Bernard Durkan (Kildare North, Fine Gael)
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Question 113: To ask the Minister for Arts, Sport and Tourism his projections for the development of the tourism industry in the course of the next 12 months with particular reference to the need for competitiveness in view of increased choices at home and abroad; and if he will make a statement on the matter. [4836/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 351: To ask the Minister for Arts, Sport and Tourism the extent to which his Department have evaluated the impact on the tourism industry of currency and economic fluctuations; the measures proposed to counter such issues; and if he will make a statement on the matter. [5291/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 352: To ask the Minister for Arts, Sport and Tourism if he is satisfied that the tourism industry here is in a position to compete effectively with the increased competition and variety worldwide; and if he will make a statement on the matter. [5292/08]

Bernard Durkan (Kildare North, Fine Gael)
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Question 353: To ask the Minister for Arts, Sport and Tourism his proposals to improve the tourism industry with particular reference to the need to compete on international markets; and if he will make a statement on the matter. [5293/08]

Séamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 113 and 351 to 353, inclusive, together.

We have been fortunate in recent years to enjoy record growth in numbers of overseas visitors and associated revenue. While final Central Statistics Office, CSO, figures are not yet available, the estimates are that in 2007 alone we welcomed almost 8 million overseas visitors to the Republic of Ireland, with associated foreign revenue earnings of almost €5 billion. While the international tourism market is becoming increasingly competitive, Ireland has consistently outperformed its key competitors in terms of growing the number of overseas visitors to our shores.

With regard to 2008, I am pleased that the tourism agencies are forecasting that the Irish tourism industry will show further growth. At a tourism sectoral meeting of the North-South Ministerial Council last November, Minister Nigel Dodds and I approved Tourism Ireland's corporate plan for 2008-10. This plan contains ambitious and challenging targets for tourism for the island of Ireland over the next three years. It aims to increase overseas visitor growth by between 4.2% and 5.1%, which, if achieved, would mean total overseas visitor numbers to the island of Ireland of over 10.5 million in 2010.

The plan also sets tourism revenue growth targets of between 6.6% and 7.1%, which, if achieved, would mean that overseas tourism would generate up to €16 billion in tourism revenues for the island of Ireland in the three-year period.

While the targets are ambitious, there is little doubt that global economic factors such as currency and oil prices are likely to impact on the number of outward travellers from some of our most important markets such as North America and Great Britain. Whereas we have little influence in relation to such global economic factors, our agencies monitor market performance during the year and adjust their marketing campaigns as appropriate.

Among Tourism Ireland's priorities for this year are an even greater focus on e-marketing, continued attention to the car touring market in Great Britain and targeted marketing activity around key access hubs in mainland Europe and North America.

In terms of domestic tourism, Fáilte Ireland will continue to focus on key issues relating to product development, enterprise development, regional development, environment, education and training, and advocacy. In terms of targets, Fáilte Ireland has a target of achieving annual average growth of 3.7% in domestic holidays for the period to 2012.

Maintaining and enhancing competitiveness is a major issue for Irish tourism as it is for the economy as a whole. In addressing that issue, it is important to bear in mind that competitiveness is about more than price and costs. It is generally agreed that Ireland cannot and, indeed, should not attempt to compete on the basis of costs with mass tourism destinations.

The tourism agencies continue to monitor Ireland's competitiveness as a tourism destination and I am encouraging them to assist the industry in responding to changing conditions through a variety of programmes in marketing, human resource development, quality enhancement, product development and productivity. By doing this I am confident that the ambitious targets I outlined for the island of Ireland can be met.

Olivia Mitchell (Dublin South, Fine Gael)
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I am not sure what Deputy Durkan had in mind when he tabled these questions but I think they are interesting as tourism has changed dramatically in recent months, given rising fuel prices, market fluctuations, currency fluctuations and changes in interest rates. Projections for this year have changed, as have marketing plans. At times of economic uncertainty discretionary money, such as that spent on holidays, is the first to be hit and as an island country, fuel surcharges and so on make us vulnerable.

