Seanad debates

Thursday, 21 October 2010

12:00 pm

Photo of Paschal MooneyPaschal Mooney (Fianna Fail)

Cuirim fáilte roimh an Aire. I also take the opportunity, as I have done on previous occasions on the Order of Business and during discussions on tourism, to state it was one of the most enlightened decisions by the Taoiseach to appoint Deputy Hanafin to this important position. I did not, cannot and will never understand why certain elements of the media took it upon themselves to not only downgrade her position but also that of tourism, the country's second most important indigenous industry. Mr. Redmond O'Donoghue, chairman of Fáilte Ireland, summed it up in his 2009 report. He welcomed the new Minister and stated it was a very good sign for tourism that such an able and dynamic Minister had been assigned to this important portfolio. He stated he took comfort from the fact that there seemed to be a growing awareness at national level of the importance of tourism to the economy. I could not have put it better myself. Mr. O'Donoghue stated the industry generated almost 200,000 jobs and €5.3 billion in revenue and had perhaps been overlooked during the boom when the financial sector and other more glamorous industries in Ireland had grabbed all of the media's attention. He suggests that if Ireland is to emerge from the deep recession in which we find ourselves, it will have to be an export-led recovery because most of that €5.3 billion in revenue comes from abroad and tourism is a major part of Ireland's exporting infrastructure.

The Minister referred to various statistics to highlight the current state of the tourism sector. As others also referred to this issue, I will not go over that ground again. I am sure all sides of the House will agree it is interesting that Mr. O'Donoghue states he believes tourism, particularly through our culture and events, will be central to the nation's psychological recovery and help to restore some of the confidence and positivity we have lost in recent years. This is the challenge that faces the sector. It is not only about maintaining and increasing jobs or increasing important Exchequer revenue; it is also about making us feel proud as a nation of what we have to offer and the developments in infrastructure, the hotel sector and various other aspects. We should have continuing pride in these developments and not fear competition from other countries because we have in place some of the most modern infrastructure. This has been borne out, not by the numbers of those coming to the country in the past year or two during the recession but by the numbers of those who have come who have expressed high levels of satisfaction with their Irish holiday. The most recent Fáilte Ireland research, through its visitor attitude surveys, shows that nine out of ten visitors felt their holiday had exceeded or matched their expectations. An impressive 98% went on to say they would recommend a holiday in Ireland. This extraordinarily high level of endorsement of our tourism product provides us with grounds for optimism about the future of the industry.

I will briefly refer to the ongoing discussions on the airport tax. Senator Cannon raised the issue today, as he did last week. I have written directly to Mr. Michael O'Leary asking him to spell out the quid pro quo on what his response would be if the Government abolished the tax. He is quoted as having stated there would be an increase of 6 million visitors over a number of years. I have great admiration for him and it is sad that he is not included in the poll under way seeking Ireland's greatest person. What he has done to open up the travel industry and make travel relatively inexpensive is a monument to his entrepreneurial flair. I have always publically admired what he has done, irrespective of his peccadillos and idiosyncrasies and the manner in which he sells himself and his airline.

Underlying the public relation statements issued by Ryanair which capture the attention of those of us in the House - I am like Senator Cannon in this regard - the simple reality is that Mr. O'Leary embodies the very best of capitalism. He is there because of the bottom line, namely, the dollar and the euro and how much he can make for his company. In that respect, when he speaks about the abolition of the travel tax, he bases it on the reduction in airport taxes at Dublin, Cork and Shannon Airports. He has not specifically separated the airport tax issue from the landing charge issue. Invariably, when one reads what he states, they are always tied together. He will call on the Government to abolish the airport tax but also to reduce landing charges, get rid of the Dublin Airport Authority and blow up or magic away Terminal 2 because it is a complete waste of money. All of these factors are channelled into the issue.

