Mary Upton (Dublin South Central, Labour)
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I move:

That Dáil Éireann:

noting that:

— in 2009 tourism contributed €5.2 billion in revenue - €1.2 billion benefiting the Exchequer in taxation;

— employment in the accommodation and food sector alone accounted for 119,800 jobs in 2009;

— Fáilte Ireland has estimated that for every additional €1 million spent by tourists an additional 23 jobs are created;

— tourism provides employment and economic opportunities in both rural and urban areas;

— tourism provides employment across a wide range of skill and qualification levels; and

— tourism is an indigenous industry so wealth generated by tourism stays in Ireland;

concerned that:

— the number of overseas visitors to Ireland dropped precipitously down 11.6% in 2009, a drop of almost 1 million visitors;

— an estimated 35,000 jobs were lost in the accommodation and food sector in 2009;

— the length of stay from overseas visitors declined in 2009 and that this fall occurred in all of Ireland's major markets;

— the Government has responded to this by creating further barriers to entry such as the air travel tax;

— the State continues to lag behind on broadband penetration which is essential to tourism in the 21st century and has yet to fully take advantage of the platform offered by the Internet; and

— the Government has refused to introduce legislation to allow for downward review of commercial rents which is causing huge damage to the tourism industry;

calls on the Government to:

— immediately abolish or significantly reduce the air travel tax;

— develop interactive Irish tourism applications for mobile internet devices and

computers;

— develop Ireland's capacity as an eco-tourism destination;

— introduce legislation to allow for the downward review of rents;

— substantially improve access to and quality of broadband in Ireland, particularly in rural areas;

— ensure that the Tourism Marketing Fund is protected as an investment in the tourism industry;

— improve processing times for visas for overseas tourists, particularly those from non-Schengen countries;

— develop policies to ensure Irish tourism is able to capitalise on the growth markets of the 21st century;

— ensure that institutions that are covered by the State bank guarantee are required to unfreeze credit for small businesses;

— ensure that all business within the accommodation and hospitality industry comply with employment legislation;

— ensure that the issue of potential distortion of the hotel sector by NAMA be addressed immediately by the Government;

— immediately address the issue of 'zombie hotels';

— establish a working group comprised of all interested parties in the hotel sector to draw up a framework to protect the accommodation industry without rewarding reckless investors;

— protect and develop the bed and breakfast sector;

— extend the Culture Night initiative into a twice yearly event; and

— review the functions, systems and efficiency of the semi-State agencies in the tourism sector.

I wish to share my time with Deputies Tommie Broughan and Caoimhghín Ó Caoláin.

Jan O'Sullivan (Limerick East, Labour)
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Is that agreed? Agreed.

Jan O'Sullivan (Limerick East, Labour)
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To speak about tourism is to speak about jobs and stimulating the economy, both of which are desperately required in almost every town and village in the country. Despite the spin being peddled from the Government press office, the economic catastrophe visited upon this country by Fianna Fáil and its friends in the construction industry and the banking elites shows no sign of abating. Just because fewer people are losing their jobs or tax forecasts are not as far below target than was the case heretofore does not mean we have turned the corner. It is estimated that up to 100,000 people have emigrated from Ireland since 2007, mainly the younger generation. It is an unfortunate reality that the country can look forward to several years of austerity as we are forced to pay for the mistakes of the former elites, some of whom continue to receive pensions from now nationalised banks although they may not be paying back their outstanding loans. Meanwhile, sectors of the real economy, such as tourism, are not receiving the support they deserve.

Tonight's motion highlights an area where Ireland has enjoyed great success in the past and where it can in the future with a little imagination and investment. According to Fáilte Ireland calculations, for every additional €1 million spent by foreign tourists in Ireland, we can create 23 jobs. Tourism provides what the Fáilte Ireland fact sheet terms "a significant regional distributive effect", in other words employment that is not centred on major urban centres, but which also provides jobs from Lahinch to Letterkenny and from Cashel to Carlingford. It provided €1.2 billion in taxation revenues in 2009 and employed almost 120,000 people, more than the agriculture, forestry and fishing sectors or the financial services sector. In short, it is a major industry, a significant source of Government revenue and a major employer. This is real decentralisation in action.

With such a major industry, one would expect that the Government would be in a position to take steps to protect it from external problems and chart a growth strategy for the future.

Changing the title of the Department is no substitute for developing real policy. All of the snappy photo opportunities may be good for a Minister but they do not address the real issues facing an industry that is in crisis.

In 2009, almost 1 million fewer overseas visitors came to Ireland than in 2008. This drop, of 11.6%, in 2009 comes on top of a 2% reduction in 2008. Despite hopes for a recovery from tourism's annus horribulus, 2009, this year has proved to be even worse, with numbers collapsing further. They were down by 18.5% in March 2010 compared to March 2009. The response of the Fianna Fáil-Green Party Government was to impose an air travel tax.

I understand that in times of crisis a Government is required to investigate any potential avenue of additional revenue. However, the caveat is always to ensure that the any taxation or spending measure introduced does not end up costing the economy more than it gains. This is precisely what has happened with the air travel tax.

The economic lunacy of imposing a steep air travel tax when we are an island nation with poor ferry connectivity is bewildering. Surely someone within the Government must realise that if one enforces an air travel tax in a country that relies on airplanes to bring 90% of foreign tourists thereto, many will simply choose not to come. Some 900,000 fewer tourists visited Ireland in 2009 compared to 2008. If even 20% of these made a decision not to visit Ireland because of the high cost of flights, 180,000 people would not be bringing vital economic stimulus to the country, including in places such as Killarney, Kilkenny, Westport and Waterford.

When even a country such as Holland, which has extensive road and rail links with the rest of Europe, and is not an island in the Atlantic on the edge of Europe, chooses to abolish its air travel tax on the grounds that it is counterproductive, it is time for the brains in the Irish Government and the seers in the Department of Finance to reassess their stance. In July 2008, the Dutch Government introduced an air passenger tax targeting the collection of $418 million. A subsequent Dutch study calculated that the tax cost airlines $1.2 billion, Dutch airports $121 million and the Dutch economy $1.6 billion. The tax was scrapped in 2009. It is time for our Government to follow suit and either abolish or substantially reduce the air travel tax, or look for an alternative way of asking the tourism and aviation industries to play their part without maintaining the air travel tax.

The recent rise in the popularity of social networking websites such as Facebook and the use of mobile devices such as smart phones and tablet computers has brought about both challenges and opportunities for the tourism sector. Mobile applications - pieces of software that help users perform specific tasks – have quickly become a cultural phenomenon. It is estimated that 190 million smart phones were sold globally in 2009 and that a further 250 million sales are predicted for 2010. Mobile applications can be used for a variety of tasks, from playing music to tracking airline flights. In most cases, applications are free to download. Apple currently offers over 185,000 applications in its App Store, not to mention the vast number of applications offered by Google and Blackberry.

Keeping up with the burgeoning nature of mobile technology, the development of tourist applications targeted at visitors to Ireland would modernise the tourist experience in Ireland and create openings for application and web developers. Mobile applications should be used as a new medium to access customers through sophisticated Internet marketing campaigns. Furthermore, applications should provide information about tourist attractions, accommodation and transport in addition to providing navigation and translation tools.

Today's tourism market is arguably much less structured than it was. The Internet has replaced the travel agent because people tend to book their own holidays. Fáilte Ireland's visitor attitudes survey of 2009 showed that 84% of overseas holidaymakers to Ireland use the Internet to book or purchase some element of their holiday. This figure will only continue to grow so it is vital that our tourism businesses, particularly accommodation businesses, have access to high-quality broadband.

The Internet is the greeting place of the future. Some 74% of foreign visitors used it to book accommodation in 2009. Recent figures supplied from the OECD have shown that Ireland has broadband penetration of just 21.4%, ranking us 20th out of 30 countries. Tourism businesses throughout Ireland require and deserve fast, efficient and reliable broadband in order to build their profile on the Internet and attract foreign tourists.

