Dáil debates

Tuesday, 25 April 2006

2:30 pm

Photo of Eamon RyanEamon Ryan (Dublin South, Green Party)
Link to this: Individually | In context

Question 65: To ask the Minister for Arts, Sport and Tourism his views on the latest figures for overseas travel for January 2006. [15173/06]

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
Link to this: Individually | In context

Question 92: To ask the Minister for Arts, Sport and Tourism his views on the most recent statistics released by the Central Statistics Office regarding the number of tourists visiting here; his further views on the fact that visitor numbers to Ireland from the United States and Canada fell during the final quarter of 2005 in comparison with the previous year; and if he will make a statement on the matter. [15136/06]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 65 and 92 together.

The recent publication by the Central Statistics Office of data for tourism and travel in 2005 presented a healthy overall picture for tourism in Ireland. This was evident in both an increased number of overseas visitors, up 6% to almost 7 million, and a significant rise in revenue, up almost 8% to €3.455 billion, excluding carrier receipts. On both counts, we exceeded targets set for 2005.

As global competition intensifies and consumer preferences evolve, these results represent a very robust performance by the sector and confirm just how dynamic and responsive is the Irish tourism sector. Looking at performance by market, the most striking feature last year was the position for mainland Europe where visitor numbers to Ireland were up almost 20%, to 1.9 million, with revenue up 32%, to €1.23 billion. This brings mainland Europe almost on a par with Britain in revenue terms and confirms that we are very much on target in regard to the tourism priority in An Agreed Programme for Government which seeks to broaden our source markets, especially in continental Europe.

From a strategic perspective, mainland Europe represents a very important source market, particularly in terms of regional spread and take up of tourism activities. Increased access from key European markets, especially to the regions, has been a major contributor to this growth and the challenge this year will be to build on this level of success. After a challenging period of intense competition in the British market, Ireland's overall performance in 2005 represents steady progress with growth of 3.8% in overall numbers and revenue showing a marginal increase of 0.3%. There remains a variety of challenges for the industry in Britain, particularly in growing the holiday component of the market. However, it is also true that the burgeoning VFR, visiting friends and relatives, market from Britain has always been and will remain of immense strategic importance to Ireland.

The CSO figures also bear out earlier forecasts in regard to the US and Canada which have proven more difficult to grow at the exceptional rates seen in previous years. Recognising the importance of the North American market to the Irish tourism industry, Tourism Ireland has already initiated an extensive review of its business activities there. The findings from this review will allow it to adjust its marketing programmes locally to help the sector achieve improved results for this year and beyond. I understand that the review is expected to be completed by September.

One fact worth noting about the trend in the North American market is that performance had been exceptionally strong in 2004 and the slippage in 2005 has come from a very high base. So, while there was a slight decrease in the number of visitors from the USA and Canada in 2005, the level was still up by over 5% on 2003. I am confident, therefore, that the underlying trend remains positive and that the review by Tourism Ireland will help to ensure that the outlook remains positive.

The latest data published by the CSO for 2006 cover the month of January. These show a continuation of the positive trend in terms of visitor numbers to Ireland with an 8% increase over the same month last year. While this return is certainly encouraging, the data only cover one off-peak month and it would be unwise to read too much into them. Nevertheless, I see no reason 2006 cannot be another successful year for Irish tourism and that we can achieve our targets of a 5% growth in visitor numbers with an associated increase of 6.7% in revenue earnings.

Photo of Paul GogartyPaul Gogarty (Dublin Mid West, Green Party)
Link to this: Individually | In context

I accept that the trend is positive in spite of the increasingly competitive global market. I wish to raise some questions about the short and long term in this regard. While the British market has increased overall since 2002 following the previous year's foot and mouth disease crisis, I suggest the decline in relative terms vis-À-vis other European destinations, for example, and the resurgent North American market is directly related to walking holidays. In that context, does the Minister support calls by the IFA for some form of payment for guaranteeing access to land, or at least maintaining marked ways, and will he liaise with the Minister for Community, Rural and Gaeltacht Affairs in this regard?

The issue of peak oil, which the Greens have been talking about for years, is eventually getting the media attention it deserves. In five or ten years' time it could well be the case that medium and long haul flights, including cheap flights from Europe to Ireland, will be a thing of the past and it will be increasingly difficult to market Ireland as a cheap affordable destination when fuel and oil prices make it very difficult to get here.

In this context should we not be making as much strategic preparation as possible to target the British market in the long term and to encourage British, French, German and Dutch people to come to Ireland? These countries are near enough to Ireland. The price of flights will inevitably rise and jobs in the tourism industry will be affected unless we have a strategy in place now to deal with something which is not that far away. Has this issue been discussed at Cabinet?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
Link to this: Individually | In context

I am fully supportive of the promotion of the country for walking and activity holidays in general. In that context, the Minister, Deputy Ó Cuív, established Comhairle na Tuaithe which is charged with seeking to resolve difficulties in regard to access to land for hill walkers and therefore comes within the remit of that Minister. I am fully supportive of his efforts in this respect.

