Paschal Donohoe (Dublin Central, Fine Gael)
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I thank Members for giving me the opportunity to update the House on some of the key issues of relevance to the tourism sector. Before I go into the detail of the Government's actions and future plans for the sector, I wish to highlight the significant contribution tourism has made to Ireland's economic recovery since 2011.

From a position in 2010 where overseas visitors had fallen by 16% in two years, their numbers have increased every year since 2011. In 2013, Ireland attracted almost 7 million overseas visitors who, in turn, contributed an estimated €3.3 billion to the economy. Combining data from the domestic market and international visitors, total tourism revenue for the economy in 2013 came to €5.5 billion. Of this, €1.4 billion directly benefitted the Exchequer through taxation, a very significant contribution by any benchmark.

I am pleased to report the picture for 2014 is again positive. Central Statistics Office, CSO, figures released this morning show there were more than 6.5 million visits in the first ten months, an increase of 8.8% compared to the same period in 2013, representing an additional 532,000 visitors from around the world. The growth levels are not confined to any particular geographic area but are actually shared across all international markets. Visits from mainland Europe grew by 6.9% to 2.3 million for January to October 2014. North America registered an increase of 14.5% representing 1.185 million visits while visits from Great Britain were up by 8%. Visits from the rest of the world, mostly long-haul and developing markets, totalled 406,000 for the first ten months of 2014, representing an increase of 9.6% on the same period in 2013.

This growth level is particularly impressive given that 2013 was the year of The Gathering with many concerned it would be difficult to match that year's levels. These statistics show that our exceptional tourism product continues to deliver a unique and appealing experience for visitors to Ireland. Tourists are also heeding the advice of publications such as Condé Nast Traveller, Rough Guide and Lonely Planet, which all recently highlighted Ireland as one of the most attractive tourist destinations in the world.

While the tourism industry itself deserves great credit for how it reacted to the economic downturn, it should be also recognised that the return to growth that has taken place in the tourism sector since 2011 was underpinned to a large degree by the Government’s decisions and choices.

The introduction of a special 9% VAT rate for a range of goods and services, including visitor accommodation and restaurant meals, provided an immediate boost to the competitiveness of the Irish tourist sector. Hoteliers, restaurateurs and tourism service providers have clearly indicated the impact the lower VAT rate has had on increased trade, delivery and perception of a better value for money product, and more sustainable businesses. It is estimated that employment in the 9% VAT categories has increased by around 30,000 since the new VAT rate was introduced. It is important to emphasise to Senators that this tax measure was delivered in 2011 and now, more than three years later, our analysis shows it is still being fed through into lower pricing, and that lower pricing in turn is leading to the creation of large numbers of jobs and the maintenance of existing jobs. I campaigned strongly at Cabinet for the retention of this rate and I want to acknowledge all the contributions I received from many Members of the Oireachtas on this topic. I also acknowledge the role of bodies like the Restaurants Association of Ireland and the work they have done in highlighting the importance of this rate and how it has delivered the objectives that Government has set for us.

On another taxation issue, the air travel tax introduced by the previous Government damaged Ireland's tourism competitiveness, particularly given our island status and the importance of air travel as a means of delivering overseas visitors to Ireland. In budget 2014 we set the rate of this tax to zero. I am pleased to note that the major airlines responded strongly to our initiative, with a substantial growth in connectivity. For the peak summer period of 2014, air access increased by 10% from mainland Europe, by 14% from North America and by 14% from Australia and other long-haul markets. The relevant agencies and airports are working hard to ensure the positive momentum in this regard is maintained in the years ahead.

Looking at the various contributions to the tourism sector from Government in recent years, a particular issue this highlights is the close integration between our aviation policy and the success of our tourism sector. Higher levels of connectivity are a direct contributor to how our tourism sector performs. I visited one tourist attraction during the summer in my role as Minister to see how these businesses were performing. I was told that the tourist attraction could see the direct effect of an additional route on the number of people visiting within one day of that route landing in an airport. One of my priorities is to ensure we continue to have plans in place that maintain the existing connectivity, but look to develop it further, and to develop connectivity to other markets that will further add to the performance we have in this sector.

This increase in air capacity would not have been introduced by airlines without a compelling business case to do so. It is clear that the quality of Ireland's tourism offering continues to resonate with international consumers. To maintain this position, we must continue to develop our tourism offering in a way that has impact in the very crowded international marketplace. To have an impact, new tourism initiatives must be of sufficient scale to push through the multitude of competing products and destinations. This is the rationale behind Fáilte Ireland's move towards developing what they call "brand propositions," projects of sufficient scale to be marketed overseas in their own right. The best example of this is the Wild Atlantic Way, with which many Senators will be familiar. This is the first major project to be developed on this basis. It is Ireland's first long-distance touring route, stretching for 2,500 km from Malin Head to Mizen Head. It was developed specifically for the western seaboard to address the decline in international visitors to the region. It builds on what is distinctive and appealing about the west coast - its coastline and ocean, complemented by a deeply rooted and authentic culture and people - to give it visibility in a crowded international tourism market. While Fáilte Ireland provided the central co-ordinating role for the Wild Atlantic Way, it would be impossible to develop a project of this magnitude without the support of the local authorities along the route. Accordingly, I wish to formally acknowledge their contributions, for example, the work done by Sligo County Council in seeking to develop this along the route, and the work done by many local authorities in understanding that they can build strongly on the template provided by the Wild Atlantic Way. When local authorities and local communities come together to develop an offering that is local and unique and then build that into something like the Wild Atlantic Way, it delivers an exceptionally strong overall offering from Ireland, which is why we have seen the Wild Atlantic Way deliver the kind of performance it has.

Fáilte Ireland is currently developing a similar unifying tourism proposition for those counties in the east and south. That brand proposition will group the cultural and heritage tourism assets and experiences of Ireland's east and south via a network of routes, trails and journeys into a new tourism experience that can be easily understood by and will appeal to overseas visitors. It will build on the significant investment supported by Fáilte Ireland using capital funding from my Department across the region, such as the Medieval Mile in Kilkenny and the Waterford Viking Triangle. We will work to deliver a similar approach to the south and south-east of the country for next year, to build on the key insight from the Wild Atlantic Way, namely that one must develop concepts that build on what is already there within different counties and then find a way of unifying them.

While the tourism industry, Fáilte Ireland, local authorities and other stakeholders are engaged in the continuous development of our tourism offering, it is the responsibility of Tourism Ireland to bring that message to potential visitors in overseas markets. In 2014, the agency has placed a major focus on car touring holidays, highlighting in particular the Wild Atlantic Way. Tourism Ireland has also promoted key events, including Limerick City of Culture and the Giro d'ltalia. The agency has also capitalised on the important developments in access to Ireland that I have outlined, maximising the promotion of new, as well as existing, flights and sailings to continue to grow overseas tourism in Ireland. Tourism Ireland will build on the opportunities presented by the new British-Irish visa scheme, which was launched last month by the Irish and British Governments. The scheme, based on mutual recognition of each other's visas by Ireland and the UK, is an historic breakthrough between the two jurisdictions and will be initially rolled out in the key growth markets of China and India. The scheme will build on the success of the current Irish short-stay visa waiver programme which was launched by the Government in July 2011.

The estimated number of visits to Ireland from China and India grew from approximately 25,000 in 2009 to nearly 40,000 in 2013. The new British-Irish visa scheme will make it even easier for those numbers to continue to grow as the hundreds of thousands of Chinese and Indian visitors to the UK each year will now be able to travel to Ireland on the same visa.

I have referred to the Wild Atlantic Way which is delivering for the west coast and the new south and east brand proposition which will be launched next year. It would be remiss of me not to refer to what we are doing for tourism in my home city, Dublin. Within the global tourism market, cities have the potential to be destinations complementing the wider national or regional destination, while at the same time helping to drive the sustainable long-term growth of their country or region. Those cities that have performed most strongly include among their strengths a distinctive brand, as well as an attractive tourism proposition, rooted in a strong national proposition. For example, Copenhagen appeals to many on the back of both its distinctively Danish and its uniquely urban characteristics.

