Dáil debates

Thursday, 17 November 2005

3:00 pm

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Question 3: To ask the Minister for Arts, Sport and Tourism if he will make a statement on the future of the Shannon Airport stopover, and the implications any change may have for tourism in the south west. [35105/05]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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I take this opportunity to congratulate again my colleague, the Minister for Transport, Deputy Cullen, on the agreement he concluded with the US authorities last week in the context of the current EU-US negotiations on open skies. This is great news for, and has been generally welcomed by, the Irish tourism industry, which will be a huge winner when the anticipated new and additional gateways in the United States are opened up.

The US market is our second largest tourism market, delivering close to 1 million visitors annually and generating a revenue spend of approximately €700 million. United States visitors stay longer, spend more per capita and travel more widely in the country, which is critically important for improved regional spread of tourism. The proposed new arrangements have major potential to open up a range of new air services between Ireland and the United States. According to some tourism industry sources, this agreement gives Ireland the potential to double the number of US visitors by 2012 to 2 million and should add each year an extra 150,000 visitors and €100 million in revenue to the Irish economy.

Market research carried out in the United States by the tourism State agencies in recent years has demonstrated a consistently high level of interest in Ireland as a holiday destination and a high level of unsatisfied demand due to the very limited number of direct access gateways and routes between Ireland and the USA. I am pleased that under the proposed agreement, Irish carriers will have access to three additional gateways from November 2006. I am also pleased that the need for a transition phase for Shannon has been recognised. I believe this breakthrough agreement represents a major opportunity for Ireland as a whole and it is imperative that the industry and public sector in the west, in particular, work together in a positive and integrated way to realise the great potential on offer. For my part, I will ask the tourism State agencies to take the necessary measures and work with the industry to capitalise on the very significant opportunities arising from Friday's announcement.

The Ireland-US bilateral agreement made sense at the time it was negotiated. Now, however, we must move on and grasp the opportunities for all regions, including the south west, arising from such a large potential tourism market that is well disposed to the Irish product offering. The conclusion of such an agreement has long been an objective of Irish tourism policy and was a major recommendation in the report of the tourism policy review group, New Horizons for Irish Tourism: An Agenda for Action, published in September 2003.

Photo of Martin FerrisMartin Ferris (Kerry North, Sinn Fein)
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Does the Minister agree that the agreement worked out between the Minister for Transport, Deputy Cullen, and the US Secretary of Transport will have a detrimental effect on tourism in the west, the mid-west and, in particular, the south-west region? What measures does the Government intend to take to ensure that Shannon Airport retains a high level of aviation business? What guarantees, if any, can be provided to ensure tourist numbers are not affected in those areas?

Does the Minister agree that the phase-out of the stopover flies directly in the face of Government commitments to balanced regional development? Does he agree with the view of SIGNAL, which represents workers at Shannon Airport, that 40,000 jobs both directly and indirectly in the tourist sector could be placed in danger as a consequence of drawing more business and tourist flights to the east coast?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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We have all heard these dire warnings for some time. They are not representative of the general air of optimism for the future that is more evident in the Shannon region, especially in terms of maximising the potential of Shannon Airport. The airport has already this year reported a 36% growth in traffic and stated it is on target to deliver an additional 1 million passengers this year.

The Minister for Transport, Deputy Cullen, last Friday stated that this deal was hard won and gives Shannon Airport a good opportunity to prepare for the arrival of open skies. It also provides Aer Lingus with an opportunity to fly to three new destinations from 2006. This will enable the company to develop its transatlantic route structure in the approach to open skies, open new markets for Irish tourism, offer greater choice to consumers and facilitate the growth of jobs in Ireland. The Minister also announced proposals to prepare an economic and tourist development plan in consultation with the Minister for Enterprise, Trade and Employment and me to ensure Shannon Airport sustains and grows transatlantic air services. I look forward to working with these Ministers on this plan.

I am pleased that three additional gateways can be opened for Irish carriers next year. The Minister for Transport has stated that these points will be nominated by Irish authorities and there will be flexibility to change these cities during the transitional period. Market research carried out in the United States by the tourism State agencies has demonstrated a consistently high level of interest in Ireland as a holiday destination, and a high level of unsatisfied demand due to the limited number of direct access gateways and routes between Ireland and the USA.

It is sometimes forgotten that the bilateral arrangement between Ireland and the United States of America was a double-edged sword. Our national carrier was restricted to five gateway cities in the United States of America under the terms of the deal. Our national airline was accordingly prohibited from flying out of other gateway cities in the US. This was clearly to the detriment of the airline's business and the tourism business in Ireland. I accept the stopover had a beneficial use in its time. However, times have changed and there are now greater degrees of access to the country and far more carriers are entering Ireland. There are far more opportunities for Shannon than there were at the time of the stopover's introduction.