Paul Coghlan (Fine Gael)

I move:

That Seanad Éireann believes that the tourism sector will be a key driver of Ireland's economic recovery.

As such, Seanad Éireann:

— commends the importance that the new Government has placed on tourism as a vehicle for Irish economic recovery both within the programme for Government and the jobs initiative;

— welcomes the decision of the Minister for Finance to reduce the level of VAT applied to a range of labour-intensive tourism services to 9% providing a much needed support to this sector of the economy;

— supports the Minister for Transport, Tourism and Sport's three-pronged plan to promote inward bound tourism through:

abolishing the travel tax, contingent on commitments by airlines to increase inbound capacity from our source markets;

the offer by the Dublin Airport Authority of rebates on passenger charges for extra passengers brought in by airlines; and

more targeted co-operative marketing of new routes from key source tourism markets by Tourism Ireland, DAA and the airlines to encourage more tourists to fly into Ireland.

— commends the initiatives promoted with regard to domestic tourism which include:

a €1 million Discover Ireland promotional campaign;

a special fares promotions from Irish Rail; and

other initiatives from Fáilte Ireland.

— the introduction by the Minister for Justice and Law Reform of Ireland's formal visa waiver programme, which will facilitate and encourage tourism to Ireland from key emerging markets;

— notes the significant value of the recent visits to this State by Queen Elizabeth II and President Barack Obama in promoting Ireland and Irish tourism overseas, which are being built on by Tourism Ireland's overseas marketing efforts; and

— encourages all those engaged with Irish tourism to work together with the relevant agencies, the new Ministers and Government to ensure that the quality and competitiveness of the Irish tourism offering is continually improved.

I welcome the Minister to the House; we look forward to hearing from him. I am also delighted tourism has been made a key priority of this Government. It is one of the sectors best placed to promote our economic recovery. The Government has clearly demonstrated its commitment to the sector by the importance placed on tourism in the programme for Government and the strong emphasis placed on it in the jobs initiative programme.

The programme for Government clearly outlines a number of commitments on tourism to improve the product, something we all subscribe to. We are an island nation and international access is vital to our tourism recovery. The commitment to abolish the €3 travel tax is subject to a deal being agreed with Ryanair and Aer Lingus to re-open closed routes and perhaps open new routes and bring more tourists into Ireland. If a deal is not done, there will be no reduction in the tax, as the Minister has made clear, and I wish him well in the negotiations on this issue.

We will prioritise the tourism marketing fund as an essential pillar of our tourism strategy and will ensure the best return on Exchequer spending. This Government intends to explore the possibility of a new agreement on visitor visas with Britain, offering tourists the opportunity to visit Britain and Ireland with one visa at a reasonable cost to tap into the tourism market for significant events such as the forthcoming London 2012 Olympics. Marketing campaigns will be developed in emerging long-haul markets, such as China, Russia, India, Japan and the Middle East using the tourism marketing fund.

Recovery of market share in Britain also will be a key priority in a revamped tourism strategy. Traditionally it always it has been Ireland's best market but Members will be aware of the recent slump in numbers. Improving the e-capability of Ireland's tourism product will be a priority. The Government will target available resources at developing and co-ordinating niche tourism products and activity packages that are attractive to international visitors and will focus on food, sports, culture, eco-tourism, activity breaks, water-based recreation and festivals. Events tourism will be prioritised to continue to bring major fairs and events to Ireland, such as the Volvo Ocean Race, the Solheim Cup and so on.

The jobs initiative announced by the Government last month includes a multi-pronged plan to assist the tourism sector and create further jobs. Tourism clearly is one of that initiative's main areas of focus, which reflects the issue's importance to the new Government. The plan includes the reduction in the level of VAT applied to a range of labour-intensive tourism services to 9%, thereby providing a much-needed support to that sector of the economy. It also allows for the abolition of the travel tax if airlines commit to delivering more tourists to Ireland, the rebating of substantial levels of charges to airlines by Dublin Airport in return for additional passengers being brought into the country and setting up a joint marketing initiative between Tourism Ireland, the Dublin Airport Authority and the airlines. The initiative also will reduce VAT on the cost of many services, including accommodation and restaurants. The halving of employer's PRSI for those on modest wages will make it much more attractive for tourism employers to give people the chance to take up work. The introduction of a tourist visa waiver for people from certain countries with a valid United Kingdom visa will make it easier for tourists from emerging economies to come to Ireland without experiencing the cost or hassle of applying for a separate Irish visa. The initiative also supports a strong focus through the tourism marketing fund on our major source markets, including the United Kingdom, to take advantage of the additional opportunities presented in 2011 by the visits of Queen Elizabeth and President Obama. It will also encourage work placements and internships in the private sector. Such schemes give tourism businesses a chance to take on young and enthusiastic graduates and trainees with languages and technical knowledge, while helping the unemployed to develop their on-the-job skills and practical experience. The new arrangements will make it more practical and attractive for firms to take on placements and for graduates to take up opportunities.

