Paul Coghlan (Fine Gael)

I welcome the Minister and thank her for her overview. There is no doubt Ireland has some wonderful attractions and events, of which the Minister listed several, and we very much accept and appreciate all of that. I am glad we are discussing tourism, which has much potential. Sadly, however, we are in a queer street at present and the industry, as the Minister acknowledged, is in difficulty.

We have had a wonderful hospitality trade down the years and we nurtured it well, a point I am very conscious of, coming from Killarney. It is frightful that at present, while this does not apply as much in my area, many good hotels are going into NAMA. To pick up on one of the Minister's points, NAMA has taken in 35 hotels and more will follow. One of the reasons not many more will follow, however, is that many such hotels are deeply indebted to Bank of Scotland, which has withdrawn, and to Ulster Bank. The number of hotels in difficulty throughout the country, unfortunately, is large, and while this was not masked intentionally by the Minister, who gave accurate information on NAMA, it is being masked by the financial institutions. These hotels are being choked, which is very sad.

We have been hit by the global recession, by exorbitant costs and, unfortunately, by the Government-introduced levy on tourists - the travel tax. We also had the frightful situation earlier in the year caused by the sporadically erupting volcano which played hell with the trade. I hope there will be no further eruptions of the volcano in question, especially as it was the cause of major disruption in the past year.

Tourism is a very important industry and it requires support. Those involved in tourism probably became carried away during the Celtic tiger era. The advent of the financial crisis, however, has brought home to people the importance of the tourism industry. Tourism is important for every town and village and it reaches into every part of the country. Ireland has suffered more than most other countries, perhaps as a result of the additional factors which come into play here. Tourism is dependent on a discretionary spend. In a downturn, such a spend will always be the first thing to be affected. As a result, even more difficulties are created.

I would like the Minister to comment on the figures relating to tourism. I was provided with a figure of 6.6 million in respect of the number of overseas visitors to this country in 2009. I have been informed that, as a result of a staffing difficulty, the CSO is no longer publishing figures every month. In compiling the figures relating to the number of overseas visitors, I understand it may have included everyone from here who, for example, travelled over to Britain and back. Does the CSO have a method by means of which it can calculate the true figure for overseas visitors? Have we been placed in a situation whereby the CSO, as a result of the difficulties to which I refer, will not be in a position to provide accurate statistics?

The impact of the recession has been that since 2007, 1 million fewer visitors have come to this country. The likely further decrease this year means that the overall drop since 2007 will be 1.5 million. There was also a 20% drop in the number of bed nights last year. In such circumstances, I am of the view that a recovery is at least three to five years away. There are those who have stated that it might even take ten years to materialise.

Despite the best efforts of Fáilte Ireland and Tourism Ireland, it has proven difficult to retain business in our top markets. I often wonder whether we are doing enough to attract business from our nearest neighbour. Is it possible that we could be more focused in our efforts in the British market? We should be able to attract even greater numbers of British tourists.

We face a number of main challenges. First among these is the fact that Ireland is an island nation. As a result, affordable access is vital, particularly as 90% of our visitors arrive by air. However, airport capacity has declined. Competitiveness is a factor, especially in the context of labour and energy costs. There is also the banking crisis and the impact of the work of NAMA on hotels. A further challenge relates to the fragmentation of the tourism industry and the fact we rely on the UK, which is our largest market. With regard to the latter, currency problems have been a major issue. The budget cuts announced in Britain yesterday will, when they filter through, also affect tourism here.

Cultural tourism is very important. The Minister referred to Dublin being designated as a UNESCO city of literature. Perhaps there is something more which could be done to foster this type of tourism. On the activities side, we have done well in the areas of walking, hill walking and golfing holidays. Again, it might be possible to do better and do more. The Minister also referred to festivals and events and I am glad these will continue to be supported. The forthcoming London Olympics may also afford us some opportunities.

I am glad the Minister met representatives from the airlines. These individuals publicly offered proposals in the recent past. Perhaps the Minister might clarify the position in this regard. The travel tax is a major deterrent and one receives nothing but complaints in respect of it.

Despite the downturn, continued investment in marketing is going to be important. My party has proposed that we could cut the tax on employment by reducing the upper rate of employers' PRSI by 20% and the lower rate by 50%. On average, this would lead to a 3% cut in wage costs for employers. We also support reducing local authority rates, where possible, freezing Government and local authority charges and reducing energy costs.

In light of current circumstances, there is a need for a complete overhaul of the wage-setting system set up under the joint labour committees. I hope Members will forgive me. I think I am developing a cold and need a drink of water.