Newspapers and the media in general like things simple; they like a 30 second soundbite. It is very simple to state, "O'Leary promises 6 million if the Government abolishes the travel tax". If only it were that simple. I am encouraged by the Minister's statement that she has met Aer Lingus and Ryanair and I wish her well in her continuing discussions with them. I agree with Senator Cannon that there is a patriotism about Mr. O'Leary, despite his capitalist inclinations. Perhaps this is what we should tap into and the Minister is working on. I wish her well in that regard. I will be interested to see whether I receive a reply from Mr O'Leary, whom I have met and admire greatly.

I understand Fáilte Ireland is developing an exciting and innovative initiative based on the concept of the An Tóstal festivals to actively encourage the Irish Diaspora to visit Ireland during 2012. An Tóstal was created in 1953 by forward-looking and creative public servants in Bord Fáilte. An Tóstal, which means a pageant or a muster, used the slogan "Ireland at Home" and targeted the UK and US markets using modern marketing strategies way ahead of their time. Every village, town and city in Ireland was encouraged to set up an An Tóstal council. It was phenomenally successful and the festivals were the building blocks of our modern tourism industry. I pay tribute to those innovative pioneers of the industry and the strategies they devised during the hungry 1950s when we haemorrhaged people from the country.

In 2012 hundreds of millions of people across the world who are Irish or claim to be will be actively encouraged to visit Ireland in all of its wonderful manifestations. I hope the entire community will be involved in marketing Ireland as a destination. I am aware that the Minister is already involved in discussions with Fáilte Ireland, Tourism Ireland and the other State agencies to ensure this will happen. The Irish abroad section of the Department of Foreign Affairs will also be involved. The best example of the success of such an initiative is the Homecoming Scotland campaign which ran for two years and with which some Members will be familiar. This is a very exciting concept. I would be grateful if the Minister could set out her Department's thinking in this regard. I understand there has been a positive reaction to the proposal, the details of which will unfold in the next 12 months. If we tap into the Irish Diaspora, we can bring hundreds of thousands, if not millions, of people to this country in 2012. Can one imagine the impact that would have?

It is not just a question of encouraging people to come to Ireland, we also need to inform them about what they will experience when they get here. We must ensure our sports and cultural organisations will be involved. We need to harness the wonderful wealth of expertise and talent in this country. I look forward to hearing more details about this wonderful and innovative concept which will be directed by the Department of Tourism, Culture and Sport, with the help of Fáilte Ireland and Tourism Ireland, the two main State agencies charged with improving the country's tourism sector. The event may prove to be a turning point. The lead-in period will allow us to prepare for the initiatives being pursued by Fáilte Ireland and Tourism Ireland. The Minister has referred to the 2011 business plan.

I do not doubt the statistics mentioned by Senator Cannon, in relation to European countries, will be met and exceeded in this country. In that context, I will make a point about the air travel tax. I would not like us to lose the run of ourselves. The German Government recently announced plans to introduce an air travel tax as part of a package of budget cuts and taxes. It would serve as an environmental incentive, given that aviation fuel tax is unenforceable. While it is too early to predict what the likely impact of this measure on outbound travel might be, it might make air travel relatively less competitive than other modes of travel available to German travellers. That is the other side of the argument. It is not as simple as abolishing the tax. In principle and in spirit, I would be ideologically wedded to Senator Cannon's view that no obstacle should be placed in the way of providing access to the island of Ireland. As an island nation, Ireland is different from nations on the Continent. Any obstacle placed in the way of access should be considered and removed. We can spend as much money as we want on marketing strategies, but the quid pro quo is that we ultimately rely on the airlines to use their marketing strategies to help to bring people in. I am not calling the bluff of Mr. O'Leary and Mr. Mueller. If the Government is giving serious consideration to the abolition of the tax which is what the Minister seemed to indicate following her discussions with the Minister for Finance, the quid pro quo is that those running the airlines will have to deliver by putting their money where their mouths are.

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