Seanad debates

Wednesday, 19 November 2003

Report of Tourism Policy Review Group: Statements.

 

10:30 am

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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I welcome the opportunity to address the House on the report of the tourism policy review group, which has been eagerly awaited by all those with an interest in the further successful development of tourism. The report is the most important and authoritative document on tourism policy and performance in over a decade.

When I took over responsibility for the tourism portfolio nearly a year and a half ago, I was conscious that the industry was at a turning point. After a prolonged period of significant growth, I recognised that the tourism business was undergoing fundamental changes internationally and that changes in the domestic economy were also bringing about a new series of challenges which threatened to undermine the future of the industry in Ireland.

I am grateful to John Travers and the other eminent members of the review group for agreeing to take up my invitation to carry out this work. The quality and depth of their report speaks for itself. From the outset, the group carried out the widest possible consultation, including an open public forum which was advertised in the national press. The body of oral and written submissions it received is a testament to the widespread interest in the exercise.

The review group itself was unique, including not only public and private representatives of the tourism industry, but also independent business people and other experts who brought a broader and perhaps more critical and independent assessment of the sector.

The report includes an overview of tourism world-wide, an assessment of the economic contribution of the tourism sector to the Irish economy, an analysis of recent tourism performance, a detailed assessment of tourism in Ireland today and an outline of the challenges and opportunities facing the industry. However, more importantly, it proposes a coherent and integrated strategy for Irish tourism for the next ten years and a series of recommended actions to implement the strategy. It clearly identifies the large number of quite different stakeholders that influence tourism development and it highlights the need for co-ordinated and integrated action to influence the wider agenda that impacts on Irish tourism.

One of the key conclusions which the review group arrived at was that the ultimate determinant of success in Irish tourism would be "an energetic, innovative and profitable private sector, operating within a domestic environment where Government policies and actions are supportive of business investment in tourism". That statement captures exactly what I would like to see for the industry over the coming decade – an energetic, innovative and profitable sector.

The review group has set ambitious targets for the next ten years – 10 million overseas visitors annually by 2012 and a doubling in revenue from overseas visitors to €6 billion per annum. These are extremely ambitious but achievable since it has been done before. In 1990 we had just over 3 million overseas visitors a year. The decade that followed saw us more than double that number. I am pleased to report that the Irish Tourist Industry Confederation, whose considered views on the report I received recently, agree the targets are "potentially attainable". Their provisos are that the assumptions on which they are based prove accurate and that the central elements across the entire strategy are accepted and implemented successfully.

One of the key assumptions underlying the strategy is, of course, that international tourism will continue to grow and that Ireland will increase its share of current and developing markets. This is against the backdrop of yet another challenging year for the tourism industry globally and when, yet again, Irish tourism has had to prove how robust and resilient it is.

The World Tourism Organisation predicts that 2003 will be a flat year for global tourism and only forecasts the number of visitors to Europe to grow by less than 1%. Based on its analysis, Europe has fared better than the Americas or the Asia-Pacific regions which were affected more severely by the war in Iraq and SARS. The latest figures for tourism to Ireland show an increase in visitor numbers of over 3% for the first six months of the year. The best market intelligence available suggests that this level of growth may be sustained for the year as a whole. On these figures alone, Ireland's performance this year is positive. Ireland has seen an increase in visitor numbers in some of our key markets, including the very important British market. This represents a strong endorsement of the marketing strategies being pursued by the State tourism agencies.

In considering the performance on a market by market basis, the indications are encouraging. Ireland is set to increase its share in many of its major tourism markets this year, despite the intense competition that is now such a feature of international tourism. Ireland has managed to increase numbers from Britain by over 2% in the first six months of this year even though outbound tourism has been flat. Similarly, in mainland Europe, Ireland appears to be outperforming its main rivals in Germany, France, Italy and Spain. The North American market also appears to be turning the corner with strong growth achieved this year for the first time since 2000.

The overall projections for the year from the tourism agencies are also positive with forecasts predicting a 3% increase in visitor numbers to 6.1 million visitors, with British visitors up 2%, mainland European visitors up 6% and North American visitors up 7%. If this level of growth is achieved, it would represent a good performance in a difficult year.

The news this year is not all positive. It is evident that, in meeting the challenges of an increasingly price-conscious market, the industry's bottom line has come under more pressure this year. The average length of stay of overseas visitors continues to decline and the continued growth in the capacity of the hotel sector impacts on the overall share out of bed nights generated by visitors to Ireland. Tourism Ireland and Fáilte Ireland are focusing increased marketing resources on longer stay market segments although the tremendous growth in the short break market has been a major factor, both in Ireland and worldwide.

Speaking of the increasingly price-conscious market brings me back to another of the key messages from the review group, that the greatest challenge facing the tourism industry is to restore its competitiveness. Restoring competitiveness must be a common goal for the entire Irish economy, but it is especially important for the tourism sector which has to compete internationally for its customers. From a marketing perspective, it is vital for the sustained development of tourism that the industry continues to deliver the quality of holiday experience that tourists to Ireland have come to expect.

In its report, the review group makes the point that competitiveness is not just about pricing, but must also be a function of the total Irish tourism experience for customers relative to other locations. This starts from initial inquiries about visiting Ireland, right through to travelling here, where people go when they get here, where they stay, who they meet, what they do, what they see and their perceptions about price and quality.

Another key message of the report is that a high and increasing proportion of visitors have expressed concerns about competitiveness. The industry should recognise that it has primary responsibility for offering better value to its customers, if it is to maximise the opportunities for future growth. Delivering value for money to the customers must continue to be foremost in the minds of all those involved in the tourism sector.

There is no immediate, single or easy solution. Having identified competitiveness and value for money as key strategic drivers of success for Irish tourism, the review group listed some ten specific actions to deliver the strategy which require responses from both the private and public sectors. The list includes proposals for taking responsibility for restoring competitiveness, inflation, benchmarking, customer relations, management capability, training and making high standards Ireland's competitive advantage.

Visitor attitude surveys continue to find that Ireland is still highly rated for the beauty of its scenery and for the friendliness and hospitality of our people, indicating that our traditional welcome is much appreciated. In a high wage, high productivity economy like ours, we need to encourage a relentless pursuit of higher standards in all aspects of tourism as a competitive response to lower cost alternatives in other holiday destinations. This brings to mind an event I attended last week in the National Museum where I was asked to present Fáilte Ireland's Irish welcome awards. The Irish welcome is the trademark that represents us to the world at large. It is treasured and we are famous for it at home and abroad.

It is an extremely valuable and living symbol, both as part of who and what we are and as an attribute that sets us apart and gives us an edge over our competitors in an increasingly competitive marketplace. I put on record my appreciation of the key role that initiatives such as the welcome awards play in helping to achieve our tourism goals. The scheme extends to a wide variety of enterprises across the tourism spectrum. It is based on a customer nomination system and, as such, provides the most appropriate basis for identifying tourism practitioners par excellence. Finally, and most importantly, it serves to acknowledge and celebrate the bringing together of the key ingredients necessary for tourism success.

Those whose efforts were celebrated last week are at the coalface of Irish tourism, the place where it really matters to visitors whether a professional and excellent job is done and where Irish tourism can create happy and memorable experiences, for overseas visitors and Irish holidaymakers alike. I am sure many Senators know a great number of other people working in tourism areas with which they are familiar who would merit similar awards. The delivery of a quality service is key to the future success and profitability of the tourism industry as a whole.

