Olivia Mitchell (Dublin South, Fine Gael)
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Question 121: To ask the Minister for Arts, Sport and Tourism the measures he is recommending to Cabinet to halt the downward trend in tourism figures; if he has discussed the competitiveness issue with his Cabinet colleagues; the outcome of same; and if he will make a statement on the matter. [34150/08]

Martin Cullen (Waterford, Fianna Fail)
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Latest figures from the Central Statistics Office show that, notwithstanding the difficult global environment, the number of overseas visitors for the first seven months of 2008 was just ahead of last year at more than 4.5 million. Figures for July alone were less positive, which we all know.

I understand that the indications are that the fall-off in monthly numbers seen in July was sustained in August. This must be seen in context. Global tourism and Irish tourism are facing exceptionally challenging conditions, including increased fuel costs and a global economic downturn, with adverse trends in exchange rates. I understand that the recent fall-off mirrors trends across Europe, where the year started positively but saw a downturn in monthly figures from May onward.

While Ireland, like a number of other high income countries, is not a mass tourism destination, its competitiveness in term of value for money and quality of experience is shown by our sustained ability to increase our share of visitors to Europe in recent years.

Current indications are that Ireland is maintaining its market share in Europe and many competitors are faring less well, suggesting that the overall competitiveness of Irish tourism is holding. As well as attractive air and sea access fares, there is very good value for money available in tourist accommodation at present, in particular given the addition to our hotel room capacity in recent years.

While I know that our businesses are responding positively to current challenges, it is just as important that the strategic framework for tourism development responds to the changing environment. I have therefore decided to initiate a short mid-term review of the tourism strategy, New Horizons for Irish Tourism: an Agenda for Action 2003-2012. I will be putting in place the arrangements for the mid-term review in the coming weeks and I will seek for it to be completed by the end of the first quarter of next year. In the meantime, an extensive range of marketing, product development, training and business supports are being rolled out by the tourism State agencies under the tourism services budget of the Department. For example, the tourism marketing fund for this year provides for €50 million, the highest ever annual allocation for the international marketing effort.

I am confident that the tourism sector here has the capacity to manage the current cyclical slowdown. The mid-term review will help the sector to manage the current challenges and to return to sustainable growth in the medium term.

Olivia Mitchell (Dublin South, Fine Gael)
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I thank the Minister for his reply. The reality in respect of the visitor figures from Europe, which the Minister said are holding up, is that these represent low spend figures and they probably will disappear because all the indications are they are family members of migrant workers coming to Ireland. Those visitors will disappear if the reports we hear about high unemployment among migrant workers are true.

The point I wish to make, about which I believe the Minister and I are in agreement, is that our tourism industry is facing difficult times. Not only is the global tourism market shrinking but in Ireland we have the additional problems of high service charges, high energy costs, high VAT charges and a new pay round to be made. The result is that, for a variety of reasons, profitability per room is now half what it was this time last year.

There is considerable demand from the industry to maintain the amount of money being spent on marketing to ensure that we retain our market share and that we have an industry when all this financial chaos is over. I wish to ask about the plethora of tourism bodies. I am sure they are all doing a good job but, given that we have to examine every penny being spent, is having all these bodies the best way for us to get value for money? Is it the best way to deliver what is absolutely necessary and what everybody wants to deliver? All these bodies are being funded and one wonders if one body is duplicating the work of another.

What exactly is the best way to target the marketing of our industry? There is a need for a major change in the kind of marketing being undertaken. The reality is that we will have to change to tourism that is not so dependent on discretionary spending. If an American family was considering the value of the dollar and the cost of visiting Ireland, that family would say "No" to that idea of coming here. However, an American businessman, a golf player or person attending a conference would be more likely to come to Ireland, and this is a tourism area where we are under-performing.

Therefore, is there a need to change the way we market our industry and the number of bodies, at home and abroad, charged with that task? Is there a way we can get better value for money? Will the Minister ensure the marketing budget is maintained as that is crucial for the industry?

Martin Cullen (Waterford, Fianna Fail)
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I am aware of the point the Deputy is making. There is not really a plethora of organisations in place. We have two major organisations, one of which is Tourism Ireland, which is responsible for marketing Ireland overseas on behalf of the whole island of Ireland. It is a North-South body funded by both jurisdictions to carry out that task. The other organisation is Fáilte Ireland, which has a major role and is probably seen by most people as the key body responsible for promoting and developing marketing policies for the benefit of all aspects of the tourism industry.

The Deputy rightly said that there are issues of competitiveness. People who have a good tourism product have to make sure that the value for money they are giving in comparison with their competitors in other countries is as good as it was.

The Deputy is correct in saying that the type of business we can attract and continue to attract should be expanded in particular areas. There is also the opportunity to target new markets. There is no doubt that the Middle East and Far East present major opportunities. These are vast markets into which we should try to market our tourism industry and maintain a big presence, given their scale and size. Nevertheless, there are two aspects to that. To expand those markets, we need direct flights from those markets to Ireland. I have always said that and I did so when I was Minister for Transport. I signed many agreements and, hopefully, when all the works are completed at Dublin Airport, it will be able to facilitate long-haul flights.

The Deputy might reflect on what Ireland has achieved. We were the most successful country in Europe to recover after the 11 September events and the outbreak of foot and mouth disease at that time. The policies have been working to a large degree, but that is not to say that we should not always keep them under review.

Olivia Mitchell (Dublin South, Fine Gael)
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The Minister would have to agree that the policies must change now.

Martin Cullen (Waterford, Fianna Fail)
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Yes, I agree with that.

Olivia Mitchell (Dublin South, Fine Gael)
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We are living in a different world and the reality is that every penny must be examined to ensure that it delivers value for money.

Martin Cullen (Waterford, Fianna Fail)
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Given the economic situation, I am strongly of the view, and have conveyed it to both marketing organisations, that they should get much greater value for every euro spent in the coming year than they might have received in the preceding years because there is a real reduction in available spend across the business world in terms of accessing media to promote one's message. The value that one can get in terms of every euro spent for next year should be far greater than one might have got in previous years. It is important to bear that in mind.