An issue which has been highlighted time and again to me by tourism operators is tourism visas, particularly for visitors from Asia. Traditionally Irish tourism has been dominated by visitors who share cultural, historical and linguistic ties with Ireland. The growth markets in 21st century tourism will not share these historical ties. The people of India, the Gulf states and, in particular, China are becoming major travellers. These countries are markets Ireland cannot afford to ignore, even in the short term. The significance of Chinese tourism is highlighted by the fact that last year 42.2 million Chinese tourists travelled abroad while in 2001 that figure was just 7 million. If Ireland is to become successful at attracting tourists from the expanding long-haul markets, a reformed and faster means of entering Ireland must be put in place.

The Minister for Tourism, Culture and Sport has become aware of this fact somewhat belatedly and had an article in the newspaper recently discussing it. What we need from the Government is real action and not words. Due to our border co-operation agreements with the United Kingdom, it is a complex issue. However, if the United Kingdom can offer holiday visas to people from Asia, there is no reason we cannot devise a system that does not require visitors to supply the same level of information as if they were a potential immigrant and not a potential tourist. As I stated, tourism is now such a globalised industry that any barriers to entry will simply result in many tourists picking another destination.

During the height of the Celtic tiger boom, Fianna Fáil and the now-defunct Progressive Democrats created a myriad of tax breaks to stimulate development. One of these was a tax relief on the construction of hotels. Not only has this relief cost over €444 million between 2004 and 2008, despite the tax relief ending in 2005, information I received from the Irish Hotels Federation indicates that some 260 hotels, out of a total stock of just over 900, are still claiming the tax relief. These hotels have been coined "zombie hotels", as many were created purely to take advantage of tax incentives for a group of investors rather than to meet a genuine supply need. According to the chief executive of Fáilte Ireland, their development was supply-led rather than demand responsive.

The accommodation market has collapsed with room occupancy levels as low as 37% in some areas. In a normally functioning market, businesses that were not profitable would be forced out until the market found its equilibrium. This has not happened as many hotels are supported by their banks and are offering what is essentially below-cost selling. Other hotels have been or are in the process of being transferred to NAMA, which is now effectively the State's largest hotelier, with the result that many well established family-run hotels are being forced out of business by what amounts to unfair competition. The Labour Party has set its position out in the policy document, Extending the Welcome. I call on the Government to provide an answer as to what it proposes to do regarding the zombie hotels and how it sees NAMA affecting the hotel market. If NAMA does not assess the accommodation market as a whole, it will lead to a continued glut of hotels in certain areas. Action is required urgently on this issue.

We must also work to sustain the bed and breakfast industry. The bed and breakfast accommodation sector has for many decades provided guests with the unique experience of staying in the homes of Irish families where visitors can enjoy the renowned Irish welcome. Bed and breakfast accommodation, once the staple of the Irish accommodation sector, has suffered a steep decline due partly to a reduction in consumer demand, but also due to the explosion in hotels as a result of the tax incentives introduced by the Government which have now rendered the sector effectively insolvent. The market share of bed and breakfast accommodation in the accommodation sector has reduced to 10.8%. It must be acknowledged that Fáilte Ireland has moved to address the issues in the sector as it recently published a vision for Irish home bed and breakfast accommodation. This is a welcome move, but we also need to roll out a full classification system and market bed and breakfast accommodation as a uniquely Irish experience where, instead of merely bed and breakfast, one stays in a family home and then shares breakfast with them in the morning.

While I am highly sympathetic to the real stresses that the businesses in the accommodation and food sector are under, recent statistics from National Employment Rights Authority, NERA, and in a report complied by TASC, are truly shocking. They show a cavalier attitude towards employment legislation, which is there to prevent exploitation of workers, many of whom may not be Irish nationals. Out of a total of 131 inspections carried in 2009 by NERA into accommodation providers outside the Dublin, Cork and Dún Laoghaire municipal areas, 96 were found to be non-compliant with the hotel employment regulation order, which provides for minimum rates of pay and conditions in these areas. This non-compliance rate of 73% represents a completely unacceptable breach of an important piece of employment legislation designed to protect workers. That 15% of hotels were inspected and 73% were found not to be adhering to employment legislation is disgraceful. A report recently published by TASC shows that these figures of non-compliance are broadly similar to those in the catering and accommodation sector.

Such a level of non-compliance shows an almost systematic decision by the industry to ignore workers rights. That the accommodation and catering sectors can then complain about the JLC system or the minimum wage despite the evasion of labour laws is a duplicitous position. We, in the Labour Party, call on the Government, NERA and those in the leadership roles in the accommodation and food services sector to work together to end this worker exploitation.

Ireland's natural landscape is a precious resource. Fáilte Ireland's Visitors Attitude Survey 2009 has once again highlighted the Irish scenery as one of the top two advantages for Ireland vis-À-vis other destinations. In a time when ever more people are becoming conscious of their impact on the environment, eco-tourism offers great opportunities for the future of tourism in Ireland. There are beautiful walkways located throughout Ireland and many hikers and hill-walkers take advantage of this. Hiking and hill-walking were the most popular activity that foreign tourist undertook in Ireland in 2009. The development of new walkways and the upkeep of existing walkways are ways in which safe and responsible travel can be promoted while maintaining Ireland's green image. Already, the green box initiative, which developed the north west into a significant eco-tourism destination, has been successful. Eco-tourism offers rural areas a chance to play on their strengths with a net benefit for all concerned in better environmental conditions, economic opportunities and a strong and a unique tourist product - rural Irish life. Similar strategies to the green box initiative in other parts of Ireland would not only improve Ireland's standing as an eco-tourism destination but would also bring economic stimulus into rural communities and bring job opportunities to people across a range of skill levels. It is critical that eco-tourism in Ireland is built on a green and sustainable model which takes into consideration the benefits to the tourist, the benefits to the people in the local communities and the impact on the environment.

The need for legislation to allow for the downward review of rents and for bank credit to be unfrozen are issues that are certainly not confined to the tourism industry. Indeed, I spoken on both of these issues and their impact on the wider economy in this House over the past year. However, both have a significant impact on tourism operators as well as the wider economy. The Labour Party introduced into this House earlier this year legislation that would allow for the downward review of rents. This was voted down by the Government, no doubt to keep those august financial institutions who invested money in commercial property happy, rather than taking account of the needs of the real economy, the employment and wealth creators. Tourist businesses are no different from other sectors with extortionate rents, which take absolutely no account of the current economic climate, being expected by landlords. As a result, tourist businesses have gone to the wall. The tourism industry, as well as the rest of the economy, requires immediate action on this issue.

Despite the mealy-mouthed words from the banks, which still exist only because the citizens of this State bailed them out, they are not extending sufficient working capital to viable businesses. The years of extreme largesse have been replaced with a regime of austerity so severe that viable businesses are being driven to the wall. The banks may claim that they are not refusing a large amount of businesses, but the simple fact is that most of these businesses are told not to apply as they will not be accepted. They do not apply and thus they are not counted as part of the figures spouted by the State and the banks. It is time the State got tough with the banks. The kid gloves treatment given to the former masters of the universe has led them to forget who their real boss is now - the citizens of this State who have bailed them out. The Irish people have, without their consent, of course, given the banks the guarantee, nationalisation, bailouts and NAMA, and have thrown good money after bad into particular organisations. The least we expect from these organisations is not to strangle viable businesses that did not wreck the Irish economy.

