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

I am sorry I was late. I was watching the proceedings on the monitor in my office so I got the full outline of the opening statement. I thank both delegates for attending. I was mentioning to my colleague that it is often forgotten and sometimes ignored that the tourism industry is our largest indigenous industry. In terms of job creation and wealth generated, tourism surpasses agriculture. Agriculture is often in the headlines because of the number of jobs and because of how it is perceived. I am not trying to diminish the role agriculture plays but it is only right and proper that we acknowledge the important role of tourism.

I compliment the confederation on the comprehensive report it published recently. It is a very positive input to the debate. The witnesses said in their opening address that the time to fix the roof is when the sun is shining. That is quite right. We cannot take it for granted. The increase in our numbers may be attributable more to luck than design because of the favourable exchange rate with the US dollar. It is ensuring high visitor numbers from the United States. That might be compensating for the dramatic decrease in the number of visitors from the United Kingdom. UK visitors normally account for in excess of 40% of our tourists and 25% of tourist spending. We cannot ignore it. I am interested to hear whether the delegates have specific proposals on what we could do to mitigate or reverse the downward trajectory in the number of visitors from the United Kingdom.

Mr. Pratt put it quite well in saying the last Government got it right in terms of taxation. I refer to the VAT rate and the abolition of the travel tax. The travel tax was an ill-thought-out proposal made at the height of the crisis. It should never have been imposed and it was right to get rid of it. This was proven by the increase in numbers when it was abolished. Ryanair, in particular, started to utilise Dublin Airport again.

The VAT rate was introduced as a temporary measure and we have to be very careful to try to retain it. The delegation made the point that the change to the rate is only bringing it into line with that of the rest of our competitors across Europe. There may now be a feeling that the job is done and that there can be a reversal. I would say, and the delegation might be able to provide proof, that it might have been self-financing considering the number of jobs created in the tourism industry vis-à-visthe cost of implementation. I do not know whether the delegates have any statistics to back that up.

The confederation is correct about new product. This is why it was also correct to call out the considerable underinvestment in the most recent national development plan. When one considers how to bring people to a particular area, one must realise they do not go to an area for nothing. They want to go to an area for a reason. They want to see something and they want to do something. The Wild Atlantic Way is such a huge success because there is something to see and do, and it is quite new. In ten years' time, the Wild Atlantic Way will not be attracting people in the same numbers as it is now because it will be an old product. We need, therefore, to invest continually. I do not know whether it is feasible or possible now but the Government needs to review the capital allocation based on the ten-year plan.

With regard to capacity and hotels, the Government might consider increasing the VAT rate when it sees the cost of hotel rooms in Dublin. It might say the good times are back and that hotels are charging far more than they were charging five and six years ago. This is predominantly because of a lack of capacity. I read the delegates' report. They have very ambitious targets for increasing the number of visitors to Ireland over the next seven or eight years to 2025 but the increase in bed numbers in hotels does not match the targeted increase. Where is it intended to put all the visitors when they come? How can we incentivise an acceleration of the building of hotels?

I recently met the president of the Irish Hotels Federation. He said that to build a hotel room in Ireland costs €300,000 and that to build one in Northern Ireland, 80 miles up the road, costs €200,000.

There is a huge disparity between here and the North. I welcome the witnesses' views on that.

My colleague, Senator Feighan, asked how we can attract and retain hotels in rural Ireland. Only this morning, I received a phone call from Councillor Barbara-Anne Murphy in Wexford in relation to a hotel in Bunclody. It is being closed and sold to be converted into a nursing home. That is a planning decision and a commercial decision but the reason for that commercial decision is that money is not being made by that 60-bed hotel. That is in the sunny south east, which is hardly a black spot for tourism. I would welcome some feedback on how we might address that.

I welcome the new development of the Hidden Heartlands. It is something that, as the witnesses said, they have been promoting and calling for for some time, as have we. Will it be adequately resourced? It is one thing creating a brand, but it must be backed up with the necessary resources, whether in marketing or supporting capital investment in the region. Mr. Pratt rightly pointed out that the biggest and largest capital investment in tourism in the State's history will be coming to my constituency. It is well under way and on target to open in the middle of next year. We will benefit from Center Parcs. I was in Strasbourg some months ago and saw Center Parcs Longford advertised on an international television channel. It was great to see private industry marketing Ireland but we as a country and the Government need to do more.

I do not know if the Irish Tourism Industry Confederation fed into the Hidden Heartlands. The Wild Atlantic Way is on the west coast, Ireland's Ancient East is coming in and encroaching in on areas that I would deem more suitable to the Hidden Heartlands. I would welcome the witnesses thoughts on whether we ought to reconfigure the brands to ensure that geographically each county is in the correct brand and is getting the right marketing proposals to attract tourists.

Witnesses should correct me if I am wrong, but I believe I read that their confederation had called for a review of Fáilte Ireland's operation? If that is the case, will they outline their rationale?