Olivia Mitchell (Dublin South, Fine Gael)
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Question 62: To ask the Minister for Arts, Sport and Tourism his views on the Irish Tourism Industry Confederation's recent report into the challenges facing the Shannon and western region; the action he will take in respect of the recommendations that fall directly under his remit; and if he will make a statement on the matter. [24542/08]

Martin Cullen (Waterford, Fianna Fail)
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The recent Irish Tourism Industry Confederation's report reviews the factors impacting on the short-term outlook for tourism through Shannon Airport and Ireland generally. It highlights how external factors, such as the economic slowdown in some of our key markets, the relative strength of the euro against the US dollar and sterling, high oil prices and difficulties in the airline industry, present particular challenges this year for Irish tourism. The report also highlights that the Irish tourism industry is in a healthy state and is better positioned to withstand any downturn than in the past as the fundamentals of the industry remain strong.

In terms of specific recommendations under my remit, the report calls for continued funding of Discover Ireland's Wonderful West campaign and other marketing support to maximise opportunities provided by direct services to Shannon. The Government has allocated €50 million, the largest amount ever, for the overseas marketing of Ireland as a tourist destination this year, including an additional €3 million specifically for Discover Ireland's Wonderful West campaign overseen by Tourism Ireland. The campaign, which was developed by Tourism Ireland in consultation with local industry interests, is well under way, focuses on ease of direct access and the good value fares and packages available. I understand the campaign has generally been very well received to date and that is acknowledged in the ITIC report.

Furthermore, I am aware that Tourism Ireland is planning a major autumn campaign in North America to promote travel to Ireland during the autumn and winter period and in 2009. Tourism Ireland will continue to work with carriers to develop opportunities presented by new routes and existing routes of strategic importance. The provision of additional funding for marketing campaigns in the future will be a matter for discussion with the Minister for Finance in the upcoming and future Estimates process. Other tourism-related recommendations, such as the need to improve competitiveness and to improve the range of visitor attractions, are matters for everyone working together in tourism enterprises as well as in the State agencies.

The tourism agencies continue to monitor our competitiveness as a tourism destination and to assist enterprises in responding to changing conditions through the provision of marketing, human resource development and product development supports. I am assured that the tourism agencies will take into consideration the recommendations of the ITIC report in planning for the balance of this year, 2009 and beyond.

Olivia Mitchell (Dublin South, Fine Gael)
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I question whether the fundamentals of the industry are as good as they might have been when the report was written. If one was writing the report today it might be a different one. The report described the issues impacting on the industry in the west generally as the perfect storm. The potential of the open skies policy has been negated by the economic downturn and the price of oil among other factors. The concentration has been on the North American market where we thought the potential lay for next year but we should accept that may not be the case. I do not know whether the Minister is aware that in recent months six American airlines closed for business completely and a seventh airline sought protection under chapter 11. Perhaps we should turn our attention to marketing the new Air France route and the variety of Ryanair-provided routes into Europe.

A steering group was set up to carry out a feasibility study on a conference centre for the west of Ireland. It seems there is huge potential for business tourism for a medium-sized conference centre. We will have to concentrate on specific areas. The west can attract niche business, as is the case in the rest of the country. Has the feasibility study been completed and what has happened to it? Although the study was promised at the time the open skies deal was done, it appears to have fallen off the agenda.

I am sorry that the questions are so long. No matter what question I ask about the customs and border protection facility I cannot seem to drag any information from the Government about it. The provision of that facility here is important as it would give us penetration into other American cities. When will the facility be provided? Is it possible to bring the necessary legislation forward so that we can fast-track that facility? Is the reason for the delay the lack of physical infrastructure at the airports to carry out border checks or what is the hold-up? My two questions are on the conference centre and the customs and border control facility.

Martin Cullen (Waterford, Fianna Fail)
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In general, the figures for the first quarter of the year are telling in that they show a 4.5% growth again. I do not expect that level of growth will be sustained throughout the year but it is a good start and it will be helpful in terms of overall figures. Having breached the 8 million barrier last year the indications are that the figure will be about the same again this year. That would be a remarkable achievement given that it is more or less double the population of the country.

There may be some changes in strategy on the American market. Deputy Mitchell correctly highlighted the significance of the dollar value against the euro for American tourists. That has clearly impacted on Americans travelling not just to Ireland but to Europe in general. As I highlighted in my response, the extra funding for the wonderful west campaign, which was developed in consultation with local interest groups, and the targeting of the North American market in particular in the autumn was believed to be the way to go, not alone with the overall fund but with the €3 million additional spend allocated by the Government for the west of Ireland.

I have had discussions with some of the tourism bodies and they have informed me that there is also a strong concentration on the United Kingdom market to try to maintain the numbers that come to Ireland and to grow the market. The tourism bodies, which are in the best position to do so, are planning to realign some of the spend and they have realigned and moved forward some of the spending concentration to the market in the UK. Tourism Ireland and the local tourism authorities are and will be in discussion with each other specifically on the tourism campaign in the west.

I do not have any specific detail on a conference centre in the west. Clearly, the big priority is to get the first major national conference centre completed in Dublin.

Olivia Mitchell (Dublin South, Fine Gael)
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That was not the commitment. A feasibility study was promised and it was not dependent on finishing the conference centre in Dublin.

Martin Cullen (Waterford, Fianna Fail)
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I did not say that, what I said is that we have been waiting so long for a conference centre that I am anxious, as I am sure everybody is, to get the conference centre in Dublin finished. I will revert to the Deputy as I do not have any specific information on the matter. I appreciate the value of conference facilities, given the size of that market and the tourism potential that flows from bringing people to the country for conferences.

The second point related to custom and border protection facilities. I have some familiarity with this matter as I dealt with it when I was Minister for Transport. The Deputy is also familiar with the area. There was an absolute commitment to have the facility located in the two big centres in Ireland, one in Shannon and one in Dublin Airport. It was agreed to proceed with the Shannon project much more quickly because the facility in Dublin was affected by the reorganisation and rebuild there. There simply was not the space to put it in but it is being planned and built into the new facilities in Dublin. It was my understanding that an investment of €50 million to €60 million was required and the Dublin Airport Authority, in conjunction with the Shannon Airport Authority, was happy to make that commitment. Such a facility will make a unique selling point, especially for the west as it will be up and running before the one in Dublin. It will have a certain attraction in terms of building a customer base in Shannon.

I am aware discussions took place between the appropriate authorities in Shannon and the American authorities, who have a significant role in the matter as they man and control the border control centres. I do not have information in my note on the matter but I will pass on the Deputy's concerns to my colleague, the Minister for Transport. I agree it is an important element for the development of Shannon and Shannon Airport. Even with the limited facilities in Shannon, I understand that for the sake of convenience many people come from the UK to Ireland to get pre-clearance to travel to the United Stated. It is important that the facilities are fully rolled out. I understand the Americans do not have plans to put the pre-clearance facilities anywhere else.

Olivia Mitchell (Dublin South, Fine Gael)
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While it would be great to have the facility in both Dublin and Shannon, to give Shannon the advantage it clearly needs — that will become increasingly obvious in the coming months — it is important to fast-track the facility in Shannon as I do not believe such a significant build is involved in Shannon as in Dublin.

Martin Cullen (Waterford, Fianna Fail)
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When I was in that Department it was certainly my intention that Shannon would get the advantage of starting first, simply because it was possible to proceed with it, whereas this was not the case in Dublin. I will certainly communicate with the Minister for Transport to ascertain the status of the matter.