Oireachtas Joint and Select Committees

Wednesday, 31 May 2017

Joint Oireachtas Committee on Transport, Tourism and Sport

Implications of Brexit for Transport, Tourism and Sport: Discussion

9:00 am

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I thank Deputy Troy for his questions and comments and for his support for the industry. It is important to point out Tourism Ireland is a North-South body funded by the Government here and by the Northern Executive. We fund on the basis of two thirds to one third. Comparisons can be made with IDA Ireland and Enterprise Ireland but, to be honest about it, it is apples and oranges because to a large degree Tourism Ireland has an all-island remit. Certainly the absence of a functioning devolved government in Northern Ireland is concerning from a tourism point of view. As I said earlier, committee members have much more influence to bring to bear on the re-establishment of a Northern Executive, and the sooner it happens the better from our point of view and from Tourism Ireland's point of view. There is a new chairperson and we wish her well.

The Deputy is quite right the tourism marketing fund has come from a pre-recession level of €55 million and stands at €36 million. This is not an insignificant sum of money, but we need to bear in mind the decrease from €55 million to €36 million, which represents a drop of approximately €20 million, also coincided with decreases in every element of public expenditure. We are putting in place a trajectory to bring it back to pre-recession levels. This will take time, and it is about ensuring we can get that level of support from the Department of Public Expenditure and Reform and from the whole of Government. It is important to bear in mind that in the intervening period, when the tourism marketing fund was under enormous pressure, growth in the tourism industry exceeded all expectations. The was much criticism at the time of the development and implementation of People, Place and Policy for lacking ambition. We stated we expected to have 250,000 people working in the industry by 2025 and to have in excess of 12 million visitors. We know these figures will be exceeded. What we want to do is ensure the fund is enhanced as quickly as possible. This will have to happen on an incremental basis because there are other demands in the Department and in the Government. It is not for lack of leadership from the Department, certainly at official and ministerial level. The whole of Government is acutely aware of it. The Deputy is right that the 230,000 people employed in the industry represent approximately 9.5% of total employment in the State. This figure has increased by 35,000 since we went into Government in 2011.

The tourism leadership group predates our time in the Department. It has been there since the previous Government. It was under the stewardship of the former Minister, Deputy Donohoe, and the Minister of State, Deputy Ring, and, latterly, Deputies Varadkar and Ring. As I said to Deputy Fitzpatrick, it is an advisory group to the Department on issues confronting the sector as a whole. It enables open and frank dialogue between us, the Department, the Ministers, Fáilte Ireland, Tourism Ireland and representatives of the industry. It has covered a range of issues in our time there, including hotel accommodation constraints in Dublin, and much positive work is happening. We have engaged with Fáilte Ireland and the banks to see what is the exact situation, rather than anecdotal evidence, on the provision of additional accommodation in Dublin, and progress is being made. It has also discussed the value or otherwise of some of the schemes, such as those relating to the regional access fund or training and the existing leadership, and Brexit forms part of this.

I have met the Irish Tourist Industry Confederation on a number of occasions. It would be failing in its duty if it did not raise issues of concern to the industry. The Irish Hotels Federation, the Restaurants Association of Ireland and a number of other organisations, including those representing tour operators and coach operators, have also raised issues. I have met pretty much all the stakeholders at this stage, individually and collectively, and I meet them regularly through the tourism leadership group and at unofficial and official organised events. They know I have an open door policy and there is no issue about communication.

With regard to market intensification, the Deputy needs to take the whole picture and look at the phenomenal work Tourism Ireland does every year for St. Patrick's Day in terms of Government representatives and the diplomatic corps elsewhere. If we look at the type of marketability done there, the greening has been a phenomenal success. It gets huge traction in emerging markets. I saw it in Australia and New Zealand. We had 200,000 visitors last year from Australia and we want to increase this. It is an emerging market. Qatar Airways will open into Dublin shortly. Etihad Airways is running double daily flights. Emirates is also looking at expanding its presence in Dublin airport with A380s. Many very positive things are happening in these markets.

In northern Europe, Tourism Ireland has a very heavy presence in France, the Benelux countries and Germany, These were referred to earlier as traditional markets. We cannot drag people here from the United Kingdom. We cannot tell people they must holiday in a particular place. We can advertise and market and we do this under a number of headings. We know one of our greatest attributes is the culturally curious person who is looking at a whole package such as the sights of Ireland's Ancient East. We also have city breakers, those coming for short breaks to cities such as Galway or Dublin. We know their spending model and we can identify it. Fáilte Ireland has done work, for example, with Richard E. Grant, on penetrating the direct actual market audience in magazines, newspapers and social media platforms. Social media has proven to be massively successful with regard to "Star Wars". Skellig Michael and the Donegal coastline are among the most important attributes.

Tourism Ireland is functioning in a very strong and robust market. The British market is very competitive. I attended the world travel market and could see this very clearly. It is a showcase for the entire world looking to book seats to their destination. It is extremely competitive, particularly in Great Britain from a domestic point of view. There are offerings, such as the Scottish Highlands, the Lake District and the Welsh mountains, that people, especially those from the south east of England, now look at in the same way as heretofore they may have looked at Ireland. We cannot ignore the fact that 11% of the value of their currency has been wiped off. This reduces their spending power by 11%. If it means they can get value for money in Britain, we must make sure we demonstrate they can get as good, if not better, value for money in Ireland. In the tourism leadership group we have been very clear as Ministers that, in particular, we need to keep an eye on Dublin hotel prices, transport costs in the private sector as much as the public sector, and a range of costs, particularly regarding visitor attractions.

The Irish Hotels Federation has provided us with regular information. We have been at pains to point out the responsibility there. I spoke to vintners in the Deputy's constituency recently. One of the things we are very concerned about is competitiveness. We do not want to get back to the field we were in before where Ireland had a reputation of gouging. We do not want to be in a situation where tourists coming to Ireland feel they do not get value for money. We are at pains to work with the industry. I have already been to the UK on a number of occasions. I have attended trade missions in Florida and Atlanta in the United States, and in Australia, New Zealand and Britain. I will continue doing that because, apart from anything else, the leadership the Department can provide the industry is very important. Industry roadshows happen on a continual basis. The Deputy mentioned trade missions. They are essentially the same thing. The industry goes into a particular city, sets up shop and the buyers come in. When the Minister is present, it makes a big difference. It is my role and I make no apology for it. People criticise Ministers for travelling, but it is my job.

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