As regards the recommendations in the report directed at my Department and the tourism State agencies, I am pleased to report that a number of the actions are already underway. For example, the tourism unit of the Department has been re-configured, advertisements seeking expressions of interest in relation to the national conference centre have been placed in the media and bilateral consultations have taken place with the Department of Finance on taxation issues and with the Department of Health and Children on the anti-smoking regulations. I have been advised that Fáilte Ireland is taking account of the recommended actions and suggested timescales relevant to it in its operational planning for the remainder of this year and next year.

In addition, Fáilte Ireland has announced a new initiative to address the cost of insurance across the sector in co-operation with industry representative groups, including the Irish Hotels Federation and the Restaurants Association of Ireland. Similarly, Tourism Ireland Limited has completed an examination of the recommendations in the report that impact on areas within its remit and it has incorporated a number of these into its three year marketing strategy and detailed operating plan for 2004.

Where do we go from here? I am determined that the excellent work of the review group will be capitalised on and that the momentum generated by the focus on the tourism industry will gather force. The review group worked with an equal vision and put the emphasis on an agenda for action, identifying the concrete actions that need to be taken to help ensure the implementation of the new strategy. The first two year rolling plan included in the report is a very ambitious and challenging one, involving over 70 individual recommendations. These are directed not only at my Department, the tourism State agencies and other Departments but, perhaps more importantly, to representatives of the tourism industry and individual tourism enterprises. I welcome the significant contribution to the development of policy represented by the report of the review group and I will ensure that the recommended actions are pursued not only within my Department and the State agencies under my remit, but also with industry representative bodies and my Ministerial colleagues.

Having recently received the considered views of the Irish Tourist Industry Confederation on the report and the shape of the proposed high level implementation group, I hope to be in a position shortly to establish a small group to drive forward and monitor the action plan. I take this opportunity to mention that Tourism Ireland's market plans for 2004 are already well advanced. I am delighted also that the Exchequer provision for marketing in 2004, under the tourism marketing fund, has been increased by a further 3.5%. In early December, I will launch Tourism Ireland and Fáilte Ireland's joint marketing programme for 2004 and I am confident that next year's campaign can build on this year's performance.

Among the initiatives planned for the British market next year will be a focused drive on the "family holiday" market, which is so important to length of stay and regionality, an aspect of the tourism industry that I know is of particular interest to many in this House. There will also be increased emphasis on direct marketing, in conjunction with industry partners. The challenge now is to replicate the growth achieved in the 1990s, to improve the quality of our product and our competitiveness and to look to a new horizon for Irish tourism.

The report of the tourism policy review group not only provides us with the challenges, it also points the way and tells us how we can get there. I will be actively working to ensure that all partners in the process are working together to achieve this vision. I am confident that, with a shared understanding and partnership between key decision-makers in both the public and private sectors, the full potential of the tourism industry can be realised. We have been presented with the most comprehensive, authoritative and visionary document ever produced on one of our most important industries. We have been told in no uncertain terms of the value of tourism to this economy and this country, of the challenges it now faces and how to ensure it can grow as it needs to and as it should be allowed to. I am of the strong belief that we are now at the beginning of something very important that should lead to the full recovery of the Irish tourism industry.

Photo of John Paul PhelanJohn Paul Phelan (Fine Gael)
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I welcome the Minister and what he had to say. I also join with him in complimenting the members of the review group on the publication of the report, New Horizons for Irish Tourism. I largely agree with what the Minister has said. The report contains an in-depth analysis of the tourism industry. I agree with the Minister that the industry finds itself at a cross-roads and compliment him on initiating the process which resulted in this report. I am pleased it makes strong recommendations, unlike many reports which tend to contain weak recommendations, and I hope the Government and those involved in the tourism industry can act on them.

It is clear from the report and from a number of surveys carried out recently that there are two main problems within the tourism industry in this country, the most serious one of which is the perceived lack of competitiveness. The other, according to a recent survey on the reactions of tourists to Ireland carried out by my colleague, Deputy Deenihan, is the significant problems associated with access to the country and transport for tourists within the country. When the lack of competition is mentioned, the response from the Government, especially by the junior partner, is to ask people to shop around. I hope the Tánaiste and Minister for Enterprise, Trade and Employment, Deputy Harney, does not ask those who are considering visiting Ireland and who think it might be a little expensive to shop around. It is important that they continue to come here in increased numbers. It is also worth noting the reaction to the report by those involved in the tourism industry. They have indicated that the goals set out are attainable.

The perceived lack of competitiveness is felt across all aspects of Irish society. There has been a downturn in our general competitiveness over the past couple of years. In 1999, Ireland was the fifth least expensive of the 15 member states in the European Union, but a recent survey has shown it to be the second most expensive. In four years Ireland has gone from a position of being very competitive on price to one where we find ourselves in big trouble.

This can be attributed to a number of factors. The problem of rising insurance premiums has probably been the main issue for the business sector over the past few years. I welcome the Bill to establish the Personal Injuries Assessment Board, which will finally be initiated in the House over the next couple of days. The board should have been established a number of years ago and the legislation should have been in the House sooner.

The report makes a number of key recommendations. It mentions that indirect tax rates should be brought into line with those in competing countries. A simple example concerns the VAT rate applicable to hotels which, at 13.5%, compares unfavourably with France, referred to by the Minister, where the rate is 5.5%. That is a strikingly large difference and goes some way towards explaining the difficulties with costs experienced by the tourism sector.

I was interested in the Minister's comment that bilateral consultations have taken place with the Department of Finance on taxation issues. While he is not in a position to provide the House with details of the budget, will he outline the extent of these consultations and what, if anything, can be expected from them? Last year, on budget day, we were all surprised at the increase in VAT announced by the Minister. It was not flagged beforehand. If something like that was to occur again this year, it would have a detrimental effect on the tourism industry in particular.

There has been much complacency in comments made on the rate of inflation. While it has fallen significantly in the past months, the Government and commentators continue to ignore the fact that it is still more than twice the EU average. This also plays a significant role in the perceived lack of competitiveness. The problem of the increased value of the euro against the dollar and sterling is largely outside of the control of the Government, but it goes some way towards explaining the difficulties in the sector.

Over the past years, there have been large increases in commercial rates on different business. It is particularly prevalent in Kilkenny, where tourism is a major industry. People are having to pay higher levels of commercial rates, thereby disimproving their competitive position. Local authorities will soon be presenting their budgets and it is important that the tourism sector, which is under pressure and is accused of being uncompetitive, should not be saddled again with significant increases in commercial rates, especially as the stage has been reached where they are having a serious impact on the bottom line of many tourism businesses throughout the country.

The report recommends that the Department should be directly included in the National Competitiveness Council. Considering the number of people employed in tourism and the value of the industry, I wholeheartedly agree. This should be looked at as soon as possible.

According to a recent survey carried out by my colleague, Deputy Deenihan, the second most important problem encountered by tourists in Ireland is transport. Whether it be accessing the country, either through the airports or sea ports, or getting around the country, there are serious transport problems. I agree with the report's recommendation that the Government should stick rigidly to the national roads programme and roll-out the proposed new motorways and roadways. It is important for my area of Kilkenny in the south-east that the Government continues with its plan to extend a new motorway from Waterford to Dublin. The Minister is familiar with the current state of the road, which is creating a difficulty for tourists attempting to get around the country.