Is a review planned, given how the market has changed completely? There is no doubt world tourism will shrink this year and we will have to work hard to maintain market share. I agree with the Minister that Ireland does not compete only on price but we must be aware of this factor. Prices in Dublin, such as that for a cup of coffee, are off the scale and this gives a bad impression to visitors, particularly if Dublin is the gateway to a person's holiday in Ireland. They will be left with a bad taste in their mouths if a cup of coffee there costs three times that in any other European capital.

Séamus Brennan (Dublin South, Fianna Fail)
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This year will be challenging for the Irish tourism industry, particularly given the situation regarding currency markets and oil prices. I do not think we should hide behind this, however, as to do so would be unfair to the fine Irish tourism industry. The new Northern Ireland Executive together with Tourism Ireland, which is more determined than ever and has an increased budget, will provide a fine opportunity to develop tourism on an all-island basis. What is good for the northern part of the island will also be good for the southern part. I met representatives of Tourism Ireland and expressed the wish that a fresh approach be taken to expanding the industry with an all-island view. I suggested we should not simply sit back because prices have risen, though I agree with Deputy Mitchell that the country must be wary of prices or market share will suffer. We learned that lesson previously and we should not learn it the hard way again.

Mary Upton (Dublin South Central, Labour)
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I understand the number of British tourists visiting Ireland has declined in the past year. As this market is literally next door to us, are special efforts being made to attract people from the UK? I know the matter of signposting has been addressed previously but a constituent raised it with me today. My constituent referred to puzzling signposting and places where there is no signposting in Dublin. This might sound trivial and may not have a serious impact but it could discourage people from returning to Ireland.

Séamus Brennan (Dublin South, Fianna Fail)
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In study after study the issue of signposting has repeatedly been mentioned as an irritant when it is not done properly. I will raise this issue again with the agencies involved.

The UK market slipped but I understand it has bounced back and Fáilte Ireland and Tourism Ireland are taking account of the fact that it should be our easiest target due to its proximity. Money invested in the UK yields quick results and I believe the tourism agencies are responding to this.

Olivia Mitchell (Dublin South, Fine Gael)
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Central Dublin is lacking a big hotel with enough beds to meet demand and this matter has been raised before in the context of the conference centre, which, hopefully, will be ready in the next couple of years.

My daughter lives in London and she recently told me that her boyfriend's firm brought 300 young lawyers to Dublin for a bonding exercise, which is something big firms do nowadays. The only location they could get in all of Dublin was Citywest. They were taken there by bus from the airport, with lots of money in their pockets, but they never left Citywest while they were here. They never got to see Dublin. I congratulate Citywest on capturing the available market, but it seems it is the only place large visiting groups can go in Dublin. The Burlington Hotel and Jury's Hotel were huge losses. Has there been any liaison with the industry on responding to the lack of a large, central hotel in Dublin? There is huge potential in this area of the business but we are missing a big opportunity if large visiting groups must stay in a location where nothing else is accessible.

Séamus Brennan (Dublin South, Fianna Fail)
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A restructuring has occurred due to very high property prices and this has affected not only hotels but service stations and such sites. All over the country hotels are becoming apartment blocks and residential sites but, given changes in the property market, I think this will be short-lived and will slow substantially. The conference centre will meet one of the requirements the Deputy mentioned and 85 or 86 hotels have opened in Ireland in the past two years. There are now almost 1,000 hotels and most of these have invested substantially in convention centres. There is significant capacity for conference facilities — I have not heard of a shortage of such facilities as described by the Deputy. Perhaps visitors stay in Citywest for other reasons.

Olivia Mitchell (Dublin South, Fine Gael)
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There are enough rooms to cater for large groups but the only single hotel that can do so is Citywest Hotel and it, effectively, is not in Dublin.

Séamus Brennan (Dublin South, Fianna Fail)
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I do not wish to name them but there are many large hotels with hundreds of bedrooms and planning applications are in the pipeline for similar sized hotels in different locations such as the financial services centre. I will consider it but I am not aware of a shortage of conference centre facilities with associated bedroom space, which is the point made by the Deputy. The agencies are not signalling any such shortage but rather they are signalling the significant investment in hotel bedrooms and in conference centre facilities——

Olivia Mitchell (Dublin South, Fine Gael)
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They are all small hotels.