Denis O'Donovan (Fianna Fail)
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I welcome the Minister of State, Deputy O'Donovan, to the House.

Paul Coghlan (Fine Gael)
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The Minister of State is very welcome to the House. Given his place in the heart of Ireland, I think he will have a good feel for the ways in which we may be able to improve the domestic tourism market. I look forward to hearing his views on the matter.

I am primarily concerned with the possible negative impacts of the Brexit vote on our domestic tourism industry. The key objective of the Government's tourism strategy, People, Place and Policy-Growing Tourism to 2025, which was launched last year, is to use Government policy in an effective way to combine Ireland’s key attractions of people and places to maximise the tourism industry. While I am a little biased, I suggest there is no better example of the success of this approach than the introduction of the Wild Atlantic Way in my native county of Kerry. This tourist trail, which stretches from Donegal to west Cork, has revitalised tourism along the western seaboard. I am delighted that the Government intends to commit an additional €100 million in capital funding to take the Wild Atlantic Way to the next level with the creation of blueway and greenway routes and the development of the rural walks scheme.

There is no doubt in my mind that in recent years, the Government has been very positive and proactive in promoting this island and all it has to offer. The increased revenue from tourism is evidence of this. However, all of this success now faces a real threat as a result of Britain's decision to leave the EU. Naturally enough, our proximity to Britain makes it our biggest tourism customer. Hundreds of thousands of British visitors travel to Ireland all year round.In recent weeks, we have seen sterling take a hammering in the markets and, indeed, it crashed to a new 31-year low, dipping below $1.28 at one point in Asian trading. We have all seen the volatility in trading and while there remains a shroud of mist with regard to Britain's leave negotiations, there will continue to be uncertainty in the markets when it comes to sterling.

That is why I am raising this matter. I believe it is vital the Government has a contingency plan in place to protect our domestic tourism industry when we are confronted with a fall in sterling. As I mentioned, we have done exceptionally well in promoting Ireland abroad but we need to safeguard the good work this Government has achieved with a clear-cut plan to protect Ireland's tourism industry in the aftermath of Brexit.

I wish the Minister of State well. Given his geographic position, I am looking forward to an improvement for places that need further improvement. We are lacking hotels and hotel bedrooms and we need more infrastructure. I look forward to hearing the Minister of State's views on the matter.

Patrick O'Donovan (Limerick County, Fine Gael)
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I thank Senator Coghlan for raising this important issue. I take issue with his suggestion I have a bias in this regard. The Cathaoirleach and I know that Senator Coghlan suffers from a large amount of bias when it comes to this subject because the tourism product begins in Killarney and ends at the Feale, as far as he is concerned. Nonetheless, he is entitled to his views in regard to his native county.

Paul Coghlan (Fine Gael)
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The Minister of State has a fondness for the Feale as well.

Patrick O'Donovan (Limerick County, Fine Gael)
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Absolutely. I thank the House for giving me the opportunity to speak on this important issue, particularly in regard to Ireland's response following the British decision to leave the European Union. In terms of overseas visitor numbers, Great Britain has consistently been Ireland’s most important overseas market. In 2015, which was a record year, over 3.5 million visits were made from Great Britain to Ireland, representing 41% of overseas visit numbers and accounting for 23%, or almost a quarter, of total tourism revenue.

As the House will know, Tourism Ireland, an all-island body set up as a result of the Good Friday Agreement, is the agency responsible for the inward marketing of Ireland. As recently as last week, I had a discussion with Tourism Ireland to better understand where that agency is positioned in terms of dealing with the fallout from Britain's decision to leave the Union. It is too early to form a judgement on the overall impact of the UK referendum result but there will be some short-term implications. These are likely to be centred on the possibility that consumers in the UK will be more cautious with their discretionary spending due to the volatility with sterling, which may impact outbound tourism generally from Great Britain. A second short-term issue is the impact on the prevailing exchange rates between the British pound and the euro. In terms of the outbound Great Britain market, it should be noted that the relative reduction in the value of sterling will have similar implications for all eurozone countries.

In regard to this last point, the very strong tourism performance of the last two years - last year was a record year - has fed through into increased prices for visitor accommodation, particularly in Dublin and in other key tourism destinations. I met with Fáilte Ireland last week in regard to the constraints that are becoming increasingly apparent in the Dublin accommodation market. Up to now, British visitors were somewhat insulated from the full impact of these increases due to the strong value of sterling. With the recent currency adjustments, the full extent of the price movements will now be more apparent for British visitors. Therefore, an opportunity exists for tourism accommodation providers to match prevailing prices to the new market environment and ensure that Ireland’s competitive position is maintained. If I could get one message out from the Seanad today, it is a very clear and succinct message to Dublin hoteliers and the Dublin industry in particular that this is something the Government is very concerned about.

In the short term, there are no changes to how people can travel between Ireland and the UK, and the Government will be doing its utmost in future discussions to maintain the common travel area, which has existed since 1922. With regard to the longer term, the programme for Government commits to implementing the policy referred to by Senator Coghlan up to 2025 and achieving the targets for Irish tourism within it. Even prior to the referendum result there was a commitment in the tourism policy to prioritising tourism marketing efforts towards those markets providing higher revenue returns. However, the British market will remain of significant importance to Irish tourism product in the future and I believe that Ireland’s excellent tourism offering will ensure that we continue to perform strongly in that market.

As I said, Tourism Ireland is closely monitoring the situation and is due to meet tourism industry representatives later this week. I will keep in close contact with Tourism Ireland and will continue to meet its representatives to keep abreast of proceedings. In the longer term, we will work closely with other Departments, particularly the Department of Foreign Affairs and Trade and the economic Departments within Government. I am anxious to take on board the views of the Members of the Oireachtas. I know Senators have a very strong tradition of using the Seanad effectively to sound out issues of importance to the State, in particular longer-term projects. I encourage the Cathaoirleach and Senator Coghlan to consider the possibility, when the Seanad reconvenes in September, of a longer-term discussion in regard to the challenges facing Irish tourism, particularly in the context of the UK referendum.

Denis O'Donovan (Fianna Fail)
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An bhfuil tú sásta, Senator Killarney?

Paul Coghlan (Fine Gael)
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I think the Cathaoirleach and the Minister of State are both biased. In any case, I am very grateful for the Minister of State's response. I note particularly what he said about the Dublin hotels, which is a very relevant point. Perhaps by increasing their competitiveness they might make up for the fall in sterling. I hope sterling improves, and perhaps it will down the line. In the meantime, our hoteliers could help, and I hope they will, because they will not want to lose the business. They could match that fall and still give value for money. I very much welcome what the Minister of State has said overall and I look forward to further progress and growth.