Martin Cullen (Waterford, Fianna Fail)

I thank Senators for their thoughtful contributions to this debate. There is no doubt that since my previous visit to the House last November, Senators have remained abreast of developments in the tourism sector. They will not have been surprised by the issues I highlighted earlier in the context of the economic challenges we face. These challenges are global and impact on our core markets in the United States and the United Kingdom.

It is interesting that figures for January show increases in visitors from mainland Europe and North America of 1.3% and 2.3%, respectively. I hope this somewhat surprising trend will be sustained throughout the year. The overall position is that 424,000 people visited Ireland in January, a decline of 2.9% on the previous year. Clearly, the various markets have been impacted in different ways. The other interesting figure from the most recent data is that the number of Irish people taking breaks abroad fell by 8.4% in January. This may be indicative of a new trend among Irish people to take weekend breaks at home. Perhaps many more people will also take their summer holidays at home this year. I sincerely hope that will be the case.

I pay tribute to the robustness of the tourism sector, which is our largest industry. Senator Cassidy and others noted that 320,000 people are employed in the general hospitality area, which contributes more than €6 billion in foreign earnings to the economy each year and generates returns of between €2 billion and €3 billion to the Exchequer. It is also a unique industry in that it drills down into the smallest villages and areas in the country and delivers substantial benefits to areas with no other sustainable businesses.

Recent dramatic improvements in the quality of the stock in the hotel sector have been encouraging. Senators referred to the cost of hotel accommodation. Clearly, economic circumstances have had an impact on the sector. It is interesting to note that the cost of hotel rooms in Dublin has declined by approximately 20%, with the cost of rooms in the rest of the country down by 17%. While one can view this development in two ways, it indicates that competitiveness is returning to the system. This will make Dublin a much more attractive capital city as it competes with other European capital cities for tourists.

In general, given the good quality of the hotel product here, recent cost trends improve the tourism product. As Senators noted, this will be beneficial during the remainder of the year. This is one of the messages the major tourism organisations, particularly Tourism Ireland, which represents the entire island, are trying to get across. The readjustment in tourism marketing campaigns is also working. Tourism is a tough market but the various organisations in the sector are working together with private tourism interests to bring a sharp focus in our main markets on delivering significant numbers of tourists who will spend money.

Senator Coghlan raised the issue of Killarney House. Fáilte Ireland, the national parks and wildlife service and the Office of Public Works are considering Killarney House as a priority for investment under Fáilte Ireland's tourism capital investment programme. Discussions are ongoing with all three organisations on the scope and costs of the works required. The current position is that consultants have been appointed to prepare a scheme for the renewal of the gardens and these preparations should be completed shortly. A building conditions survey has also been commissioned on the house to precisely specify the extent of remedial work required. Following this a design scheme will be prepared for the restoration of the House to service a probable visitor centre for the national park. Thereafter, cost estimates will be prepared. Work is under way on this matter.