Seanad debates
Thursday, 4 March 2010
Tourism Industry: Statements
Dara Calleary (Mayo, Fianna Fail)
While I am not overly familiar with the rules of the House, I have no problem coming back again, if necessary. I thank all Senators for their contributions which I will pass on to the Minister, as I will pass on the good wishes of the House.
I want to reflect on a number of specific contributions that were made before making some general remarks. With regard to Senator Ó Brolcháin's points on the Volvo ocean race, I understand from his local media that there may be good news on that issue later today or later this week. On 2 February, the Minister, Deputy Cullen, announced that the Government was willing to commit €4 million support for the Let's Do It Global bid to host a port stopover in the 2011-2012 Volvo ocean race. That funding was dependent on commensurate funding from the private sector, which is an issue we are working on.
Many Senators referred to the airport departure tax. There is no doubt this is an issue for the industry and it has been highlighted at the tourism renewal group. However, it is important to point out that the airport departure tax is an important revenue raising measure and, in its absence, that revenue would have to be sought elsewhere. The Government has tried to be as fair as possible in considering areas for additional tax revenues. As many Senators mentioned commercial airlines, it is worth noting that fuel used by commercial airlines is completely exempt from tax.
Several Senators raised issues about visas, a live issue for the Government. The Taoiseach, in speaking to the Irish Hotels Federation earlier this week, noted that the visa issue was raised at Farmleigh and that it is a complex and sensitive area which raises important issues of migration policy and security. The Government is anxious to work with the tourism industry to minimise the potential impact on tourists. Fáilte Ireland is targeting some of the countries mentioned by Senator Quinn and we are asking the Department of Justice, Equality and Law Reform to seek practical solutions to deal with the issue.
I have spoken about credit supply many times in this House. We are continuing through NAMA to pursue policies to ensure credit supply will become available once we get a properly functioning banking system. The tourism sub-group of the main credit supply steering group met on 24 January 2009 to discuss the specific issue of credit finance for the tourism industry. Arising from that meeting, Fáilte Ireland and the Irish Hotels Federation have joined the main credit supply group; therefore, there is a focus on the credit supply area in regard to tourism.
I note the many comments from Senators about local authority charges. The Minister, Deputy John Gormley, announced the establishment of a local government efficiency review group to review the cost base, expenditure and numbers employed in local authorities. The signalled introduction in the budget of water charges and a site valuation tax to be used to fund local authority services is a step towards the broadening of the revenue base at local level which, ultimately, will relieve the burden on tourism and other businesses.
Senator Ó Brolcháin spoke about a number of issues in regard to cultural tourism. I acknowledge his remarks about festivals and declare an interest as a board member of the Ballina salmon festival. We need to do more to fund our local festivals and, in particular, the Fáilte Ireland restrictions around promotion of local festivals need to be relaxed. This is an issue I wish to work on.
In response to Senator Coghlan's query regarding the particular market initiatives in Britain, Tourism Ireland is implementing all the recommendations for a root and branch review of the British market. Those include a focus on value, differentiating a holiday on the island of Ireland from one in Britain and a spend in the British market of €12.8 million in 2010. For Senator Coghlan's benefit, I point out we are also targeting the German market and, earlier this year, 900 travel professionals from Germany spent their annual academy in a place called Killarney, which I understand he knows well. As discussed, we have been involved in the tourism blitz in North America, which will continue.
I reiterate that I am happy to come back to the House to discuss this issue or to have the Minister come back to discuss it. We must remember a few positive points. Our tourism stock and hotel stock are now among the best in the world following the period of sustained industry investment, supported by the initiatives introduced by the Government, including an array of grants and tax reliefs. While those tax reliefs are being criticised at present for causing the oversupply, it is important to remember that they drove the increase in standards referred to.
Recent surveys have found that hotel room prices are some of the lowest in western Europe, which should appeal to increasingly price conscious tourists. The price of getting to Ireland is also competitive by international standards and is falling, and the reduction in alcohol excise duties in the 2010 budget should result in lower hospitality costs for visitors. I agree, as many Senators have suggested, that we need to address the broader cost of entertainment and dining out for our guests, which is all the more important given the movements in international exchange rates, particularly in the US and British markets. We will continue to focus on reducing costs.
Regional tourism is obviously an area of importance to me and was mentioned by many Senators, including Senator Mooney who has brought his expertise to bear in that area in recent years. The regionality issue has now moved beyond a simple east-west debate and incorporates more of an urban-rural split in the business, to which Senators Coghlan and Ó Brolcháin referred. This is an international trend and reflects global consumer patterns. However, it is important to note that the 2008 figures show that approximately 70% of total tourism revenue is spread in the regions outside Dublin. The importance of promoting a balanced regional spread of tourism in a way that maximises the potential for growth is reflected in our plans for the development of the industry as a whole.
In regard to the support for individual businesses, Fáilte Ireland worked directly with 3,000 tourism businesses in the area of marketing support and general support in 2009. It will continue to provide and invest extensively in 2010 in direct supports, training and advice for tourism businesses.
A number of comments were made about our culture. Aontaím leis an Seanadóir Ó Brolcháin go bhfuil sé tábhachtach go ndéanfaimid iarracht infhaighteacht na Ghaeilge a fheabhsú.
I appreciate the comments from Senators about St. Patrick's Day. I heard a comment on radio which queried what the Government would be charged for the access we get to the international media and international governments on St. Patrick's Day. A PR professional replied that while one could charge handsomely for trying to get that kind of access, one could not buy it. We have an enormous opportunity in the next couple of weeks. Worldwide attention is focused on St. Patrick's Day and the island of Ireland. It would be worth undertaking a research project to find how many people actually do not make the connection between St. Patrick's Day and Ireland. We must maximise that opportunity in whatever way we can, particularly, as Senator Mooney said, given the year that is in it.
The Irish tourism industry is a resilient one. It is well placed to capture its fair share of global tourism arrivals with a proper policy framework, a strong partnership with the industry and active and responsive tourism agencies. In Tourism Ireland, which is an outstanding agency in the work it does internationally, and Fáilte Ireland, I am very confident about our capacity to survive these exceptional times, recover, return to sustainable growth in the medium term and get the global and Irish economy back on track using tourism as a vehicle.
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