Any plan to establish a long-term sustainable footing for the Irish tourism industry must also address the current State and semi-State support infrastructure. The tourism industry is one of the few areas with an integrated North-South element, with Tourism Ireland working on a 32-county basis to market the island of Ireland as a tourist destination. Established in the wake of the Good Friday Agreement, the vital role this cross-Border body plays should not be underestimated in terms of relations between Northern Ireland and the Republic of Ireland. In a classic case of quangoism, however, the merger of the Northern and Southern tourist boards created three agencies, with Fáilte Ireland and the Northern Ireland Tourism board established with Tourism Ireland. In addition, Shannon Development is also responsible for tourism in the mid-west region. There are five regional tourism development boards, and Dublin Tourism. For a country of just 4.5 million people and with less than 7 million visitors last year, this amount of bureaucracy is surely excessive. Tourist operators have also informed me that the number of bodies can sometimes be confusing and they would wish for a more streamlined service with one point of contact. I call on the Government to review the functions, systems and efficiency of the semi-State agencies in the tourism sector. If a reduction in the number of tourism bodies can be achieved without reducing the service to tourism businesses, this should be implemented.

The Labour Party is here this evening to urge the Government to act on tourism. What we have presented here is an action plan for Government to address the short and medium-term issues facing the industry. I have met the same stakeholders as the Minister and read the same reports on the perilous state of the industry. It is the Government's responsibility to protect jobs and it is the Minister's responsibility to convince her colleagues around the Cabinet table that tourism requires more than a departmental name change and must be taken seriously by the Government. She also needs to impress on them that decisions taken in other areas have can have a major impact on the industry. Tourism is interlinked with the very life of the country. It contributes to the economy in a way no index can accurately measure. Its impacts range from buying petrol at the local station to a cup of tea in the local shop or pub. Tourism can no longer wait at the back of the queue while the pampered elites take up the State's time and money. I commend the motion to the House.

Tommy Broughan (Dublin North East, Labour)
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I commend my colleague, Deputy Upton, on introducing this motion to the House and for highlighting the escalating crisis in the travel and tourism industries. I would also like to commend her warmly on her outstanding recent policy document, published on behalf of our party, entitled, Extending the Welcome: Labour's Proposals to Sustain and Develop the Tourism Industry. Deputy Upton's document lays out a comprehensive, credible and innovative programme of actions to address the alarming difficulties in the travel, tourism and transport industries, which are so important for Irish jobs.

A key issue that Labour's motion and recent policy document highlight and address is the haemorrhaging of passengers and tourists into Ireland. The number of overseas visitors dropped by 1 million, or 11.6%, in 2009. Report after report on passenger figures in the aviation sector is equally grim. One of the latest reports is before me. It shows that the number of airline seats into Ireland this month is down approximately 1 million on a similar period last year. In an earlier Dáil debate on this matter in March, I highlighted the declining passenger volumes between Ireland and our closest neighbour and most important tourism market, the UK. Between February 2009 and February 2010, there was a decline in air passenger numbers between the two countries of 700,000. During that period, there was an astonishing 54% decline in traffic at a number of smaller airports, for example, on the Kerry-Stansted route. If these trends in passenger numbers continue throughout 2010, it has been estimated that air traffic between Ireland and the UK will hit its lowest levels since 1999.

That fewer passengers are coming through our airports and buying seats on Irish airlines is putting jobs at risk not just at the airlines and airports themselves, but across the wider economy and throughout Irish tourism. I represent a north-side Dublin constituency and Dublin Airport is probably the most critical economic dynamo for the whole north and west sides of Dublin as well as for the mid-Leinster region. Shannon Airport performs a similar role for the mid-west, which the Acting Chairman knows, as do Cork Airport in the Cork and south Munster region and the regional airports in Galway, Waterford, Kerry, Knock, Sligo and Donegal, which have similar functions in their hinterlands.

The 1,200 SRT job losses at Dublin Airport last year were accompanied by significant job losses at Ryanair and the Dublin Airport Authority, DAA. For example, Ryanair announced in November that it was to axe 150 jobs at Shannon Airport because 17 routes were being cancelled. It is unclear how many jobs in total have been lost at Ryanair in the past 18 months, but I estimate the figure to be over 500, a catastrophic loss of jobs that will have considerable consequences for our tourism industry. A few days ago, Aer Lingus made the appalling decision without reference to its board to cut its winter schedule for direct flights between New York, Chicago and Boston and Shannon with a consequential serious impact on mid-west tourism and business.

Airports such as Dublin, Shannon and Cork also support thousands of lower skilled but highly valuable and quality jobs, including drivers, cleaners, canteen staff, maintenance workers, administration staff, etc. The profile is similar to the jobs found throughout the tourism industry. This week, there was an alarming report in the Financial Times on the rising unemployment rate by job type in the UK. The UK Government has analysis to hand that we do not. The report stresses that low and middle income earners, especially sales assistants, office workers, van drivers and cleaners, are bearing the brunt of the economic downturn. Workers in these vital, lower skilled jobs in transport and tourism are being disproportionately hammered by job losses. It is about these that we are expressing most concern tonight.

Since the travel tax was introduced by the Ministers for Finance and Transport, I have consistently opposed it on behalf of the Labour Party and asked the Government to publish the cost-benefit analysis drawn up before its implementation. Only a few days ago, the Minister for Finance, Deputy Brian Lenihan, sent me another short answer to a parliamentary question in which he refused to give me the cost-benefit figures. This is not the way to manage taxation policy. The only economic analysis provided by the Government in budget 2009 vaguely estimated that the travel tax would yield €95 million in 2009 and €150 million in a full year, but there was no estimation of its costs in terms of passenger numbers, aviation jobs and employment in the tourism and hotel sectors. Even a cursory cost-benefit analysis of the tax, such as the one I did during the budget, would make clear that the cost would definitely be far higher than its yield. I would again urge the Ministers to place a full cost-benefit analysis of the tax before the Oireachtas.

It is astonishing that the travel tax is the one issue that has strongly united Aer Lingus, Ryanair and CityJet, which account for approximately 83% of the total number of passengers who leave and visit Ireland each year. A report for the three airlines by Amsterdam Aviation Economics concluded that the introduction of the air travel tax will cause estimated revenue losses of up to €482 million, lead to up to 3,000 direct job losses and, in a full year of operation, cause a reduction of up to 1.2 million in the Irish aviation industry's departing passenger numbers. These figures balance against a net contribution to the Exchequer of just €116 million. The report states:

If airline capacity in 2009 had been maintained at 2008 levels and the ATT was to be passed on in full to passengers in the form of higher fares, it is estimated that the total resulting demand reduction would be between 0.5 and 1.2 million departing passengers over the first full year based on a price elasticity range of between -0.5 and -1.5. On this basis ... ATT revenue would be between €117 million and €124 million but total revenue losses for airlines, airports and the tourist sector would range from a minimum of €210 million up to €465 million, dependent on the elasticities assumed.

The report's figures for air travel tax revenue are pretty accurate. This ludicrous tax is damaging the transport economy and our tourism industry. As my colleague stated, the Netherlands, Spain and Belgium withdrew similar taxes after introducing them.

As I have often stated, the airlines should get their houses in order and address what is, at times, a pervasive rip-off culture across the industry that sometimes damages the passenger numbers visiting Ireland. For example, low cost tickets on sale at all airlines are often accompanied by a range of extra and unjustified charges on basic passenger services, including the use of the check-in desk, boarding cards, baggage, insurance, seating arrangements and carrying a duty free bag onto the flight. Air passengers were fleeced yet again when, in April, Ryanair proposed an increased charge in the cost of checking in baggage from €15 to €20 for the summer months. Under EU law, air passengers have the right to either reimbursement or rerouting of a cancelled flight, the right to information and the right to care - accommodation, food, etc. - as appropriate, but it is often difficult for passengers affected in this way to access a reimbursement, as we saw recently during the volcano crisis.

The eruption of the Icelandic volcano Eyjafjallajökull could not have occurred at a worse time for Irish airlines and our tourism industry. The volcanic ash emergency has cost the air travel sector an estimated €2.5 billion in total. I am unsure of the exact figures in the tourism industry, but the situation has been damaging. During the whole of the volcanic ash crisis, the overriding concern of the Labour Party and myself was the safety of all air passengers and aviation workers. I understand that the Minister for Transport, Deputy Dempsey, was relying on information from the UK Met Office's Volcanic Ash Advisory Centres. The Acting Chairman might remember a number of debates on the issue in the House. Early on, many people were critical of the sluggish response of the Government and governments across the EU to the crisis. Captain Evan Cullen, the head of the Irish Airline Pilots Association, IALPA, indicated that, in parts of the world with frequent volcano activity, there is not the same complete closing down of the aviation industry.

