Dáil debates

Wednesday, 17 February 2010

3:00 pm

Photo of Deirdre CluneDeirdre Clune (Cork South Central, Fine Gael)
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Question 72: To ask the Minister for Arts, Sport and Tourism the action he will take to support the tourism industry in view of the 1 million drop in overseas visitors here in 2009; and if he will make a statement on the matter. [8128/10]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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Question 73: To ask the Minister for Arts, Sport and Tourism his views on the potential growth for the tourism market in 2010 and beyond in view of the fall off in same. [8140/10]

Photo of Brian O'SheaBrian O'Shea (Waterford, Labour)
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Question 75: To ask the Minister for Arts, Sport and Tourism his views on the tourism figures from 2009; if he foresees recovery in figures during 2010; and if he will make a statement on the matter. [7878/10]

Photo of Michael NoonanMichael Noonan (Limerick East, Fine Gael)
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Question 76: To ask the Minister for Arts, Sport and Tourism his views on the competitiveness challenges outlined in the National Competitiveness Council's recent report Ireland's Competitiveness Challenge creating a better future; the difficulties such challenge poses for the tourism industry; and if he will make a statement on the matter. [8165/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 84: To ask the Minister for Arts, Sport and Tourism the action he has taken to create a climate conductive to growth and competitiveness in the tourism sector; the degree to which he has evaluated the cost factors; the action he proposes arising therefrom; if he has identified strategies for the future short , medium or long-term; and if he will make a statement on the matter. [8177/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 153: To ask the Minister for Arts, Sport and Tourism the steps he has taken or intends to take to improve the competitiveness in the tourism industry; and if he will make a statement on the matter. [8419/10]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 72, 73, 75, 76, 84 and 153 together.

The latest figures from the Central Statistics Office show a reduction of 12% in the number of overseas visitors to Ireland for the first 11 months of 2009 compared with the corresponding period of 2008. Tourism worldwide saw a significant downturn in the second half of 2008, which continued into 2009, due to the global economic slowdown and loss of consumer confidence. Outbound trips from Great Britain were particularly affected, with the euro-sterling exchange rate making it extremely challenging to attract visitors to Ireland, and indeed eurozone destinations generally.

There is little doubt that 2010 will also be a challenging year for tourism. Nevertheless, it is important to remember that, despite the downturn, millions of people across the world will take holidays this year. I know the industry and the tourism agencies are fighting hard for every bit of this business. It is in that spirit that Tourism Ireland is targeting growth of 3% in visitor numbers to Ireland in 2010, which is a fairly brave move but it reflects the confidence and the level of investment in marketing that is going on.

To assist the tourism sector, an extensive range of marketing, product development, festival and sporting events, training and business supports are being put in place by the tourism State agencies under the tourism services budget of the Department. This increased allocation of public resources in the current difficult budgetary position is clear recognition by Government of the important role the tourism and hospitality sector will play in Ireland's economic recovery. It will also ensure that the level and value of investment in overseas marketing of Ireland can be maintained in real terms, as recommended by the Tourism Renewal Group.

A total of €26 million is being invested by Tourism Ireland in a marketing drive in the first half of the year, including the biggest ever promotional programme of activities to showcase Ireland during the St. Patrick's Day period. Already, agreement has been secured to "green" iconic buildings and attractions like the London Eye, the CN Tower in Toronto, the Sydney Opera house and others. Tourism Ireland will be focusing on those major markets that are likely to deliver immediate returns this year, including Great Britain, Germany and the United States, as research has shown these markets are our best prospects.

On the domestic front, Fáilte Ireland has committed to its largest ever home holiday marketing programme as a central plank in its strategy to increase the home market share of the overall Irish leisure break market. On the business tourism front, the opening of the National Convention Centre in Dublin in September will further enhance our capacity to attract international events. Fáilte Ireland is also working closely with tourism businesses all over Ireland, supporting enterprises and helping them to achieve real cost savings and efficiencies.

In terms of our ability to compete in the international arena in the future, maintaining and enhancing competitiveness is a major issue for Irish tourism as it is for the economy as a whole. In addressing that issue, it is important to bear in mind that competitiveness is about more than price and costs. The tourism agencies continue to monitor Ireland's competitiveness as a tourism destination and I am encouraging them to assist the industry in responding to changing conditions as appropriate. In 2010, great value, distinctive holiday offers are a key focus of both tourism agency's marketing campaigns.

