Ciarán Cuffe (Dún Laoghaire, Green Party)
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Question 6: To ask the Minister for Arts, Sport and Tourism the plans in place to tackle the key barriers to tourism development here as outlined in the second progress report of the high level implementation group established by him. [20251/05]

Breeda Moynihan-Cronin (Kerry South, Labour)
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Question 14: To ask the Minister for Arts, Sport and Tourism his views on a survey (details supplied) which has found that Ireland is now second only to Norway in terms of being the most expensive country in the world in which to holiday; if his attention has been drawn to the fact that Ireland continues to gain an international reputation for ripping off tourists; and if he will make a statement on the matter. [20292/05]

John O'Donoghue (Kerry South, Fianna Fail)
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I propose to take Questions Nos. 6 and 14 together.

I refer the Deputies to my detailed reply to Questions Nos. 89 and 114 on 10 May last about progress on the implementation of the two-year tourism action plan. The seven key barriers to tourism development highlighted by the tourism action plan implementation group in its most recent progress report centre on concerns about competitiveness, the rate of progress in the negotiation of an EU-US open skies arrangement, additional pier and terminal facilities at Dublin Airport, restoring growth from the British market, the absence of a national conference centre, continuing uncertainty about access to the countryside and significant gaps in Dublin's cultural infrastructure. Copies of the report are available in the Oireachtas Library and on the Department's website.

There have been further developments on some of these issues since the group reported, such as Government approval of the aviation action plan on 18 May last, the submission of tenders by two consortia for the provision of a national conference centre in Dublin on 20 May and the appointment of the interim board of the National Consumer Agency on 6 June, which will ensure that the consumer agenda will be embedded more effectively in our current economic model.

The implementation group will continue its activities over the remainder of the period of the initial two-year action plan and, later this year, will convene the second forum of the tourism industry, the outcome of which will inform its final report to me. Undoubtedly, the issue of competitiveness and value for money has been the Irish tourism industry's greatest challenge over recent years. I have spoken about this frequently since I took on the tourism portfolio.

The survey referred to by the Deputy, which is neither scientific nor robust and does not include the price of access or accommodation, found that the prices of a limited number of goods were higher in Ireland than elsewhere. This does not come as any surprise. One can easily see how prices for these same goods can vary within Ireland itself. However, price and value for money are not the same. Ireland has never been promoted as a cheap holiday destination but has in the past compared well in terms of value for money when measured against other locations.

The Irish tourism industry has been working hard over the past two years or so to improve visitors' perception of value for money. Some concrete examples of its initiatives include the hundreds of special offers for overseas and domestic customers alike on the websites of the tourism agencies and the value deals offered by accommodation providers, tour operators and restaurants. Perhaps reflecting their efforts, Fáilte Ireland's visitor attitudes survey of 2004 found that in contrast with the trend of recent years, there was no deterioration over the previous year in the level of satisfaction among visitors about the cost of access, accommodation or tourism-specific services such as car hire.

We need to recognise the positive response of the industry and to be careful in our use of language. Repetitive use of negative terminology, which tars everybody with the same brush, can undermine our efforts to market Ireland abroad.

I know I am not alone in believing it is hard to beat the Irish tourism experience. We should remember that 97% of overseas visitors surveyed last year said they would recommend Ireland as a holiday destination.

Paul Gogarty (Dublin Mid West, Green Party)
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Without engaging in party politics, I must state my party and I welcome the steps the Minister has been taking to deal with some of the key barriers to tourism. Some of the positive developments in the tourism sector over recent years testify to his work. However, in leaner times, given the rise in oil prices and the fact that other cheaper destinations are beginning to market their unique selling points more aggressively, we can no longer afford to rest on our laurels and we need to do a little extra.

What will the Department of Arts, Sport and Tourism, as opposed to the Department of Community, Rural and Gaeltacht Affairs, do about the policy vacuum in respect of access to the countryside, given that there has been a consistent decline in those taking walking holidays? This is a key area.

Concerns have been expressed about a lack of proper product development and innovation and also about the regional spread of tourism. I am still concerned that the midlands and south east are not getting the same crack of the whip as the western region.

John O'Donoghue (Kerry South, Fianna Fail)
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I thank Deputy Gogarty for his comments. I appreciate the constructive manner in which he approaches questions on tourism. Walkways are the responsibility of the Minister for Community, Rural and Gaeltacht Affairs because they are connected to rural development. He set up Comhairle na Tuaithe which it was hoped would resolve outstanding issues between landowners and the tourism industry. We have lost share in terms of walkers entering the country because not all our walkways are open. I appeal to all landowners to whom this applies to co-operate because it is in the interest of everybody.

We have had a very sophisticated product development model in operation for some time. Some €50 million was allocated to the independent board dealing with applications and €12 million has been re-advertised and sanctioned and has yet to be allocated. The applications have arrived in the Department and are being evaluated to improve the tourism product further.

I am concerned about the regional spread of tourism. Although numbers have increased considerably, unfortunately the regional spread that obtained in the past is no longer evident. Accordingly, we have changed the marketing strategy pertaining to all our markets with a view to promoting the regions. For example, if a region has access to a given city or cities in Britain or elsewhere, we try to concentrate marketing of that region in that city or cities. Other such measures are being taken and, with a view to helping the regions, I intend to bring substantive proposals on regional tourism authorities to Government in the very near future.