The Government should consider establishing an Irish expert unit, perhaps in the Department of Transport, or use the expertise in one of our university departments to monitor and assess the impact of volcanic ash. European Commission President Barroso and the transport Commissioner, Siim Kallas, indicated in the midst of the crisis that an initiative would be developed at EU level to support airlines similar to the initiative undertaken after 9-11. However, the Government has not changed its mind on this initiative, which it initially seemed to oppose.

Jan O'Sullivan (Limerick East, Labour)
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Deputy Broughan has one minute remaining.

Tommy Broughan (Dublin North East, Labour)
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The loss of strategic aviation connectivity was one of the most disturbing potential implications of Aer Lingus's so-called Project Greenfield plan. The recent re-opening of four key routes between Shannon and British airports was a welcome development, but Shannon has been hard hit in terms of declining connectivity, particularly in respect of its US links, since it has lost key Aer Lingus and US carrier connections. For this reason, I have asked the Oireachtas transport committee to urge the Departments of Transport and Enterprise, Trade and Innovation to prioritise the development of enterprise supports for Shannon and the mid-west region.

I warmly commend my colleague on her outstanding proposals in respect of revitalising tourism and on her motion, which is important to tens of thousands of workers. Where transport is concerned, will the Government examine the air travel tax seriously during the next five or six months?

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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I support the Labour Party motion, which covers many of the issues at the heart of the current crisis facing the tourism sector. Tourism is of major value to the Irish economy but is capable of greater development as an indigenous growth area. While the priority is to maintain what we have built up, we must look to the future. Many of the current problems faced by the tourism industry are a direct consequence of the global economic situation and the decline in numbers of overseas and domestic holidaymakers. It is not rocket science to realise that when times are difficult, one of the first areas on which households economise is holidays. However, there are also ways tourism could be helped to recover, even in the current climate. It is likely we will be behind other countries in recovering from the recession because of the disastrous manner in which the current Government is mishandling the financial crisis. Even in that context, the tourism sector could still benefit from an upturn in overseas tourism when other economies strengthen. That would constitute a major boost to a large indigenous industry and the overall economy. There is also the potential timebomb represented by the intervention of NAMA in the hotel sector and the existence of so-called zombie hotels, which add more beds to an already oversupplied market and which threaten to distort that market further. That is one more illustration of the disaster that is NAMA and the attempted bolstering of bankrupt property speculators. It would be more useful to convert those hotels on NAMA's books to some other socially beneficial function rather than to leave them to operate as hotels and to damage legitimate operators already under considerable strain.

The motion is also correct to address costs and, in particular, the need to review rents, which in many instances do not reflect current economic reality. They are imposing intolerable strain on many businesses, including in the tourism sector. There is also a need, as there is in other sectors, to ensure banks give credit to businesses. In the current situation, the State has the power to enforce that, given the stake it has taken in the failed financial system. The motion also refers to the need for businesses in the tourism sector to comply with the relevant employment legislation. That is an important issue because hotels, catering and bars are among the lowest paying sectors of the economy. While employers regularly refer to labour costs being among the issues that have an impact on tourism, average wages are low for the majority of workers here. Quite a number of employers in the hotel business have been found to be in breach of regulations on working conditions and wages and it has been widely suggested that even at the height of the boom many employers were not only paying low wages but employing people with the objective of further lowering wages. Among the issues identified by unions representing hotel workers were people working long hours. This amounted to 12-hour days in some instances, without being paid overtime or given proper breaks. That many hotel workers are from overseas was seen by some unscrupulous employers as presenting the opportunity to pay low wages and to ,.deny them proper conditions as well as undermining wages and conditions for the existing workforce. It is vital that the way to recovery is not seen as lying in the direction of further cuts in wages and undermining conditions. That is not confined to the tourism sector and any attempt to allow employers to opt out of wage agreements on the basis of claiming inability to pay must be strongly resisted.

The motion refers to innovative ways in which recovery can come about. These include encouraging eco-tourism and placing more emphasis on promoting local cultural events to entice tourists to come here from overseas. A report drawn up by Sinn Féin, in consultation with people involved in various aspects of tourism, makes reference to the great potential in developing and promoting local cultural events and resources as tourist attractions. This could embrace everything from sites of historical interest to local music, folklore and literature. That has been done in some places. I refer to Listowel writers week and the events to commemorate Patrick Kavanagh around his native place in Enniskeen in my county, which have been particular successes. More could be done in that direction and the development of sites, the archiving of resources and compiling of local historical and genealogical information can also provide a valuable source of employment through community projects. That will be possible only if we have a Government that adopts a positive attitude to such matters as opposed to the current austerity regime threatening to destroy much of what those community-based employment initiatives have achieved.

The motion neglects to mention one area of vital importance, namely, cross-Border and all-Ireland tourism. As a representative of two Border counties it is of importance to me and it requires an overall strategy to advance the opportunities that exist for the benefit of communities on both sides of the Border. There has been some progress on this area and there are still many worthwhile initiatives in train despite the current difficult economic environment. People involved in the tourism sector on both sides realise the potential benefits in attracting visitors who will regard Fermanagh and Cavan as part of one package. Progress has been made in respect of the Erne-Shannon cruise concept. If the full potential for tourism throughout the island is to be realised, we must move towards an all-Ireland strategy driven by one body. I echo the words of the Deputy Mary Upton, who moved the motion, that this is important and must be taken on board and pursued. My colleagues in Stormont are keen to drive this forward, as they are keen to promote all-island economic links to the benefit of people across all 32 counties. Tourism formed part of the discussion yesterday at the first North-South parliamentary forum joint working group meeting in Stormont, which I attended. We hope this will be a feature of our intended conference in the autumn.

I add my support for the motion. I hope this view is shared by all parties in the House. More emphasis needs to be placed on the all-Ireland dimension and my colleague, Senator Pearse Doherty, hopes to present the report to which I referred to the committee later this year. That report will address many of the issues referred to in the motion. I hope it earns similar attention and consideration when concluded.

I refer to the matter of tourist visas, which must be addressed. The level of documentation required of visitors from China and India is excessive. The matter is not confined to those countries. They must provide six months of bank statements, a letter of invitation, a marriage certificate, birth certificates for children even if they are not travelling, a notarised certificate showing they have no criminal record, three consecutive payslips and a letter from their employers, showing they have been granted a leave of absence and stating the duration of employment, their position and their salary. This is far in excess of the requirements of most EU countries. When faced with such onerous demands, many potential visitors will decide to spend their money elsewhere. It is not beyond the bounds of possibility that these shores will attract visitors from such major population centres as India and China.

The Minister's colleague, the Minister for Justice, Equality and Law Reform must also address the treatment of some of these visitors when they arrive at Dublin Airport. I refer to treatment meted out by the Garda Síochána in terms of immigration. In several widely reported incidents, travellers in full possession of the proper documents received far less than the céad míle fáilte we would like to promote and of which we should be proud. This is a blight on our international reputation and is unquestionably referred to overseas. It can only discourage Ireland as a tourism destination for many nationalities. We must have the widest scope and appeal to promote ourselves to the full. I hope the Minister will take on board those concluding remarks also.

Acting Chairman (Deputy Charlie O'Connor:

The next speaker is the Minister for Tourism, Culture and Sport, Deputy Mary Hanafin. There are 30 minutes in the slot and I understand the Minister wishes to share time.

Mary Hanafin (Dún Laoghaire, Fianna Fail)
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Yes. I wish to share time with Deputy Margaret Conlon.