I recently announced the establishment of a group to develop a brand identity for Dublin, to drive tourism in the capital forward and allow us to compete competitively for market share with other cities across Europe. The group, which is being set up under Fáilte Ireland and will be known as the Grow Dublin Tourism Alliance, will be led by the chairman of Bord Bia, Michael Carey, and I thank him for undertaking this work, who will be responsible for delivering the strategy. While recent years have shown the beginning of a recovery where tourism is concerned, Dublin is under-performing against its potential. It has the capacity to attract even more tourists than is currently the case. If a capital city does not fulfil its potential in terms of tourism, that has implications for the rest of the country.

Cities such as Copenhagen have shown sustained levels of growth, through initiatives such as "Wonderful Copenhagen", which is a not-for-profit, public-private partnership and has seen tourism rates in that city increase by more than 8% year on year between 2008 and 2012. There is no reason Dublin cannot do the same. To do this, a sustainable funding model must be developed. This will require a balance of funding from the public and private sectors, with the current rate of public sector funding being maintained and a new private sector funding stream being identified and drawn from, for which the Grow Dublin Tourism Alliance will be responsible. I emphasise that this is not about trying to remove funding from our city or from one part of the country. It is simply saying that when a part of the country, as is the case with Dublin, is doing well but could do better in the future with a new unified campaign to support it, it is appropriate to ask those who are involved in the industry to make a contribution to the funding of an initiative from which they will benefit. When and if we do this, we can send a strong message to the rest of the world that Dublin is top of the list in terms of global city destinations. My objective would be that as we get more tourists to Dublin, and it would be great if they are new tourists spending time in Dublin, it is equally important that we get them to leave Dublin to visit and sample what our country has to offer.

In the coming weeks I will publish a tourism policy statement which will prioritise investment to maximise the return from tourism in the medium to long term. It will build on the complementary strengths of our uniquely friendly and welcoming people, the beauty and historical heritage of our country and the support and commitment of government policy. A draft version of this strategy was published in July. We have invited and received a large amount of inputs from all stakeholders in this sector. The Department and I will examine those carefully and I will bring a finalised strategy to Cabinet for approval before the end of the year. This will seek to build on the gains made in recent years and will chart a course forward.

In this context, I wish to make two points. The first is that I understand the huge importance of balanced regional development to our economic development. The tourism sector is a part of our economy that is uniquely placed to make a contribution to regional development. Second, as good as the strategy will be, it will be equally important to have a group of people charged with implementing it. Shortly after I launch the statement, I will appoint a tourism leadership group which will prepare and oversee implementation of the strategy and action plan.

I hope I have given Senators a good account of from where we have come in this vital sector, my observations on where we are doing well at present and, by outlining issues such as the contribution of aviation to this sector, the need for balanced regional economic development and my objective to identify different branded propositions for different parts of the country to build on all our country has to offer, how committed I am to ensuring that the recent years of growth are a taste of what is to come. We all know the huge harm that was caused to the country due to having an economy that was reliant on one or two sources of growth. The Government wishes to get the economy to a point where there are many sources of growth on which we can depend, and I am convinced tourism will be one of them. If we continue to make the right choices, what we have seen so far will be a sign of what we can hope to achieve in the future.

Ned O'Sullivan (Fianna Fail)
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I welcome the Minister and wish him every success with his tourism policy statement which will be published shortly. In fairness, the Minister is shaping up quite well in his Department and I wish him well.

Tourism is a good brief to have because it continues to be a good news story. Without being partisan, the Fianna Fáil policy document, Tourism Towards 2015, to a certain extent informed much of the previous Minister's thinking on the development of tourism in this country. It is still the blueprint for growth and I hope the Government will continue to implement the best parts of that policy.

I rarely quote statistics as they speak for themselves, but I will refer to some. Visitor numbers are growing consistently. Overseas visitors spent an estimated €1.535 billion in the State in the first half of this year and revenue from overseas visitors grew by nearly 9%, at an additional €135 million compared to the same six month period in 2013. These are very heartening figures. The spring figures for this year are particularly good, showing a 12.3% increase. The chief executive of Tourism Ireland, Niall Gibbons, said that the increase in revenue is helping to boost employment around the country, with earnings in tourism and the travel sector from overseas travellers increasing 18% in the first quarter of this year compared to the same period last year.

In addition, visitors are staying longer in the country, which is an important point. It is something we have been pursuing for some time. The number of nights spent in Ireland by overseas travellers increased by 13.4% in the second quarter compared to 2013, with a particular surge in the number of visitors from Great Britain. We have always said, particularly in Kerry, that the British market is hugely important. The numbers from North America are up by 9%. Overall spending by overseas visitors grew by 12% in 2013 and it appears likely that it will continue to grow. All sides of the House will welcome that and hope that it will continue.

The Gathering was clearly a huge success. Even though the numbers have continued to grow since then, it will be difficult to replicate that through a similar project.

I wish the Minister well with his projects in the south east, particularly in the Kilkenny-Waterford triangle. Hopefully, something similar might recur. The Gathering was certainly a once-off. We know that the 1916 commemorations are approaching. Clearly, that is a very important event in its own right and stands alone for all of us as a key iconic date in our nation's history. We do not want to dilute that in any way but, hopefully, the programme will be also visitor-friendly and encourage people, in something akin to The Gathering, to come to Ireland to enjoy and celebrate with us, particularly in Dublin where the 1916 Rising mainly took place.

The Wild Atlantic Way project has been referred to by the Minister. Again, I am delighted to acknowledge its success. It has been very good for counties along the western seaboard, including my own. Does the Minister plan to develop and broaden it? The initial response to it has been very good with everybody, particularly hoteliers, reporting increased figures and visitors, particularly the drive sector.

We cannot forget the rest of the country. Clearly, the western seaboard, with its beautiful scenery, is the big attraction for visitors and the south east probably comes a close second, but there is a tranche of the country, places like Leitrim and Cavan, with very beautiful scenery. Anyone who stood for the Seanad will be more than familiar with all the beauty in this country. We just do not have time to admire it but I often go back to places I saw fleetingly, and it is only now that I appreciate the fantastic beauty throughout the midlands. I suppose tackling the areas with no tourism dividend must be the Minister's next project. Hopefully, that will happen.

There are negatives. A significant negative that has been reported both statistically and anecdotally is the increasing cost of hotels. The Minister needs to address this. Hotel prices in Ireland increased by 10% in the first half of this year. The average hotel price in Ireland for that period was €101 per night. Dublin hotel prices increased by 15% in the first half of this year. I am sorry to say that my county comes out of this report very badly in terms of hotel price increases. The hotel price index, which was published in September, suggests that this trend will continue. This is something we must monitor. Clearly, hoteliers must make a profit but the Dublin hotels in particular are turning over numbers that are as high as they were in the boom years. There is no problem with bed nights. It seems to relate to trying to maximise and squeeze more profit out of it. Everybody here will be familiar with the way hotels jack up prices when any big act is playing at the O2 or any big match is being played in the Aviva Stadium. Hotels that would charge something like €79 for bed and breakfast suddenly cost in the region of €215 at the weekend just because somebody famous is in town. That is something about which we have been complaining. I do not know what level of control the Minister has over this but it is important. We must provide value for money. Those of us who have travelled in Europe and elsewhere know that it is very easy to find value for money. There is no doubt that one can get great value in Ireland if one is prepared to wait, study and use the Internet. However, some level of control must be introduced in Dublin and the tourist counties in high season or we will kill the goose that is laying the golden egg.

The Minister referred to Dublin as an area where performance has not been up to scratch and I agree with him. I live in the Minister's constituency. I have an apartment on the north side of the quays. I have witnessed the bedlam, crime and antisocial behaviour that is normal there, particularly on an odd weekend, and I do not know how any tourist would want to go through Temple Bar, which was built as a tourist catch-all area. It is now a place I would advise tourists against visiting. I have statistics on that but I will park them.

We can be very proud of our road network. When people talk about Fianna Fáil blowing the boom, I always tell them to have a look at the roads. I can get down to Kerry in two and a half hours without breaking the speed limit. When I came up here seven years ago, it took me nearly three and half hours. If one goes back further, the journey took four and a half hours. We have a good road network and a fairly good public transport structure.