Brian O'Shea (Waterford, Labour)
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I take the Minister's point as regards highlighting the negative in respect of any aspect of the country's life. However, we should not close our eyes to negative developments that can lead to a deterioration in any particular area. Here we are talking about tourism. As regards the particular survey that was the subject of Question No. 14, I know the Minister said it did not deal with accommodation. When we see, however, that the cost of holidaying in Ireland went up by 26% last year as against a decrease of 20% in the US, and an item such as film costing €6.20 here compared to €1 in South Africa, it is something that should give us pause for thought.

One of the important areas where we are losing out is as regards the English motorist. Since duty-free was abolished, there is very little attraction in coming to Ireland that way. It was pointed out at our committee last week, however, that Irish tourists going to France can purchase wine and bring it back here duty-free. Has the Minister or his colleague, the Minister for Finance, been reviewing any initiatives to make it more attractive for motorists to come here on car ferries? Essentially, is the Minister saying there is not a real problem in terms of the tourism cost base in Ireland? Is he dismissing completely the figures revealed in the survey that is the subject of Question No. 14?

John O'Donoghue (Kerry South, Fianna Fail)
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I am not dismissing the figures, but they relate to specific goods so the survey could not possibly be an accurate reflection of the average cost. Some 97% of visitors to the country have stated they would recommend Ireland to a friend, which is very encouraging. I am not denying Deputy O'Shea's contention that there is a competitiveness issue. Of course there is and I am the first to acknowledge it. I agree there is no point in burying one's head in the sand, although emotive terms as regards our competitiveness are no help to the tourism industry.

As regards motorists from Britain, we would very much like to attract more because, as mentioned earlier, they go to the regions. As I indicated, a major campaign is taking place in our main markets and in particular in Britain. Only this week I launched a campaign for the tourism authorities in the west, north west and Shannon Development, which encourages people to go west. We also conducted one of the most comprehensive surveys ever undertaken on the British market last year to see how we could improve our marketing. We have done that across all sectors, and I have no doubt this will impact on the motorist as well.

Finian McGrath (Dublin North Central, Independent)
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On the issue of key barriers to tourism development, does the Minister share my concerns and those of many people, about the high cost for tourists when they visit the island? Has the impact of the smoking ban led to a decrease in the numbers visiting Ireland? I have been talking to a number of tourists from Spain and Portugal who assert the potential to lose between 20% and 25% of the European market exists because of the smoking ban.

Will the Minister say whether it is unacceptable to have tourists and Irish citizens standing in the rain having a cigarette and a drink? Finally, as regards the 97% of tourists who are satisfied, that is a particularly high figure. Who did the survey and what type of questions were asked?

Jimmy Deenihan (Kerry North, Fine Gael)
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Will the Minister update the House on the signposting programme? Various concerns have been expressed about signposting around the country. Is there a national programme in place to improve signposting, especially in this city where signposts were erected and taken down? People are very confused when they come to Dublin, especially if they are driving——

Paul Gogarty (Dublin Mid West, Green Party)
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Or Dingle.

Jimmy Deenihan (Kerry North, Fine Gael)
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Dingle is another question. The signs have not yet been changed, but people are getting lost. Also, the Luas, while it is welcome, is creating problems around St. Stephen's Green, for example, which is a focal point for motorists if they are going to the northside of the city. I met a group of French tourists outside the Dáil the other day who were totally confused. They had been travelling around town for about an hour. They were simply trying to get to the northside and they could not get there. The Minister might update the House as to what is happening with signposts, because this was one of the key recommendations of the tourism policy group.

Perhaps the Minister would also address the whole cohesion question as regards Fáilte Ireland and Tourism Ireland. There are concerns in the tourism industry that there is no real cohesion between the two agencies. It is said that one agency is selling the whole island and that Fáilte Ireland's role is restricted.

John O'Donoghue (Kerry South, Fianna Fail)
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On the smoking ban, as mentioned by Deputy Finian McGrath, this is not a negative factor at all. In fact the indications coming back are that it is positive. Far from people recoiling from the country as regards this issue, Ireland has set a precedent for other countries, which will all be following in due course.

Finian McGrath (Dublin North Central, Independent)
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Have tourists been asked about it?

John O'Donoghue (Kerry South, Fianna Fail)
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These are the indications. We carried out a survey before the introduction of the smoking ban in the American market, to find that it is a positive feature. As regards the question of competitiveness, I have outlined my position. Offering value for money to visitors is an issue. To be fair, the industry is responding well to the challenge.

Surveys are carried out on a regular basis by Fáilte Ireland. They are presented and I am rather taken aback that Deputy Finian McGrath should be surprised that 97% of visitors would recommend a holiday in Ireland to a friend. It does not surprise me in the slightest, having been in other countries.

As regards signposting, that is obviously a matter for the Minister for the Environment, Heritage and Local Government. A highly ambitious programme was embarked upon in many counties. In County Kerry, at least, an excellent job was done in conjunction with Kerry County Council.

Of course there is cohesion between Fáilte Ireland and Tourism Ireland. Very often, for example, as regards the sports initiative, Tourism Ireland on the international stage is the agent for Fáilte Ireland. Fáilte Ireland's role is necessarily restricted as a result of the establishment of Tourism Ireland which has responsibility for marketing the whole island of Ireland on the international stage and is doing so with a tremendous degree of success.

Visitor numbers are up overall. We certainly are at record levels. Visitor satisfaction levels are high, but surveys show there is an issue in particular as regards pricing when it comes to eating out, and also the price of drink. This affects Irish holidaymakers as well as visitors from abroad and everybody has to be extremely conscious of it. In the 2004 overseas visitor attitude survey, although satisfaction with overall value for money had not deteriorated further — it had levelled out — value for money was still the most critically rated aspect of the Irish holiday experience. I have no doubt about that.