Written answers

Thursday, 6 July 2006

Department of Arts, Sport and Tourism

Tourism Industry

6:00 pm

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 29: To ask the Minister for Arts, Sport and Tourism the measures that he intends to put in place to address the growing imbalance in regional distribution of tourism demand which has resulted in west coast regions having 3,298,000 fewer holiday makers, bed nights in 2004 compared with 1999 and attracting 50 per cent of all overseas holiday maker bed nights in 2005 compared to 75 per cent in 1999; and if he will make a statement on the matter. [26668/06]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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CSO statistics for overseas tourism for 2005 show a very positive result both in terms of overseas numbers — up 6% (400,000 additional visitors) to almost 7 million — and revenue earnings — up almost 8% to €3.455 billion (excluding carrier receipts and cross border tourism). On both counts, we are ahead of targets for the year. As global competition intensifies and consumer preferences evolve, these results represent a very robust performance by the sector and confirm how dynamic and responsive the Irish tourism sector is. Performance to date in 2006 is very encouraging. The CSO figures for the first four months of the year show over 2 million visits to Ireland in the period — an increase of almost 13% over 2005 which is well ahead of Tourism Ireland's target of 4.9%.

It is widely acknowledged within the tourism sector that growing the pure holiday component of the overseas tourism business has proven difficult in recent years, both at a regional and a national level. In 2005, the holiday segment of all overseas travel to Ireland grew by 2.7% in revenue terms, significantly lower than the 8% overall revenue earnings growth. This clearly impacts on the holiday business at a regional level. Both Tourism Ireland and Fáilte Ireland are working to help the industry to address the issues behind this trend which is very much a global phenomenon. It is also important to emphasise that the so-called "VFR" — visiting friends or relatives — component of the overall tourism business continues to be of immense strategic importance and grew by over 17% in revenue terms in 2005.

I also wish to draw the Deputy's attention to the home market. The home holiday market is an increasingly important component of the tourism business in Ireland particularly in terms of seasonal and regional spread. Eighty-six per cent of holiday trips and 89% of holiday nights by domestic tourists are now spent outside the Dublin area. This offsets, to some extent, the relative strength of Dublin in the overseas visitors market. In 2005, expenditure on domestic tourism was up across all regions — albeit at different rates. In the West it grew by €20m which is equivalent to a 9.5% increase and offset the decrease in revenue for overseas visitors for the same period.

The fact that all regions and sectors are not benefiting to the same extent from our tourism success continues to be a matter receiving attention from my Department and the State tourism agencies as we evolve our tourism policy and programmes. I am confident, however, that the new regional tourism arrangements will enable tourism to grow in the regions to a greater extent than at present, and that the various region specific initiatives introduced this year by Fáilte Ireland and Tourism Ireland Ltd will further help to address this situation.

Photo of Jack WallJack Wall (Kildare South, Labour)
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Question 30: To ask the Minister for Arts, Sport and Tourism if his attention has been drawn to recent criticisms from the chairperson of Fáilte Ireland regarding the potential danger to tourism here that would be caused by the sale of some of Aer Lingus landing slots at Heathrow Airport; if he has had discussions with the Department of Transport on this issue; and if he will make a statement on the matter. [26923/06]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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On 26 June last, the Chairperson of Fáilte Ireland Ms Gillian Bowler, restated the organisation's view that the maintenance of the Aer Lingus slots at Heathrow is of great importance for Irish tourism growth as Heathrow is the world's busiest airport for international passengers and one of the key conduits for long-haul visitors to Ireland.

I concur with the view that the maintenance of the Heathrow slots is of strategic importance for the further development of Irish tourism, particularly to long-haul markets, and my Department has communicated this view in the inter-Departmental fora which have examined the issue of the flotation of Aer Lingus.

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