Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I welcome the Minister of State's reply. I acknowledge some of the work the Government has done in assisting the tourism industry at a particularly difficult time.

The Irish Hotels Federation, IHF, has published a policy document on the future of the hotel industry. As the Minister of State will be aware from his knowledge of that industry, the report was compiled by Dr. Alan Ahearne, who has considerable experience in the sphere of economics and possesses an understanding of the potential for growth. It is clear from the report that the hotel sector in particular is under strain. We all know of examples of hotels that were built in the wrong locations. In trying to survive, they dislocate business to their areas, offer rates that are lower than are commercially viable and are involved in the NAMA process, which will take time to be resolved. They are placing a strain on what might be referred to as "Mom and Pop" hotels, family-run businesses that did not get caught up in the crazy property game but now find it almost impossible to compete.

While I accept that The Gathering will have an impact, it will not resolve the long-term issue. The situation will not be too bad in the large cities. There is a strong demand for hotels in Dublin in particular. However, hotels in the more peripheral and, one might say, scenic areas are under significant pressure.

Does the Minister of State believe that the EEIS could be extended to include restructured hotels? This move was called for by the IHF. As the Minister of State knows, hotels cannot qualify for the scheme currently. Would he consider recommending to the Minister for Finance, Deputy Noonan, the inclusion of an extension of this scheme in the Finance Bill? The qualifying investor fund specially designed for restructured hotels can be attractive for private investors, in particular foreign investment. There is some appetite in this regard. Another way to break the logjam in the hotel market would be to invest moneys from the National Pensions Reserve Fund, NPRF, in the dedicated hotel restructuring fund.

Dr. Ahearne's report outlines a number of positive initiatives. One recommendation called for the State to invest heavily, but I do not believe that would fly. Will the Minister of State comment in this regard?

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