Olivia Mitchell (Dublin South, Fine Gael)

I also wish the new Minister for Tourism, Culture and Sport good luck in her new Department. I was pleased to hear her recognise the importance to the economy of tourism and that this is what she intends to promote because that will be absolutely necessary. Last night, my colleagues and I spoke at great length about the various obstacles lying in the path of this industry with specific reference from a political perspective to those which are imposed by the Government. Members also discussed the so-called zombie hotels, namely, the tax incentivised hotels and their destructive impact on existing hotels and bed and breakfast establishments nationwide. Insolvent hotels are being subvented by banks which the public in turn are subventing and the Government must have a role in ensuring that such insolvent hotels are allowed to fail because otherwise, good businesses will fail. This is the way the market works. It is painful but it must happen and the sooner it happens the better for everyone as there then can be a return to normal trading conditions and competition practices.

Members also discussed the availability of cars for hire, which also was discussed on Committee Stage of the Finance Bill. While the Minister for Finance stated it would have cost €7 million to include the car hire industry in the scrappage scheme, the cost to the country of not including it is €260 million. A triple whammy is befalling this particular industry that will have a huge impact nationwide. Moreover, this will not be limited to the car hire industry but also will affect hotels and the bed and breakfast sector in particular, which is 80% dependent on people who hire cars. While the impact will be nationwide, it will affect the regions in particular. Moreover, this issue will cause both problems this year and reputational damage subsequently because turning people away for the lack of cars to give them sends out the signal that Ireland simply is not geared up for the tourism industry. In addition, those cars that are available are outrageously priced when compared with all our competitors. Consequently, something must be done in this regard and the Minister will ignore this problem at her peril, regardless of what the Minister for Finance sitting beside her might tell her.

My colleagues also discussed the cost and complexity of getting a visa to visit Ireland. While the cost involved is one aspect of this issue, the complexity and nature of the questions and conditions required of people who try to apply for a visa are such that they would make one lose the will to live, much less to travel to a country that would dream up such conditions to impose on its visitors. Members also spoke about the Office of Public Works, OPW, and its failure to perceive itself as being part of the national economic recovery drive or in having a role in welcoming and facilitating visitors. Perhaps this is more of a failure on the part of the Department of Finance, which is the OPW's parent Department. It is ironic that although Tourism Ireland managed to persuade historic sites in other countries, including locations in Sydney, Australia, Great Britain and the Statue of Liberty in the United States to celebrate St. Patrick's Day by encouraging visitors to come here, for our own part we do not make our historic sites as welcoming as we ask those in other countries to be. The problem pertains to attitude and I believe a case exists to make those sites much more commercially orientated by giving them out to the private sector. While I accept the Office of Public Works does a great job in preservation, conservation and upkeep, I believe such sites should be given out to tender. I believe this would lead to an operation that would be more commercial and which would see itself as having a role in attracting visitors.

Members also spoke about costs in the industry. While I do not have time to discuss them in detail, they spoke primarily about the subject of this motion, the travel tax, because no matter how right we get everything else, it all will be for nothing if people cannot get here easily and cheaply. The Minister for Finance should note that I was aghast at the complete lack of comprehension displayed by speakers last night and this evening about how this tax affects tourism. As a direct result of Government action regarding this tax, aeroplanes now fly into Ireland from at least 24 fewer locations than was the case 18 months ago. Such destinations simply no longer are on the radar for Irish tourism. They no longer are interested in Ireland and consequently, there is no point in going there to engage in marketing. For example, when it was about to launch its marketing programme in Germany this year, Tourism Ireland discovered that eight of its target cities had lost their direct flights to Ireland. I was even more amazed at the lack of insight that informed the Government's counter motion, which "considers that the impact of the air travel tax on tourism has been considerably overstated in the context of overall purchasing decisions by visitors". However, this has nothing to do with the purchasing decisions of visitors. An Italian or German who tries to book to come here is not even aware of the travel tax. The travel tax is not paid by visitors and the entire point is that it is paid by airlines that have decided to take their aeroplanes elsewhere to do their business. That is the impact of travel tax. I note that Deputy Kennedy tried to point out to me that €10 would not make any difference and the Minister also made the same point. Deputy Kennedy represents Dublin North, which is where Dublin Airport is located, and I note that Aer Lingus will point out just how price-sensitive are air tickets. Were this simply a tax on visitors, it would make a difference but the point is that it is not a tax on visitors but is paid by the airlines.

Various speakers also mentioned that this travel tax applies in other countries. However, we are the only island that imposes this tax. Moreover, I might add that Ireland is the only country to impose this tax in the middle of a recession just as tourism figures were collapsing. We must do better more cheaply and to have better air connections than anyone else if, as an island country, we have aspirations also to be a tourism destination. It might have been true 18 months ago - I read the same Department of Finance speech on the International Air Transport Association, IATA, several months ago - but it is wrong now. Aviation services in almost every European country are increasing this year, the overall figure being almost 5%. In some countries, the figure is much higher. In Ireland, the figure has fallen by 13%. It is small consolation - we are looking for consolation now - that we are only slightly worse than Ukraine, which says it all. Ryanair and Aer Lingus carried more passengers last year than they did previously. They are growing passenger numbers. This is not an international phenomenon. Rather, it is unique to Ireland. We are losing passengers while others are not, so it must be something we are doing.

Given the types of advice and understanding offered yesterday and tonight regarding aviation and tourism, we are a country in big trouble. It is depressing to hear a word-for-word replica of a speech we heard months ago. If the Minister doubts what I say or what the airlines are telling us, he should listen to his advisers, namely, the tourism renewal group, the Commission on Taxation, IBEC, the Irish Tourist Industry Confederation, Fáilte Ireland and even the National Competitiveness Council, which have all stated that this tax is damaging Ireland. Will the Minister please listen to his advisers and get rid of this tax?

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