Michael McCarthy (Labour)

I appreciate the attendance of the Minister for Arts, Sport and Tourism and the Minister of State who took time out of their busy schedules to be with us for statements on a very important matter. The tourism industry is important to the economy, especially in those parts of the island which, in many ways, depend on it, not least of which is my constituency of Cork South-West. There is a high level of reliance and dependence on the industry in the south west region in connection with which I refer to a tourism federation report which shows that prices have risen dramatically in the sector. That is a cause of concern because it demonstrates to us all – not least the Government – that the difficulties in the industry are not solely the result of lack of investment in marketing. Action is required to review the cost of goods and services, which rose by a massive 45% between 1996 and 2002. The report confirms the common perception of the spiralling rise of hotel, restaurant and bed and breakfast prices in recent years. As the number of tourists increased rapidly in the late 1990s, the cost of visiting Ireland did not decrease accordingly. The recent decline in tourist numbers must be reviewed in the light of this fact.