Olivia Mitchell (Dublin South, Fine Gael)
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Question 73: To ask the Minister for Arts, Sport and Tourism his views on the implications for the tourism industry arising from various new measures introduced in budget 2009; his further views on the potential impact such disincentives will have on the number of tourists visiting here; and if he will make a statement on the matter. [41834/08]

Martin Cullen (Waterford, Fianna Fail)
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The total allocation for tourism services announced in budget 2009 is €161 million. The maintenance of this significant allocation for tourism services in 2009 reflects the Government's continuing commitment to the development of tourism. Although there will be marginal reductions in the budgets of the principal tourism agencies, Fáilte Ireland and Tourism Ireland, these should be largely absorbed by savings in pay, overheads, consultancy and non-programme advertising.

The tourism marketing fund for 2009 is €48.5 million, which is the same as the amount available for frontline international marketing activities in 2008. The total is slightly reduced because of once-off expenditure in 2008 on the development of advertising and promotional materials relating to the Tourism Ireland brand. The allocation for 2009 will enable the tourism agencies, in partnership with industry interests, to continue the Super Regions campaign as well as Discover Ireland's Wonderful West campaign, in line with the commitment given in the Shannon Airport catchment area economic and tourism development plan. Furthermore, given the overall economic climate, the tourism agencies should also be in a position to negotiate better value in terms of advertising and marketing space.

Fáilte Ireland's allocation of nearly €81 million will, in addition to funding its operations, assist tourism development through business supports and training in conjunction with funding festivals, sports tourism events and domestic marketing. In 2009, capital funding of €11 million is being provided to support investment in key tourism infrastructure, attractions and visitor facilities. The allocation for 2009 reflects a careful assessment of the range and quality of applications under Fáilte Ireland's tourism capital investment programme in addition to the anticipated draw-down of funds by approved projects in the coming year. More broadly, the thrust of the Government's budgetary strategy is right for tourism, as it is for other sectors. It will bring order and stability to our public finances and will enhance our productive capacity.

In the current difficult international economic environment, the Government has had to make some difficult decisions, both in prioritising expenditure and raising revenue through changes to taxation. In anticipation of the imminent publication of the Finance Bill by my colleague, the Minister for Finance, Deputy Brian Lenihan, it would not be appropriate for me to discuss the implementation of taxation measures that will shortly be considered by the Oireachtas. I am confident the overall approach in budget 2009 will help the tourism industry, with the other sectors of the economy, to return to sustainable growth in the medium term.

Olivia Mitchell (Dublin South, Fine Gael)
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I do not know if the Minister is aware of the latest CSO figures, which indicate that in September visitor numbers from Britain decreased by 17% and visitor numbers from the United States decreased by 10%. The recession is really beginning to bite. Given that we know there is a global recession and that the travel industry is contracting, it is very important to retain our market share such that we will have a tourism industry when the recession ends.

The Minister surely agrees that a €10 departure tax was the last measure needed by the tourism industry, particularly because our Achilles heel is our being an island country. We depend on the airlines to bring in travellers. Some 95% of all visitors to the country come by airplane. Aer Lingus has already announced the tax will cost it €30 million next year. I am not sure if this figure applies to the whole of next year. Clearly the airline cannot afford to lose €30 million in addition to the losses it is already expecting. Surely the tax was not the Minister's idea. Was he even consulted on it? If one cared about tourism, it would be the last step one would consider. The holiday home tax falls into the same category. Who regarded these taxes as a way to help the tourism industry, which is one of our more important service industries and which, I hope, could be one of our growth industries? Are they the Minister's idea?

Martin Cullen (Waterford, Fianna Fail)
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The Deputy has the luxury of picking on one or two measures. The reality is that it would be wonderful if in this country we could provide everything for nothing. We cannot and must have funding in place to provide for everybody and everything. Of course one would prefer not to have the sort of taxation required but it is fair and balanced.

The very substantial fee passengers are paying to bring their clothes and toiletries with them is being absorbed without problems. The fuel surcharges levied over the past 12 or 18 months – not for the first time – seemed to be absorbed also. Very significant costs were involved. The Finance Bill will be published tomorrow and we will then see the exact detail. It is clear we need to keep resources in place for tourism and marketing. I have managed to do so, as has been recognised publicly by the industry.

I returned last week from the World Travel Market in London. It was quite an eye opener for me. There were 41 Irish stands, whose representatives were from all over the country. I believed there would be many downcast industry representatives but I discovered the opposite. They were very steeled towards what was happening in the international market and were very keen to seize the opportunities that might arise next year, bearing in mind that there might not be as many as there were heretofore.

The nine-month figure for the period to the end of September suggests visitor numbers have decreased by 1.3%. I accept the number pertaining to September has decreased by approximately 10%. This is very much in keeping with international norms. Many countries' numbers have decreased substantially more.

Olivia Mitchell (Dublin South, Fine Gael)
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We are only interested in this country. Can I take it from the Minister's comments that he agrees with the tax and believes it will not have an impact on Aer Lingus and will be absorbed by passengers? Does he believe passengers will continue to travel in the same numbers and that Aer Lingus was misrepresenting the facts when it stated it will have to absorb €30 million next year?

Martin Cullen (Waterford, Fianna Fail)
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As I stated, we would all prefer if there were no taxation. The fact is that there must be and that we must be able to provide services. This year we are allocating just under €50 million for marketing alone. We need to have the resources to do so. Overall, €160 million is being allocated for a broad range of tourism activities.

Olivia Mitchell (Dublin South, Fine Gael)
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I appreciate that the marketing budget was kept intact but the reality is that people cannot come here if there are no inward flights. No amount of marketing will do any good in that case.

Martin Cullen (Waterford, Fianna Fail)
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That does not have to be the case. People should consider some of the activities taking place in the industry.