Martin Cullen (Waterford, Fianna Fail)

Latest figures from the Central Statistics Office show that, notwithstanding the difficult global environment, the number of overseas visitors for the first seven months of 2008 was just ahead of last year at more than 4.5 million. Figures for July alone were less positive, which we all know.

I understand that the indications are that the fall-off in monthly numbers seen in July was sustained in August. This must be seen in context. Global tourism and Irish tourism are facing exceptionally challenging conditions, including increased fuel costs and a global economic downturn, with adverse trends in exchange rates. I understand that the recent fall-off mirrors trends across Europe, where the year started positively but saw a downturn in monthly figures from May onward.

While Ireland, like a number of other high income countries, is not a mass tourism destination, its competitiveness in term of value for money and quality of experience is shown by our sustained ability to increase our share of visitors to Europe in recent years.

Current indications are that Ireland is maintaining its market share in Europe and many competitors are faring less well, suggesting that the overall competitiveness of Irish tourism is holding. As well as attractive air and sea access fares, there is very good value for money available in tourist accommodation at present, in particular given the addition to our hotel room capacity in recent years.

While I know that our businesses are responding positively to current challenges, it is just as important that the strategic framework for tourism development responds to the changing environment. I have therefore decided to initiate a short mid-term review of the tourism strategy, New Horizons for Irish Tourism: an Agenda for Action 2003-2012. I will be putting in place the arrangements for the mid-term review in the coming weeks and I will seek for it to be completed by the end of the first quarter of next year. In the meantime, an extensive range of marketing, product development, training and business supports are being rolled out by the tourism State agencies under the tourism services budget of the Department. For example, the tourism marketing fund for this year provides for €50 million, the highest ever annual allocation for the international marketing effort.

I am confident that the tourism sector here has the capacity to manage the current cyclical slowdown. The mid-term review will help the sector to manage the current challenges and to return to sustainable growth in the medium term.

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