I thank Deputy Upton for tabling this motion. The fact that we will discuss tourism for three hours will help bring the importance of tourism centre stage. I am genuinely delighted to have the opportunity to engage in a debate on an important industry to the economy, and not just in a general sense. The fact that it is in every community and village throughout the country makes it of particular value to communities throughout the island of Ireland.

The tourism and hospitality sector represented 4% of GNP last year, providing, if one includes the general hospitality and restaurant industry, up to 200,000 jobs and, as has been stated already, that is very valuable employment in these times. It also helped to generate €4 billion in foreign revenue earnings and generated in the order of €1.3 billion in tax earnings.

Last year was a very challenging year, and the first quarter of this year has been difficult and disappointing, largely because of circumstances outside our control. We had very bad weather in the early part of the year when people were unable to travel; the difference in the exchange rates for sterling and the dollar; poor economies throughout the world, not just in Ireland; and, to top it all, a volcano. However, those in the Irish tourism industry showed how resilient they are and, contrary to what Deputy Broughan said, they were the only people who responded with a visitor charter, which is a positive message to be sent out throughout the world. Fortunately, the volcano died and hopefully it will stay that way but it shows that the tourism industry has the ability to bounce back, even after such a difficult first few months.

The Government recognises that tourism is a vital export-oriented service industry. That was recognised in our framework for economic renewal, Building Ireland's Smart Economy.In further recognition of its important contribution to the economy, tourism was also among the areas focused on during the Global Irish Economic Forum in September 2009 and was the subject of some imaginative and challenging suggestions from the forum. Tourism was included also in the Taoiseach's recent speech on employment policy as one of the ten areas where the Government's economic renewal plan will ensure we generate the jobs we need.

One of the strengths of Irish tourism has been the robust policy framework developed for the sector since 2003, when the New Horizonsreport of the Tourism Review Group was published. That includes clearly defined implementation arrangements through the tourism State agencies and a strong partnership approach with the industry. In December 2008, to ensure the strategic framework for tourism development was able to respond to the rapidly changing economic and social environment, the then Minister for Arts, Sport and Tourism, Deputy Martin Cullen, established the tourism renewal group. The Minister asked it to review and, where appropriate, to renew the existing tourism strategy contained in the New Horizonsreport.

In 2009, the tourism renewal group conducted a detailed and inclusive examination of the tourism sector - both nationally and internationally - the existing strategic framework and key tourism-related issues. The group analysed the implications of its findings and agreed on key actions required to support the tourist industry and help it survive, recover and grow. The resulting report of the tourism renewal group, launched last October, 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 included 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.

I welcome Deputy Upton's policy paper on tourism. Many of her recommendations reflect those contained in the report of the tourism renewal group. I happily agree with those, and many others, but all of the actions in the tourism renewal group report are being vigorously pursued by me as Minister, by my Department and the appropriate agencies - in co-operation, where relevant, with other Departments and bodies - with a particular focus initially on the survival actions.

In the meantime, Fáilte Ireland and Tourism Ireland have built in the relevant renewal group recommendations to their business and marketing plans for 2010. My Department is also working with a range of other organisations to develop opportunities to focus resources, achieve common objectives and maximise the impact on tourism. To ensure that the recommendations of the renewal group are implemented, the group suggested that a renewal implementation group - to include an independent chair and no more than four other members - be established but because I see the implementation of the recommendations as essential to tourism policy I intend to chair the group myself, the final composition of which I am currently settling.

Building on the framework for action, budget 2010 recognised the tourism and hospitality sector as a critical, labour-intensive sector and incorporated a range of measures to renew Irish tourism. The overall tourism services budget was increased by 3% to over €153 million, including the maintenance in real terms of funding for the tourism marketing fund, as recommended by the renewal group, and a trebling of the funds for tourism product development. In difficult times, when other Departments were making serious cuts, that shows the commitment of the Government to promoting and developing tourism.

Tourism was also included in a range of cross-cutting measures to support enterprises and jobs, including the employment subsidy scheme and the credit review scheme. Additional specific measures such as changes in alcohol excise duties and VAT, and the imaginative free rail travel initiative for senior citizens visiting Ireland, will also help the sector to recover. In regard to the free travel initiative, I am pleased to advise the House that since its launch on 16 March last, over 4,500 Golden Trekker passes have been issued to overseas visitors.

As the House is aware, we have been experiencing the impact of an international recession of unsurpassed severity. Every major economy, including our key source tourism markets, is suffering. In our own case, the position was exacerbated by the challenges in our domestic economy and adverse exchange rates, although recent currency movements will operate to our advantage in attracting visitors from the Great Britain and United States markets.

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. There were just under 7 million overseas visitors to Ireland during that year. That figure represented a drop of just under 12% compared to 2008. Outward trips from Great Britain were particularly affected, with the euro-sterling exchange rate making it extremely challenging to attract visitors to Ireland, and eurozone destinations generally. I understand that the number of people from Great Britain travelling abroad is back to 2001 levels. However, to put our performance in context, OECD figures suggest there was a higher reduction in visitor numbers to Malta, Hungary, Cyprus, Greece and Finland, while the drop reported in France, Portugal and Spain was between 8% and 12%.

In common with many other businesses in Ireland, tourism businesses are experiencing difficulties with regard to capacity, costs and credit supply, exacerbated by lower visitor numbers. Some of those problems will need to be addressed by the tourism industry itself. Others are being addressed generally by the Government, for example, through NAMA and issues around the supply of credit to businesses generally. The Government will continue to work with the industry to help the sector manage its way through these difficulties, whether in stimulating demand, helping to address costs and productivity or securing access to credit.

It is clear that tackling the over-capacity that undoubtedly exists in the hotel sector at present is complex and, ideally, requires a market led response over time. The year 2010 is likely to be another tough year in the hotel sector, with further adjustments taking place as the market responds to excess room supply. This process will gain further momentum in the coming months as more banks seek to clean up their balance sheets and dispose of under-performing loans. These market-led adjustments are necessary, however, to restore some level of equilibrium to the hotel market. NAMA will become a key player in the hotel sector as more hotel-related loans migrate to the agency. Through the Minister for Finance, I will be encouraging NAMA to take a strategic approach to the sector, build up its expertise in this area and consult with sectoral interests, including the Irish Hotels Federation.

Credit availability also remains a real difficulty across the economy, including for the hotel sector. The Government's strategy for NAMA is centred on the goal of restoring a stable and functioning banking system. As part of this process a credit appeals system has been established which allows small and medium-sized enterprises, including those from the tourism industry, to appeal when a credit application has been refused. This will provide a valuable independent recourse for businesses in their dealings with banks.

The Government is taking initiatives to improve costs such as labour, local authority rates and charges, and energy. For example, securing a reduction in electricity and energy prices has improved our relative competitive position in this area. That consumer prices in Ireland have now fallen back to 2006 levels shows that we are responding flexibly to the crisis. This has been recognised by the European Commission and on international markets, helping to restore confidence in the Irish economy.

I must also acknowledge the tourism industry itself has made great strides to reduce costs and increase productivity over the past two years. These are difficult adjustments but if we get our costs right, while also using the crisis to restructure and reinvent ourselves, we will return to a sustainable growth path. The offers currently available from accommodation and food providers have never been as attractive and go a long way to addressing concerns expressed on this front from overseas and domestic holidaymakers in recent years.

Ireland's ability to compete in the international arena will depend on maintaining and enhancing competitiveness, a major issue for Irish tourism as it is for the economy. 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.

Despite the global economic downturn, millions of people across the world will still take holidays this year. It is also worth noting while the bad weather and volcanic ash led to significant reductions in visitor numbers in the early months of this year, 60% of annual business is accounted for between the months of May and September. The industry and the tourism agencies are fighting hard for every bit of business for the summer and remainder of the year. Funding is now arranged seasonally, with separate summer and autumn marketing campaigns.