People come to Ireland mainly for the scenery, our culture and our people because we are supposed to be the friendly Irish. Without causing any trouble for myself, I wish to say that I like to see an Irish face behind the reception desk in a hotel, I like to see Irish waiters and I like to see Irish staff where possible. I think front of house should be Irish because it is the Irish tradition people come to share.

We have many festivals, including arts, racing and sports festivals of every description. They are responsible in a major way for bringing in the big numbers. Again, I would say to the Minister that joined-up thinking is required here. I recently spoke in the House about something that affects my own town of Listowel. Our annual seven-day harvest racing festival in September is a huge draw with an average of 25,000 people per day. This is a mini Gathering for Munster. Traditionally, people from the US and all over the world have come back for it. This year's festival, which had huge prize money, was opposed by Horse Racing Ireland because on the same weekend the Listowel races started, Horse Racing Ireland put on a classic racing extravaganza with millions of euro in prize money in Leopardstown and The Curragh. That is wrong. It could be done at any other time of the year. I can guarantee that Listowel drew three times the crowd they got with all their money. I know racing is not the Minister's area but there should be joined-up thinking about all these festivals. I will leave it at that.

Paddy Burke (Fine Gael)
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The Senator is on his hobby horse.

Terry Brennan (Fine Gael)
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My colleague and friend, Senator O'Sullivan, mentioned in his opening sentence that tourism is a great news story and I agree with him. Tourism figures for last year surpassed all figures for the previous six to seven years. As has been mentioned already, The Gathering was a wonderful success and contributed to the increased number of visitors. A total of 3,300 communities took part in the success with festivals and home gatherings. We were concerned that our figures would drop the year after The Gathering but I am happy to relate that Irish tourism is enjoying another excellent year, as the Minister has stated. Our people, places and policies are delivering an exceptional experience for overseas visitors. The friendliness of our people, the natural beauty of our island, our history, heritage and craic, and the determination of the Minister and the Government to ensure value for money for visitors have certainly contributed.

Since its formation three years and nine months ago, this Government has recognised that tourism would play a significant role in the economic recovery of this country and it has surely played such a role. As the Minister mentioned, VAT has been reduced from 13% to 9% and this policy will continue next year. Air travel tax was reduced to zero in last year's budget. These are major contributions.

Several airlines increased the number of flights to Great Britain, mainland Europe, regional airports, the United States and Canada, to where some are now offering daily flights. Employment in the sector increased by 17,300 jobs last year and further jobs have been created this year. The Minister has noted that the number of 5.9 million people who visited in the first nine months of the year represents a significant increase of 9.3%. In the period from July to September the number of overseas visitors increased by 7.9%. In the period from January to September the number of visitors from mainland Europe increased by 7.4%, US visitor numbers increased by 13.9%, while the number from Great Britain increased by 8.9% compared to the same period last year. There were 370,000 long haul travellers and visitors from developing markets during the same period, an increase of 10.8%. These visitors came from the far East, including China, Japan, Australia and other far flung places. The Government's objective for the tourism sector is to increase revenue from overseas visitors to €5 billion per annum up to 2025 and increase the number of jobs by 50,000 in the same period.

The Wild Atlantic Way, a Bord Fáilte initiative, undoubtedly, increased visitor numbers to the west. I understand Fáilte Ireland is developing a similar tourism proposition for counties in the east, south east and midlands. I would like this initiative to be extended to the north east because at times the north east and the Border region are forgotten as far as tourism is concerned. The Minister referred to Viking Waterford, mediaeval Kilkenny and Brú na Boinne. I live in a mediaeval town comparable to any other mediaeval town in Europe. It was a walled town and, like Carcassone in France, part of the wall remains today as a wonderful tourist attraction. Work is progressing on the project which will be launched early next year. It will help to increase the number of tourists visiting the counties involved which will I hope will include my own county of Louth.

The new British-Irish visa waiver scheme has been a tremendous success and I have no doubt it will enhance tourist numbers from the countries concerned. I am sure the growth in visitor numbers from the United States, Great Britain and mainland Europe will continue next year and for many years to come. The decision by the Government to retain the 9% VAT rate will allow us to offer good value, high quality holidays. However, we need to avoid complacency and remain focused. More importantly, we must remain competitive. I concur with my colleagues on the benches opposite that it is difficult to comprehend why hotel prices in Dublin increase by as much as 500% or 600% for certain events. If the local grocer and barber increased their prices from €15 to €75, they would not have many customers. This is a problem for the country. I have investigated the situation in Paris and Rome. It also happens in these cities, but that does not mean that it is other than extortion or that it is right.

The Government will use every opportunity to identify further growth potential to ensure the tourism sector provides additional revenue and, more importantly, jobs. In my youth fishing was a major tourism attraction in this country. I served hundreds of visitors from Great Britain in a local pub in Carlingford and there is potential for balanced regional development in this regard. All locations are unique and, as such, can offer something special to the discerning visitor. There is a world market for fishing tourism. The lakes of counties Monaghan and Cavan are underdeveloped and there are opportunities in this regard for both counties. The Ulster Canal could enhance the tourism industry in counties Fermanagh, Monaghan and Cavan.

I cannot conclude without mentioning the many volunteers who make a significant contribution to tourism in the country. I refer to the tidy towns and villages and those who take pride in showing them off to visitors. They make a major contribution as visitors like to see well maintained towns and villages. Last Monday I observed a Tidy Towns committee planting winter flowers and greenery in conditions that were so cold one would not believe it. I thank all of those involved in the voluntary sector. I call for balanced regional development because all areas are unique and deserve their slice of the tourism cake. I congratulate the Minister on what he is doing. He has a great passion for the sector.

Sean Barrett (Independent)
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I welcome the Minister back to the House. He outlined the picture very well for us.

In 2010 the number of overseas visitors had fallen by 16% in two years, but it is growing once again. The Minister has made several useful proposals to maintain this growth, including having lower VAT and PRSI rates, the visa waiver programme and improved air access. I understand 85% of the seats on the new routes from St. John's in Newfoundland to Dublin were booked out in a matter of four or five days. One would not have expected the route to be a huge success, but it is always welcome to have good surprises of that nature. However, are we once again setting out to kill the goose that lays the golden eggs?

Senators on the Government side have noted that we have been here before and that previously it was appalling for the country. Between 2000 and 2009, the proportion of people who reported Ireland as offering poor or very poor value for money as a tourist destination increased from 12% to 40%. From what I have heard from the Government benches, I fear we may be doing the same again. There was a massive decrease in tourism figures in the period between 2007 and 2010. We lost approximately one quarter of visitors and 31% of revenue, according to briefing documents prepared for us on the Tourism Development Authority (Amendment) Bill 2011. I do not know what gets into people in this country that tourism becomes exceedingly bad value once it begins to revive. It is difficult to sell a product abroad if it is bad value. During the three years the tourism industry was falling apart, we spent €162 million promoting it in 2007, €179 million in 2008 and €150 million in 2009, but because of overcharging and it represented bad value for money, the business did not provide a return for the Exchequer and certainly did not do itself much good.

The key sentence in the Minister's speech is that his Dublin proposal will involve a balance of funding from the public and private sectors.

If somebody stays in one's hotel, one gets to keep the money. That is called capitalism in some quarters. It is incumbent on the industry to participate with the Minister on the proposals to develop Dublin. One cannot expect the State to do the marketing for a sector that turns out to be pretty bad value for money, when we examine what consumers have said. We do not want to become complacent because, as I said, we have been here before.

We have to consider whether we want this sector. Senators opposite said they would like to see Irish people working in tourism venues, and I agree with that. However, either we are serious about developing tourism and the people who want to work in the sector, or we accept that they want to work elsewhere and allow people from other countries, who kept tourism going in the past decade, to work in tourism. We need to ask whether we are serious about promoting a sufficient level of training and entrepreneurship in the sector.

I agree with the Minister on air access. It is a topic we have discussed many times. I welcome that Michael Cawley is assisting the Minister in developing that.