The report also recommends that the Government look at the possibility of an additional terminal for Dublin Airport. This has been mooted and speculated upon and is being investigated. It should be provided as soon as possible. It is particularly important in light of the projected increase in the number of tourists to which the report refers. At present, there are 6 million overseas visitors to the country every year and it is estimated that this will rise to 10 million. It is imperative, therefore, that the facilities at Dublin and other airports should improve to cater for the additional 4 million visitors it is hoped will visit these shores in the next ten years.

I welcome the recommendation in the report regarding customer relations management. Many visitors to Ireland who came here perhaps ten or 20 years ago and who returned recently have commented that the céad míle fáilte or the traditional Irish welcome is not perhaps as warm or as prevalent as it used to be. This can be attributed to a number of factors. Many people working in the tourism industry were not born in Ireland and were not reared with the traditional attitude towards visitors to our country. I am delighted the report recommends the putting in place of a customer relations management initiative so that people who are new to the industry could be trained to take on board traditional Irish skills with regard to welcoming visitors.

Will the Minister outline details of the implementation group? I welcome his statement that he will do so and that he will establish the group as soon as possible. Will he indicate the number of people who will serve on the group, when it will be up and running and the timescale involved in the group carrying out its work in terms of implementing the report?

My final point relates to litter. Many visitors have expressed surprise at the level of litter throughout the country. It is sad that the litter problem remains prevalent in many areas. I was particularly annoyed and surprised by the statement of the Minister for the Environment, Heritage and Local Government during the summer to the effect that he was pleased the litter problem in Ireland was largely a thing of the past. Does the Minister for Arts, Sport and Tourism agree, in light of the contents of the report and what everyone can see with their own eyes, that this problem is not a thing of the past and that the Minister for the Environment, Heritage and Local Government should invest more money in order to employ additional litter wardens and promote litter prevention?

I welcome this in-depth report and its strong recommendations. I urge the Minister to set up the implementation group as soon as possible so that those recommendations can be acted upon. This report is important in terms of safeguarding the tourism industry in the decade ahead.

Photo of Kieran PhelanKieran Phelan (Fianna Fail)
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I welcome the Minister of State, Deputy Aylward, who has done a great deal for agri-tourism in the midlands.

Tourism is becoming an increasingly vital industry in this country and it is only right that we should take this opportunity to discuss not only the success we have had in developing the industry to date, but also to examine how best to approach tourism policy in the future. To this end, the Minister and the officials in his Department, together with the various State bodies and agencies that operate in the tourism sector and the local tourism authorities, deserve a great deal of credit for the part they have played in creating the success the tourism industry has enjoyed. Without their hard work and intelligent use of resources, we would not have had the great growth in tourism numbers and revenue we have enjoyed in recent years.

This is particularly significant in light of the tourism situation worldwide. While a number of factors have helped to grow the tourism industry globally, the advent of cheaper and more widely available transport and the increase in economic wealth and available leisure time being just two, it has been noticeable that Ireland has continued to out-perform other countries in attracting tourists and tourism revenue. Throughout the 1990s, visitor numbers to Ireland grew by over 7% on average each year. This compares to a global figure of 4.3%. It is clear that we have been doing something right. We also managed to exceed European and global growth rates in terms of receipts in the 11 years up to 2001.

These developments have had clear benefits for our economy. Currently, the industry generates €4 billion in foreign revenue earnings, €1 billion in annual domestic earnings and is responsible for 140,000 jobs. The industry is responsible for 4.4% of the gross national product and contributes €2.2 billion in tax receipts each year. When these factors are taken into consideration, it is clear just how important a thriving tourism industry is to our country. It is equally clear that the Government places a great deal of emphasis on growing and developing tourism. This Government has given tourism the attention and priority it deserves and we have reaped the rewards as a result.

The Irish tourism industry has a very strong base from which to work. Despite the difficulties it has faced in recent years, from the outbreak of foot and mouth disease, the impact on aviation and tourism as a result of the 11 September 2001 attacks and the SARS outbreak, Irish tourism has managed superbly. As the report outlines, we draw our strength from a substantial and increased customer base, high overall customer satisfaction ratings, competent and experienced staff and the quantity and good quality of accommodation, restaurants, pubs, leisure facilities and visitor attractions. We have also been able to alter the services and products we supply to cater for fluctuating demand. We have been able to adapt to different tourism demands and have reaped the rewards of this flexibility. We have been able to create new markets to meet demand for tourism services as they develop. However, I agree with the statement in the report that we have reached a crossroads. In recent years, the Irish tourism industry has lost a good deal of its competitiveness. It is vital that we correct this as soon as possible.

While Ireland has never been at the cheaper end of the market, tourists have always enjoyed a feeling that they were getting a product of sufficient quality to justify the expense of holidaying here. However, we can only stretch that justification for high prices so far and it would appear that visitors to Ireland no longer believe they are getting value for money. This is the greatest challenge Irish tourism faces in the coming years. We must do all we can to reverse this situation. Just as there is no better form of marketing than a happy customer and the good word of mouth that he or she generates, there is nothing worse than sending home tourists who complain of the expense of holidaying in Ireland. We do not want that to be a reason for people to avoid coming here.

The main problem tourists have with prices in Ireland is not in terms of travelling here or the cost or standard of accommodation, but the simple day to day matters that are so vital to the enjoyment of any particular trip. We must accept the fact that the cost of eating out, alcohol, food in shops and a number of other of the daily necessities is too expensive. When we have accepted this, we can set about addressing the problem.

The major part of the report deals with setting a strategy for Irish tourism for the period 2003 to 2012. It lists a number of clear objectives, the most obvious being to double the overseas visitor spend to €6 billion during the next ten years and to increase visitor numbers from just under 6 million to 10 million. These are clearly challenging targets, but I hope, given the right global conditions, that the tourism industry should be strong enough to be there or thereabouts by the time 2012 arrives. However, these are not the only elements in the strategy. There are a number of other targets set out that will be as, if not more, difficult to achieve. A key aim is becoming more competitive. Not only do we face the prospect of pricing ourselves out of the reach of potential customers, but we must also remember the threat posed by other markets. Other countries are increasing the efforts they are putting into growing their tourist revenues and we will face growing competition as a result. Although the tourism market is also likely to grow, we must address the issue of competition or we will lose out.

The strategy also includes a vision of the direction tourism should take over the next ten years and outlines the need to understand the forces and factors that shape the industry both for now and for the future; to gain knowledge of the factors that will drive success in the industry; to establish and realise challenging targets that are constantly reassessed; to develop the capacity to adapt quickly so that Ireland is best placed to develop its products and services as the market changes; and to develop a framework that will allow for the formulation of such a strategy and to allow for its implementation throughout all the relevant sectors of the industry, from Government to small local enterprises, while maintaining the clarity and consistency of the objectives throughout.

If the strategy is to become a reality, the relevant steps need to be taken now. Our actions today will determine the success we enjoy tomorrow. The report contains interesting ideas in this regard as it sets out the implementation of the tourism strategy. With regard to improving the business environment for tourism operators, the report recommends a number of actions that will be of interest to Government. The first relates to the issue of commitment. While the Government has been most committed to the development of tourism, we, as a nation, sometimes take the tourism industry for granted and the Government should lead the way in redressing the balance by making it an issue of public importance.

Other recommendations relating to competition, inflation, taxation, insurance, infrastructure and so on are contained in this section. I am glad that many of them form part of Government policy or are broadly similar to plans that the Government is implementing. For example, the Personal Injuries Assessment Board Bill 2003, which will come before the House tomorrow, should help to address the problem of insurance costs.