While I know that 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.

Drawing on the report of the Tourism Renewal Group, I am determined, as I have already indicated in my reply to an earlier priority question, to drive the right measures to position the tourism sector for recovery and growth as the Irish and global economies get back on track.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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I am sure the Minister is sick of hearing me talk about the airport departure tax, which I have referred to at every available opportunity since its introduction. On each occasion I raise it with the Minister, he tells me that people he has spoken to abroad and in Ireland are of the view that it is not having an impact on tourism. That is because the impact is on the airlines. The tax is not charged to travellers but is absorbed by the airlines, to the tune of €91 million to date. Most of that sum has been collected from the two largest Irish airlines, Aer Lingus and Ryanair. Whatever about the latter, Aer Lingus can no longer continue to absorb a tax of that magnitude, which is merely adding to the company's losses.

Deputy Upton referred to the chart we received from Mr. Michael O'Leary and which is no doubt drawn with a particular story to tell. However, there is no denying that Ireland is suffering far more than anywhere else in terms of loss of capacity. Important as that is, the tragic aspect is that we lost 24 destinations in the last year. That is catastrophic for the industry. The new chief executive officer of Tourism Ireland spoke last week at a meeting of the Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs about the body's new promotion campaign in Germany. The Minister has said it is important to maintain the marketing budget, but what is the point of marketing if people cannot get here? The chief executive officer told the committee that just as he was about to launch the marketing plan, he discovered that eight destinations included in the plan no longer offered flights to Ireland. This is more important than any other issue. If tourists cannot get to Ireland, all the marketing in the world is for nought. People are not willing to make two or three flight connections to get here.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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As an island nation, air access to this country is more crucial than it is for those European countries which enjoy easy land access. The loss of air routes to us is unquestionably a negative because we need access to as many places as we can and we need as many places as possible to have access to us. There is no doubt that there has been a reduction in the number of services. The airline industry is suffering nationally and internationally in terms of its ability to maintain its profitability and to meet its own demands and commitments. This has seen a retrenchment not only in Ireland but internationally.

Another issue of concern is that a third bloc has been formed on the transatlantic route, but Aer Lingus is not part of any of these blocs. The alliance between American Airlines, British Airways and Iberia Airlines represents the advent of another significant player. My concern is that it is difficult for a small airline like Aer Lingus to compete outside one of these large blocs. It is not for me to tell Aer Lingus what to do, but I hope its broad strategy includes a consideration of how it may form part of one of those blocs. I understand it has a relationship with JetBlue, which is a significant player in the economy market in the United States. Nevertheless, it is clear that the Atlantic route will become more and more competitive. It is also clear that the Atlantic route is extremely important to Ireland, as was pointed out to me not only by Aer Lingus but also by the major United States airlines that fly into Ireland.

I have expressed my concerns in this regard to the Minister for Transport and have emphasised that we must maintain as many routes as possible. Those routes are the lifeblood of our economy, and the key flag carrier in that regard is Aer Lingus. In the United States market in particular, Aer Lingus remains a significant brand image for the country. I sincerely hope the company keeps that to the forefront in terms of its future market development strategy and that it has a particular focus on the United States market. I put an enormous amount of work in as Minister for Transport, with the support of Deputies, in seeking to achieve an agreement on open skies. We were strongly of the view it would benefit Ireland, particularly from the United States. We have not yet seen the fruits of that and there are opportunities there to exploit.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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I accept there has been a retrenchment worldwide but the reality is that we are suffering more than most and it is more important to us than most because we are an island. Talking to the Minister for Transport occasionally is not enough. The Minister, Deputy Cullen, will have to drive this issue with the Minister for Finance. Apart from the damage it is doing to the airlines, it is sending out the wrong message. Mr. Michael O'Leary may not need excuses to remove destinations but the Government is handing him such an excuse on a plate. I accept that the United States and United Kingdom markets are very important, but there is huge potential in the European market. European tourists are traditionally culture seekers and we should seek to attract them. Most of the routes we have lost are into Europe.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Ironically, the routes into Europe grew last year in spite of the difficulties in the industry. The potential for the Italian, French and Nordic markets is substantial. We spoke earlier about the phenomenal potential in the Asian market if we can get the visa situation resolved. One of the developments required at Dublin Airport is to ensure the runway is long enough for aeroplanes to come in directly from Singapore, Shanghai, Beijing, Sydney and so on. When people travel the long distances from those destinations to London, they do not want to have to take another flight to Ireland. We need direct access not only with our own carriers but with other carriers.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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I acknowledge the difficulties in terms of getting into the country and our lack of destinations and so on. However, I wish to speak from my own experience of deciding last summer to become a tourist in Dublin for three days. It was an interesting experience but I can only conclude that tourists are driven demented by the lack of integrated ticketing. I am aware this is the responsibility of other agencies but from a tourism point of view, it must be tackled sooner rather than later. How does the Minister see this being moved forward? We have been hearing about it for years but developments have been limited.

