Dáil debates

Wednesday, 28 January 2009

1:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

Question 94: To ask the Minister for Arts, Sport and Tourism if his attention has been drawn to the various problems being experienced by Irish tour operators in the context of the current economic situation; and if he will make a statement on the matter. [2754/09]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

I met the Irish Tour Operators Association, ITOA, in early December and therefore am well aware of the operators' concerns. I also remain in contact with other key tourism representative bodies, such as the Irish Tourist Industry Confederation and the Irish Hotels Federation. Tourism, as is the case with other industries, is affected by the global economic situation. In 2008, tourism in Ireland and across the world encountered difficulties arising from the international downturn and pressures on the travel industry, such as fluctuating energy costs. For European destinations, these difficulties were exacerbated by the strength of the euro.

While final Central Statistics Office figures are not available, the most recent figures show a decline of 2.1% in the number of overseas visitors to Ireland in the period up to the end of November. It is expected that for the year as a whole, the decline in numbers will be approximately 3% compared to 2007. Such outcome is a great compliment to all the tourism bodies, which have succeeded in avoiding a far deeper decline. When drawing comparisons with 2007, it is important to remember that the latter was a record year for Irish tourism in terms of overseas visitors and associated revenue. Overseas visitor numbers increased by 33% between 2001 and 2007. Although we undoubtedly are facing into a difficult period ahead, I believe the strategic approach taken to tourism development in recent years by both the public and private sectors has given the industry the capacity to deal with the cyclical external challenges and to sustain its performance in coming years.

The Government continues to review and renew the strategic framework for tourism development in response to the changing environment. This is the reason I established last December the tourism renewal group under the chairmanship of Mr. Maurice Pratt. That group is examining the current tourism policy and programme priorities. It will focus on the challenges facing the industry and will set out a framework for action to ensure that tourism continues to be a major industry for Ireland. The group is to complete its work in the mid-half of 2009.

In the meantime, an extensive range of marketing, product development, training and business supports are being initiated by the tourism State agencies under the tourism services budget of the Department. These supports are being modified to help the tourism industry deal with current problems. In this regard, I am aware that Fáilte Ireland has had meetings with the ITOA to discuss the difficulties its members are experiencing in the current economic climate. Through these meetings, actions have been identified to support Irish tour operators across a broad spectrum of activity, from product development to greater promotion in key markets. A follow up meeting between Fáilte Ireland and Irish tour operators is to be held shortly with a view to furthering a number of identified actions.

In conclusion, I wish to stress that while I am under no illusion about the scale of the difficulties we face, I am confident that the tourism sector here has the capacity to manage the current cyclical slowdown. Renewing our strategy will help the sector to manage the current challenges and to return to sustainable growth in the medium term.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
Link to this: Individually | In context

I thank the Minister for his reply and accept, as does the Minister, the challenges faced by the industry. However, I wish to discuss and bring to the Minister's attention a number of self-imposed challenges that are coming to my desk in increasing numbers from a variety of sources within the industry. One pertains to the Office of Public Works, OPW, and the difficulty of access to heritage sites and facilities it operates nationwide on our behalf. While I am a great admirer of the OPW's work, it must recognise that it also must do its patriotic duty by ensuring that such facilities are available to visitors when they come here. Apparently, the OPW intends to cut back on the opening times of such sites, even though tours already have been booked into Ireland to attend such facilities and now will arrive in a month in which the facilities are closed. This is not the way in which one should treat visitors. I have received endless examples in this regard. For instance, people tried to make a booking for Kilmainham Gaol in December for a tour in January, only to be told the diary for January was not yet available. Thereafter, when they tried to book in January, no opening was available. This is not the way in which one attempts to do business during a recession. One may as well close up and tell visitors not to bother coming. In addition, a location such as Glenveagh National Park does not yet know its opening times for 2009, even though tour operators already have booked tours into that area. This is no way in which to do business.

I wish to refer briefly to two other problems. The first concerns VAT, to which, as the Ministers is aware, tour operators will become subject next year. Unfortunately however, tours already have been booked and priced at a rate that did not take this into account. The operators seek a derogation for another year in order that they at least can factor in the price increase into their prices for that year. The Minister is aware that this constitutes a 2% increase in their prices, which they are unable to bear.

My last point is important because it pertains to a self-imposed barrier to visitors coming to Ireland. I refer to a go-slow at passport control at Dublin Airport, which I do not believe has garnered publicity. While I have not experienced it personally, I have received reports to the effect that in some cases, two to three-hour delays have been experienced in something akin to a blue flu that is taking place there. If this is happening, it constitutes a self-imposed barrier. People who are caught up in such situations will not return and will tell their friends not to come to a country that treats its visitors in such a fashion.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

If issues as Deputy Mitchell highlighted arise — I do not have specific evidence of that but I will take what she states in good faith — they are very unhelpful and unacceptable practices.

On the other side of that coin, the number of visitors who went to the cultural institutions last year, many of which are managed by the OPW, for the first time went over 3 million. It is a very successful part of our tourism product.

Negotiations that preceded last year resulted in an extension to opening hours and more weekend opening, which must be the case. It is a seven-day business and, if you like, a seven night business in many of the locations around the country. I am told that this year that will be even further extended to facilitate tourists which is something we need to do.

The fact that 3 million tourists are now going through the cultural institutions puts cultural tourism as a central plank of the tourism product. I am trying to achieve more harmony for the tourism bodies, supported by them, between all the cultural side of what would be traditionally known as tourism issues and tourism facilities. We can make progress. The industry is keen on that.

I am not aware of a passport issue at present in Dublin Airport. It certainly has not been brought to my attention. I certainly would not want that to be the case because the first place where many tourists interact with and get their first sense of Ireland is when they come in to our major airport in the capital, and it can set the tone for their view of the country and how they might enjoy their holiday time here. I will ensure that the issues the Deputy highlighted have been resolved or, if they have not, that they should be resolved immediately.