In a speech by one of the directors of the strategic investment fund at the weekend, it was stated that the fund might invest in hotels, holiday homes, reservations systems, sport facilities and theme parks. Again, one has to advise caution. We invested during the boom era in hotels which lost up to 95% of their capital value. One has to want to extend hospitality, have good food and housekeeping and have a willingness to welcome visitors. Running tourism as a branch of the construction industry is another failed experiment that we have tried, and it is to be hoped that we do not go there again. It is a very sophisticated industry and some of the approaches in the past were not conducive to our long-term development.

A report similar to the theme of the Minister's speech is the Dublin City Business Association report on developing Dublin. As the Minister said, it has been losing market share. Senator Norris and others have pointed out that a lot of the north inner city is in a pretty bad condition despite the efforts of Dublin City Council to revive O'Connell Street. It points out that Edinburgh Castle has an income of €20 million per annum, 40 times the income of Dublin Castle, which is probably a finer set of buildings. Let us see what the task force on developing the city of Dublin as a tourism venue can accomplish.

Involving local chambers of commerce and business groups, as the Minister intends to do, in taking on some of the marketing expenses is an extremely good idea and one that is well worth pursuing. We had a good record at the beginning of the last decade and a very high percentage of people thought coming here was good value for money. We lost that steadily and are now building it back up, but we could lose it again just as quickly.

I welcome the Minister's initiatives and assure him of any support we can give on these benches, but becoming over-confident in this sphere could be very dangerous. We made a lot of mistakes in the past, and the boom period was the harbinger of a doom period in Irish tourism from which we are now recovering.

In terms of major events, I favour the Rugby World Cup, but the Minister's predecessor had concerns about how much we would have to pay for it. I understand New Zealand lost money on it, and the famous case is that of Montreal, which continued to pay for the Olympics decades after the event was over. Such events sound very good and there is a short-term boost, but we need to consider whether there is a long-term cost as the debts are paid off from the large subsidies which must be given. It is something of which the Minister and his officials have to be particularly watchful. They need to check whether the cost-benefit analysis is independently done. I wish Hugo MacNeill, a fellow economist from TCD, every success in the project, but we have to check whether hosting the Rugby World Cup would cost the Exchequer, as it did in New Zealand and as the Olympic Games did in Montreal.

This is an industry in which we should be performing better. We need to turn our promotional efforts into much better results than we did from 2007 to 2010, during which time almost €500 million was spent on a industry that was in decline. We need to insist that those involved recognise the difference between the inputs, which were extensive and expensive at the time, and the actual business generated.

Those who arrive at Rosslare Harbour have to walk about half a mile to get a train. I do not know why we took the train station out of the Europort, which was built with a European grant. Dún Laoghaire Harbour has been allowed to decline and very few tourists arrive there any more. A lot of money was spent on it in the past.

Susan O'Keeffe (Labour)
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I welcome the Minister. He is particularly welcome when good news comes with him. The figures he spoke of, and others, reflect a very healthy situation for tourism in Ireland, which is a good thing. It is worth giving credit to Fáilte Ireland and Tourism Ireland, both of which have worked incredibly hard over the past three years to rally behind the call that we needed to up our game and do something about the decline. I pay tribute to them and their leaders, who have worked incredibly hard and have been very innovative.

If we were looking for a fine example of innovation, it has to be the Wild Atlantic Way, because the magic it conjures on hearing its name makes one want to know more about it. The very heart of tourism is creating something that is tantalising and attractive and draws one in, even if one is not quite sure what it is, and it is a very good example of 21st-century tourism. We have realised it is no longer enough to say that Ireland is beautiful, which it is; rather, we need to do more to attract people to come here.

It is possibly no coincidence that there are a number of Senators here from Kerry and Sligo, because tourism is particularly important to those areas. It is also important to the island of Ireland because, as Senator Brennan said, some areas feel left out. The area he comes from is just as beautiful as other areas. In Ireland we are blessed with an abundance of beautiful areas and there will always be some competition in terms of which lovely girl gets the largest piece of the cake. Given that my lovely girl is Sligo and Leitrim, I of course want to talk about them and I would be expected to.

We have seen a great start to the Wild Atlantic Way. It has received significant investment and there has been a great burst of enthusiasm for it. There is no doubt that where I live people have noted an increase in their business. We now want to see it become more layered. It had a great start and could afford to be brash, but it now needs to be built up more. The ideas of signature stops and secrets were a great way to start when we had everything at our disposal. We now have to be strategic in terms of thinking of the layers beneath. We see that approach beginning with shipwrecks and lighthouses. Those interested in shipwrecks can find ten of them on the Wild Atlantic Way. A sports layer can be sold, and those interested in potholing, fishing or surfing can find such things. We need to layer the route to allow things like food, music, culture, wildlife and history to be part of the Wild Atlantic Way. I trust that we will see that in the future.

While for some people the idea of a drive along the Wild Atlantic Way is appealing, RTE'S Cian McCormack had great fun when he travelled on it by bicycle earlier this year. He brought home some of its character and characteristics. As that wears away, we will need a second, third and fourth layer.

Yeats 2015 will be launched next week. It is an overarching cultural event that will reach across the country and the world but it will be rooted in Sligo.

I hope there will be a greater emphasis of the cultural aspect of the Wild Atlantic Way. The idea of linking poetry with the Wild Atlantic Way is very attractive, but there are many other writers and artists. Many people travel to the west for inspiration and chose to live there because of its great landscape. All of us who live along the west coast can cite many examples of individuals who have sought refuge or inspiration there. It would be a very fine tribute to them and their work if we were to celebrate them as part of the Wild Atlantic Way project. While the Minister would expect me to say this, I firmly believe there is evidence to support my suggestion.

Fáilte Eireann has worked with Tourism Ireland to promote food tourism. I also know that great food ambassadors from various counties have gone forth and visited other countries. Food is part of people’s creativity. I suggest we build food trails, as has been done in various counties, but I would like to see more money invested in the sector. Whatever else tourists do when they come to Ireland, they must eat. When on holiday, very often people take the opportunity to enjoy foods they might not otherwise try. This opportunity is glaringly obvious. I would, therefore, like to see food tourism promoted more, not just on the Wild Atlantic Way but also in other areas.

I wish to address Senator Ned O’Sullivan's observation that front of house staff ought to be Irish because the Irish are noted and known for our friendliness. I, respectfully, disagree with him and hope to see the new Ireland represented in businesses, hotels, sports centres and places where visitors enjoy what we have to offer. Good training lies at the heart of this matter and it should not matter from where a person comes. It is more important to place the emphasis on providing a friendly and warm welcome or cead mile fáilte, rather than saying in 21st century Ireland one must be Irish to work here. While I understood the sentiment the Senator wished to convey, I respectfully disagree with him and suggest we do something about the provision of training.

The issue of competitiveness has been raised by various Senators on both sides of the House. It is a serious problem, but we can never legislate for the ways people behave when they see an opportunity to make money. Ireland operates a free market. Senator Ned O'Sullivan used the expression that people were killing the goose that laid the golden egg. Rather than saying people should not make money, I suggest Fáilte Ireland take the opportunity to spell things out to those involved in the business. It would be great if it showed the evidence, as part of its various and continuing training programmes, of how one can break the model used. In this instance, one breaks it for everyone else also. It would be a shame if that were to happen, given the efforts made, the money invested and the belief that this country is a great place to visit. I suggest something practical be done along these lines.

Can the Minister's Department give a lead to the Strategic Banking Corporation of Ireland? Its establishment and the provision of €5 billion over five years are welcome. I suggest specific emphasis be placed on small businesses operating in the tourism sector. I am not necessarily saying they should receive more, but they should be given encouragement. Some shape should be put on the Strategic Banking Corporation of Ireland in order that it will concentrate on that sector. Perhaps the initiative is part of the Minister's tourism plan and, if so, I ask him to forgive me. It would represent a terrific opportunity for the small businesses to which I refer. I know some of those involved in counties Sligo and Leitrim have battled hard to get their small businesses up and running. We must support those small businesses that provide cycling trails, coffee shops, opportunities to surf, go potholing or whatever else to become sustainable. The Minister used the term "authenticity", something we must retain at all costs. If this country was to be seen as offering a smorgasbord, it would lose its attractive as a tourist destination. I commend the huge amount of work that has been done in the sector and I look forward to further development in the future.

