Mary Hanafin (Dún Laoghaire, Fianna Fail)

I proposed to take Questions Nos. 31, 42, 46 and 47 together.

As I said in my response to the earlier priority question, the tourism figures to date for 2010 reflect very difficult conditions, including global economic difficulties, loss of consumer confidence, exceptionally bad weather in the early part of the year and the negative impacts of the Icelandic volcanic ash on air travel. However, and as outlined in the same reply, it is important to note that more than 4.6 million overseas visitors came to Ireland in the first nine months of the year with positive benefits for the Irish economy. The Government recognises the opportunities to grow this figure further and ensure that tourism plays a key part in Ireland's economic recovery.

Since the tourism renewal group completed its work and published its report in October 2009, my Department has been driving progress on key measures in line with those in the framework for action,focusing initially on the survival actions, in conjunction with the tourism agencies and other relevant Departments and bodies. For example, building on the renewal group's framework for action along with the Government's wider strategy for economic renewal, the 2010 budget recognised the tourism sector as a critical, labour-intensive sector and provided for a 3% increase to more than €153 million in the overall tourism services budget. This included maintaining the real level of investment in overseas marketing, as well as a significantly increased capital allocation for tourism product. The tourism sector was also included in several cross-cutting measures to support enterprises and jobs, including the employment subsidy scheme and the credit review system.

In July 2010, I established the new tourism renewal implementation group to oversee and further drive actions on measures, based on the wide-ranging framework for action, that support tourism in Ireland, increase competitiveness and ensure that the sector is ready for recovery and growth. The group has already met three times under my chairmanship, on 6 and 20 September and on 27 October, and it is scheduled to meet again next month. Its first progress report, summarising progress on measures under the framework for action has been published on the home page of my Department's website.

With regard to progress made on implementing the recommended survival actions, the implementation group reports that we have either implemented or are making good progress on four of the five survival actions recommended by the renewal group. The sole exception relates to the recommended abolition of the air travel tax, which has to be considered within the context of the overall fiscal framework. As regards the recovery actions, the group notes good initial progress against each of these nine actions. In particular, Fáilte Ireland and Tourism Ireland are progressing the actions for which they are the lead or significant actors across a wide range of fronts through their business plans and day-to-day operations.

For its part, the implementation group has now identified the following matters as the priority issues to be pursued in public policy. These are the restoration of sustainable levels of business lending, in particular to ensure availability of working capital for viable tourism enterprises; measures to restore and enhance access to overseas markets; continued investment in overseas marketing; and measures to address and reduce enterprise costs. The tourism renewal implementation group is also holding bilateral meetings with those organisations identified as having a key role under the various actions recommended to review and ensure progress, for example, we recently met officials of the Office of Public Works.

The Government's new strategy and action plan for Irish trade, tourism and investment to 2015, Trading and Investing in a Smart Economy, which was launched on 28 September last, contains targets for job creation, exports, tourist numbers and inward investment projects by 2015 and details how the Government and its agencies will achieve these priorities and targets. The tourism related elements of the new strategy draw on the robust analysis already carried out by the tourism renewal group in its report and framework for action.

The report recognises that in the short to medium term, Ireland's best prospects from a tourism perspective are in the United States, Great Britain and the major European markets. These priorities will be reflected in Tourism Ireland's marketing plan for 2011, which I will launch next week.

On the domestic front, Fáilte Ireland will continue its significant investment in tourism product and services and continue to support local festivals and events. These measures, together with Fáilte Ireland's highly successful "holiday at home" marketing campaign, are playing a key role in boosting tourist revenues and employment. Fáilte Ireland also continues to work closely with businesses all over Ireland to increase their customer base, better manage costs, improve overall performance and sustain employment.

Overall, the Government is pursuing the right programmes and measures to support the continued development of tourism, working with the industry and the tourism agencies to position the sector for recovery and growth as part of the Government's wider strategy for economic renewal. This work is being greatly assisted by the tourism renewal implementation group, which will continue to oversee and drive further action on measures to support the competitiveness and sustainability of tourism in Ireland.

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