Written answers

Tuesday, 16 October 2007

Department of Arts, Sport and Tourism

Tourism Promotion

10:00 pm

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Fine Gael)
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Question 343: To ask the Minister for Arts, Sport and Tourism if separate funds will be provided to Tourism Ireland to implement the recommendations arising from the current review of the Ireland tourism brand; and if he will make a statement on the matter. [23884/07]

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Fine Gael)
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Question 344: To ask the Minister for Arts, Sport and Tourism if he has plans to increase the marketing budget for tourism in 2008 to ensure a significant increase in resources to take account of the changing tourism market and increased competition; and if he will make a statement on the matter. [23885/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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I propose to take Questions Nos. 343 and 344 together.

This year saw record levels of Exchequer investment for Tourism services — a total of almost €159 million. In particular, the increased Marketing Fund of €45 million, an increase of 12.5% on the 2006 provision, enabled the Tourism Agencies to significantly step up their marketing activities. Next year's budgets for Tourism will be decided in the context of the Estimates process which is, as the Deputy is aware, a matter for which the Minister for Finance has lead responsibility. Obviously in allocating resources, the Government must balance competing demands from every part of our economy and society.

As Minister with responsibility for tourism, I am committed to seeking the optimum funding, including funding for international tourism marketing and development, for the tourism sector to help ensure that the impressive performance in recent years is maintained in the years ahead. In that context, I will seek to secure an appropriate Southern funding contribution to Tourism Ireland for the implementation of its 2008 Business Plan which itself requires approval by the North South Ministerial Council.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Fine Gael)
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Question 345: To ask the Minister for Arts, Sport and Tourism his views on the problem of the continuing diminution of competitiveness in the tourism sector stemming from high Irish inflation, interest rate increases and high local authority charges and taxes; his proposals to address this continuing problem; and if he will make a statement on the matter. [23886/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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In considering the competitiveness of any industry, a key measure is the extent to which it can maintain and increase market share. The Irish tourism industry is continuing to do that, if we look at the hard data — with results so far in 2007 continuing to build on our record-breaking performance in 2006. For the first eight months of 2007, reports from the Central Statistics Office show that visitor numbers are up by over 4% on the corresponding period in 2006. The revenue associated with overseas visitors for the first half of the year is up by nearly8%. This performance is broadly in line with industry targets for the year.

Of course, there are real 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. 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.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Fine Gael)
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Question 346: To ask the Minister for Arts, Sport and Tourism if he has proposals to introduce an efficient energy in hotels programme, appropriate tax incentives and financial support for investment costs to adjust to more efficient and more sustainable methods; and if he will make a statement on the matter. [23887/07]

Photo of Séamus BrennanSéamus Brennan (Dublin South, Fianna Fail)
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Tax incentives are a matter for the Minister for Finance. In looking at how businesses of any kind, including hotels, can make more efficient and sustainable use of resources, there are a range of players who can and do contribute. Of course, it is the business itself which is primarily responsible for its own commercial operations.

The Environmental Protection Agency, or EPA, which falls under the aegis of my colleague the Minister for the Environment, Heritage and Local Government, has among its main responsibilities the promotion of environmentally sound practices through the use of environmental audits, eco-labelling, environmental quality objectives and codes of practice on matters affecting the environment; and the promotion and co-ordination of environmental research. In that regard, I understand the EPA has programmes in place to support businesses, including hotels, in adopting more sustainable practices.

Within the tourism sector, I am advised by Fáilte Ireland that it has developed a range of business tools aimed at helping tourism enterprises become more efficient, competitive and profitable, under the name of Performance Plus. The emphasis is on saving money and improving profits but it also encourages good environmental behaviour for the benefit of the community at large. A European Eco-label for Tourist Accommodation was introduced across the Member States in 2003 by the European Union. Commonly referred to as the "EU Flower", it sought to take a holistic approach to achieving excellence in overall environmental management, not only in energy efficiency but also for water management and waste disposal and the systems and procedures that support this. I understand that Fáilte Ireland, in close liaison with the Environmental Protection Agency, is assessing the appropriateness and associated implications, to the Irish hotel sector, of the current iteration of the Label.

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