Labhrás Ó Murchú (Fianna Fail)
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Tá fáilte roimh an Aire freisin. During the years we have had many debates on tourism. Invariably, each contributor conveys a great degree of passion and we tend to emphasise the local aspect of tourism. That tourism is diverse and that amenities are distributed throughout the country is one of its strengths. It is important to ensure this is maintained and that marketing is not geared towards promoting large areas of population, although such areas are also entitled to benefit. In recent years I have noticed a trend, a moving away from areas that did well in the past, but perhaps this might have something to do with policies adopted at airports. It seems, however, that there has been a significant change in that regard.

We all seem to agree that tourism is a very important industry and that the sector has stood us well in very difficult times. There was a hiatus for a period during the Troubles in the North, but now that we have stability, peace and progress there there is no difficulty in marketing the country. Tourism Ireland's marketing of the island of Ireland has been a major step forward and one can sense this development when one travels abroad because one is no longer met with negativity.

In a number of debates contributors, rightly so, have talked about the multifaceted nature of tourism. Tourism can mean anything from incorporating the local craftsperson and food specialities to major events. The big events are, without doubt, exceptionally important, but, on the other hand, for discerning tourists there is something very attractive about our specialities.

In recent years we have focused on cultural tourism. As there is huge interest internationally in Irish art and culture, it is a major selling point for us. We are told that there are 70 million people worldwide of Irish extraction, which means there is a readily available and open market for us which is virtually exclusive market. We must, however, keep our eye on the ball in that regard. I do not suggest we confine ourselves to that segment of the market. About ten or 12 years ago we tended to go after what was called the floating or whizz kid tourist. That segment is now much more competitive because every other country goes after the same business. As the 70 million people of Irish extraction have some connection with their homeland, no matter how strong or weak, it is important to focus on that segment at all times.

The fleadh cheoil in Derry attracted 430,000 visitors, of whom 20%, or 80,000, came from outside the country, generating an income of £39 million or €50 million and nobody had to spend money to buy the event. It was great to have the Minister with us at the fleadh cheoil in Sligo. I am not blowing a trumpet for this event, but I want to make the following point. We must always keep big home grown events in mind because, invariably, huge investment is needed. To some extent, Senator Sean D. Barrett touched on this element. Funding is not always the major issue but where one positions an event, activity and so on.

One should examine the differences because tourism is about attracting people into Ireland on the basis of our difference and distinctiveness. The people of Ireland are one of its most important tourism assets and one cannot train people with regard to céad míle fáilte. Much of the training I have seen runs contrary to our assets - the "yes madam, no madam" approach to training is robot-like and can turn off visitors. Our native, natural and instinctive view of people is important and we must keep this in mind. The characteristics that make us different are important but so too is the big issue of value for money.

It is true that Ireland was overpriced, to an extent, but this issue has been overplayed. Many people who say prices are high do not compare like with like. Such people compare a McDonald's restaurant with a five-star restaurant and this is not fair because five-star service and activities are strengths of the Irish tourism sector.

I wish the Minister well. We have a great product and are well positioned so we can be confident and optimistic. We must keep our eyes on the ball but, above all, we must be ourselves and sell and promote our distinctiveness.

Catherine Noone (Fine Gael)
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I welcome the Minister and I think we all agree he has done a fine job since his appointment. Tourism is one of Ireland's vital economic sectors and, as others said, it stood us well in difficult times in the past. Further, it has significant potential to play a greater role in Ireland's continuing economic renewal as it has far-reaching benefits for all areas of society. This is felt throughout the country.
The past two years have seen Ireland's stock as a tourist destination rise exponentially. In October Ireland was named the fifth best place to travel in 2015 by the world's most influential travel publication, theLonely Planet guide. Last year saw an 11.9% increase on 2012 overseas tourist revenue figures - the total in this area for 2013 amounted to €3.3 billion, excluding carrier receipts. Combining data from the domestic market and data relating to international visitors gives total tourism revenue of around €5.7 billion for 2013 - I am sure the Minister is aware of this - and some €1.4 billion of this benefits the Exchequer through taxation.
As Senator Brennan noted, overall trips to Ireland were up 7.2% in 2013 and the number of visitors from North America was up by an impressive 13.9%. Meanwhile, visits from our nearest neighbour, Britain, which had slumped badly, have increased hugely. Although visitor numbers for 2013 may be attributed, in part, to The Gathering, figures for the first ten months of this year look very good indeed - there is an upward trajectory and overall visits are up 9.3%, compared to 2013. In fact, figures released this morning, to which Senator Brennan referred, show a 14.5% rise in the first ten months of 2014, compared to the same period last year. The number of North American tourists visiting Ireland increased by 20.9% to an overall figure of 439,900 compared to the same period last year. We love to see Americans come to Ireland for many reasons, not least because they are very good spenders, so they are very welcome.
Tourism can help shape Ireland's image and attractiveness as a place for international companies to invest and data from the Central Statistics Office, CSO, reveals that business trips to Ireland and conference activity are up 5.1%. This is an important part of the overall figure. The Gathering was a very clever Government initiative and the visa waiver programme, mentioned by Senator Brennan, has been also very significant, as has the reduction of the VAT rate to 9%. I campaigned for the VAT reduction because it also has been a crucial factor in our attractiveness to tourists. I agree with previous speakers on the competitiveness of our hotel sector as Ireland had a reputation as a poor value reputation but has managed to rid itself of this, largely. It is regrettable that the hotel sector seems to be poor value and I agree with the other Senators who said this requires attention. It does not take long for word to spread internationally that Ireland has become expensive again and we must not damage the overall tourism product. Hotels in Dublin are guilty of adding on extra euros now that the economy and tourism is improving but this may be the case throughout the country. It is a difficult area on which we must keep an eye.
Many Senators mentioned the Wild Atlantic Way and this fantastic initiative has proved very popular, not least due to its simplicity and cost-effectiveness. The Wild Atlantic Way has been compared by the Lonely Planetguide to South Africa's garden route as a top global attraction. That guide also said that quintessential Ireland is found in picturesque small towns and villages, something we all know. With this in mind, we must ensure stricter planning regulations in small towns to prevent architectural eyesores.
Exciting new enterprises by Fáilte Ireland, such as Dublin plus and culture and heritage south-east, will no doubt contribute to the continuing upward trajectory of tourism. In spite of the highly encouraging rise in tourism figures, there are areas that could be developed, including Australia, New Zealand, South Africa, China, India and the Middle East. Our agencies abroad do very good work in these markets. We sponsored the honeymoon trip to Ireland of a couple who were well known in their homeland of China. This was widely televised in China so it is a very clever way to promote Ireland abroad. The territories I mentioned will be the fastest growing markets in the coming years. The World Tourism Organisation forecasts that the Asia Pacific region will be one of the fastest growing outbound regions with an average expansion of 6.5% per year over the next 15 years. From a purely economic point of view, it should be remembered that visitors from these markets stay twice as long and are great spenders - we like to see them coming. They are also more likely to travel throughout the island, thus ensuring the love is shared in terms of money spent.
I commend the Minister on his excellent work.

Kathryn Reilly (Sinn Fein)
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I welcome the Minister to the House and will begin by being parochial because it is relevant to this discussion. Cavan town recently became a beacon for the Irish tourism industry and I hope it will experience a further boost in tourism because it scooped a prestigious European visitor award. Cavan town tied for first place as the best place for people with disabilities in the World Responsible Tourism Awards. It was the only Irish finalist on the list and this accolade was awarded in recognition of efforts made to make the town and its environs accessible to visitors with disabilities. Winning the award was recognition of the work undertaken in this area in the past seven years in Cavan town. The award for best place for people with disabilities is awarded to a tourist attraction or facility that makes holiday experiences accessible and enjoyable for all, making everyone equally welcome, whatever their physical or mental challenges. The organisers of the awards explained the category by saying that responsible tourism should be accessible to all travellers. The focus of the category is on attractions, facilities and providers that set the standard for accessible tourism practices and serve as an example to the tourism industry. Since an access audit in 2007, Cavan has made major efforts to become a fully accessible town. Cavan County Council introduced various changes to the town, such as introducing by-laws to prevent street signage and furniture blocking footpaths.

