Dáil debates

Tuesday, 16 June 2009

4:00 pm

Photo of Frank FeighanFrank Feighan (Roscommon-South Leitrim, Fine Gael)
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Question 46: To ask the Minister for Arts, Sport and Tourism the measures being put in place to address the continued downward trend in inward tourism; and if he will make a statement on the matter. [23645/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 49: To ask the Minister for Arts, Sport and Tourism the option open to him to encourage development in the tourism sector in 2009 with particular reference to competing with other tourist venues; if he will increase or enhance investment in this area; and if he will make a statement on the matter. [23600/09]

Photo of Joanna TuffyJoanna Tuffy (Dublin Mid West, Labour)
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Question 56: To ask the Minister for Arts, Sport and Tourism the new tourism initiatives planned for 2009 aimed at maintaining Ireland's tourism market share; and if he will make a statement on the matter. [23691/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 187: To ask the Minister for Arts, Sport and Tourism if he has examined the effect of the economic downturn on the hotel and catering industry; if he will take steps to address issues arising; and if he will make a statement on the matter. [23818/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 188: To ask the Minister for Arts, Sport and Tourism if consideration has been given to issues expected to have a negative impact on the tourist industry in the course of 2009; if he will issue direction or instruction to address such issues; and if he will make a statement on the matter. [23819/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 189: To ask the Minister for Arts, Sport and Tourism the steps he will take directly or in conjunction with tourist interests with a view to improving the competitiveness of the industry internationally; and if he will make a statement on the matter. [23820/09]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 190: To ask the Minister for Arts, Sport and Tourism if he will make particular policy changes with a view to assisting the tourism industry; and if he will make a statement on the matter. [23821/09]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions No. 46 ,49, 56, 187 to 189, inclusive, and 190 together.

Latest figures from the Central Statistics Office show a reduction of 6.3% in the number of overseas visitors to Ireland for the four months of 2009 compared with the corresponding period of 2008. Overseas visitor numbers for 2008 as a whole were down by just over 2% on the record 2007 performance, although the figure of almost 8 million was the second highest ever.

While any reduction in the number of overseas visitors is disappointing, it must be seen in context. Ireland enjoyed several years of successive growth in visitor numbers, reaching a record of just over 8 million in 2007. Tourism worldwide saw a significant downturn in the second half of 2008 due to the global economic slowdown and loss of consumer confidence. Great Britain, as a source market, was particularly affected with the euro-sterling exchange rate making it extremely challenging to attract visitors to eurozone destinations. However, so far in 2009, we are performing relatively better than many of our European competitors, including Great Britain. For example, figures show a fall of 13% in overseas visitor numbers to the United Kingdom in the first quarter, compared to the reduction of just over 9% in Ireland.

There is no doubt that 2009 will be a very difficult year for tourism globally. Nevertheless, it is important to remember that, despite the downturn, millions of people across the world will still take holidays this year. The industry and the tourism agencies are fighting hard for every bit of this business.

To assist the tourism sector through this current difficult period, an extensive range of marketing, product development, festival and sporting events, training and business supports are being rolled out by the tourism State agencies under the tourism services budget of the Department. For example, despite cutbacks in public expenditure, the core overseas marketing spend has been maintained in 2009 at over €47 million, in recognition of the key contribution which tourism makes to the Irish economy. Tourism Ireland is telling customers in key markets that Ireland is easily accessible and offers great value for money at present, as well as rolling out its new destination campaign, "Go Where Ireland Takes You". I am assured that Tourism Ireland is keeping all of its marketing programmes for 2009 under review to ensure they maintain the flexibility and responsiveness that is required.

On the domestic front, Fáilte Ireland has committed to its largest ever campaign to promote home holidays in 2009, on foot of research indicating that more Irish people will consider swapping their overseas trips for breaks in Ireland. Fáilte Ireland is also working closely with tourism businesses all over Ireland, supporting enterprises and helping them to achieve real cost savings and efficiencies.

While our businesses and tourism agencies are responding positively to current challenges, it is just as important that the strategic framework for tourism development responds to the changing environment. Accordingly, I established the tourism renewal group, which has been tasked with reviewing and, where appropriate, renewing the current tourism strategy to ensure that it is focused for the short term and, looking further ahead, that the tourist industry is well placed to benefit from the upturn when it comes. I expect the group to report back to me in the near future with recommendations in the form of a framework for action for the period to 2013. I believe the group spoke to the two Deputies as well, if I am correct. Members of the group told me they wanted to do that and I encouraged them to do so.

