Oireachtas Joint and Select Committees

Wednesday, 9 November 2016

Joint Oireachtas Committee on Transport, Tourism and Sport

Tourism and Competitiveness Strategy: Discussion

1:30 pm

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail) | Oireachtas source

I welcome our guests here today. It is worth noting that tourism is a critical sector in the Irish economy which contributes significantly to the GDP and in the number of people who are employed in the sector. I acknowledge the positive policy decisions that have been taken by the previous Government in the reduction of air travel tax to zero and the reduction of the VAT rate. These measures have contributed positively to this sector over the last number of years. That said, a recurring theme across all of today's presentations to the committee is the challenge posed by Brexit. I am delighted that each one of the industry representatives has acknowledged that challenge. When I raised this with the Minister for Transport, Tourism and Sport, he did not see Brexit as being a challenge to the tourism industry, despite the fact that 42% of visitors to Ireland come from Britain and that 24% of our tourism sector revenue is generated from that market.

The presentation by the Irish Tourist Industry Confederation outlined how much of a reduction there has been in tourism funding over the years and that the reduction did not stop this year. In the last budget, we have once again experienced a further cut to the funding for marketing and promotion of tourism. Compare this with the UK; only a couple of months ago it put together a £40 million fund for the Discover England campaign.

We are competing with it. It is also considering how it can improve its visa system and apprenticeship programmes. It is our nearest neighbour and, make no mistake about it, given the favourable exchange rates between the United Kingdom and the United States, it will try to attract those we have been attracting heretofore. In that regard, does Tourism Ireland consider we are adequately funded to conduct a serious marketing campaign in the United Kingdom and the United States, as well as to diversify in other destinations? In its contribution Fáilte Ireland stated far-flung emerging markets offered some opportunities but not necessarily any time soon as they required time to develop. Why have we not been developing these new markets before now? Why are we waiting for Brexit to occur before looking to develop new markets? When 42% of the industry is focused on one country, anyone would know that we should be looking wider afield.

Tourism Ireland has stated the ongoing status of the British-Irish visa scheme requires clarification. Exactly what clarification is required? I would have thought Tourism Ireland and Fáilte Ireland would be well aware of how the scheme is administered and the criteria that apply to it.

Reference was made to capacity in large urban areas. It is a serious issue, but are being told today that it will not be dealt with for at least two to three seasons. What will be done in the meantime? Is there a plan to move some of those coming to Dublin into the regions? I represent the midlands region which includes Longford and Westmeath. Hoteliers, bed and breakfast accommodation providers and restaurant proprietors tell us there is an upturn - that is not doubted - but it is nothing compared to that in urban settings. What is being done to ensure people will move further?

I understand Fáilte Ireland's responsibility is to market within Ireland and provide funding for critical pieces of infrastructure and the improvement of tourism attractions, while Tourism Ireland's responsibility is to market internationally. One of the delegates spoke about the quality of the experience of visitors to the country. Promoting Ireland's Lakelands brand is a key commitment in the programme for Government and I understand a tender has been accepted. Will the counties included in the Ireland's Ancient East initiative benefit from the promotion of the new Ireland's Lakelands brand? When will the brand be ready? Is Fáilte Ireland happy with the level of funding it has received to support applications for large-scale projects? I understand the process is ongoing and that a decision will emanate shortly.

Hotel and restaurant proprietors tell us that there is a critical shortage of chefs and front of house staff. This matter used to be dealt with by Bord Fáilte and the Council for Education, Recruitment and Training, CERT. There seems to be an abdication of responsibility by Fáilte Ireland in ensuring there is a sufficient number of qualified staff to work in the industry. What are its plans to ensure programmes are in place to support those who want to work in the sector?

In terms of hotels, we are at full capacity in Dublin which is to be welcomed, but this is contributing to other problems. Again, are we pricing ourselves out of the market? Will we become uncompetitive? There is full occupancy, particularly at certain times of the year. Hoteliers who admittedly have had a number of lean years are coming back and using this as an opportunity to compensate for the losses incurred during the lean times, but we cannot return to a situation where Dublin is known as a high-cost place to visit. How is the housing crisis feeding into the issue? Various councils in Dublin are using hotel space to house homeless persons. Those who are homeless have to be looked after, but is it having a knock-on effect?

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