The tourist board works closely with hotels and other accommodation providers to ensure that they understand the social and economic benefits of enhancing accessibility. This has been supported by an advisory group which comprises 13 local disability groups. Cavan County Council has provided training for 100 people in disability awareness and 500 local businesses have been audited by the UK organisation Disabled Go with regard to accessibility within the businesses. Cavan has already received a European Commission EDEN award for accessible tourism. The town stands as one of the most prominent examples of what all towns can do when it comes to providing equal access to residents and tourists alike. I take this opportunity to commend all those involved in this ongoing process. The example Cavan Town is providing for other towns throughout the island cannot be underestimated.

The promotion of tourism acts as the storefront to promote Ireland and Irish businesses. The brand of Ireland enhances the standing of Irish industries and products and many tourists who come and enjoy the experience return to invest in the island. The Made in Ireland brand remains a high-quality brand throughout the globe. However, often visitors and potential investors do not differentiate between Ireland North and South. When tourists come to Ireland they want to experience the Ring of Kerry as much as the Giant's Causeway. They prefer to see the history of Ireland in a holistic manner from Viking Waterford to the Rising in Dublin to the peace process in the North. Visitors are attracted by the good work of Tourism Ireland, which seeks to promote tourism on the island of Ireland as a whole. However, when a tourist comes to Ireland there is perhaps something disjointed between Fáilte Ireland and the Northern Ireland Tourist Board and the competing websites of Discover Ireland and Discover Northern Ireland. This takes away from the seamless experience that tourists seek and they may not understand the separate tourism infrastructure when they are here.

One way to see this and show the problem in stark relief is when a tourist wants to stay in the Border counties. There are competing websites to negotiate for a tourist who wishes to stay a night in Fermanagh and a night in Cavan. The Fáilte Ireland site will ask which county the tourist wishes to visit but obviously the six northern counties are missing. As a Cavan woman I am aware that we do not live in a coastal resort, but a visitor could be taken by surprise if she thought from looking at the menu on the website that nothing existed above Louth, Monaghan, Cavan and the peninsular part of Donegal. This is not the first time I have raised this particular example in the Seanad, but I hope it will be one of the last. We need to end this confusion. There is an unnecessary duplication or division.

The potential of Irish tourism has been commented on previously. In the Travel and Tourism Competitiveness Report 2013, Ireland ranked 19th for overall travel and tourism competitiveness and seventh under the travel and tourism regulatory framework heading. The report highlighted how travel and tourism are critical sectors of the Irish economy. The report noted that 128 of every 1,000 jobs in the economy in 2012 were in these sectors and predicted a 2% growth in the number up to 2022. We need to unlock further the potential of the tourism industry and we should work in closer co-operation with our colleagues in the North.

Marie Moloney (Labour)
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I thank the Minister for coming to the House to take this topic. It is not every morning that we wake up to good news, but I certainly woke up to good news this morning from the Minister. I gather the Minister has not yet highlighted what he has done for Donegal and Kerry by retaining the public service obligation arrangements for the regional airports. This is vital for jobs and tourism in both areas and I thank the Minister most sincerely for it. I have been in touch with representatives from Kerry Airport today and they are thrilled and delighted. I assure the Minister that we appreciate it down in that neck of the woods.

The abolition of the air travel tax and the retention of the 9% VAT rate have been fantastic for tourism. We heard more news this week from the Minister for Communications, Energy and Natural Resources, Deputy Alex White, who told us about the roll-out of high-speed broadband, which is also vital for tourism. Towns have rather good broadband but it is not the same in rural areas, whether Cahersiveen, Waterville or Dingle, where a person may be trying to promote bed and breakfast accommodation or a hotel. Everything is online now. We have online bookings and people promote bed and breakfast accommodation on websites. It it all online and it is essential that people have high-speed and good-quality broadband for this reason. I am very pleased with the news although it will take several years to realise. I understand that we cannot get around to doing all of it in one go, but I urge the Minister, Deputy White, to introduce it as quickly as possible, especially for rural areas.

In places like Kerry no new industrial jobs have been announced for many years and therefore tourism and agriculture are vital. We have to sustain and enhance what we have. There is a great deal we can do for ourselves. My good colleague said to me that I would get more time if I did not mention Killarney, but I told him that not mentioning Killarney in the context of tourism was like trying to eat a sugary donut without licking one's lips.

Paul Coghlan (Fine Gael)
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Please ignore the Senator on that subject.

Marie Moloney (Labour)
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It cannot be done because Killarney is synonymous with tourism. The work that Killarney people have put into promoting tourism has been phenomenal. They have promoted the town, which has many natural amenities, including the lakes. The Acting Chairman will agree with me because it is his home town as well.
We have such natural beauty around Killarney and Kerry people have come together to promote it. Hoteliers, businesspeople and Killarney Town Council, before it was abolished, unfortunately, carried out a great deal of work for tourism in the area. Those involved are constantly promoting. Fine websites like gokerry.ieand destinationkillarney.ieare continuously promoting what we have.
Kerry has some fantastic tourism attractions such as the Killarney Golf & Fishing Club. It is a fantastic facility. When the Irish Open was held there it was broadcast throughout the world. No amount of advertising could have brought the publicity that we got from that golf tournament. It was fantastic. The telephone was ringing for bookings even as the golf tournament was taking place. In the Maharees we can go windsurfing. Recently, the Minister for the Environment, Community and Local Government, Deputy Alan Kelly, gave us the funding to promote a greenway along the old railway track, which goes down to Cahersiveen. This will allow us to promote cycling tours and holidays. Someone referred to cycling as the new golf, because people are really into cycling at the moment. It is a fantastic achievement to be able to establish this greenway along the most scenic route that one could ever see. It is gorgeous. I will invite all Senators to visit it when it is open. I imagine many Senators have taken part in the Ring of Kerry charity cycle. While it is a charity event and raises a great deal of money for charities, which is fantastic, it also brings a great many people to the county. This is great for the hotels, guesthouses, restaurants and the local food industry.
This brings me to food. We have the best quality food in this country. Sometimes I hear people say that if they go to Spain they can get a four-course dinner for €12. This may be so but the quality is nothing like what we have in this country. Our food is second to none. In such places one does not get fresh vegetables and so on; it is simply not the same. When I go away I cannot wait to get back to have a feed of bacon and cabbage or Irish stew. The quality of food in this country is second to none.
We can do so much for ourselves. We have the races and the writer's week in Listowel and the festival of Kerry. There is so much going on. It is fantastic. The tourist season has become longer. It is expanding because we continue to promote winter activities. For example, let us consider Killarney again.

Terry Brennan (Fine Gael)
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The right man is in the Chair.

Marie Moloney (Labour)
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Christmas in Killarney is simply magical for anyone who visits. The jarveys do up their jarvey cars like sleighs.

It is like being out on a sleigh ride.

Paul Coghlan (Fine Gael)
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I hate to tell you your time is up. I will not stop you finishing.

Marie Moloney (Labour)
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I commend the towns and tourist areas that have picked themselves up and not let the recession beat them down. Killarney has had the best season in a decade, which is great news for us. I commend them on the work they do in promoting tourism in their area and empowering themselves to bring in people. I also commend Tourism Ireland and Fáilte Ireland on what they have done for tourism.

