Jimmy Deenihan (Kerry North, Fine Gael)
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Question 139: To ask the Minister for Arts, Sport and Tourism the measures he proposes to take to restore the competitiveness of tourism here during this term; and if he will make a statement on the matter. [19557/07]

Séamus Brennan (Dublin South, Fianna Fail)
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One test of competitiveness is whether we can maintain and increase market share. Certainly, on the basis of our record-breaking performance in 2006, we are doing that. That record run has continued into 2007. For the first quarter of 2007, reports from the Central Statistics Office show that visitor numbers are up by over 6% on the corresponding period in 2006 while the associated revenue is up by almost12%. Both of these figures are ahead of industry targets for the year.

These positive developments should not deflect us from the immense challenges facing us in the marketplace. Maintaining and enhancing competitiveness is a major issue for Ireland as a whole and tourism in particular.

In dealing with that issue, it is important to bear in mind that competitiveness is about more than price movements and costs. It encompasses a wide range of factors. These include productivity, exchange rate movements, taxation policy, education training and skills, public and private infrastructure and innovation. In particular, productivity means the effective use of resources and innovation to increase the value-added content of products and services.

The question of competitiveness in tourism, like any other productive sector, must be seen in that broader light. In terms of the more efficient use of resources and energy costs, I believe that the Tourism sector will, like many other sectors, have to increasingly adopt sustainable solutions.

I believe that the Irish industry is, by and large, aware of the challenge. People on the ground in the tourism industry know how fiercely competitive the market is. They know that it is essential to provide value for money. Ireland is not promoted or sold as a 'cheap destination' but our selling proposition has to be competitive; by that I mean the combination of price, product quality and service quality. There will be less and less place for poor product and poor service.

The Tourism Agencies continue to monitor Ireland's competitiveness as a tourism destination and I will encourage them to assist the industry in responding to changing conditions through a variety of programmes in marketing, human resource development, quality enhancement, product development and productivity.

Tourism is just one part, albeit a significant part, of the overall economy. There is a competitiveness challenge for the economy as a whole and that challenge will be addressed by the Government's wider competitiveness agenda.