Dáil debates

Wednesday, 17 February 2010

1:00 pm

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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Question 66: To ask the Minister for Arts, Sport and Tourism the actions he has taken arising from the report of the tourism renewal group; and if he will make a statement on the matter. [8341/10]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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The report of the tourism renewal group set out tourism's contribution to Ireland's economic and social development and its prospects in a changed world, as well as a framework for action for tourism's survival, recovery and growth in the period to 2013. The report proposes five survival actions to minimise the impact of current challenges and nine recovery actions to set Irish tourism back on a growth path as the world economy recovers. All of these actions are being vigorously pursued by me, my Department and the relevant agencies.

Following publication of the report, my officials, focusing initially on the survival actions, pursued them with the tourism agencies and other relevant Departments and bodies. Fáilte Ireland and Tourism Ireland have built in the relevant renewal group recommendations to their business and marketing plans for 2010. My officials are also working with a range of other organisations to develop opportunities to focus resources, achieve common objectives and maximise the impact on tourism.

Building on the framework for action, the 2010 budget recognised the tourism sector as a critical, labour-intensive sector. As I stated in an earlier response, the overall tourism services budget was increased, enabling the level and value of investment in overseas marketing of Ireland to be maintained in real terms, as recommended by the renewal group. Investment in visitor attractions was also increased to €22 million. Tourism was included in a range of cross-cutting measures to support enterprises and jobs, and these included the employment subsidy scheme and the credit review system. Additional specific measures, such as changes in alcohol excise duties and VAT and the rail travel initiative for senior citizens visiting Ireland, will also help the sector to recover. We talked about the rail travel initiative in the House last year.

Drawing on the report of the group and complemented by general supports for enterprise, my Department is identifying the right measures and is working with other Departments and the tourism agencies specifically to drive their delivery in order to position the tourism sector for recovery and growth as the Irish and global economies get back on track.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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We are in agreement that the tourism industry will be one of the more significant in the coming year. It will certainly require as much support as possible. The Minister mentioned that survival actions were being addressed so does that mean the abolition of the air travel tax may be possible? That issue is raised time and again by people in the tourism industry.

I have had correspondence from the Coach Tourism and Transport Council of Ireland making valid points on the difficulties in accessing visas, particularly for people coming from places such as China. The process for them is very difficult and convoluted. One of the council's members recently spoke with an agent in Indonesia who said that he could sell 1,000 coach tours to Ireland this year with 40 people on each tour if it was not so difficult to get into the country. Will the Minister comment on how this might be addressed?

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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The Deputy's first point regarded the air travel tax, which I raised in budget discussions with the Minister for Finance and my colleagues. Judgment calls had to be made in an effort to maintain the tourism budget or even enhance it. I was not successful in winning the argument as it involves a substantial stream of revenue.

It is very hard to quantify in real terms the impact of the tax. I have spoken to tour operators abroad who have told me the tax has not had a significant impact.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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They do not make the charge.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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It must be charged on the outbound flight.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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This is a priority question from Deputy Upton.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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The Minister is wrong.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I am making the point in general terms. There is no doubt that in broad terms, everybody would prefer if the tax was not there. I will not defend it as a positive mechanism for encouraging people to come to Ireland. I agree with the Minister for Finance that the books must be balanced in the very difficult circumstances we are now experiencing. My preference was to maintain the tourism budget, and this is probably shared by the industry. We have tripled the product development budget.

On the second point, the visas, I spoke only this week to the Minister for Justice, Equality and Law Reform on the matter. Some of our officials are trying to resolve this at the highest level, although there are difficulties which impact to some degree on the tourism side. There is a balance to be struck to take into account the economic tourists who come into the country and have no intention of leaving and those who are genuinely coming on holiday. We need to resolve the matter as the eastern markets hold great opportunities for us.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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The emerging markets do as a whole.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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A number of other countries have reversed the travel tax because it cost them more than was being brought in. It is very hard to justify the balancing of the figures and the matter should be looked at. Almost everybody in the industry opposes it. What actions are being taken by the Department in supporting the smaller aspects of the tourism industry, such as bed and breakfasts, with regard to e-capability?

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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This is an interesting and one of the more positive outcomes to an issue. As the Deputy is probably aware, there has been a great effort among bed and breakfasts and small hoteliers to substantially improve their reach in e-marketing and the use of technology. Fáilte Ireland has put many resources into such businesses for free in order to get them up to speed and have good sites produced. There are good linkages between these sites and main sites as well. That will continue as an ongoing process.

Many people who have received help and assistance from Fáilte Ireland have mentioned how positive the help and assistance has been, as well as how positively it is affecting the ability to attract more tourists.