Several eurozone economies are coming out of recession and these are important source markets for Irish tourism. Tourism Ireland will be focusing on those major markets that are likely to deliver immediate returns this year including Great Britain, Germany and the US, as research has shown these markets as our best prospects.

Tourism Ireland is the North-South body responsible for marketing the island of Ireland overseas as a holiday destination. The objectives of Tourism Ireland's marketing strategy are to convince overseas consumers this is the best time to visit, to show them the great value available from industry partners and to demonstrate how easy it is to get to Ireland by air and sea. It is important we are able to market the island as a country at peace. It is to our benefit we can market it on a Thirty-two County basis.

We must position Ireland to take advantage of opportunities that will arise as the global economy stabilises. Tourism Ireland's commitment is to market through the challenges, work closely with industry partners and fight for every bit of business that can be won. I intend to personally support the marketing effort. Last week I was in Frankfurt, at the invitation of Tourism Ireland and had several trade and media engagements to support the push for business from the largest outbound tourism market in the world. I also intend going to London and the US before the summer break for short intensive engagements with the industry, tourism providers and media. There I will launch campaigns for the on-line 1901 census returns aimed at these important roots markets.

It is important too to plan for the future. Today, I had the pleasure of addressing over 100 tourism industry representatives who were in Dublin to participate in the Tourism Ireland innovation summit taking place in Farmleigh. This summit is designed to help Tourism Ireland to develop its corporate plan, covering 2011 to 2013, and to identify key themes that will be at the heart of future marketing strategies.

Tourism Ireland is engaged in a large tactical marketing programme across all major markets, communicating strong reasons to visit together with clear, price-led messages. New technologies are being utilised in this regard, with 35 websites in 14 languages in 27 different countries. Over €44 million of Exchequer funding has been provided to overseas marketing this year, which already included the largest ever promotional programme of activities to showcase Ireland during the St. Patrick's Day holiday and a recently launched €20 million summer promotion campaign.

On the domestic front, Fáilte Ireland is engaged in a new intensive campaign to promote holidaying at home this year, with a budget of €4 million. The new marketing campaign is rooted in extensive consumer research and consultation with the tourism industry and involves saturation coverage on television, radio, the print media and on-line.

We are supporting festivals and events around the country on the tourism and culture side. I commend those communities which organise events that take pride in their areas such as Abbeyleix, the heritage town, Abbeyshrule's Goldsmith Festival, and Dalkey's book festival. These local festivals celebrate the best of localities and boost their businesses. It is important we continue supporting all of these events.

A major bed and breakfast revitalisation programme has been rolled out by Fáilte Ireland, including a special new domestic publicity campaign highlighting a new classification system, the introduction of dedicated training courses and business supports and investment for development opportunities through local action groups. Fáilte Ireland is also boosting its promotion of business tourism. The opening in September of the new national conference centre in Dublin, to be known as Convention Centre Dublin, will further enhance our capacity to attract international events. Already there have been bookings for international law and pharmaceutical industry conferences.

Croke Park and the recently opened Aviva Stadium at Lansdowne Road are venues for sporting events which will enhance our attractiveness for sports tourism. The recent success of Graeme McDowell at the US Open and the success of Padraig Harrington is also a factor in this area. Such ambassadors, like Gabriel Byrne as cultural ambassador, freely give their time to promote Ireland and it must be acknowledged the impact they have on attracting people to visit Ireland.

The quality and value of the tourism product has improved dramatically over the past few years. Accommodation quality, particularly in the case of hotels, is among the highest in Europe. There are many more things to see and do and we have managed to maintain and build on our natural assets and resources. Visitors constantly express satisfaction rates of well over 90% for their stay here and almost all say they would recommend Ireland as a holiday location to their friends or relatives.

Fáilte Ireland is significantly boosting investment under its capital investment programme to improve and broaden the appeal of Ireland's portfolio of tourist attractions, activities and tourism-related infrastructure. There has been a particular emphasis over the past two years in improving our eco-friendly linear and looped walking and cycling routes. One can go into the heart of the country, be it Tinakilly or Duhallow, and find local communities, farmers in particular, being responsive to the need to develop walking routes. The Discover Ireland website highlights these amenities through on-line resources including maps.

Yesterday, I announced capital grant funding of €6.6 million for three tourism projects, the Dublin Writers' Museum, the Lee Valley project in Tralee and the New Ross Quay Board Walk in County Wexford. Funding of €9 million has also been approved for the Viking triangle project in Waterford. I congratulate all those involved in the reopening today of the House of Waterford Crystal visitor experience in the city.

The air travel tax was introduced in a difficult budgetary situation when cuts had to be made in areas such as social welfare, health and education, as I well know. The tax is an important source of revenue for the Exchequer. As Minister with responsibility for tourism, I would be concerned about any tax that might lead to a significant reduction in visitor numbers. Since taking up my new office, I have met several airlines to discuss their research and views on this issue in advance of the 2011 budgetary process.

As regards visa arrangements, I am keen to ensure that we capitalise on opportunities in new emerging tourism markets, such as India and China. I am aware competitive visa arrangements are an important element of winning business from these sources. I have already been in contact with my colleague, the Minister for Justice and Law Reform. We are holding discussions to see how these arrangements might be improved.

The Private Members' motion tabled also refers to the downward review of commercial rents. As Deputies will be aware, the Department of Justice and Law Reform has already overseen the enactment of legislation which prohibits upward only rent reviews in leases entered into on or after 28 February 2010. However, I understand that the advice received by the Minister for Justice and Law Reform from the Office of the Attorney General is that, from a constitutional perspective, it would be very problematic, if not impossible, to interfere with existing lease agreements. Nonetheless, I note that there is nothing to stop the parties to existing business leases from varying the terms of their contract and from agreeing to reduce the applicable rent, having regard to their individual circumstances and the realities of the market. It is foolish for a landlord to jeopardise his or her future rental income from a valued tenant by charging that tenant an inflated rental price in the current environment when many businesses are finding it difficult to meet their costs.

Broadband is being spread throughout the country under the national broadband scheme and this could bring major benefits for the tourism industry.

Fáilte Ireland is working closely with tourism businesses throughout Ireland, supporting enterprises and helping them to achieve real cost savings and efficiencies. Business supports are aimed at assisting key tourism businesses to increase their international customer base, to better manage their cost base, to improve overall performance and marketing, especially on the web, and to sustain employment levels.

During 2009, Fáilte Ireland provided a range of training and business supports directly to almost 3,000 individual tourism businesses. In 2010, it will invest more than €11 million in the form of direct supports and advice for tourism enterprises.

The partnerships between Fáilte Ireland, the industry, Tourism Ireland and other major agencies such as Bord Bia are crucial for the success of the industry. While we recognise that these are extraordinarily challenging and difficult times and that tourism is not immune, I am confident that our tourism industry, which is resilient, will rise to the challenge. I am also confident that with the ongoing development of the product we have to offer and through highlighting the best of what we have to offer and marketing it well to the international market, we can ensure tourism will be one of the few major indigenous industries to help us to continue to maintain employment, to create additional employment and to attract visitors to share in this country, which we are proud to represent.

Margaret Conlon (Cavan-Monaghan, Fianna Fail)
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I welcome the opportunity to contribute this evening and I thank Deputy Upton for placing tourism at the centre of the debate. Often in recent months and years, we have spoken in the House about global economic difficulties. Every aspect of Irish life has suffered as a result of the worst recession ever to hit the country. The tourism industry is no exception. The situation has not been helped by adverse exchange rates. However, the decision of the UK Government to increase its VAT rates will go some way to boosting tourism, especially in my constituency, which is made up of Border counties.

As a country, we have much to offer, including untapped potential. Many factors affect our tourist industry, some of which are outside our control. Mention has been made this year of volcanic ash. Who could have predicted the disastrous consequences which resulted from it? It has had a negative impact on the number of visitors travelling to the island of Ireland this year. I was horrified when I heard some of the stories in the media about people who took the view they were charged exorbitant rates by some people who were out to make money at their expense because they were stranded here.