One of my priorities as Minister is to ensure that the importance of tourism is reflected more widely in relevant policies and programmes. This is recognised and reflected in the Government's policy document, Building Ireland's Smart Economy: A Framework for Sustainable Economic Renewal, which makes specific reference to the work of the tourism renewal group and the potential of the tourism sector.

The industry deserves great credit for its commitment to quality in responding to the current challenging economic conditions through more flexible pricing and offering special value offers and packages. I am confident that with the support of the agencies, the tourism sector here has the capacity to manage the current cyclical slowdown and that, looking further ahead, the renewal group's review will help the sector to return to sustainable growth in the medium term.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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I am aware of the ongoing marketing of Ireland and the fact that money has been maintained in this area, and it is all very welcome. However, it is undermined completely by a departure tax. I ask the Minister, as somebody who sits at the Cabinet table, how he could let this happen. How could he let such a totally counter-productive instrument as a departure tax happen to the tourism industry? To spend €70 million on marketing to attract people here and incentivise them to come to Ireland, and then to have this enormous disincentive put on them when they get to Ireland is counterproductive. The Minister told me that other countries have similar taxes, as they do, but in the face of the current downturn in travel and in tourism generally, they are removing those departure taxes, while we are imposing one.

Aer Lingus is taking its US flights out of Shannon Airport and its most recent disastrous announcement is that in its returns for the year it forecasts a loss of €100 million. Aer Lingus puts at least €30 million to €40 million of that down to the departure tax. That is unsustainable. We are down to two short-haul airlines. Aer Lingus no longer does direct bookings from abroad, it will not code share and it is not partnering with other airlines to facilitate direct bookings from anywhere. One cannot get a direct booking into Ireland from anywhere outside the EU virtually.

Is any strategy in place? Is the Minister talking to the Minister for Finance? Is he doing anything to ensure we have competition for the two airlines we have and to rescue Aer Lingus, because it is on a totally unsustainable path, particularly in view of the departure tax? Airlines cannot pass on that departure tax; they must absorb it.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Nobody wants any extra tax put in place and tax of that nature does not help the situation. However it is time for us to debunk the travel tax issue. I have spoken to all the travel agents internationally and they have no concern with it. They are far more concerned about airlines lashing on charges by the new time for luggage, and God knows what the price of an air ticket is by the time one reaches the airport.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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It is not the airlines but the people who are concerned.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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That is not a big issue. I would prefer if it were not in place and I would like to see it gone, but I will not accept that the travel tax, as has been raised by some low-cost airlines and Aer Lingus, is the cause of all their travails. It is not true. If it were true, the costs they have put on in fuel surcharges, luggage charges and God knows what else are way beyond the amount of the travel tax. We need to be more rational when we examine this and stop blaming the State for every ill out there.

There has been very substantial readjustment of the tourism budget over the past few months. For the first time ever there has been a major, co-ordinated campaign between Tourism Ireland and the individual airlines where they have put their marketing budgets together and are promoting Ireland very intensively. It seems to be working and we saw its effect in the US yesterday with the fares that have been announced. It is promoting Ireland very intensively. The information I have received is that the market has picked up dramatically in recent weeks. That is because of very intensive discounting and marketing.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Will the Minister outline some of the specific initiatives that have been taken on internal tourism? I agree with Deputy Mitchell on the tax, which is a very significant problem, despite what the Minister said. Internal tourism will clearly be very important. What initiatives have been taken?

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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A very brief reply from the Minister.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I cannot give a brief reply if the Deputy wants that information.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Minister has only one minute remaining.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Tourism Ireland is communicating strongly to consumers in overseas markets that the island of Ireland is a great place to visit, is easily accessible and offers the consumer great value for money. There has been great emphasis on discounting and it is having a very positive impact. Tourism Ireland is spending 66% of its marketing budget in the first half of the year to frontload its marketing campaigns across all markets to secure as much business as possible for the peak and shoulder season. It has invested approximately 40% of its overseas marketing spend in tactical and co-operative marketing activity to stimulate business to the island of Ireland, as I have just highlighted, and to convey the message of great fares, excellent offers from the industry on the ground here and a wonderful holiday experience. It is providing more than 680 platforms and 2,600 promotional opportunities worldwide to the industry so it can present to consumers compelling, bookable offers across the channels.

Deputy Upton asked me about the home market, and Fáilte Ireland will invest more than €3 million with additional industry support for a year-round domestic marketing programme incorporating television, radio, press and outdoor channels to promote awareness of and interest in taking a break this year. Key messages in the 2009 campaign will be the convenience and value of holidaying at home. An additional €4 million will be invested in supporting local and national festivals. This has proved to be enormously successful this year. All the small and large festivals around the country are drawing significantly more people than in years past and that is having a tremendous benefit in the local economies and areas in which it is difficult to create activity.