Although there are too many other recommendations to go through in detail, I refer to those relating to the improvement of competitiveness and value for money. If Ireland is to maintain a healthy tourism industry, addressing competitiveness must be our main priority. It is the greatest hurdle we face and the set of recommendations to deal with this problem is interesting. The first recommendation is the tourism industry needs to acknowledge that competitiveness is a problem and that the industry, as a whole, has a responsibility to address it. There is a culture within sectors of the industry where the issue of competitiveness is seen as someone else's problem. A solution cannot be implemented until that attitude is addressed.

The next recommendation deals with inflation. I am confident the Government will continue to tackle the issue to the best of its ability. However, the following recommendation is vital. The report suggests the prices and products on offer from Ireland's competitors should be studied and this information made widely available. This would be a welcome development and would help to focus the minds of small and medium-sized tourism operators regarding what is on offer to potential customers. It could be a wake up call to a few operators, as they will have to become more competitive if they are to thrive.

I like the concepts of a new management development capability programme and a programme to improve the standard of customer relations management in the industry. The proposal to encourage management employee partnerships will have a great deal of success. Currently, there is too high a turnover of staff in certain sectors of the tourism industry. If employees are given the opportunity to enjoy the fruits of their efforts by tying their success to that of the company, they are more likely to stay. There should be a significant increase in efficiency and productivity if this proposal is given the attention it deserves.

We will never compete at the lower end of the market and, therefore, the industry should do all it can to set high standards to our competitive advantage. By providing a stronger role for tourism industry representative bodies, their hand will be strengthened in dealing with this and other problems facing the industry. I offer my support for the proposals contained in this report and the work done by the Minister and his Department. I can point to my own county to prove how the industry has developed there over the years with the building of the new, massive Heritage Hotel in Portlaoise and the Heritage Golf and Country Club in Killinard.

Photo of Maurice CumminsMaurice Cummins (Fine Gael)
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I welcome the Minister of State, Deputy Aylward, to the House. I am surrounded by Kilkenny men and, perhaps, a number of their constituents will be relocated to the Waterford constituency soon.

The report is excellent and those involved in its compilation must be complimented. It outlines the current position and the actions necessary for the future development of our tourism industry. It is a comprehensive, coherent and challenging report. However, I wonder whether, like many other reports that have been produced in the past, it will be left to gather dust with its many recommendations dependent on the availability of funding. I hope that will not be the case because the report contains many actions which are of paramount importance. We can look forward positively to the development of the industry if a number of them are implemented. We can never be complacent about tourism.

My colleague referred to competitiveness in terms of Ireland's position a number of years ago compared to its position currently. Competitiveness is the key to the development of the industry. The Minister referred to better value and cost effectiveness. Ireland has beautiful scenery and friendly people but most tourists come to Ireland expecting good value in terms of accommodation, food and drink. Ireland is not as competitive as it was and while this can be attributed to the industry itself, it can also be attributed to Government policy.

The Government's policy of indirect taxation is mentioned in the report, especially increases in VAT and excise duties. This issue must be examined. The budget will be announced in a few weeks and if there are increases in excise duties, it will mean one of the actions in the report can be discounted. The budget will demonstrate whether the Government is serious about tackling the actions proposed in the report. Government policy has resulted in additional costs to tourism operators. The issue of rates has also been mentioned. The Government must think seriously about these issues in the context of the development of the tourism industry because they go hand in hand and I hope that point will be taken on board.

It must also be ensured that employees in the industry do their work to the highest international standards. A great deal of work is being done and hotels are to be complimented in this regard. Many non-nationals work in the industry. They are excellent people with a tremendous work ethic and they are also friendly.

Those who contested the Seanad election will attest to the appalling signage on our roads. This issue must be tackled. The Minister referred to tourists driving around Ireland. One cannot get from A to B if one depends on the current signs. I hope that matter will be dealt with as expeditiously as possible. It is particularly important for visitors to this country, who rely on the signage, only to find conflicting directions from different signs. We need to get our act together in that regard.

The report highlights the need for co-ordinated and integrated action to influence the Irish tourism industry. That is the key requirement. I commend the report. I hope all the actions enunciated in it will be acted upon by Government, rather than being left to gather dust. As I said, the first test of that will be in the forthcoming budget when we will see how seriously the Government will react to the actions outlined in this excellent and comprehensive report. I compliment everybody associated with it.

Photo of Labhrás Ó MurchúLabhrás Ó Murchú (Fianna Fail)
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Cuirim fáilte roimh an Aire Stáit – perhaps I should say "Céad míle fáilte", as we are discussing tourism. I warmly welcome the report of the review group, particularly the subtitle, "An agenda for action", which is very appropriate. The last thing we need is another report to join a plethora of earlier reports already in a cul-de-sac. However, this one is exceptionally impressive, very honest and open, giving an up-to-date view of the position of the industry and the views of our customers.

As the report rightly points out, our core appeal as a tourist destination is characterised by people, pace and place. We have benefited particularly well from those ingredients. In both the State and private sectors of the industry, we are fortunate that we made hay while the sun shone and built a very good foundation. It is good for a small country to be in a position to boast of an annual growth rate of 7% in tourism when the global rate was only about 4.3%. That is very much in our favour. Due to that strong foundation, it was possible for us to withstand some of the great challenges which came our way, such as the SARS epidemic, the foot and mouth disease crisis, international uncertainties and so on. Even though the prophets of doom suggested that 2003 would be a disastrous year, the initial figures from the regions clearly show it was not a disaster. We stood the test of time particularly well.

As I said, the report is honest and open. Perhaps we also have to be rather more honest in terms of revisiting the core appeal of people, pace and place. I find from my own travels abroad, particularly among the Irish overseas community, that there is a growing sense of embarrassment for them when they return to Ireland. Our returning emigrants are, after all, a major part of our tourism industry. Very often, the embarrassment to which I refer does not relate to infrastructure, which has made huge strides forward. The funds we obtained from Europe have been used very well. However, areas such as anti-social behaviour, as highlighted in an infamous – or famous –"Prime Time" programme, are causing very serious worries, not just for Irish people returning but also for tourists in general. Their perception of Ireland previously did not embrace that anti-social concept. Perhaps that is a warning that we should focus rather more on that which is natural to us and has proved to be one of our big attractions.

We should be particularly careful with regard to artificial contrivance. For example, in the case of Temple Bar, while the focus is right, the stories emanating from it are not always the most edifying. Restrictions had to be brought in to prevent some of what was happening there. Some visitors came there in the belief that such activities were intended to be part of Temple Bar, whereas, in fact, the intention was to show our strengths as a tourist destination. That is why I believe we should be very careful of artificial contrivance and, instead, focus on building up that which is natural to us.

Taking an overview of tourism figures, one finds that Dublin and the south-west have done particularly well, while other areas, including that of the Minister of State, Deputy McDaid, are not, perhaps, doing so well. The Shannon and other areas are in the same position, and that needs to be examined more closely. Perhaps, to some extent as a result of over-organisation and development, we are actually killing the goose that lays the golden eggs.

I return to the concept of pace. When people come to Ireland to enjoy what they believe to be distinctively Irish – people, place and pace – but find themselves stuck in a traffic jam for two hours, it is not only their bad experience, it is also reflected in the perception they take away with them. An impression that conditions here are worse than in New York, Chicago, Berlin or wherever is very bad for us.