As part of An Agreed Programme for Government, the Government has been making a major effort to promote the country in mainland Europe. On becoming Minister I endeavoured to concentrate much of the resources and efforts in building up the European market and I am very pleased it is working out. An increase of 20% in visitors from mainland Europe last year was quite a stupendous performance when one considers that revenue from mainland European visitors is now almost on a par with that from British visitors to Ireland. This shows we have made tremendous progress.

As a result of a dip in visitors from Britain in the year before last, we immediately brought forward a strategy to adopt an aggressive approach to the British market following the most intensive ever survey of that market. This strategy has yielded results. Statistics for last year show an increase of 3.8% over the previous year which is very significant as the number of visitors coming to Ireland from Britain is extremely high at 4.75 million per annum. In general terms there has been a major effort to try to bring in more people from nearer destinations and I am confident this will be welcomed by everybody. We will continue our efforts in the North American market as it remains extremely important.

With regard to the increases in the price of fuel, we do not have any great influence over what happens. The tourism agencies are conscious of this factor and are seeking to make Ireland as attractive as possible.

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
Link to this: Individually | In context

There has been a decrease in the numbers of visitors from the USA and Canada in the last quarter of 2005 compared with the same quarter in the previous year and this is of concern. I agree the escalating cost of fuel is in many ways beyond national control. Aer Lingus is introducing a surcharge on long haul flights beginning on 15 May 2006. Are any devices available to the Government to subsidise the long haul carrier, the national carrier and other carriers operating on the route? It must be a concern that as the price of oil increases, it could have a significant effect on the numbers travelling to Ireland from long haul areas such as the United States and Canada. Is this issue being examined and are any realistic avenues available to allow the Government assist in keeping down the cost of travel?

I refer to the ferries which bring motorists from Britain to Ireland. It is correct to state that visitor numbers from the UK are increasing but will the Minister agree that to a large extent these visitors are coming to Dublin and staying there? The current pattern is for more short-stay visits. The British motoring tourist has always been very important in areas such as the south-east region and in the Minister's region.

Photo of Pádraic McCormackPádraic McCormack (Galway West, Fine Gael)
Link to this: Individually | In context

The Deputy should ask a question.

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
Link to this: Individually | In context

When Irish visitors go to France they can bring back quite a quantity of duty-free wine. Is there any way this can be matched in order to entice tourists into this country? Could concessions on goods be made available on ferries?

Photo of Pádraic McCormackPádraic McCormack (Galway West, Fine Gael)
Link to this: Individually | In context

Deputy Deenihan may ask a brief supplementary question as only one minute remains for the Minister to answer.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context

I am sure the Minister will agree that while visitor numbers have increased, the number of overnights has decreased with the average decreasing from 7.9 to seven per visitor. In view of the significant decline in the number of golfers coming from the USA which has been experienced in places such as Ballybunion and Waterville in our county, what initiatives are being taken by the Minister to reverse that trend? Golfers are high-spending tourists. What plans has the Minister to use the publicity and hype surrounding the Ryder Cup to entice American tourists to come back to Ireland to play golf on our courses? Has the Minister undertaken an analysis of the market to determine whether it is a matter of price?

Photo of Pádraic McCormackPádraic McCormack (Galway West, Fine Gael)
Link to this: Individually | In context

The Minister has half a minute remaining.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context

I ask the Chair to give him a few minutes to answer.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
Link to this: Individually | In context

A full regional tourism marketing campaign is being conducted in all the major markets and this will help the regions during 2006. A considerable number of golfers, approximately 138,000, are coming to Ireland specifically for those kinds of holidays. Tour operators last year voted Ireland the number one golf destination in the world.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context

There has been a big reduction in numbers.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
Link to this: Individually | In context

With regard to the Ryder Cup, the Fáilte Ireland budget has recently been increased by €4.5 million to enable it to become involved in an aggressive marketing campaign which will use the Ryder Cup to promote Ireland as a golfing experience.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context

Question 66: To ask the Minister for Arts, Sport and Tourism when he expects the recommendations of the PricewaterhouseCoopers report on the future restructuring of the regional tourism authority will be put in place; and if he will make a statement on the matter. [14737/06]

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
Link to this: Individually | In context

Question 84: To ask the Minister for Arts, Sport and Tourism the timescale for the full implementation of the PricewaterhouseCoopers report on the regional tourism authorities; and if he will make a statement on the matter. [15159/06]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 66 and 84 together.

As I previously advised the House in response to a similar question on 1 March, individual actions and measures relating to tourism promotion or development at regional level are day-to-day functions of the State tourism agencies.

As the Deputies are aware, 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 in order 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 in order 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 the existing regional tourism authorities, industry representative groups and other relevant parties, to smooth the process of implementation. I understand the group recently presented its report to Fáilte Ireland and that Fáilte Ireland is now acting on its contents.

I also understand that Fáilte Ireland has begun the process of gearing up its own internal structures to line up with the proposed new structures at regional level. 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 with each of the RTAs is almost complete.