Gerard Craughwell (Independent)
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Cuirim fáilte roimh an Aire. When portfolios were being handed out, the gods smiled on the Minister. He got an excellent portfolio and a very hard-working Department of which I am very proud, as is anybody in the country. First impressions last. It is always exciting for me to arrive at Dublin Airport. If I were to find fault, it is being told I would arrive at terminal 2 but arriving at terminal 1 and having to walk half a mile, or being told I am to depart from terminal 2 but finding my aircraft is in terminal 1. I find it very annoying and I ask the Minister to talk to whoever is responsible for it. As my colleague, Senator Barrett, said, our ferry ports are excellent, but, again, it is a route march to the nearest railway station. We need to consider a way of transferring people there and back. Bus services and main roads around the country are excellent. The Minister has a lot going for him and his Department has done a huge amount of work. The one downside of our public transport system is our railways. Train travel is too expensive. Senator Moloney referred to the regional airports, and the Minister is to be commended on keeping them open. The Senator went on about Killarney a little, although it is only an island somewhere down in the south west.

Marie Moloney (Labour)
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Not at all; we are thriving there.

Gerard Craughwell (Independent)
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I come from Galway, which is the tourism heaven of Ireland. Some time ago, when driving to Cork, I passed 15 trucks belonging to one of the main haulage companies in the country. It is a game of mine, whenever I travel anywhere, to count the number of times I pass one of these trucks. I cannot understand why Irish Rail has not established regional hubs from which these trucks could feed out to the local community, thereby reducing the cost of rail travel for the consumer. The Minister might examine this.

We have some of the finest hotels in the world. Over the past few years, in my former role as president of a union, I have been privileged to travel all over the world. One of the issues that annoys me intensely is the way many of our hotels that have been taken over by NAMA are allowing their assets to deteriorate. In some of the finest hotels in Ireland there is paint peeling off the wall and poor and dirty furniture. We can do much better. I recently booked into two hotels and when I got into bed I thought I was getting into a water bed. They were so damp it was not funny. I will not name the counties because I do not want people to guess where I am talking about. We need to improve on this. I do not necessarily subscribe to the notion that we rip people off. In any country I have visited at any time when there has been a conference, hotel prices naturally increase. However, we need to do something about how competitive they are with respect to those prices.

Family tourism is very important, and I wonder why we have not been able to come up with a single price ticket that covers such things as hop-on-hop-off transportation around the entire country, as well as access to cultural and heritage sites. While one can buy a single ticket for heritage and cultural sites, if we could add transport, families coming here could budget for this aspect of their holiday and would not need to fear additional costs.

Although it is not specifically the Minister's area, I am concerned about the loss of €600,000 in funding to the non-Irish-speaking islands. Islands such as Inisbofin draw large numbers of tourists to the country, and if local development companies close down due to a lack of funding, it will be detrimental. The Minister could step in and do something about it. In 2007 funding was at €7.7 million, but in 2010 it dropped to €5.9 million. The Minister is on the upward slope again at €7 million - fair play to him for that - and he could throw another €600,000 on that and give it back to the islands, which would, perhaps, allow tourism to grow there. I commend the Minister on the work he is doing and on keeping the regional airports open. I wish him well in his Ministry. If there is a peach of a job in government, he has it.

Eamonn Coghlan (Independent)
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I welcome the Minister. I apologise for missing his opening remarks, as I was otherwise engaged with another portfolio in the Minister's brief, presenting the annual awards to young athletes who have represented Ireland well throughout the year.

I am delighted to contribute to the debate on tourism. Many years ago, as a young man, I worked for Bord Fáilte in the US as a youth and educational representative. In those days, in order to be allowed to come in at 10 a.m. and leave at 4 p.m. so I would have time to do my twice-daily training, I agreed to wear the words "Discover Ireland" on the front of my running shirt and "It’s great, it’s green" on the back. I did my duty as an amateur athlete, not getting paid for wearing those words on my shirt, and photographs of it can be seen to this day in various magazines any time the Chairman of the Boards is ever mentioned. While I lived in America, I was always fascinated by the affection the people there had for this great little island of ours in the North Atlantic, called the Emerald Isle. As far as the people in the US are concerned, it is a jewel.

Gerard Craughwell (Independent)
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The Senator did a fair bit for that himself.

Eamonn Coghlan (Independent)
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Thank you very much. As we know, Irish tourism has gone from strength to strength year on year. We all know how great this little island of ours is, with our vast coastline, which stretches perhaps over 3,000 km, world class surfing, inland waterways, rivers, canals, mountains, towns, cities, culture, heritage, music, sports events and the great golfers who represent Ireland all over the world. However, our greatest trump card is our people - our charm, wit, hospitality and how we engage with others whenever we are called upon. This is respected more outside Ireland than within. As the Minister mentioned, tourist numbers increased by 7.2% in 2013. During the first nine months of this year, they were 9.3% higher than the same period last year, which is great news.

I congratulate the Minister's Department on the success of the Wild Atlantic Way, which is, perhaps, the longest defined coastal touring route in the world, stretching some 2,500 km from Donegal to Kerry. There are many wonderful attractions along the way, with villages, towns and cities, including Galway, which is the halfway point, and there are jagged peninsulas, deserted beaches and approximately 26 offshore islands to be explored. The Wild Atlantic Way is our version of the US Route 66.

Gerard Craughwell (Independent)
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Hear, hear.

Eamonn Coghlan (Independent)
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While we might not be able to run along the Wild Atlantic Way, it is attracting many motorcyclists from overseas.

From my work in the charity sector I know it give charities an opportunity to create challenges along the Wild Atlantic Way to raise funds for its respective causes.

Recent research indicated that the view of Dublin is a little dusty. If we look out the window tonight we can see it is a little foggy, as it was when I drove here from the sports awards, but the initiative to invigorate and rebrand Dublin is very welcome. The Grow Dublin Taskforce chaired by my good friend, Michael Carey, who was recently appointed, is fantastic and I know Michael's leadership will add greatly to that initiative. This is all about putting the visitor at the heart of the strategy. The final report from the Grow Dublin Taskforce, Destination Dublin: A Collective Strategy for Tourism Growth to 2020, was launched in January of this year and a new plan for tourism in Dublin envisages up to 7% growth year on year, with spending expected to increase by approximately 8.6% per annum. Spending by international visitors up to 2020 would almost double by perhaps €2.5 billion, which would be a phenomenal contribution to our economy.

While we know that Dublin is performing well in terms of tourism revenue and jobs, much more needs to be done to promote Dublin and all that it can offer. That is now under way with the taskforce. Six out of the top ten tourist attractions in Ireland for 2013 are located here in Dublin but we need to bring together all the interests and sectors in Dublin to promote the city and the surrounding areas. The city has many popular tourist attractions as well as some hidden gems such as back street restaurants and small, funky cafés but what is great about Dublin is its proximity to the many beautiful spots north, south, east and west of the city, from the Dublin mountains to the sea attractions on either side of the city from Greystones to Howth.

Not only is there a focus on Dublin but also on the south and the east coasts from the north east and the Boyne Valley down to the Wexford and Waterford coastlines. This is a living history project which will provide a balance on the east coast to the Wild Atlantic Way, and animate our country's culture and heritage. It will be fantastic.

I want to raise one or two more issues. I know from my experience the great work-----

Paul Coghlan (Fine Gael)
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Sorry Senator, there are two more speakers-----

Eamonn Coghlan (Independent)
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This is the most important point I want to bring to the Minister's attention. I know from my experience the great work that Fáilte Ireland and Tourism Ireland do. However, there is some confusion about their respective roles and I am constantly asked whether a person should consult with Fáilte Ireland or Tourism Ireland on various issues. There seems to be a duplication in that regard and the Minister might clarify that.

Martin Conway (Fine Gael)
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I know time is tight-----

Paul Coghlan (Fine Gael)
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It is very tight. The Minister has to leave at 5 p.m.

Martin Conway (Fine Gael)
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I welcome the Minister to the House. He has an exciting portfolio at a very exciting time. Tourism in this country is working. The initiatives he outlined in his contribution are working. The welcome aspect in terms of tourism marketing is that we are taking a joined-up, corporate, professional approach. The Gathering was the first attempt at having an international corporate marketing campaign. Until then we had Kerry promoting Kerry, Clare promoting Clare and so on but The Gathering was Ireland promoting Ireland, which was the only way to do it.

