Dáil debates

Wednesday, 1 March 2006

Priority Questions.

Tourism Industry.

1:00 pm

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Question 31: To ask the Minister for Arts, Sport and Tourism the position regarding the PricewaterhouseCoopers review of the regional tourism authorities; if the proposed changes will be implemented during the 2006 tourist season; and if he will make a statement on the matter. [8511/06]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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As I previously advised the House in response to similar questions on 26 January 2006, individual actions and measures relating to tourism promotion or development at regional level are day-to-day functions of the State tourism agencies. To this end, Fáilte Ireland commissioned PricewaterhouseCoopers just over a year ago to conduct a major study of regional tourism structures. The report was published last year and is available on the Fáilte Ireland website. This work was supplemented by a short engagement facilitated by a small independent group, chaired by Mr. John Travers, with the relevant parties to satisfy interests in the Dublin region that the mechanisms of consultation were complete.

The PWC report highlights the need for a much wider brief for regional tourism, with more emphasis on its strategic rather than administrative role and contributing more directly to national policy. It recommends a greatly increased emphasis on targeted marketing, product development and enterprise support. It suggests establishing an integrated linkage between regional tourism strategy and national policy and exploiting avenues to leverage increased resources.

At the end of July last, I authorised Fáilte Ireland to proceed with the proposed revision of regional tourism structures on the basis of the PWC and Travers reports. To assist this process, Fáilte Ireland set up an implementation group under the chairmanship of Mr. Finbarr Flood. The group has completed an extensive process of engagement with relevant parties, including the existing regional tourism authorities and industry representative groups, to smooth the process of implementation, and I understand that it will report shortly to Fáilte Ireland.

In tandem with this, Fáilte Ireland has begun the process of gearing up its internal structures. A new senior management position of director of regional development has been created and applications to fill the post have been invited in the national press. A due diligence process will commence shortly with each of the regional tourism authorities. Fáilte Ireland expects that the impact of these changes will be experienced in the regions by the middle of the year.

This year Fáilte Ireland will invest more than €60 million in supporting regional tourism, from local festivals to building capability and strengthening the tourism product. The authority will channel in the region of €10 million of this sum directly into the regional tourism companies to strengthen and enhance their operational and marketing capabilities this year. This investment is designed to ensure both high quality visitor servicing at key tourist information offices and also a strong overseas promotional effort.

Both Tourism Ireland and Fáilte Ireland will continue to roll out a number of very innovative schemes in 2006 which should heighten the regional impact of Ireland's marketing activities both nationally and overseas.

Additional information not given on the floor of the House.

The super-regions initiative launched last month is one of these.

The agencies will also maintain an opportunities fund of €1million to allow them to respond to regional opportunities which may arise during the course of the year and are not anticipated in current programmes. Fáilte Ireland has also announced a new €1 million local area marketing fund to support the industry in generating additional business in 2006 and 2007. In addition, it has an innovation fund of about €1 million, the immediate priority of which is to encourage innovation and investment across a range of new products with a strong emphasis on products designed to attract and hold visitors outside the mature urban tourism areas.

Recognising the importance of home holidays at regional level, Fáilte Ireland will invest €4 million to sustain the recent remarkable growth in the home market. It also plans to advertise domestic holidays and short breaks 44 weeks a year to reach and stimulate the impulse market. Fáilte Ireland's website, www.ireland.ie, generated 500,000 direct sales leads to the tourism industry during 2005. On the basis that activities and attractions — things to do and see — are central to increasing spend per visitor, Fáilte Ireland will continue to assist in product development, including developing and promoting looped walks, angling, festivals, cycling routes, equestrian, golfing and water-based activities.

Tourism Ireland, for its part, will invest an estimated €5 million in 2006 specifically to support promotion of the regions of Ireland overseas and will engage in additional co-operative marketing with all regions. Key activities include presenting and promoting a series of all-island tourist theme trails or "rainbow routes" to help tourists get the most out of their visit. Themes will include music, gourmet, literature, history, Christian heritage, and houses and gardens. It will be cross-regional, thus further promoting and supporting regional access development as well as reinvigorating the car touring sector.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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I thank the Minister for his reply and emphasise again the need to put the recommendations of the PWC and Travers reports in place as soon as possible. The Minister will agree there is no major divide between east and west in the area of tourism. The number of people taking pure holiday tourism is at a standstill, the growth rate of which was just 2% last year. These are the people who would typically visit regions such as the Minister's area in Kerry and other rural areas.

Does the Minister agree there is a worrying decline in activity holidays in Ireland? For example, in 1999, 254,000 people came to Ireland to play golf. In 2004, it was just 138,000. In 1999, 326,000 came to Ireland on walking holidays. In 2004, it was just 259,000. The numbers cycling decreased from 16,000 to 6,000 and the numbers angling, which is important for areas such as Kerry and Mayo, decreased from 173,000 to 93,000. Does the Minister agree there is a major problem with the spread of tourism? While the numbers may be increasing, the type of tourist has changed from a typical weekender to business tourism and visiting family and relations. The scenario has changed.

Will the Minister put in place immediately the recommendations of the PricewaterhouseCoopers report and ensure proper resourcing in order that these regions can be marketed? As a Minister from a rural area, will he emphasise the necessity of spreading the tourism spend in 2006?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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There was a welcome increase of 6.5 million in the number of visitors to the country last year, which was the highest number ever to visit the State in one year. It is true, however, that all regions and sectors did not benefit equally and this is causing a difficulty for us. For example, the Dublin region increased by 11% whereas some regions increased only by small margins.

In those circumstances, I recently announced a new initiative, the creation of three new super-regions — Ireland west, Ireland south and Ireland east — the idea being that each would receive €1 million from Fáilte Ireland and would also be resourced from within the industry to market the regions as an individual unit in all our main markets. The object of the exercise is to bring more visitors into the regions and I am confident this will be successful.

We also announced a new local area marketing fund of €1 million. Again I anticipate the funding will be supplemented by the industry in due course. As I said in my reply, more than €60 million, the highest amount in the history of the State, is being invested through Fáilte Ireland in marketing the regions. I am confident we will succeed in spreading the benefits of tourism to the regions to a greater extent this year than last year.

I agree with Deputy Deenihan that there is a fall-off in some activity holidays. In particular, there is a fall off in angling compared with 1999 figures. This is related to the paucity of salmon in the rivers. The fall off in hillwalking and general walking holidays is due to the question of the land of Ireland being open to all. In some instances this is not the case.

I am pleased that there has been an increase in golf tourism. Last year approximately 200,000 people came to Ireland to play golf, which was a record number. I anticipate the numbers will be even greater this year following the Ryder Cup in September of which we are set to take advantage. More than 400 golf courses in Ireland are affiliated and one third of the world's championship links courses are located in Ireland. The Ryder Cup offers an ideal opportunity to bring more into the regions because the majority of the golf courses are located in the regions.