Fáilte Ireland has advised me that it expects the changes will be implemented in the regions by the end of the summer.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context

If changes are implemented in the middle of the tourism season, could they be disruptive? Is the Minister aware of the existing uncertainty among the RTAs as to their future role and the fact that they will no longer be managing the tourist information offices? Is he also addressing the problems, for example, in the Cork-Kerry tourism area? There are difficulties in that area, as the Minister will be aware, and that certainly is affecting morale in the area among the workers and the elements of the industry.

Will the Minister answer specifically whether the recommendations will be put in place this summer? Does he envisage any role in future for the RTAs in the local information offices? If the RTAs have no budget, what precisely can they do about product development or whatever? It would seem that in the future the RTAs will really be ineffective. It strikes me that they will be merely talking shops or a forum for the industry, but really ineffective.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
Link to this: Individually | In context

The opposite is the intention. In fact, the new proposals envisage a wider brief for regional tourism authorities playing a strategic rather than administrative role and providing input into national policy. There will be a greatly increased emphasis by the regional tourism authorities on targeted marketing, product development and inter-price support, and this is precisely what has been recommended in the PWC report.

I expect the implementation to be completed by the end of the summer. As a consequence of the changes, I expect that the regional tourism authorities will have a far greater role to play on a local level and on a broader more strategic level than was previously the case. As I stated, the report highlighted that the regional tourism authorities were handicapped by virtue of the fact that they did not have as much power as they should have had in targeted marketing, product development and enterprise support, and it is intended through these changes to change all that.

It is not the intention to take power from the regions and vest it in the centre. The object of the exercise is quite the opposite — to devolve powers to the regions. Funding will follow the powers. That is the clear intention. I am confident the regional tourism authorities, with their increased powers, will be in a position to grow tourism in the regions to a greater extent than was ever the case previously.

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
Link to this: Individually | In context

Referring to powers, this is a typical example of centralisation rather than decentralisation. Recently the Minister promoted the idea of three super regions for marketing and he spent the last tranche of funds through the super regions. How compatible are those three super regions with the existing RTAs? Surely there is a contradiction. Will he persist with his three super regions in the future for marketing, for example, and how will that fit in then with the roles of the seven RTAs in the country?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
Link to this: Individually | In context

The super regions initiative, which was launched by Fáilte Ireland and Tourism Ireland in February, is the latest and, incidentally, possibly the most significant innovation from an overseas marketing perspective in presenting a better, more tangible concept of Ireland's regions to potential consumers abroad. The initiative, which is additional to Tourism Ireland's destination marketing campaigns and Fáilte Ireland's regional allocations and activities, is based on new strategic marketing alliances between adjoining tourism regions, positioning them to exploit international market opportunities more fully so that for marketing purposes, the initiative combines existing RTA regions in the three super regions — Ireland South, Ireland West and Ireland East. The idea is to present Ireland's regions more coherently to overseas consumers. It is not about creating any new structures at a regional level and will not impact on the restructuring of the regional tourism authorities.

We found that there was a substantial increase in the number of visitors coming into the major urban centres, for example. For instance, in 2005 the visitor numbers in Dublin increased by 11% and the outer regions did not do as well, with the numbers in some increasing marginally, in some increasing by a little more, in some remaining stagnant and in even one or two showing a slight decline.

We now seek to market the super regions by emphasising not just the urban attractions but also the rural attractions contiguous to them. By moving in this direction, we will benefit the rural regions as well as seeing continued growth in the urban areas.

Jerry Cowley (Mayo, Independent)
Link to this: Individually | In context

The Minister spoke of the super regions. What is the point of marketing a super region such as the west if it is not possible to access that super region? I refer in particular to the fact that we have an airport, Ireland West Airport, at Knock which is underdeveloped owing to a lack of funding. Although the Minister, Deputy O'Donoghue, is not Minister for Transport, he has a collective Cabinet responsibility. How can he promote the area when there is no proper access, in other words, when 29 million people visit the east coast and the south whereas only 500,000 people visit the west coast and six million people visit the north of Ireland? That reveals a regional imbalance. There is the national spatial strategy. There is a national development plan which shows a gross underspend on transport, in particular, and on infrastructure right across the board. How can the Minister rationalise a situation where he is flogging a dead horse by trying to promote a region to which there is no proper access?

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
Link to this: Individually | In context

Everybody will be well aware by now of Transport 21 which contains exciting initiatives intended to improve access throughout the country, not least in the case of the western corridor. It is a measure that Deputy Cowley, in particular, would welcome.

Access needs to be improved and that is why the plans are in place. Never in the history of the State has more funding been invested in infrastructure. Never in the history of the State has more funding been invested in access. Those plans will be put in place over the next few years and we will see substantial progress.

While all that takes place, our immediate objective is to improve the number of visitors to the regions and that is why we have made a substantial investment through our marketing programme in helping the regions, by twinning them and by ensuring that we market the super regions to best effect. All these efforts are meant to ensure that there is a greater degree of regionalism and that the spread of tourists is more proportionate.

Jerry Cowley (Mayo, Independent)
Link to this: Individually | In context

Will the Minister give Knock airport the investment it needs to develop?

Photo of Pádraic McCormackPádraic McCormack (Galway West, Fine Gael)
Link to this: Individually | In context

I must proceed to the next question.