The other side is that this has had the advantage of encouraging the Irish people to holiday at home, which many are choosing to do. Through its youth wing, my party is actively promoting a "holiday at home" campaign. There is significant interest in this area. People are referring to taking a "staycation" instead of a vacation. Whether times are bad, people still like to take a holiday. Such people may take a reduced holiday such as a mid-week or weekend break rather than going to the sun.

The most important thing for people holidaying at home and for visiting foreigners is value for money. People want to believe they are getting value for money. I commend those in the hotel and catering industry who are offering good deals. However, some people continue to charge exorbitant rates. I trust they will follow the example of the others because they cannot afford to price themselves out of the market. People have no wish to be ripped off. If this takes place not only will such people not return, but they will tell their friends all about it and the chances are they will not come either. Such people will probably do this through such programmes as "Liveline" and so on. It is very important such damage does not occur. Providers must be conscious of the need to give value for money.

This year we have been fortunate with good weather. Let us hope it continues. However, Irish people do not and cannot depend on good weather to boost tourism revenue. If the weather is good, it is a bonus.

In this country, among the most important tourist attractions are our festivals. They are an important source of revenue and they boost the numbers visiting the country. This year in my constituency we will have the honour of hosting Fleadh Cheoil na hÉireann in August in Cavan. This will certainly boost visitor numbers. It will also boost the local economy while allowing participants from throughout the country to showcase their talents in the promotion of traditional music. I look forward to this event very much.

Many other successful festivals have been held in Monaghan in recent times, including the Feile Oriel. On a bank holiday weekend in Castleblaney a delegation from Germany came to visit. A delegation from France came to Ballybay and Castleblaney. The Flat Lakes festival was held in Clones. Other festivals in Monaghan include Mucko Mania Festival, the Kavanagh weekend and the blues festival. We are proactive in promoting our own area. We encourage people to come and, like the Minister, I commend the volunteers for their selfless dedication and commitment. Other counties are doing likewise. We have not always successfully broadcast our message but we must recognise the strenuous efforts made by Tourism Ireland and Fáilte Ireland in promoting our regions through their ongoing global marketing campaigns.

For many years we have advocated the need for a convention centre in Dublin. I welcome the fact that it will be opened soon. It will give a great boost to business and conference tourism in the future and there is great potential to capitalise on this. The centre is not open yet but already, some 39 international events have been secured. This is heartening and through our reputation we can secure a good deal more. It is important to encourage the marketing of business tourism to ensure we attract more international conferences.

In her speech, the Minister referred to Croke Park and the Aviva Stadium. During the summer months, we provide a feast of sport. I must confess that recently I attended the Westlife concert in Croke Park with my ten year old daughter. On the way out, I met a steward and I said to him that I hope that was not the only time I would be in Croke Park this summer. He asked me which country I was from. I said I was from Monaghan. He suggested I take a good look at the place because he figured it would be the only time I would see it this year. If we continue to go the way we are going, I expect and hope to prove him wrong.

This year will continue to be a challenging year for the tourist industry, as were 2008 and 2009. Many of my constituents in the industry are experiencing great difficulties in accessing credit. In some cases, very small overdraft facilities are being pulled without even an interview or without speaking to the people involved. I have recommended such people go through the credit review appeals process because I believe they have been unfairly dealt with and I expect their appeals would be successful.

The Minister referred to the fact that she intends to visit certain countries. The media and the public frown when they hear of politicians going abroad. However, it is important that we use every available opportunity to sell Ireland as a tourist destination. Who better than the Minister to assist in the promotion of Ireland? I wish her well as she does this on her travels.

I am heartened by the bed and breakfast revitalisation programme.

Many people love to visit our bed and breakfast establishments. They find them homely and intimate and the care and attention they get is very important to them. For many years, bed and breakfast businesses were the Cinderella of the industry and I welcome the initiative.

I see the glass half full and not half empty. Our tourism industry is resilient. Those involved have always had a can do-must do approach which is never more obvious than when things are tough. Like many businesses, when we emerge from this recession, our tourism industry will have bounced back based on improved competitiveness, better supports from State agencies and a positive marketing campaign.

As Members of a Government party working with the Minister, we will all play our part to ensure we increase the potential, in particular in our own areas. I, for one, am committed to doing that and am pleased to support the amendment to the motion.

Olivia Mitchell (Dublin South, Fine Gael)
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I very much welcome the opportunity to speak on this motion tabled by Deputy Upton. It again raises issues in the industry. The Government, the Minister and the Department know the issues but despite all the lip-service paid to the importance of the industry, to the value of the jobs and to its foreign currency raising importance to the country, it is rhetoric and, in many cases, it is not backed by action. If this country is to recover and if we are to restore growth, it must be through growth in export services of which tourism is our most significant and best prospect. Despite the fact that thousands of jobs have been lost in the sector, as the Minister mentioned, it is still our largest employer and provides jobs in towns and villages in which there are very few other jobs and in which, if lost, there is very little prospect of replacement jobs.

The Government has never really rated tourism as a sector and its structures and agencies reflect this disregard. There are simply too many overlapping and competing agencies. Funding and effort has been dissipated and there is no single voice representing Irish tourism and speaking on its behalf. It is an industry of thousands of mostly small individual enterprises. By its very nature, it is fragmented and dispersed and it needs a single unifying agency or body to give leadership, direction and coherence. Instead, a fragmented industry has fragmented leadership and organisation. It is another case of where the incumbent, the organisation and the vested interest, are put before the needs of the majority.

Like the problems in the economy and the banks, the problems in tourism did not just start in September 2008. The Government cannot solely blame the worldwide collapse of tourism. Our collapse has not only been greater than elsewhere but our problems started far earlier than anywhere else. The frightening truth is that outside Dublin, we have gained few additional foreign visitors holidaying here over the past ten years. In those ten years, the number of visitors from Britain has continued to fall. That trend was masked by the growth of short stay visitors in Dublin and by the substantial increase in holiday breaks - short stays and weekends - being taken by Irish people during the Celtic tiger years, reflecting rising incomes at that time. That is all gone now and the underlying truth has been revealed. We had too much of a grossly overpriced product and at Government and agency levels, we had administration and leadership that lacked coherence.

If we are spending the huge sums of money, to which the Minister referred, on marketing at home and abroad - €50 million by Tourism Ireland this year - and we are not really gaining, then the only possible conclusion is that we are doing something seriously wrong. In terms of organisation, activity and expenditure, no area can be uncritically questioned at this stage.

The foot and mouth disease outbreak coupled with the ludicrous overpricing at the time lost us the edge in golfing tourism and other country sports. The Minister mentioned golf which is to the fore currently. During that period of time when the country was cut off, golfers went elsewhere and found an equally good product at a much better price and they have never returned to Ireland.

Today, we have a once-off, time-related opportunity to relaunch Ireland as the European cradle of golf and as the home of Harrington and McDowell. We should send out that message loud and clear today, targeting the American market, in particular, where I do not believe there was a golfer who did not watch an Irish player win the US Open in the past few days. We should sell ourselves as the hothouse of golf and send the message that golf is now affordable in Ireland, which it certainly was not in recent years. We should bring in the promoters from the US in their hundreds free of charge, showcase Ireland and try to re-establish once and for all this country as a golfing destination. That is an aside and something we can do right now.

There is clear advice on what else needs to be done to try to safeguard what is left of the industry and retain the infrastructure, expertise and investment in order that there is a springboard for recovery when it comes. Advice from the Minister's own advisers, the business community, IBEC, the renewal group, the Commission on Taxation, the National Competitive Council, the Irish Tourism Industry Confederation and Fáilte Ireland is to get rid of the travel tax. I have spoken repeatedly about the disastrous consequences of this on access to Ireland. For an island country to lose connectivity to more than 30 destinations in the past 12 months is little short of a catastrophe. No amount of marketing can counteract that. If people cannot get here easily and cheaply, they will not come no matter how appealing our marketing is. This tax may take in €100 million for the Government but costs hundreds of millions of euro in lost revenue to the State and many lost jobs. It is not only me saying that but all the Minister's best advice is along similar lines. The Government's position on this has been perverse, as is its position on visas.