I suggest, as I presume is inherent in the reference in this report to less satisfactory grades in some parts of the country, that we have to consider the whole issue of decentralisation as a much more urgent concept. The more we centralise business and amenities in Dublin, the more we are contributing to over-saturation. We should tackle this in a radical way. Tourism does not stand alone – it is also related to all other infrastructural development. The Dublin-centred approach must be reviewed.

People would be surprised if I did not make some reference to that which makes us distinctively culturally different. We have strong cultural and artistic assets in Ireland. I recall the findings of a major survey to the effect that the principal areas of participation and enjoyment for our overseas visitors included traditional music as one of the top six, as well as high-class evening entertainment. Our built heritage was at the very top of the list. It is noteworthy that three of the top six preferences related to our artistic, heritage and cultural assets. The fleadh ceoil in Clonmel attracted 250,000 people and generated almost €30 million for the region, a proportion of which went back into the coffers of the State. This morning, I heard a radio interview in which the horse racing industry highlighted its contribution to the economy. Having regard to the contribution of the fleadh ceoil as just one event, one can imagine the total contribution of all the other cultural and artistic events throughout the country. I repeat my main point that we must be very careful about artificial contrivance, bearing in mind always that our great asset is that which is, very often, exclusive to ourselves and not available in other countries.

The report also identifies the major contribution of domestic tourism to our national coffers. That is very often under-estimated. The more attractive and accessible we make our home market, the more of our tourism expenditure will remain at home, rather than going abroad to other destinations. I have often felt that a small injection of patriotism at times of challenge would not go astray. We could appeal to people in that regard. I will refer to just two statistics: 55% of tourist respondents considered we were rather pricey but, on the other hand, 90% said that Ireland, as a holiday destination, not only met but actually exceeded their expectations. If one sets the 55% against the 90%, I suggest we will have to revisit the analysis. Quality can cost money. We are right to have a focus on competitiveness, but we must be particularly careful that we do not diminish the quality in the process. If more than 90% of visitors said Ireland met or exceeded their expectations as a holiday destination, that is particularly important.

We must realise that tourism is multifaceted. Every tourist to this country does not travel independently. One must take account of the package holidays, where coaches bring in 50 to 55 people. These tours are predestined – I will not go into a new theological area of predestination – but they are not necessarily categorised as having a specialised interest. There are also individual tourists, who often have a greater pre-awareness of what to expect when they visit, and Irish people who return here. All those visitors are part of the tourism statistics. I do not say this in any derogatory sense, but we should not let whiz-kids get a grip on the industry and say we must focus on a particular area without taking account of the breakdown of tourists into those categories.

Fewer Irish people are going into the tourism industry. We all know from the front of a premises, whether it be a hotel, a pub or a restaurant, that fewer Irish people are providing a service at the coalface of the industry. That is not taking from the quality of those coming here or the cultural diversity they provide. However, we should be honest and acknowledge the importance of what the report states about people, place and pace. Visitors to this country expect to find something distinctively Irish, such as Irish humour and the Irish attitude. If one thing gets under my skin it is the "yes madam" and "no madam" attitude that is part of the training of service providers in tourism, which is not typically Irish. There was a good deal to be said for the natural flow of communication. I cringe when I hear "yes sir", "yes madam" and "no madam". One hears that in other countries, but people in the industry do not have to be copycats. Those who provide training in the industry should tell people to be natural and to use what is natural to them. They have attributes of their own which people in no other country have. If we over-commercialise and over-stereotype ourselves as an international aspect of tourism, we will lose out.

The report is excellent, but we also need to read between the lines. We must bring our personal experience to bear to add the extra piece to the fabric of the development of tourism. If we stick with the subtext of an agenda for action, bearing in mind what the report states about people, place and pace, and focus on that, we will not go too far wrong. I have no time for the prophets of doom. This industry has been the jewel in the crown of our progress and development.

Michael Brennan (Fianna Fail)
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I welcome the Minister of State and also the report before us. It clearly identifies a co-ordinated approach by all stakeholders. It outlines an ambitious programme for the next ten years with the number of tourists expected to increase from 6 million to 10 million, resulting in an expenditure in investment of €6 million. That will bring many challenges.

It has been mentioned by speakers that the value for money criterion is important. I congratulate those involved in the tourism industry, especially those targeting different markets and operating under different circumstances, who have tried to give value for money over the past 12 months. It is essential that effort should be continued into the future.

Many references were made to the Irish welcome, which is not something that should be taken for granted. It is great when information is given to tourists locally, which causes them to visit tourism spots they may not have visited had they not heard about them by word of mouth.

We face the challenge of providing the necessary infrastructure for tourism under the national development plan on an equal basis throughout the country. Coming from the midwest, the Limerick-Shannon area, and given that tourist numbers are due to increase greatly, it is important that tourists are given the opportunity to visit the west. The Minister said that tourism stays have become shorter and more programmed. It only stands to reason that all tourists cannot come into Dublin; they must be given a choice. There are many fine scenic spots throughout the country and Senator Ó Murchú mentioned Irish culture. It is essential tourists are given the opportunity to visit the tourist destinations in rural areas and enjoy the scenery and Irish culture.

The marketing issue was raised. I congratulate the Government on spending vast amounts of money on developing tourism centres throughout the country over the past ten years. It is essential that the necessary funding is provided for the marketing of the industry. I am glad the Minister of State mentioned that there will be a 3.5% increase in such funding next year. It is essential we market the programmes that will be funded under the national development plan and by Europe.

Reference was made to litter. I congratulate the Minister for the Environment, Heritage and Local Government on the vast amount of money that has been spent on the Better Ireland Awards and the Tidy Towns awards. Those programmes are carried out voluntarily by committees throughout the country. We should appreciate the effort they have made in making the country attractive for tourists.

Brendan Daly (Fianna Fail)
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This report has been published at an opportune time. This is the end of the last major drive to develop the industry and double the number of tourists to this country. The first signs of an international recovery are emerging. It is important we have in place a framework, a policy document and objective as to how we can maximise the benefit to Ireland from any upturn in economic activity internationally that will take place over the next number of years. In this context, the report is important. One criticism I have is that it is too Dublin orientated and centred. The task force did not pay sufficient attention to the issues affecting the west, an area that in the past attracted most visitors to Ireland. I am sure the Minister of State is fully aware of the importance of tourism to Donegal. I am equally aware of the importance of tourism to County Clare, to the midwest generally and to the south west.

The task force recommended that the US bilateral agreement should be renegotiated. It seems the focus is to renegotiate it in a way that would attract more business into Dublin. It has not been spelt out how any renegotiation would ensure that we will continue to have the same level of transatlantic business into the midwest and into Shannon as we had in the past. It seems the renegotiation being spoken about would be detrimental to Shannon with fewer fights and tourists from the United States coming into that airport.

This report is important at this time, when there are indications that we are losing our edge in the marketplace, especially in the French and German markets. This trend is reflected in the report and on the ground in that the number of tourists, especially Germans, has fallen. That probably has something to do with the economic situation in Germany, but there are indications of an apparent upturn in economic activity there. Given that, it is important that we should concentrate more fully on attracting back the German tourists who used to visit here, especially those who spent time on our canals and waterways, where there has been major developmental work.

I compliment Waterways Ireland on developing the link between the River Erne and the River Shannon and the overall development of the canal network. This network is to the forefront of international amenities, but it is not fully promoted and marketed. I have not studied this report in great detail, but it strikes me there are specific areas that need special attention. The excellent resource we have in inland waterways is not fully promoted or marketed.

