Brian Walsh (Galway West, Fine Gael)

It is wonderful to have someone of the calibre of the Minister of State, Deputy Ring, at the helm in the area of tourism within the Department of Transport, Tourism and Sport. As a west of Ireland man, like me, he has a deep appreciation and understanding of the value of tourism to the economy. He has already started his own initiatives which will reap rewards and benefits in the years to come. I understand this is the first legislation he has brought before the House and he could not have picked a more significant Bill.

Our tourism sector is one of the tools we need to use to repair our broken economy. The sector has immense potential. Tourism was worth €45.3 billion to the economy in 2009 and contributed more than €1.3 billion in tax revenues to the Exchequer. It also provides jobs for up to 190,000 people. However, the needs of the industry have been neglected in recent times. While the previous Government stoked the dulling embers of the building boom, in many respects the tourism industry was not given the same level of attention and was left to suckle from the hind teat for far too long. After a period of unprecedented growth in the 1990s, investment under the stewardship of the previous Government was inadequate to overcome the aggressive marketing strategies of competing destinations and revenue here fell as a result. By 2009 funding for capital development in the tourism sector, which the Bill addresses, had been slashed to just a quarter of the amount provided for in 2007 and, accordingly, revenues fell by €1 billion during the same period.

We also lost much of our competitiveness during the time. Inflationary pressures saw prices soar and prospective visitors decided to look elsewhere and seek value for money in other destinations. All of this has brought the tourism sector to a critical point. This Bill is part of the rebuilding process and it will dictate the fortunes of the industry for years into the future.

The World Tourism Organization has forecast vast growth between now and 2020 with Europe poised to be the main beneficiary of this growth. If we are to avail of this trend, however, decisive action is required now. Decisive action has already been taken by the Government. Deputy Mary Lou McDonald yesterday described the jobs initiative as a failure when speaking in reaction to the announcements by Aviva Healthcare. It was a breath of fresh air when the Minister for Finance introduced that initiative. He said what could be achieved by it was modest. It was not intended to assist the insurance industry, rather it was clearly targeted at the tourism industry. The VAT reduction has been successfully passed on in most cases to the consumer. That is helping to restore the competitiveness we lost in recent years. The reduction in employers' PRSI will also facilitate job creation in the sector. I commend my colleague, the Minister for Justice and Equality, for introducing the visa waiver scheme which has positioned Ireland ideally to capitalise on the hundreds of thousands of visitors to the United Kingdom for the London Olympics next year.

We reduced and signalled that we intend to abolish the travel tax subject to a deal being hammered out with the airlines here. There was much huffing and puffing and banging on the table by the chief executive officers of airlines here as they told us the travel tax was damaging the industry and the number of visitors coming to the country, but they have not responded to the invitation by the Minister for Transport, Tourism and Sport to show where they can increase the capacity of visitors coming here. If they do that and demonstrate how they will do that, the travel tax will be abolished.

Visitor numbers and tourism revenues have fallen steadily from their peak in 2007 but there are reasons for hope. After years of troubling decline, we have had a 13% increase in overseas visits. That was witnessed in the first half of this year, signalling that Ireland is open for business. Figures from North America and other long-haul markets are almost back to levels last seen in 2008. The number of people choosing to rediscover what their own country has to offer, rather than holidaying abroad, has also increased in recent years. I holidayed in Killarney this year and despite the inclement weather, we had a most enjoyable holiday. The country has a huge amount to offer. Galway, the area I represent, no more than the area the Leas-Cheann Comhairle represents, is a thriving centre of excellence in the arts, music, literature and theatre. It has benefited a great deal from the jobs initiative and businesses there are quick to remark on the benefits that have accrued to them as a result of the initiatives introduced earlier this year.

The Galway Harbour Company has ambitious plans for the development of a new harbour facility in Galway. Tomorrow evening I am due to meet representatives of the harbour company and some of the largest cruise line operators in the world whose cruise liners visit Galway and who have pledged their support for bringing their vessels into Galway Harbour if we can increase the capacity there. That is an example of where infrastructural investment can reap rewards locally.

The success of the high profile visits of President Obama and Queen Elizabeth II also generated worldwide positive coverage. Members opposite - not necessarily the Members present - who occupy the far-right hand corner of the House, although they may be offended by me describing them as being on the right, had questioned the cost associated with these visits. The benefits that will accrue to this city far outweigh the costs that accrued to the State from these visits. Time will tell that the huge exposure we got was invaluable. We cannot become complacent, however, notwithstanding the progress that has been made in recent times, as competition destinations are heavily investing in marketing and infrastructure. We must do all we can to bring visitors back to our shores, and this Bill is an example of our doing that. I commend it and I will be entirely supportive of it. I wish the Minister of State, who has temporarily left the Chamber, well during his tenure in office.

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