Dáil debates

Thursday, 29 November 2007

3:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 3: To ask the Minister for Arts, Sport and Tourism his views on the potential loss of tourism opportunities as a result of the planned termination of the Dublin-Dubai flight by Aer Lingus; and if he will make a statement on the matter. [31685/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Last year was a record year for Irish tourism with an all-time high of 7.7 million overseas visitors to the country and associated foreign revenue earnings of €4.7 billion. We are on track to surpass that performance this year, with the most recent figures published by the CSO showing an increase of more than 4% in the number of overseas visitors to Ireland in the first nine months of the year compared to the same period in 2006.

I understand, from media reports, that Aer Lingus has announced its intention to redeploy all its long-haul capacity to the United States, resulting in the suspension of the Dubai service from the end of March 2008. According to Aer Lingus, this decision is due to the significant demand for both existing and new United States destinations in the busy summer season. While the final tourism impact is uncertain at this stage, it is reasonable to assume that it may impact negatively on potential growth from new and developing markets such as the Gulf, India and China, while possibly impacting positively on the United States market. If there is a sustained higher load factor from the United States than from the Gulf, the net impact on tourism flows to Ireland may well be positive.

On the other hand, the introduction of direct services between Abu Dhabi and Dublin by Etihad Airways presents fresh opportunities to grow inbound tourism to the island of Ireland from long-haul markets. I understand, from previous statements made by the airline, that Etihad may shortly increase frequency on its Dublin service and, in 2008, add services to China to its network. The latter would be beneficial in terms of connecting flights for potential visitors to Ireland from the Chinese market.

Tourism Ireland has increased its marketing activity in the Gulf countries with the appointment of full-time representation in July 2007 and will now work to capitalise on the improved awareness of Ireland in the market.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Past success is no guarantee of future performance and we must always be on our guard. The Minister mentioned that there may be a benefit in Aer Lingus's decision in terms of further developing the United States market. However, putting all one's eggs in one basket is not a sensible approach. Moreover, that was never the intention. Aer Lingus deliberately set out to grow the United States market but also the Middle Eastern market. It is disappointing, particularly given Mr. Dermot Mannion's experience of the Middle East, that Aer Lingus should provide a flight whose scheduling was doomed from the beginning.

Depending on Etihad to enhance its services to Ireland is not the same as securing access to a major hub in the Middle East. Is there anything the Minister can do to encourage other airlines, such as Emirates, to fly into Ireland? That airline has a huge worldwide network that would be of tremendous benefit to our tourism industry. The company's marketing ability is enormous and would provide us with promotional opportunities on a worldwide scale.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Tourism Ireland, Fáilte Ireland and my Department constantly encourage airlines flying out of locations where we see tourism potential to provide services to Ireland. Ultimately, however, such decisions are commercial and are made by the airlines themselves. We will continue to work hard to convince airlines to operate out of Ireland. I take on board the Deputy's useful suggestion regarding Emirates.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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I recognise that these are commercial decisions. However, this State is making a huge commercial decision in spending hundreds of millions of euro under the national development plan on international tourism. There must be some coherence between the money we are spending and, on the one hand, the markets in which it is spent and, on the other, the destinations available to us.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Aer Lingus seems to be focussing on the United States market for the foreseeable future. This suits us in some respects given our investment in that market from a tourism point of view.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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However, the growing market is Asia.

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I take the Deputy's point that we should try to match investment with potential opportunities. However, private companies will ultimately make their own decisions.