Our inland fisheries are an international resource, yet I see little about promoting them in this taskforce report. I also see very little by way of investment in inland fisheries. They are the jewel in the crown of Ireland's tourism and marketing programme. To some degree, mainly due to local issues, the contribution inland fisheries can make to the tourism industry has been sidelined. We must invest in the development and the conservation management of salmon, sea and brown trout fisheries to ensure we remain the premier destination for angling tourists, particularly from the UK. Sea and inland fisheries are a valuable resource that require investment, yet they are not receiving it.

There are issues in other Departments that affect the tourism industry, particularly in the marine industry. The Department of Communications, Marine and Natural Resources must provide further investment for the development of marine leisure facilities, particularly marinas and related activities on the waterways. We now have a network of excellent marinas, particularly in the south west region at Kilrush, Fenit and Limerick. At the same time, some marinas are having difficulties with access and funding is not available to assist them.

At Kilrush, there is an excellent marina facility providing a tourism facility for County Clare. However, access there is restricted due to silting in the river. Up to €150,000 is needed to clear this, but the money is not readily available to marina companies. The Department of Communications, Marine and Natural Resources, the development agencies and the marina companies should join in partnership to put funding in place. This can be done through the harbour authorities by providing the necessary funding to enable access to marine leisure facilities and their expansion. These facilities can have a positive impact on the tourism business.

The Department of the Environment, Heritage and Local Government has responsibility for dealing with some environmental issues that can be detrimental to attracting tourists back. There is evidence that once people visit Ireland, they tend to return. However, there has been a fall-off in this, due to environmental issues such as littering and derelict sites.

Funding is available for urban and town renewal to provide better infrastructure for small towns and villages, remove derelict sites, improve towns' appearances and spend money on cultural activities. I was surprised to learn that €30 million of that fund was unspent in 2002. Tidy towns committees and local communities are crying out for more funding so these works can be carried out. However, €30 million allocated under the scheme was not drawn down last year and the previous year some €15 million was not spent. Up to €45 million that could have been allocated for improvements to towns, villages and even cities was unused and reallocated to other projects.

Some important heritage sites are now being offered for sale and the State should be in a position to buy them. It is important that the State is involved through the local authorities or other agencies in acquiring some of these important heritage sites that are on the market. In the future, we may not see them as heritage sites but as apartment blocks. Important heritage and historical sites should be examined with a view to placing them under State ownership.

There is a lack of local involvement in some regions in the development of the tourism industry. There are good examples of local involvement such as the Shannon Development Company that has done an excellent job, despite being at loggerheads with the Clare County Council over the Cliffs of Moher. Moreover, there is a need to re-establish Shannonside. In 1987, in tight economic times, various tourism promotion groups were reorganised. Subsequently, Shannonside, which was involved in the promotion and development of the tourism industry in the mid-west, was abolished. Some employees were put on the board of the Shannon Development Company to continue the work they were doing. It is now necessary for the mid-west region to re-establish the tourism regional body that was there in the past. It did excellent work in communicating with Departments, various organisations and local communities on the issues that were important to the region. In any future reorganisation, issues such as local community involvement in the mid-west region could be tackled with the re-establishment of a body similar to Shannonside.

There is a great need to provide funding to local authorities to develop coastal and beach areas in coastal communities. There are excellent beaches in all the western counties but they have no access. Money was available through regional funds specifically for local authorities to open up access to beach tourism locations. However, many of our scenic beach locations do not have proper access or signposting. Local authorities must look at this area and provide funding.

This is a timely and valuable report. It is an indication that the Government is taking this important industry seriously. Unfortunately, much of the Opposition do not take it seriously. It is disappointing to see the Opposition Benches devoid of speakers—

Photo of John Paul PhelanJohn Paul Phelan (Fine Gael)
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Except the Fine Gael Party.

Brendan Daly (Fianna Fail)
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Except for the one or two Members from the Fine Gael Party. It is disappointing that the Labour Party and the Independents cannot take the time to put their viewpoints on the development of the tourism industry to the House.

Photo of John Paul PhelanJohn Paul Phelan (Fine Gael)
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That is true.

Brendan Daly (Fianna Fail)
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This is an industry that provides thousands of jobs and millions of euro in revenue to the State and has many opportunities for the future. It is very disappointing that many Members of this House have no interest in that range of activity.

The Burren National Park has been established but the ancillary services needed have not been provided. The Minister of State will know how important national parks are from his knowledge of the Glenveagh National Park in Donegal. The Minister for Arts, Sport and Tourism, Deputy O'Donoghue, knows of the importance of the Killarney National Park to the development of tourism in the south west. It is critical that funding be provided soon for the services for the Burren National Park and the development of the Cliffs of Moher. Attractions such as these will be critical to the overall development of tourism in the future. I hope this report will inspire people in the business to make more investments so we can make tourism into a dynamic force for economic development in the future.

Photo of Martin ManserghMartin Mansergh (Fianna Fail)
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I welcome the Minister of State, who had responsibility for tourism in the previous Government, during which time it did very well. This is an important report and tourism is an important sector especially for employment and regional development. If the report had gone back to 1987 it would have shown that tourism numbers doubled between 1987 and 1990. They have doubled again from 1990 to the present. It is very encouraging that this year we appear to have had a 5% increase. Some people in the industry to whom I have spoken are very hopeful for the coming year, partly because the weather was so good in Ireland but was positively oppressive in some southern Mediterranean destinations. I even know a few people who had to come home early because the heat was too much for them.

The enormous pickup in the British market since the mid-1990s is striking. Dublin in particular has been the beneficiary of this on a year round basis. I cannot help linking that to a degree to the peace process, in that it removed many of the fears and inhibitions that existed up to that time. I am glad tourism is a sector where we are pursuing and implementing an all-Ireland policy. There are not many areas of which this can be said. I am delighted that these days we are not promoting Ireland on any partitionist basis. Of course Northern Ireland has its full share of attractions and beauties although the authorities there are very conscious that their tourism industry is considerably less developed than ours. I am sure we are now giving any help we can in the further development of the tourism industry there through the mechanism of Tourism Ireland.

The latest inflation figures up to mid-October have been released. These show price increases in restaurants and hotels of 6%, which is nearly double the overall rate of inflation. Alcoholic beverages and tobacco prices increased by 9%. It may be that much of that is attributable to tobacco rather than alcoholic beverages. It is high time those figures were disaggregated so we could see clearly what is happening on each side of the fence. While we need to be conscious of costs, we should not be so self-flagellatory. I have been in other European countries recently and seen their prices. I was asked to speak at an Oxford Union debate and stayed in a hotel for which I myself had to pay. The price was totally outrageous when compared to the service. While we are not unique in this sense, we obviously have to watch carefully where we are going.

The increase in the number of hotel premises and bedrooms since 1996 is encouraging. The number of hotels has increased from 713 to 858 and the number of rooms has increased in greater proportion. For some reason the number of bed and breakfast establishments seems to have stagnated.

Tomorrow we shall debate insurance in another context. This is a big problem not just for hotels but for heritage facilities of various kinds, one or two of which have been forced to close. I will make the point tomorrow that while there are many structural problems relating to different sectors of insurance which we should be addressing, the insurance industry awarded itself huge increases from 11 September 2001 onwards, the only possible justification for which was depletion of reserves related to quite different sectors. That industry has not restored the status quo plus consideration of inflation. I hope the Government in focusing on insurance problems does not lose sight of the fact that it applies across the economy.

