John O'Donoghue (Kerry South, Fianna Fail)

I welcome the advent of the open skies agreement, which has long been an objective of Irish tourism policy. Following on the open skies deal, Aer Lingus has announced new services to San Francisco, Orlando and Washington Dulles. These additional routes have the potential to benefit Irish tourism and business links across the country. The new open skies regime will, of course, see the phasing out of the Shannon stopover policy. This is a challenge for Shannon but it is also an opportunity. If Shannon is to successfully rise to that challenge, a number of issues will need to be addressed.

The cost base of the airport is too high and if it is not tackled, Shannon will not be able to meet the challenge or exploit the opportunities presented by open skies. In that context, it is encouraging to note recent positive developments on a severance and flexibility package for staff.

The airport will need to look beyond the north Atlantic and look at the opportunities presented by routes to Britain and mainland Europe, building on recent positive experience in that regard. It is critical that visitors to the Shannon catchment area are provided with accessible routes and transport options. From a tourism perspective, it is essential that local interests work to enhance the range and quality of tourism product in the region, having regard to Fáilte Ireland's new product development strategies.

Tourism marketing will have optimum impact when the above elements are in place. A key aim of any tourism marketing campaign would be an integrated regional response with a particular focus on maintaining good flows of off-peak business. There have been demands for a special tourism marketing fund for Shannon but these must be tempered by realism. The House should note that the total tourism marketing fund for 2007 is €45 million and that Tourism Ireland would have spent less than €8 million in direct marketing in the USA during 2006 for the whole island.

My Department has considered the impact of open skies and has been in touch with the tourism agencies which are committed to working closely with Shannon development and the industry in delivering a response, and the Deputy can take it that there will be a response.

Any tourism marketing response must, in my view, be delivered by Tourism Ireland, focus on the wider Shannon catchment area, have regard to the new super regions marketing framework introduced in 2006 and, in so far as North America is concerned, conform to Tourism Ireland's new North American strategy.

I understand that my colleague the Minister for Transport, Deputy Cullen, will be bringing his draft economic and tourism development plan for Shannon to Cabinet very soon. That will provide an opportunity for Cabinet to discuss the nature of any response and the need for additional resources, if any.

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