Paschal Mooney (Fianna Fail)

I second the amendment. I welcome the Minister to the House. I have to pinch myself when I consider that this Government of all the talents - I mean that in the pejorative sense - includes people such as the Minister who is at a very tender age and has a very bright future ahead of him. However, he has been thrown in at the deep end to some degree and it reminds me of a previous Fianna Fáil Administration in the 1960s which was seen at the time as the Government of all the talents. Cycles come and go and I genuinely wish the Minister well. He has hit the ground running.

I also welcome the decision by Fine Gael to table this important motion in the opening days of the new Seanad. It confirms the importance the new Government has placed on tourism and follows on from a similar commitment by the Fianna Fáil-led Administration. The initiatives launched by the last Government are now beginning to bear fruit, as confirmed by the first quarter figures which show a 9% increase in tourism numbers, the first in three years.

However, I am sure the Minister would agree that we cannot read too much into these figures because the first quarter figures comprise about 20% of the overall visitors to Ireland in any given year. The third quarter figures will confirm whether the tourism industry is back on track. I am willing to concede that it is clear we have reached the bottom and that real tourism jobs, which dropped from 243,666 in 2007 to 180,000 in 2010, will start to increase this year. I would be interested to know if the figure is accurate. It came from the hotel industry and it seems to be a considerable drop. I did not think the drop would be as significant over a three-year period. I am curious to know how many people the Department assesses as being employed directly in tourism.

I am sure the Minister would agree that reliable, up-to-date statistics are the lifeblood of any business, in particular in the tourism industry, and a decision by the Central Statistics Office to stop producing monthly figures is having a detrimental impact. It is vital our State agencies, Fáilte Ireland and Tourism Ireland, have up-to-date figures to respond quickly to changing trends in what is a volatile market at the best of times.

Other agencies, such as the Irish Tourism Confederation, which represents hotels, bed and breakfast outlets and the major air and sea carriers, also requires up-to-date statistics to have a more effective strategy and to be able to respond quickly. I understand the Central Statistics Office, CSO, has cited a lack of resources as the reason for issuing quarterly figures. As I am sure the Minister will agree, it is unacceptable that the first quarter figures to the end of March have only become available at the beginning of June, while the most important statistics, those for the third quarter which is the busiest time of the tourism year, will not be available until November. I urge the Minister to use his influence to provide the necessary resources to the CSO. While I appreciate that in difficult times the Minister must watch every cent spent, I propose that the Central Statistics Office be permitted to immediately recruit students and-or interns to work on the relevant calculations and thereby ensure the availability of more up-to-date statistics. It should not be difficult for the office to employ students who are in receipt of jobseeker's benefit or jobseeker's allowance and seeking employment. While I do not wish to demean the role of the CSO, compiling statistics does not require one to have three or four first class honours degrees. My proposal would also provide useful experience for people who are out of work and a solution, albeit short term, to the current problem. As the Minister will agree, it is vital that up-to-date statistics are available, especially as they are showing something of an upturn in the tourism sector.

The first quarter figures for sea carriers also show an increase in tourist numbers. Companies operating on the Irish Sea are expecting an increase in numbers of between 3% and 4% this year, which suggests that the promotional strategy of Tourism Ireland in Great Britain is proving effective. This year, Tourism Ireland increased its marketing expenditure in the United Kingdom by 30% to €17 million, all of which is taxpayers' money. It also commenced a European media blitz in March. I compliment the agency's chief executive, Mr. Niall Gibbons, on the proactive manner with which he has been selling Ireland abroad. His name is becoming increasingly familiar to television viewers and those involved in the media. He has put his heart and soul into tourism promotion in recent years and I wish him and his team continued success.

It is interesting to note that Ireland ranks seventh on a list of places British holiday makers wish to visit. While the trickle down effect of the recent visit of Her Majesty the Queen may not be felt until next year, I agree with Mr. Gibbons that our place in the affections of our nearest neighbours provides a solid base for the recovery of our most important market. On the wider European front, Tourism Ireland is to be commended for launching a major promotional push in our two largest European markets. Some 40 million potential French and German visitors have been viewing images of Ireland on their television screens since the beginning of April in a promotion encouraging tourists to visit Ireland. Tourism Ireland could not carry out such promotions without a Government input through the Department's Vote. I commend the Minister in that regard and ask him to keep the money flowing because promotion is a vital aspect of our drive towards increasing tourist numbers.

The motion refers to 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. This is a reference to the growing potential of Asia. I had the opportunity to visit Taiwan earlier this year in the company of the Minister of State with responsibility for small business, Deputy John Perry, a constituency colleague who, as president of the Ireland-Taiwan Parliamentary Friendship Society did enormous work in recent years to improve ties between our two countries. I learned at first-hand that the removal of visa requirements for citizens of Taiwan has resulted in increased visitors to Ireland. Our close relationship with China and other south-eastern countries and the removal of visa requirements for visitors should result in an increase in tourist numbers, especially in 2012 when the Olympic Games will be held in London.

I welcome the decision to reduce VAT on the tourism sector to 9%. This measure provides a wonderful incentive which will result in substantial savings, especially for small restaurants, cafés, family run hotels and bed and breakfast providers. The owner of a small business employing five or six people in the tourism sector in County Leitrim has projected that the measure will result in an annual saving of €60,000. This indicates that jobs will be protected and employment opportunities will result. The VAT reduction is a positive policy decision which will make a difference, especially in the north west which traditionally relies on tourism, and prevent small enterprises from going out of business.

The proposed abolition of the air travel tax follows a decision by the former Minister for Finance, Deputy Brian Lenihan, to reduce the tax from €10 to €3. The condition attached to the abolition proposal is the same as the condition attached to the former Minister's decision to reduce the level of the tax. At that time, Ryanair made clear that abolition would be followed by increased tourism numbers and new routes into Ireland. However, in response to a query I raised with Michael O'Leary of Ryanair last October as to what exactly his company would deliver on foot of a reduction of the air travel tax or its abolition, Mr. O'Leary made clear he wanted the Dublin Airport Authority dismantled and a reduction in landing charges at the State owned airports. The former Minister for Tourism, Culture and Sport, Deputy Mary Hanafin, met the same response in bilateral discussions with Ryanair and the current Minister is obviously encouraging the same response.

The Minister stated that the €30 million raised from tax over the 18 month period will be recycled and spent on tourism promotion. For the 18 months that this has been reviewed to identify whether Ryanair and Aer Lingus move in the direction we seek, which I doubt they have done, the €30 million will go into the balance sheet of Ryanair, an airline which charges for drawing one's breath when one boards one of its aeroplanes. What will happen when it transpires in 18 months that the airlines have not delivered? I genuinely wish the Minister well with Ryanair and Mr. Michael O'Leary and, to a lesser extent, Aer Lingus but I hope he will play hardball with them on this issue. Mr. O'Leary is coming under increasing pressure across Europe as European airports raise their charges which puts the Minister in the driving seat.

Tourism is the second most important indigenous industry, after agriculture, and a vital artery in the economic life of the north-west region.