Dáil debates
Wednesday, 24 November 2010
Priority Questions.
Tourism Promotion
1:00 pm
Jimmy Deenihan (Kerry North, Fine Gael)
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Question 21: To ask the Minister for Tourism; Culture and Sport the action she is taking to alleviate the downward trend in tourism figures with nearly 900,000 fewer visitors to Ireland to date this year; and if she will make a statement on the matter. [44378/10]
Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The most recent published figures from the CSO show a reduction of 15.7% in the number of overseas visitors to Ireland in the first three quarters of 2010 compared to the corresponding period of 2009. Figures for the third quarter of this year show that the fall-off is slowing down, at just over 8% compared to the corresponding period of 2009.
While any decrease is disappointing, the figures must be viewed in context. Tourism worldwide has been deeply affected by global economic difficulties and loss of consumer confidence. Furthermore, the exceptional weather conditions in the early part of the year and the closure of airports due to the volcanic ash cloud meant that it was inevitable that a fall-off in the numbers travelling, particularly in northwest Europe, would be experienced in the first half of 2010. At the same time it is important to recognise that more than 4.6 million overseas visitors came to Ireland in the first nine months of the year with hugely positive benefits for the Irish economy. The Government recognises the opportunities to grow this figure further and ensure that tourism plays a key part in Ireland's economic recovery.
Based on my recent experience in supporting the international marketing effort, I know that the industry and the tourism agencies are fighting hard for every bit of available business for the remainder of this year and into 2011. Tourism Ireland is finalising its 2011 business plan and next week I will launch its marketing plans for 2011. The main focus of the plans will be on those markets offering the best real prospects of growth in 2011, namely, Great Britain, the United States, Germany and France. The marketing campaigns will emphasise that there has never been a better time to holiday in Ireland in terms of the value available and the quality of the tourism product on offer.
On the business tourism front, the new Convention Centre, Dublin will be highlighted and further enhance our capacity to attract international events. Other significant events next year such as the Solheim Cup at Killeen Castle, the start of the tall ships race series in Waterford, Dublin Contemporary, Imagine Ireland, and the UEFA cup final at the Aviva Stadium will also provide significant opportunities to boost our international profile and the tourism agencies will work to maximise the tourism benefits of these events.
In terms of the broader policy environment, the report of the tourism renewal group set out a clear plan for the survival, recovery and growth of Irish tourism. I established the new tourism renewal implementation group in July 2010 to oversee and further drive actions on measures, based on the wide-ranging framework for action, that support tourism in Ireland, increase competitiveness and ensure that the sector is ready for recovery and growth. Good progress has been made with regard to the survival actions recommended by the renewal group and the implementation group will continue to meet to pursue outstanding measures that can ensure that Irish tourism returns to growth next year and plays a major role in Ireland's economic recovery.
Jimmy Deenihan (Kerry North, Fine Gael)
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I remind the Minister that there will be almost 1 million fewer tourists visiting the country this year than in the previous year, with a possible loss of €1 billion in revenue. The Minister has outlined some of the measures she has taken but what further measures does she intend to take? It is agreed right across the industry that the travel tax is having a detrimental effect on visitors. Yesterday at the Bord Fáilte annual conference the Minister said she is against the tax and, as reflected in The Irish Times today, that she would more or less scrap it. Will she confirm she is in favour of scrapping this tax?
Brendan Howlin (Wexford, Labour)
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I call the Minister to reply.
Jimmy Deenihan (Kerry North, Fine Gael)
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Of course. I am asking questions.
Brendan Howlin (Wexford, Labour)
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Can I explain to the Deputy that -----
Jimmy Deenihan (Kerry North, Fine Gael)
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There is no need to explain.
Brendan Howlin (Wexford, Labour)
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The Deputy should have some respect for the Chair.
Jimmy Deenihan (Kerry North, Fine Gael)
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Could I complete -----
Brendan Howlin (Wexford, Labour)
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No Deputy, the Deputy should have some respect for the Chair. The Deputy should take his seat when the Chair is on his feet. The Deputy should sit down.
Brendan Howlin (Wexford, Labour)
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No, not until I explain. The Chair will be respected and will not be shouted down.
Brendan Howlin (Wexford, Labour)
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The Deputy has one minute to ask a question, otherwise he is eating into other Deputies' time.
Jimmy Deenihan (Kerry North, Fine Gael)
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This is new procedure.
Brendan Howlin (Wexford, Labour)
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No, it is standard procedure.
Jimmy Deenihan (Kerry North, Fine Gael)
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Tourism Ireland said it is impossible to plan without regular CSO figures. Has the Minister done anything to address the staffing problem at the CSO so that we can get the monthly figures as we did in the past?
Mary Hanafin (Dún Laoghaire, Fianna Fail)
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The Deputy has asked about three distinct issues. I agree, we would rather have the CSO figures on a monthly basis than on a quarterly basis because that would allow us to plan. The CSO has said it is not in a position to do that at the moment, but at least every time we get the figures they assist us in our targeted marketing. We now do our marketing on a seasonal basis rather than an annual basis so the quarterly figures are helpful.
On the question of what measures we are taking to promote tourism, we are targeting each of our four major markets in a different way. The World Travel Market last week was very successful and the agencies supporting the industry are very involved. This is a successful way of promoting tourism because the people involved are the best people to promote Ireland. We are also improving marketing through promotions such as television campaigns in Germany. These are critical. In Great Britain we are focusing on coach tour operators, retail travel agents and the Internet agencies. For example, at the World Travel Market I met people from Expedia through which many visitors book their trips. We also have an extensive marketing programme in North America and work with tour operators there on specific promotional activities. We do the same in France.
Investment in the capital programme is also important because people come to Ireland to attend iconic events. We try to ensure that special events like those I mentioned in my response, Imagine Ireland and Dublin Contemporary are part of our plan.
Jimmy Deenihan (Kerry North, Fine Gael)
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What about the travel tax?
Mary Hanafin (Dún Laoghaire, Fianna Fail)
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I will come to that. The industry has been telling me that the travel tax goes against the spirit of trying to attract tourism and while it was originally targeted at bringing in approximately €125 million, it looks like it may only bring in approximately €80 million this year. However, €80 million is very hard to find. I have asked the airlines to indicate to me what they could give me in return for the removal of the tax. Ryanair has indicated what it would provide if the travel tax and the increased charges at Dublin Airport, Shannon Airport and Cork Airport were reversed, but has not indicated what it would provide if only the travel tax was involved. This is part of our negotiation platform.
Jimmy Deenihan (Kerry North, Fine Gael)
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I am rather surprised, despite the indication yesterday that the Minister is in favour of scrapping this tax, that this is not mentioned in the national recovery plan. Obviously, the tax and the revenue from it is very much part of the programme for the next four years. Will the Minister clarify that position? Is it factored into the plan?
Mary Hanafin (Dún Laoghaire, Fianna Fail)
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It is part of our discussions for the budget and that is the reason it is not in the plan. Individual taxes are specifically part of the budget. No decision has been made on the issue yet. Discussions are taking place with the industry and we are looking at the overall financial context to see whether it is possible to remove or reduce it or to see how we can replace the €80 million otherwise. The issue is on the table and I am very open to specific proposals on that.