Great Britain and the United States of America are two of the four key markets for Irish tourism. As such, the two recent state visits gave Ireland a significant opportunity to showcase its tourism products. This was done through a variety of visits to, and public events at, key tourist attractions such as Croke Park, the Guinness Storehouse, the Rock of Cashel, the National Conference Centre, College Green and the National Stud, among other locations. Following the two state visits, research was commissioned to assess their value to Irish tourism. It showed that President Obama's visit generated 11,586 print and online articles, as well as 4,416 separate broadcast pieces, in the United States and United Kingdom, of which 3,493 of those were in the United States alone. The visit of Queen Elizabeth generated 15,793 print and online articles, as well as 6,000 separate broadcast pieces. This coverage is estimated to be worth at least €298 million in terms of its advertising equivalent. In the first quarter of 2011, the total number of overseas trips to Ireland increased by 8.6% to 1,177,600, which was an overall increase of 92,800 compared with the same period 12 months earlier. Visitors from North America increased by 11.9% to 153,600, while the number of trips from residents of Great Britain and other European destinations had increased by 7.2% and 8.9% to 564,300 and 399,000, respectively, while trips from residents from other areas rose by 12%.

The targets for 2011 set by Tourism Ireland are to achieve growth in overseas visitor numbers and foreign revenue earnings of up to 4% and 7.3%, respectively. Tourism Ireland has reviewed its marketing strategy and operations for 2011 to ensure that while working in close co-operation with Fáilte Ireland, the Northern Ireland Tourist Board and tourism industry partners, it can return overseas tourism to growth in 2011. Tourism Ireland's major promotional effort in 2011 is focused on the four key markets that together deliver 75% of overseas visitors, namely, Great Britain, North America, Germany and France. In addition, Tourism Ireland is engaged in rolling out trade, marketing and publicity campaigns in a further 19 markets, including China and India, albeit with lower levels of resources and investment. An extensive €28 million first half tourism marketing drive is under way at present in key markets to drive demand for travel in peak and off-peak seasons and to promote city breaks and touring holidays, as well as activities, including golf and business tourism. The marketing drive highlights things to do and see in Ireland, the fares available from air and sea carriers, the value on offer from tourism industry partners, as well as the Irish welcome. In addition, it has launched a major marketing drive in Britain and the United States to maximise the global publicity that surrounded the historic visits of Queen Elizabeth and President Obama to Ireland.

Sustaining and developing the growth of the British market is a major priority of 2011. With this in mind, Tourism Ireland has increased its marketing spend in Britain by 30% and I understand it will spend more than €17 million in promoting the island of Ireland there this year by ensuring a strong promotional presence on television, radio, online and on social media outlets throughout the year. Tourism Ireland's overseas publicity campaign this year will generate positive media coverage for the island of Ireland worth up to €200 million in equivalent advertising values. Its suite of 42 websites in 14 languages will attract almost 12 million visitors who will visit the site to research and plan aspects of their holidays here and to access offers from the tourism industry partners. Three quarters of a million Discover Ireland holiday guides will be distributed through tourist offices and in several national newspapers, including The Irish Times, the Irish Examiner, the Sunday Independent and the Belfast Telegraph. It also will be available online at www.discoverireland.ie. The guide will contain more than 230 special offers with a strong emphasis on family breaks. The holiday guide contains suggestions on family festivals, fun attractions and adventures for kids, including boat trips, dolphin and whale watching, GAA Cúl camps, fun museums, animal magic, sea life centres and water worlds.

I compliment the Minister on this highly ambitious programme. While it contains a great deal more, I lack the time to deal with it during this contribution but I look forward to Members returning to the subject during the lifetime of this Seanad as required and hopefully often. I again warmly welcome the Minister to this House.