Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 10: To ask the Minister for Arts, Sport and Tourism the steps he is taking to promote and develop regional tourism; and if he will make a statement on the matter. [23960/07]

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 44: To ask the Minister for Arts, Sport and Tourism the steps he is taking to promote and develop rural tourism; and if he will make a statement on the matter. [23961/07]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to answer Questions Nos. 10 and 44 together.

Under the National Tourism Development Authority Act 2003, the individual actions and measures relating to tourism promotion or development at regional level are day-to-day functions of the State tourism agencies, as is the promotion of individual product segments such as rural tourism. The Government has taken a number of steps to support the agencies in that regard.

During 2007 the Government provided a 13% increase in the tourism budget compared to 2006, bringing the allocation to €159 million, the largest ever Exchequer budget for Irish tourism. More recently, a pre-budget estimate of almost €164 million has been announced for 2008, an increase of 3%. I will seek additional funding in the coming weeks.

The National Development Plan 2007-2013 Transforming Ireland includes the largest ever Government investment programme for the development of Irish tourism. This tourism development programme, which provides for an €800 million Exchequer investment in tourism over the next seven years, has as one of its fundamental objectives the stimulation of regional development. The programme includes an international marketing sub-programme, which provides €335 million to promote the island of Ireland in key international markets. The key objective over the seven years will be to increase tourism revenue and visitor yield and to help achieve a wider regional and seasonal distribution of business.

It includes a product development and infrastructure sub-programme, which provides €317 million to upgrade and supplement our tourism attractions and activities and to deliver a national conference centre in Dublin. It also includes a training and human resource development sub-programme, which will invest €148 million in the education and training of the tourism workforce, both domestic and non-national, as well as sustaining structured educational opportunities in third level colleges and institutes of technology around the country. It will also provide for the continuation of initiatives aimed at improving management capability and networking in SMEs and micro-enterprises at regional level.

Olivia Mitchell (Dublin South, Fine Gael)
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This is too broad a question to deal with in a few minutes. A matter that is on the mind of those in the tourism industry is competitiveness. I am conscious that Deputy Brennan is the Minister for Arts, Sport and Tourism but he is aware this is a cross-cutting sector, involving a number of areas. It is up to the Minister to ensure other Ministers, whose areas have an impact on tourism, deal with the issues of competitiveness, costs to hotels, tourist attractions and difficulties of access. The Minister must bring urgency to these areas, which have an impact on tourism. It will become more difficult in the future.

There are tax matters to be considered in the budget. The tourism strategy refers to excise duties on wine. There may be reasons not to reduce the price of alcohol but it is a cost to which European visitors refer as expensive. European visitors who are accustomed to wine at a lower price find it, among other things, a major cost.

I urge the Minister to be conscious of the EU review of VAT rates. At present the areas that will attract a preferential rate, lower than the standard rate of 21%, do not include food, accommodation and the hotel sector. Those in the accommodation industry hope that this is a mistake but it is important this matter is brought to the attention of the EU. The rate here is 13.5% but that is higher than many of our competitors, which has an impact on competitiveness. As the Minister for Arts, Sport and Tourism he must be responsible for more than just the matters within his remit. He should bring such matters to the attention of other Ministers.

Séamus Brennan (Dublin South, Fianna Fail)
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The Deputy underlines the importance of the tourism industry, with almost 240,000 workers. If one takes a broad definition of hospitality it is arguably the largest employer in the State. It faces many challenges, including energy costs and wages. I have had many meetings with members of the industry. Remaining competitive is a major challenge for an industry of that size.

A new challenge is that more than one third of workers are non-national. The challenge is to ensure we have mature integration policies, particularly in tourism, which depends substantially on the work of those who come to stay with us as employees or tourists.

I share the Deputy's excitement about the industry, which has cost challenges and must try to win an increased share of the market. We must remember that tourists do not have to come to Ireland. The tourism industry is extremely competitive and people can travel to a myriad of places on family or business trips. Ireland must remain competitive and attractive. We must market what we have to offer.

Mary Upton (Dublin South Central, Labour)
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Fáilte Ireland took a decision to deregulate the self-catering industry. This is the only part of the industry that is not regulated. I suspect it will not be promoted by Fáilte Ireland, leaving that sector in freefall. This should be addressed. The Minister may state that this matter should be referred to Fáilte Ireland but it will have a negative effect on rural Ireland, where the self-catering industry represents a significant part of the industry. Will investment be made in weaker areas? Agriculture was the mainstay of rural Ireland and agri-tourism will be very important. Many of these areas have little tradition or expertise in developing tourism.

It is extremely important, given the changing scene in rural Ireland, that those areas are supported and promoted more effectively.

Séamus Brennan (Dublin South, Fianna Fail)
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On the issue of self-catering, I am aware that Fáilte Ireland took the decision to which the Deputy referred but then discussions took place between the self-catering organisations and Fáilte Ireland. I am not sure if the decision has been implemented as yet but I will check and revert to the Deputy. I am aware that the parties entered into a round of discussions as to how they might compromise but I do not know the final outcome of those discussions.

With regard to the other areas mentioned by the Deputy, there are special budgets in Fáilte Ireland and Tourism Ireland for developing specialised areas like agri-tourism, environmental tourism, sports tourism, arts tourism and so forth. Agri-tourism is among a range of specialised areas that must be promoted. I will ensure that Fáilte Ireland and other agencies continue to invest strongly in products such as agri-tourism.