The Wild Atlantic Way is well able to compete with places such as the Camino and so on. Again, a corporate approach was taken to that in terms of pulling together all our assets and presenting them abroad as an attractive package. The concept of the Wild Atlantic Way is working, and the proof of that is the Cliffs of Moher visitor experience which had over 1 million visitors this year. That is a credit to all involved but I consider the Cliffs of Moher, along with a number of other tourist attractions, as a gold plated attraction and we need to invest in the silver plated attractions. The gold plated attraction will bring people into the vicinity but the silver plated attractions will keep them in the area. For example, the Cliffs of Moher attracts 1 million visitors but, unfortunately for County Clare, most of them are day trippers from Limerick, Dublin or Galway. They do not stay overnight in County Clare so in order to put together a package that is attractive for those people to stay after they have done the four hour trip to the Cliffs of Moher, we must invest in silver plated facilities. We must ensure we have proper sports facilities, amenities and other attractions to promote, even if we need tax incentives to encourage people to build tourism-specific attractions.

I know someone who is attempting to create a miniature fishing village and they are going through various hoops in terms of planning and so on. That is not to do with apartment complexes, hotels or anything like that. It is a product that is specific to tourism that would work and add to the suite of services, facilities and attractions available to tourism.

We must invest also in year-round facilities. Our tourism season in the cities is almost a 12 months business but in rural areas, seaside resorts and so forth there is no reason we cannot extend the tourism season to eight to ten months of the year, and that will be done by effective and clever investing in weather resistant facilities.

There is a lot more I could say-----

Paul Coghlan (Fine Gael)
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I know that.

Martin Conway (Fine Gael)
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-----but I speak regularly on this issue in the House.

Paul Coghlan (Fine Gael)
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Eloquently.

Martin Conway (Fine Gael)
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The Minister came to Clare recently and visited the Cliffs of Moher and I look forward to welcoming him again in the not too distant future.

Paul Coghlan (Fine Gael)
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Before I call the Minister I will give one minute to Senator Cummins. The Minister is anxious to conclude, and I am anxious to facilitate him.

Maurice Cummins (Fine Gael)
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I will be very brief because I know the Minister has other engagements. The success of our tourism product was not by accident but because of Government policy. Consciously deciding to have a 9% VAT rate and eliminating the travel tax were policy decisions made by Government that have yielded tremendous success over recent years, and long may it continue.

Senator Conway mentioned the Wild Atlantic Way. We were a little disappointed in Waterford that it was not continued to Waterford because we are on the Atlantic as well, but I believe there are plans to continue that from a tourism point of view.

We are having great success in promoting Waterford with the Viking Triangle but sports tourism is very important and we need to finish our sports complex at the institute of technology. It is almost complete but we need about €1.5 million to host major international events, which would be very beneficial. In terms of the greenway, it is almost two-thirds complete but we need to complete it. I will conclude because I know the Minister is in a hurry.

Paschal Donohoe (Dublin Central, Fine Gael)
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I thank all the Senators for their contributions. I will respond to the main point each Senator has made to me to conclude this debate.

I thank Senator O'Sullivan for his contribution. I am always reluctant to describe any part of our economy as being a good news story because we do so at the cost of forgetting - not that Senator O'Sullivan did - how difficult things were for quite a while and not acknowledging choices that were made to get us to where we are now. It is extremely important that we are conscious of that when we talk about tourism because a challenge we will face is looking at measures we can put in place in our economy to ensure that the kind of growth we see happening now continues at a more sustainable pace in the future. That is something my strategy, which we will launch later in the year, will seek to address.

I take a different view on the point made about front-of-house operations - who is behind the bars and working in cafes. A great strength of our country is the variety of communities we have. While I understand Senator O’Sullivan’s point of view, what is more important is the training that is made available to the person and the culture within the cafe or pub that the tourist is visiting. That is the real test of the welcome we can offer. Everyone living here is capable of doing that and we have to support them with training to make sure that happens.

Senator Brennan spoke about the role of local communities in delivering our tourism offering, a point with which I agree. I have been impressed by the degree to which local communities have built upon what was delivered through the Wild Atlantic Way by the Government and local authorities. It is a significant part of the magic of what that offering is achieving.

Senators O’Sullivan and Barrett emphasised the risk of killing the goose that laid the golden egg with pricing and competitiveness of hotels and other tourism facilities. My message is simple. My support for retaining the 9% VAT rate is absolutely conditional on ensuring that we continue to offer good value to tourists. We will not accept a return to the kind of behaviour and pricing that crippled our ability to give good value to people who came to our shores in the past.

Sean Barrett (Independent)
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Hear, hear.

Paschal Donohoe (Dublin Central, Fine Gael)
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That said, I understand the need for hotels to set prices in a way that allows them to invest in, say, improving facilities, as pointed out by Senator Craughwell. This investment will not come from the taxpayer but from the owners. I accept the need for them to set prices in such a way as to make that sustainable. The sustainability goes both ways. There has to be pricing that is sustainable to deliver investment, but it must also be sustainable to deliver a competitive offering to tourists. The moment I see evidence that this is stopping, my support for delivering the 9% VAT rate will be revisited.

I agree with Senator O’Keeffe on the need to layer the Wild Atlantic Way and examine how it can be developed. Senator Ó Murchú touched on the role of cultural tourism and the success of a recent fleadh in Sligo, which I was privileged to attend. It would be ungracious of me were I not to acknowledge the Senator’s role in it. I take a different view from his on how we offer a welcome and who is able to do that. He warned about going after the floating tourist market. I have been impressed by the work done by Fáilte Ireland on market segmentation, analysing the various potential tourists who could come to Ireland and establishing plans to go after them. This has underpinned the recent success in the tourism industry.

Senator Noone touched on all of the different measures implemented by the Government. Senator Reilly referred to the accolade recently awarded to Cavan town in the World Responsible Tourism Awards. Senator Moloney acknowledged the recent announcement on public service obligations, PSOs, for airport routes between Donegal, Kerry and Dublin. I took the decision to support the PSOs because of the contribution that aviation connectivity makes to our ability to deliver a very strong tourism offering. I am confident that the airports and those involved in delivering those routes will rise to the challenge.

Marie Moloney (Labour)
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It is much appreciated.

Paschal Donohoe (Dublin Central, Fine Gael)
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They must continue to do so.

As I have not had the opportunity to address Senator Craughwell before, I congratulate him on his election to the Seanad. I wish him the best of luck in the contribution he will make to it. He is correct with regard to the importance of airports and the contribution they make to how a tourist first views the country. The establishment of Terminal 1 and Terminal 2 at Dublin Airport represents a massive improvement compared to what was there several years ago. These new facilities provide a good welcome to tourists. The airports, the Garda Síochána and the Irish Naturalisation and Immigration Service, INIS, have tackled the waiting times for passport checks for arrivals at our airports. I will raise the point made by the Senator about the journey time between the two terminals.

I thank Senator Eamonn Coghlan for the work he has done with Fáilte Ireland and representing Irish sport abroad. I agree with him on the need for Dublin to examine its image. That is why I have put in place the Grow Dublin Tourism Alliance, which Bord Bia chairman, Mr. Michael Carey, has agreed to head. I thank him for taking on this large project, with which he will do a brilliant job.

Senator Conway hit the nail on the head on the need to join up all the various tourism initiatives that we have in place. I am sceptical, however, about the role of targeted tax incentives for particular tourism projects because of my concerns regarding their ability to pay out in the future. I agree with the Senator on the need to complement what he called the gold-plated attractions with other tourism attractions so they can come together to give people the opportunity to have a good visit. We must continue to provide opportunities for extending the length of stay of tourists.

The Tidy Towns competition makes a good impact in terms of developing a community-based welcome to visitors to towns. As Senator Cummins knows, it is not an act of God that we have a tourism sector that is performing so well. It has happened because of the quality, leadership and stamina of those working in it, supported by the Government’s decisions. All of that coming together has got our tourism industry to where it is now. The Senator also pointed to progress in the development of the Great Western Greenway, and I am confident that it will be a greater success in the future. On the point about the Viking Triangle, I am examining how we can build on this in Waterford and neighbouring counties and market it collectively abroad in a better way than we have been able to thus far. I am sure that when we get this in place next year it will give more support to businesses and communities in Waterford city and county.