In regard to the Asia market and other non-European markets, we have a long way to go to get up to speed in terms of our translation services in comparison with the standards of other European countries. For example, it would be useful to have a broad array of language translations for tourists on tour buses and so on.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I have not heard any specific complaint in regard to translation services. In terms of European languages, we can always do better but the level of proficiency is generally quite good. Tourism Ireland has put a new location into the Middle East in order to develop the Middle East and Far East markets. If we are to be successful in that regard, we must be able to cater for people who speak the languages of those regions. I have no doubt we will be able to achieve that but we must first have the programmes in place. Notwithstanding the global downturn, we have already seen the positive results of airlines travelling from Ireland into the Middle East via Abu Dhabi. That is an indication of the potential for the future.

I agree with both Deputies that the visa issue is a very difficult one. We do not want to end up in a situation where we are largely servicing economic tourists who have no intention of leaving the country. On the other hand, we must equally acknowledge that there is a significant number of people from China and elsewhere who are legitimate tourists and are interested in experiencing the cultural aspects of Ireland at first hand.

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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That was a good excuse some years ago but the reality now is that it is Irish people who are emigrating to China, India and elsewhere rather than vice versa, so that should not be our major concern. I know the Minister does not have responsibility for visas but he must drive this as Minister for Arts, Sports and Tourism. The Department of Justice, Equality and Law Reform has no interest in this, it is interested in keeping people out of the country. We must get them in, however, and the Minister must drive that process. There has been a suggestion of a shared visa with Britain, where the British would do the scanning and research. Surely that would be good enough for us. Someone must grab this opportunity.

The Minister is meeting the industry about car rentals. This is boiling up and will become a real problem. By May it will not be possible to hire a car in Ireland if it is not already booked. The scrappage scheme means that leased cars are dearer than new cars so dealers are not interested in sourcing them for car hire businesses. The removal of the benefit that went to car hire providers through the VRT refund has been withdrawn this year. If the Minister could have a provision inserted into the Finance Bill to postpone it, it would be welcome. Both measures coming together will be catastrophic.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Since last year a significant problem has emerged in the car rental industry. It is a lucrative industry because those tourists who rent cars tend to be high-end spenders. The number of cars available this year is having a real impact. The same is happening in the United States and Spain, where there is a major shortage because finance companies are not interested.

I have spoken to the Minister for Finance about this to see if we could find a mechanism to get the rental car that goes out for a couple of months then comes back in and is included as part of the scrappage scheme. That would have been helpful so I will talk to the Minister for Finance before next week. Deputies would support that because it is a crucial aspect of the tourism product that we must have available. We are probably not far off 25% of where we were in rental car numbers only two years ago at the peak. We do not need the peak numbers but the number of vehicles on the road should be somewhere in between. The finance companies, however, are not interested in financing.

Photo of Mary UptonMary Upton (Dublin South Central, Labour)
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I would like to hear what the Minister has to say about the significance of integrated ticketing.

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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I am familiar with this issue from my time in the Department of Transport. There is agreement between all the parties now. There were some elements of integrated ticketing emerging and my colleague, the Minister for Transport, is pushing to achieve this.

I agree, for ease of access for both tourists and Irish people, particularly in the capital, it would transform things to have a simple card to access all elements of public transport. Competitors in this market, as they previously saw themselves, would accept in a declining market that it is in all their interests to have easy access to public transport for all those who wish to use it.