As the Minister rightly said, the Minister for Foreign Affairs was at Expo 2010 in China last week. I gather there was a big Irish delegation and a huge Irish spend. I applaud that and would not for a minute criticise the fact people are travelling to China to sell Ireland. It is laudable and necessary but it is ultimately self-defeating if the same ludicrous visa situation continues. I have highlighted the issue repeated. Every application is treated as if it is an immigration application. Businessmen seeking opportunities to buy and sell here are required to provide such a level of information and engage in so much form filling that it shows us to be a totally bureaucratic and unwelcoming nation. They would lose the will to do any business here. We treat businessmen like that and the poor feckless tourist is treated as badly. China has been identified as an emerging market for trade and tourism. If we could even get a fraction of that growing market, it would solve all our problems.

I have raised the car hire issue many times. I checked the price of hiring a car in Dublin and in Edinburgh today and, in all cases, it is dearer here and, in some cases, it is twice as dear. Few providers here had an automatic car available. In one case, the cheapest automatic car available was more than €1,000 per week. One might as well say goodbye to the American market. The Minister can check those prices tomorrow.

There are other areas in which costs need to be addressed. From a tax perspective, VAT on wine is a real turn-off for people. The price of hotels is coming down but food and drink is ridiculously expensive. Perhaps wine should be treated as food rather than alcohol for VAT purposes.

The joint labour committee structure should be restructured or abolished. I completely agree with my colleague in regard to the exploitation of workers. It is absolutely reprehensible and should never happen. In particular, it should not happen to our visitor workers, although it did in some places. Most people are trying to do the best they can to obey the law but the law, as it stands, has cost jobs and we should address that.

The deal the Spanish Government is doing, about which I have spoken repeatedly, is one we will have to consider. I spoke to one travel agent who brought 6,000 visitors from Ireland to Spain because of the attractiveness of this deal.

I wanted to refer to zombie hotels but the Minister is aware of the problem. It is crucial that NAMA does not nurse these hotels. Normal market conditions must return and while that will be painful, the sooner we suffer the pain, the sooner we can return to normal. There is no excuse for nursing businesses that are unsustainable and that were overleveraged to begin with.

There were 23% fewer visitors in the first three months of this year compared with last year. Last year was catastrophic. Government Deputies and the Minister's predecessor said 2010 would be better but it has been worse. The Minister cannot blame the volcano problem, which did not emerge until April; the euro exchange rate, which was worse in 2009; or the drop in worldwide travel, which was also worse in 2009. We are going in the wrong direction. I wish the Minister well but if I was in her position, I would question everything she is doing.

Deirdre Clune (Cork South Central, Fine Gael)
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I am glad to support the motion. Tourism is important. I come from Cork, which was the European Capital of Culture in 2005, and that boosted the city's reputation worldwide.

The Minister referred to the air travel tax, which was introduced in the 2009 budget, and I am glad she is in contact with representatives of the airlines. I am sure they will provide her with their research, which shows that this tax has resulted in the loss of 3,000 jobs directly and €480 million in revenue. It is time the Minister put her hands up, said it is a disaster and it should never have happened. Belgium, Denmark, Holland and Spain have withdrawn a similar tax and the sooner that happens, the better because it makes no sense for an island nation to have such a tax.

I would like the Minister to raise the cost of flights, particularly from the US, with airline representatives. I have spoken to three people in the past week who cannot get to Ireland in August for less than $1,000 having explored all the options available, including connecting through Heathrow Airport. One is a family member and two others happened to raise the issue with me. Those costs are prohibitive and they discourage tourists. Previous speakers have outlined figures, which demonstrate we are experiencing a steep decline in this area.

I am a member of the Joint Oireachtas Committee on Enterprise, Trade and Employment and representatives of the National Competitiveness Council appeared before us this afternoon. Tourism was mentioned. Services exports generally increased by 12% in 2009 but tourism travel declined by 18%. The value of the sector has declined significantly over the past decade from 14% of services exports in 2001 to 5% in 2009. However, Ireland has a great deal to offer and we must focus on niche areas, particularly golf.

Domestic tourism is also important. Festivals and investment in improving the tourism product in our cities and towns will be crucial and we must focus on this. At the committee meeting earlier, we also discussed the continuing obstacles to doing business, including the lack of high quality broadband outside Dublin and local authority charges. We have the highest landfill costs and water charges are high. The cost of paying for water has increased by almost 20% in the past year and this affects most tourism businesses. I have referred to a number of issues which should go into the Minister's melting pot.

Joe McHugh (Donegal North East, Fine Gael)
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I welcome the Minister. I thank Deputy Upton for tabling the motion. I raised the issue of visas for tourists from non-Schengen Agreement countries in the Minister's first week in office. She is well aware of it and the head of Tourism Ireland, Niall Gibbons, is constantly highlighting the same barrier for tourists, for example, from Korea or China. They must obtain two visas when they travel to the State.

I refer to a proposal which will land on the Minister's desk shortly. It is not a novel idea but it is new to my region. I refer to off-road biking. There are successful off-road biking facilities in Portumna, County Galway and County Limerick and a facility is under development in the Slieve Bloom Mountains. In the past months, I have come across a vacuum in Ulster. It is not possible to build such a facility in Northern Ireland because of the rules that apply to forestry there. Off-road bikers from Belfast, Dungannon and elsewhere have contacted me by e-mail to highlight that they must travel by ferry to Fort William in Scotland to participate in the sport. I have conducted market research on this sport in conjunction with a new biking club which has been set up in County Donegal and there is an appetite in Northern Ireland for an off-road biking facility in my county. Sites have been identified on Coillte lands and, therefore, a partnership approach will have to be adopted. I have contacted a number of cross-Border funding agencies and they are champing at the bit because this idea will work.

I have received e-mails from the Acting Chairman's constituency. A new generation of people want to get involved in this sport and they are prepared to travel from counties Kerry, Wicklow and Dublin and Northern Ireland. An estimated 20,000 spectators travelled to the world championships at Fort William in Scotland. This is an excellent, high value and high end tourism product and I ask the Minister to engage with the group that has been formed in County Donegal.

Paul Connaughton Snr (Galway East, Fine Gael)
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I thank Deputy Upton and the Labour Party for tabling the motion. Three home truths should be pointed out to the Minister and the Government. The travel tax should be abolished and if the Minster gets half a chance, she will do that. It is hugely important that this happens because we got a bad name all over the world, particularly among our competitors.

The second home truth is the powers that be must understand what are the old reliables or workhorses of our economy, that is, tourism and agriculture. Now that the famous construction bubble has burst, the more we go back to the old reliables, the quicker we will get out of the recession and the more jobs we will create. As Deputy Mitchell rightly said, this issue was mishandled.

The third home truth relates to research conducted recently, which found that 90% of tourists who visited Ireland were happy with the friendliness of the people and that is a factor that will bring many of them back again. We must hold on to that for as long as possible because that is the connection that will bring them back. We then decided to slap on a travel tax to ensure we are not competitive around the world.

There are always changes from one year to the next - for example, currency fluctuations. We should promote Ireland in countries whose inhabitants would find it good value to travel here. We must be nimble and quick-witted in selling Ireland. With the worldwide web and all the other means of communication, we should have no trouble doing this. There are some good brains in Irish tourism but unless we get our act together over the next year or two, our competitors will clean us off the face of the earth.

The drop in the number of tourists visiting Ireland is extraordinarily serious. If we think of the 1 million people who live in Dublin today, we can imagine the number of people who could have come to Ireland last year but did not. If we want to retain jobs, we know what we have to do. I wish the Minister luck, and I hope that in the next budget the travel tax will be gone.