Joan Burton (Dublin West, Labour)

On the air travel tax, I welcome the Government's decision to reduce the air travel tax to €3. At a time of great economic crisis and high unemployment Governments must be careful about the taxes they introduce. Unfortunately, the air travel tax was exactly the type of tax we did not need at an extraordinarily sensitive time for the tourism industry. While the reduction is welcome, the Government could have gone a little further. The challenge for the various operators in the tourism industry is to show that the reduction will produce a flow of visitors.

One factor which would help Ireland to recover would be a return to traditional and basic industries such as tourism, rather than construction and property development. Despite the many reductions in wages and salaries, Ireland remains an expensive country in which to live. Its high cost of living was the cause of upward pressure on wages. Hotels and other elements of the tourism industry are trying to give good value for money. This is a welcome development because we must bear in mind that other countries are competing strongly. For instance, for a considerable part of last year's off-season, Spain offered extremely attractive packages to tourists aged 55 years and over. Reports indicate that the attractive hotel rates that were made available in regional and tourist resort hotels in Spain last year were very popular with retired Irish people.

A new Government will have to focus on developing a policy to show that Ireland as a tourist destination is not only attractive but very good value for money. We do not want visitors from continental Europe, the United Kingdom or the United States being shocked at the costs they encounter when they arrive. We need to develop package programmes which ensure tourists, particularly those of average means, are well advised of what will be the likely cost of a good holiday, whether long or short. An all-in package approach would, I hope, help reinvigorate our traditional markets, namely, the United Kingdom and United States.

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