The report places considerable emphasis on access transport. Both Ryanair and Aer Lingus have diversified their routes, as have others. I look forward to further diversification on North American routes. I am delighted that at last we again have a direct air link with Canada. In the past month there has been an important European Union proposal to give us help in establishing a direct ferry link to Spain. Not only will this benefit us, but also it will considerably increase the number of people travelling to Ireland from Spain and Portugal. We should take up that offer with open arms and get on with it.

The initiative of the Minister for the Environment, Heritage and Local Government on regional roads was mentioned on the Order of Business this morning. Some of these regional roads are in tourist areas and are very important. We have not always paid sufficient attention to upgrading them where this can be done in an environmentally acceptable fashion. I share the concern that in whatever reform and restructuring of airports that is to take place, Shannon's importance as a transatlantic gateway in particular must be maintained.

Upgrading the rail network, which is heavily used by visitors in the summer months, is of course important. Last week I inspected the rail bridge at Cahir, which is still being dismantled before being reconstructed. I hope that line can be restored in time for next summer. A fixed link to Dublin Airport, whether metro or heavy rail, is vital.

In his contribution the Leas-Chathaoirleach made the point that many people from outside the country work in the industry. It is important they are familiarised with Irish traditions of hospitality when they start work. Most of them are very friendly, of course, as has been said.

In the context of the Estimates I am glad there are no cutbacks in tourism. There has always been a degree of fine tuning as regards the post-budget Book of Estimates. If, for example, coming into the new year it is decided an extra €1 million or €2 million is needed for marketing, that is normally provided.

There has been an enormous amount of political controversy about planning. Planning in sensitive tourist areas is an issue. There are two opposite extremes, neither of which I subscribe to. There is the An Taisce block on all development outside villages and towns. There is also the view that all restrictions should be removed, as espoused by some of the Irish rural development organisations. That is going too far, particularly in sensitive areas, from a tourism point of view. There was mention of coastal areas and headlands. It is a great pity that places such as the Old Head of Kinsale were blocked off by a private golf club. We ought to ensure, in legislation and planning, that access is maintained to areas like that.

Arts, sport, development and so on are highly relevant to the development of tourism. The Acting Chairman, Senator Ó Murchú, makes a fine contribution through the Brú Ború facility and indeed the activities of Comhaltas Ceoltóirí Éireann countrywide.

I have three quick points to make. I would like those in charge of heritage to look at the European recommendation about doing something to restore the fine Athassel Abbey. From a tourism industry viewpoint the excise duty on wine is totally out of kilter. The VAT is much the same in many European countries, but we have to pay penal taxes on wine and that is contributing to costs. My final point is that we should not forget the importance of home tourism. All of us enjoy travelling abroad, but we can at least spend part of our holidays in Ireland. There are lovely parts and none of us should be ashamed to be tourists in our own country.

Photo of Joe O'TooleJoe O'Toole (Independent)
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In welcoming the Minister of State to the House, I would emphasise that we have seen huge changes in tourism over a number of years. Ten years ago many people, including trade unionists, looked at tourism as a part-time industry with part-time jobs that were not real and could not be developed. This is thankfully beginning to change, but not quickly enough. Many places are taking a new look at tourism. The Minister of State's part of the country was not interested in tourism 20 years ago because it had factories and full employment, unlike other areas. When it lost those it suddenly came late into the tourism industry. There are a couple of places where the impact of tourism may be seen, either coming or going. Tramore experienced the opposite and is now coming back again. The same is true of Ballybunion where tourism was in recession and is coming back, and Bundoran. It is important to create stability because of the impact tourism has on such places.

I would like to make a number of fundamental points. Picking up appropriately on what Senator Mansergh dealt with, there is the costs differential between Ireland and continental Europe. We all talk about France, Spain or Portugal where we had a meal for two and it only cost two shillings or whatever. Why does it cost so much here?

There are various things to be looked at, but we can do something about it. I have looked closely at this. I have gone into restaurants and cafés in various countries and studied the differences. I ask the Minister of State to get someone to take this on board. All one has to do is go through the process of opening a restaurant in Ireland and compare it to opening one in other countries, in terms of the requirements. One should have a look at the regulations which we have in place to set up a restaurant and which are shocking. The regulations are totally irrational, one reason for which is because they were put together at the behest of the so-called hospitality industry, which used to be called the vintners, to stop restaurants selling alcohol and to stop restaurants from developing. The most extraordinary conditions must be fulfilled before one can set up a restaurant.

For example, I recently looked at a small coffee shop or sandwich bar that had opened in Ireland. I wished the proprietor well and wanted to go through the planning process with him. He told me about it and the difficulties he had. These were practical difficulties, that in general we agree with, and in fairness he said he had had reasonable experience with the planning authorities in the particular county, which was outside Dublin. However, he showed me a small kitchen area. He had expected to have extra space, but this was taken up by a staff toilet. I pointed out that there was another toilet for invalid accessibility beside it, which should have been adequate for the needs of the sandwich bar, but he said that was for customers. He had only two or three people working there, yet he was required under the legislation to have two separate toilets in a small space that would seat only ten people, one for staff and one for customers. He had to install those toilets or he would not have got planning permission. It is not the local planning authorities that require that, but the legislation passed by the Oireachtas.

I could give example after example of things like this that put up the cost of people opening enterprises. First, they must have all these things in place, so they have to pay rent for months while they are doing this. It costs more, so more money has to be got back and the customer has to pay for it, ultimately.

Another issue is the question of the cottage industry. Talk to anyone who has been to Provence and they tell you about the wonderful vegetables. One goes to a town and there is a market with gorgeous shiny apples, oranges, tomatoes, cucumbers etc. One could shave oneself with the shine off those vegetables. I have taken photographs of these and brought them back home. The reality is the stuff we think is gorgeous in the south of France would not be allowed onto the Dublin market because it does not fit into the sorting arrangements required by the EU which we implement, but which France ignores. One can buy a couple of kilos of tomatoes and they will be big and small. In Ireland they all have to be same size because that is the requirement. Every place one goes to in continental Europe, particularly in France, will have the regional products of the area. Some restaurants base their fare purely on the regional products. Here it is difficult to do that because people are prohibited from producing such regional products because of the strict health and safety regulations. I am not opposed to strict health and safety regulations. However, for somebody to produce even something as simple as sandwiches to sell and present in local shops, they must meet the same requirements as someone producing thousands or millions of pounds worth of a similar product in the course of a month. We need to look at the small local or cottage industries and relax rules so they can do their business.

I completely agree with Senator Mansergh's point about the excise duty. We talk about the price of wine here and on the Continent. There is no longer a case for having such a high excise duty on wine. It is making it difficult to attract people into restaurants.

This is something we should examine. I welcome my fellow Kerryman, the Minister for Arts, Sport and Tourism, Deputy O'Donoghue, to the House. The question of excise duty on wine makes the Minister's life more difficult. It does not need to be as high as it is and we should reduce it.

It is an achievable aim for Ireland to become the food capital of Europe. Our food, chefs and restaurateurs are superb. We can make ourselves a magnet for the foodies of Europe. This can be the place to which people come for the best food. However, we need to have our own food. Where would somebody go to lunch in Dublin to taste Irish lobster? That is a $64 question. There are a couple of places where one can get it, but there should be a place on every street. It cannot be got here for a variety of reasons that we need to examine, although one can get it in other places, such as Dingle.

