Paschal Mooney (Fianna Fail) | Oireachtas source

This week, the Irish Hotels Federation, IHF, held its annual conference in Ballyconnell, County Cavan. A great deal of positives news on the tourism front came out of that meeting. There are indications of a strong resurgence in the hotel sector around the country, as suggested by the number of hotels that have been bought in the past 12 months.

There was also a great deal of praise for the continuation of the reduced VAT rate of 9% and rightly so. We on this side of the House have supported it. According to the economist, Professor Alan Ahearne, I understand that the reduced rate has generated more than 30,000 jobs in the tourism sector. As such, we should be steady as we go. I hope that the Government maintains the 9% rate. In this regard I seek a review of the hotel sector outside of Dublin and the main areas. Hotel numbers are buoyant and occupancy rates have increased considerably in Dublin, perhaps more than in any other part of the country. In the regions, however, and particularly mine in the north west, there has traditionally been a lower number of visitors. While I am not necessarily asking the Government to intervene, there should be incentives to encourage people to disperse around the country, for example, free vouchers or another type of link-up with hotels.

I endorse Fáilte Ireland's comments at the conference. Despite the fact that there is buoyancy in the hotel sector in Dublin particularly, there have been some price increases. There was no indication at the meeting that the sector would go in a different direction, but I hope it is not tempted by the increased buoyancy in the tourism market to increase prices beyond what is acceptable, thereby destroying an internationally fragile commodity, namely, tourism.People switch and change their minds on a regular basis. I understand city hotel prices here are the third lowest in Europe and I hope that will continue. I compliment the Government on the initiative it took and urge it to maintain the 9% VAT rate because tourism in Ireland generally but in the west, in particular, is a bedrock of the economy. If tourist numbers drop, people in my region suffer the most economically. I am glad to say, however, that the trend seems to be turning in our favour.