Olivia Mitchell (Dublin South, Fine Gael)
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Question 3: To ask the Minister for Arts, Sport and Tourism the initiatives he has introduced to tackle the downward trend in tourism figures; his views on whether he considers the structures in place sufficient to give strategic leadership to those struggling in the tourism industry; and if he will make a statement on the matter. [32887/09]

Martin Cullen (Waterford, Fianna Fail)
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The number of overseas visitors to Ireland fell by 10.4% in the first seven months of 2009 compared with 2008. This reduction must be seen in context. The current year has been very difficult for tourism globally as a result of economic conditions. Ireland is actually holding its own or is performing better than some competitor destinations.

To assist the tourism sector, an extensive range of marketing, product development, training and business supports are being rolled out by the tourism agencies. Tourism Ireland frontloaded its marketing campaigns across all markets in order to secure as much business as possible for the peak and shoulder seasons and has intensified marketing activity for the second half of the year. On the domestic front, Fáilte Ireland committed to its largest ever campaign to promote home holidays in 2009 and recently launched a massive autumn campaign. Fáilte Ireland is also supporting enterprises and helping them to achieve cost savings and efficiencies. Many of those in the industry have responded positively in respect of this matter. I will provide further details of the supports to which I refer in my replies to a number of later questions.

With regard to structures, the Department of Arts, Sport and Tourism provides strategic direction through tourism policies implemented at an operational level by its agencies, while also maintaining a strong partnership with the industry. Tourism Ireland's role is to promote the island of Ireland as a tourism destination in overseas markets. Fáilte Ireland's primary functions involve product development, domestic tourism marketing, tourism standards, enterprise support and human resource development.

I established the tourism renewal group at the end of 2008 to review and renew tourism strategy to ensure it is focused for the short term and that the tourism industry will benefit from the upturn when it comes. I understand the group has completed its consultations and deliberations and is finalising its report, which I expect to receive shortly.

The active responses of the agencies and the industry to current challenges demonstrate that the structures are working. With the ongoing support being provided, Irish tourism has the capacity to manage these challenges and return to sustainable growth in the medium term.

Olivia Mitchell (Dublin South, Fine Gael)
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The Tánaiste - although it may have been the Taoiseach - stated in recent days that 35% of jobs in the tourism industry are vulnerable. She indicated that she was involved in discussions with the Minister with regard to initiatives to be taken. Regardless of how one tries to play down this matter and state that other countries are also doing badly, the reality is that there is a huge crisis in the tourism industry in Ireland. I do not know how much of that industry will be left by the time Christmas arrives. Every week I hear about hotels, attractions and those who operate on the fringes of the tourism industry going out of business.

We have put forward ideas such as slashing VAT and abolishing the travel tax, which seems an obvious step to take. Suggestions were also made with regard to making free travel here available to British pensioners and rationalising the relevant structures. What initiatives does the Minister propose to put in place? I had understood that the tourism renewal group was to report during the summer but I have not yet heard whether it has done so.

The McCarthy report recommends that there should be a change in the structures because there is no leadership in the sector. All of those in the tourism industry who contacted me during the summer indicated that there is no strategic leadership. No one is taking charge and there is not any one body trying to organise the industry and make it coherent. There are many individuals in the industry who are of the view that they are struggling on their own. Is it the Minister's view that the structures in place are adequate in the context of obtaining the best possible bang for our buck?

Martin Cullen (Waterford, Fianna Fail)
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I thank the chairman of the tourism renewal group for the huge efforts he has made. He met the Deputies opposite and almost anybody who has anything to do with the industry. I will publish the group's report once I have presented it to the Government. Everybody will be then aware of its contents.

I do not agree with some of the Deputy's assessments. I have worked closely with the different elements involved in industry during the past 12 months and I have received positive feedback in respect of the efforts that have been made. For example, in an international context, we have had major success in respect of the joint marketing campaigns in which we engaged in the US with Tourism Ireland and airlines such as Delta, American, Continental and Aer Lingus. There is no doubt but that these campaigns helped turn around the season. In recent months there has been a tremendous resurgence in the tourism figures, which appeared to be going in a particular direction in the first quarter of the year. There are challenges with regard to the UK market, particularly in the context of the currency differential, etc. This is a matter of concern to me but we are placing a major emphasis on the UK market.

I do not accept that there is a lack of leadership. I have spoken to many of those in the industry who are working closely with us. We must be careful in our choice of language. There is no question that the position is extremely difficult. However, I would not refer to the industry as being completely in crisis. Such an assessment neither helpful nor true.

We must face up to the competition internationally and we can judge ourselves only on best practice. Based on the figures, it is clear we are outperforming the UK market quite substantially at present. However, that is not in any way to take away from the major challenge we face. We must continue our efforts to meet that challenge.

To conclude, I put together all the cultural groups because more than 3 million people are visiting on the cultural side. This has spun into other activities that have happened in recent days and demonstrates how important is cultural tourism.

Brendan Howlin (Wexford, Labour)
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Deputy Mitchell, with a brief supplementary question.

Olivia Mitchell (Dublin South, Fine Gael)
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The Minister has not clarified whether the tourism renewal group has reported yet. Will its report recommend emergency or long-term measures? Something that will try to salvage what remains of this year is needed, as otherwise the businesses concerned simply will not be there next year. That is the truth, no matter what the Minister might say. From the perspective of salvaging what remains, does the Minister have an initiative in mind ? Last week, the Taoiseach announced an initiative as though he was funding it. However, it turns out that the poor old industry is putting in a further €37 million to pay for the €50 voucher that everyone is to receive. Does it make sense for the industry to be putting up €37 million while the Minister for Finance simultaneously is taking in €45 million from the travel tax? Does it not make sense to abolish the travel tax and try to induce more people to visit? On the one hand, money is being spent to get people in but, on the other hand, they are being taxed when they do so, which seems to be counter-productive.

Martin Cullen (Waterford, Fianna Fail)
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When I met many of the international tour operators, this was not an issue for them at all. The issue for them was to sustain marketing and to sustain the campaigns, which has been done.

Olivia Mitchell (Dublin South, Fine Gael)
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The issue is with the airlines. Although we are an island nation, we are losing the airlines.

Martin Cullen (Waterford, Fianna Fail)
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I was referring to the airlines. The Deputy is correct about the announcement the other day. I was delighted when the Taoiseach became directly involved because it demonstrates how important the Government and the industry perceive tourism to be. This is the reason I launched jointly with Fáilte Ireland the largest-ever autumn campaign for the market here. This did not fall from the sky but work was conducted for a number of months to come up with the ideas with which we are working with the industry. The industry, the tourism bodies and the Department worked together to take a direct and focused initiative that can be delivered to every home in the country.

Olivia Mitchell (Dublin South, Fine Gael)
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The Minister did not give an answer regarding the tourism renewal group's report.

Martin Cullen (Waterford, Fianna Fail)
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I apologise. As I noted in my initial reply, I should have the report shortly and I believe it has been completed.