The last time I was in France I looked at the availability of Irish produce in supermarkets. Two weeks ago I was in a Mammoth supermarket in France. All the fish there was Irish. There was seafood produce from Kilmore Quay, for example. The produce there was cheaper than I can buy it in Ireland. I bought Irish scallops more cheaply in a French supermarket than I can buy them in Ireland. In France, full size scallops, as opposed to queen scallops, were available for just less than €1 each. They cost more in supermarkets here. We should examine why this is the case.

I also looked at the cost of Irish lamb in the same supermarket. In France, it costs €12 or €13 per kilo. Irish supermarkets sell it for anything up to €18, although the price has come down somewhat in recent times. In Kerry, lamb is called mutton after 1 October, although there are different views in the rest of the country.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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They would not know about that up here. Mutton dressed as lamb.

Photo of Joe O'TooleJoe O'Toole (Independent)
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I know. This is another thing one does not find in Ireland. I guarantee one could search every butcher shop in this town and not find a bit of mutton. Nobody remembers what it is anymore.

We can all talk about the big issues, but I want to concentrate on simple, practical things. There are some things that we are not doing that we could and need to do. In fairness, successive Governments have tried to incorporate infrastructural development in Finance Bills to build hotels, of which there is a shortage in Ireland. There is no hotel in Belmullet and I do not know if there is one on the River Nore, to pick just two areas from which colleagues that are present in the House come. These are beautiful areas. The sweep of the River Nore and the surrounding area is gorgeous but how many people have seen it? How many people can afford to spend time walking around the gardens at Woodstock, counting the trees and looking at the alleys of various trees from different parts of Europe? These are beautiful places, but they are not attracting people.

My colleague from County Clare, Senator Daly, spoke earlier in the debate. People talk about the beauty of west Clare, of which we are all aware, but why do we not develop that area? Is there a village in Ireland as beautiful as Mountshannon or a place as beautiful as Lough Derg? Is there a sweep of the river or the road as nice as that from Killaloe to the far side of Nenagh, the high road over the lake? These are beautiful places.

County Roscommon is coming down with beauty, between Strokestown House, the Douglas Hyde centre, the Lough Key forest park and the beautiful lakes. The same is true of Leitrim. One could go through each county in turn and find the same. There is a great case for picking out the secondary tourist target areas which are different from the area that both the Minister and I come from in Kerry. There is a strong case for developing such areas.

Photo of Labhrás Ó MurchúLabhrás Ó Murchú (Fianna Fail)
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The Senator should conclude.

Photo of Joe O'TooleJoe O'Toole (Independent)
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I was just about to start reading from my script.

We support all the attempts to advance tourism into a year-round industry. Will the Minister tell people about the beauty of walking along a beach in west Kerry in the middle of a raging storm in the bright light of winter? Is there a more attractive experience in the world?

Photo of Paddy BurkePaddy Burke (Fine Gael)
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I have so little time I do not know where to start. Two important issues which the report does not address were raised by previous speakers. The fishing industry was referred to by Senator Daly while Senator O'Toole spoke about cottage industries. The Minister should take on board that the inland fishing industry is an important one that requires additional funding. He should examine this area in tandem with cottage industries which have been completely put out of business. Many people come here for brown bread, the baking of which is a dying art and should be preserved. Local produce is promoted in other countries.

I welcome the report and wish the Minister well in implementing its many findings. There is, however, an over emphasis on Dublin in the report. Several references are made to Dublin Airport but I did not notice any reference to another airport other than Shannon. The metro link to Dublin Airport also comes up, as does a national stadium, a national conference centre and the completion of the M50. If all these projects are to be completed, little funding will be left for regional development.

People who come here for fishing do not have to come to Dublin; they can fly into other airports, as Senator Daly pointed out. The Minister needs to examine the issues raised by Senator Daly and Senator O'Toole.

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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I am particularly pleased to note the excellent contributions of Members of the House to this important debate. The tourism industry is of immense importance. It generates €3 billion in foreign revenue and €1.3 billion in domestic revenue, making a total of €4.3 billion per annum. It contributes €2.2 billion to the economy every year and this amount continues to increase. Over the past decade, investment by the public and private sector in the tourism product has exceeded €4 billion.

As we have reached a crossroads, I deemed it opportune to ask the tourism review group to look at how we should chart the way forward. In that context, I am particularly disappointed that one of the largest Opposition parties in the State, the Labour Party, should choose to ignore a debate of this significance. It is especially disappointing in view of the importance of the industry to the daily lives of so many people. Some 140,000 people work in the industry, which makes it all the more extraordinary that the Labour Party should ignore the debate.

I thank Senators for their contributions on what is the most important and authoritative document on tourism policy and performance in well over a decade. I commend them on the depth and range of their interventions. As I mentioned at the outset, I am aware that all those with a keen interest in the tourism industry eagerly anticipated New Horizons for Irish Tourism: An Agenda for Action. Many who felt that the sector was not fully appreciated for its valuable contribution to national economic development will welcome the views expressed. This may be best illustrated by the absence of the Labour Party from the debate. From the statements in the House today and from recent exchanges in the Dáil, it is clear that tourism is particularly valued at local and regional level. This is not surprising given the number of people actively involved in and benefiting from the sector throughout the country. As the report states, tourism has arguably been the most successful sector of Irish-owned enterprise since the foundation of the State. To put the total revenue of €4 billion from overseas visitors into perspective, the sum is equivalent to more than 50% of the total value of exports by Irish owned manufacturers and more than twice the value of exports by Irish-owned, internationally traded services. Tourism is Ireland's largest indigenous, internationally traded industry.

The report of the tourism policy review group highlights the challenges facing all involved in tourism in the decade ahead. It sets out a strategic approach which tells us the way to get to the new horizon. I am convinced the full potential of the industry can be realised if there is a shared understanding and partnership among key decision makers in the public and private sectors. To achieve this potential, there must be a concerted drive to tackle a number of underlying issues, including competitiveness and value for money, access, transport, human resource development, marketing and product innovation and development. All of these issues were raised in one way or another during this debate.

It is generally acknowledged that after a decade of continuous growth, the last three years have been very challenging for the tourism industry. We have seen much evidence of the industry's resilience, not least in the innovative methods used to target the domestic and British markets when holiday makers from further afield chose to stay closer to home. It is encouraging to see that in terms of market share, Ireland is performing better than the European norm. The forecast is for continued growth.

Many of the concerns referred to by Senators reflect the issues which have been outlined in Fáilte Ireland's annual visitor attitude surveys. They have also been raised by the industry itself over the last few difficult years. I have mentioned before that everyone has his or her story about the high cost of eating and drinking out, the price of food in shops and the cost of living generally. Our visitors are no different and the report of the review group quotes clear facts in this regard. Ireland's competitive position relative to other European tourism destinations is under threat and must be addressed coherently across the board.

I particularly welcome the steps which have been taken by my colleague, the Minister for Enterprise, Trade and Employment, to address what had seemed to be an ever escalating rise in the cost of insurance. I also welcome Fáilte Ireland's recent and practical initiatives. As I indicated earlier, my next step is to establish a small, high level group to implement the initial two year plan which the review group recommended. I hope to take this step shortly.

I thank the Cathaoirleach for affording me the opportunity to address the House. In particular, I express my gratitude to the Leader, Senator O'Rourke, for arranging this very important debate.

Sitting suspended at 1.05 p.m. and resumed at 2p.m.