State-supported scheme will give businesses six-year loans at discounted rates and the Government will act as the guarantor for 80pc of borrowings.
Overdrafts, term loans and working capital loans will be available under the new scheme.
To apply for a loan a business - including farmers - must show its turnover is below 15pc.
For the latest news inspiration and travel advice on Staycations in Ireland, visit our online staycation hub.
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