Mary Upton (Dublin South Central, Labour)
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Question 34: To ask the Minister for Arts, Sport and Tourism his views on whether it is acceptable that hotels in Dublin, Kildare and counties surrounding the K Club in Kildare should increase rack rates by 25 percent during the period of the Ryder Cup; if so, his further views on whether there will be knock-on effect whereby local businesses put up prices accordingly; his views on whether this will damage Ireland's image to visitors; and if he will make a statement on the matter. [26944/06]

John O'Donoghue (Kerry South, Fianna Fail)
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The approval of hotel and guesthouse accommodation is the responsibility of Fáilte Ireland. In accordance with the Tourist Traffic Acts, which govern this area, approved accommodation providers are obliged to display their registered charges in bedrooms. These charges are also published in relevant accommodation guides. However, the upper and lower limits on accommodation charges are set by the accommodation provider who can also set charges for a number of time periods. Fáilte Ireland has no role in this regard. If a guest is charged more than the relevant upper limit there is a formal process that is followed and the matter is investigated. In practice this is very rare and the overcharge has to be refunded.

I am aware that concerns have been expressed about the risk of excessive prices being charged by certain elements of the Irish tourism and hospitality industry in the context of the Ryder Cup taking place in Ireland. The State Tourism Agencies are being particularly vigilant in this area, and in all of their dealings with the industry are taking the opportunity to encourage a commonsense approach to the pricing of our tourism products. That said, given free market forces, it is not surprising to see some increase in prices as was the case at other Ryder Cup venues. I understand, for example, that when the competition was held in the Belfry, room yields in Birmingham increased by 36.5% in the period around the competition.

My Department wrote to the Director of Consumer Affairs last November requesting that a special initiative be undertaken around the time of the Ryder Cup to ensure that price lists in restaurants and public houses are displayed prominently. The Director of Consumer Affairs has informed me that appropriate checks will be carried out.

I believe that Ireland will deliver value for money during the staging of the Ryder Cup. The vast majority of visitors will have purchased packages that have been priced now for quite some time. Nevertheless, I will continue to raise these issues, as appropriate, in my regular contact with the industry, and in the media, in the build up to the Ryder Cup.

In particular I would urge all tourism service providers to take a long-term perspective on the benefits of the event. The value of word of mouth publicity cannot be overestimated and we want our visitors to return home with glowing reports about their stay here and confirmation that the hospitality and friendliness for which we are renowned really does exist. More importantly, we want them to be able to say that the golf was excellent, that they received value for money and that they will want to come back again.