Mary Hanafin (Dún Laoghaire, Fianna Fail)

Hotels have to deal with a number of issues, including surplus capacity. The industry claims to have 15,000 surplus rooms. Based on our plans to attract up to 8 million tourists by 2015, we estimate a somewhat lower figure for oversupply but none the less it is an issue which will have to be addressed and banks will have to be conscious of market demands. The economic affairs Cabinet sub-committee has discussed the issue of rates, particularly in so far as they relate to hotels, and I have impressed upon the Minister for the Environment, Heritage and Local Government the penal nature of these rates for the hotel industry.

There is great potential in the British market, which is our most important source of tourists. We are putting renewed emphasis on the message that we offer better value. That campaign only began this year, however. It is unfortunate that people may be criticising our marketing to Britain this year given that we were charging too much for so long. Fáilte Ireland's success in spreading the message to our domestic market about the great value on offer saved the tourism industry this year and we will see further benefits by next summer. With the co-operation of the House, I intend to attend the World Travel Market in London in November in order to support the marketing of Ireland and highlight the good value we offer to the British market.

See this speech in context