Written answers

Tuesday, 13 May 2008

Department of Arts, Sport and Tourism

Tourism Industry

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 298: To ask the Minister for Arts, Sport and Tourism his proposals to ensure the competitiveness of the tourism industry here for the future having particular regard to currency and economic fluctuations worldwide; and if he will make a statement on the matter. [17991/08]

Photo of Martin CullenMartin Cullen (Waterford, Fianna Fail)
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Maintaining and enhancing competitiveness is a major issue for Irish tourism as it is for the economy as a whole. In addressing that issue, it is important to bear in mind that competitiveness is about more than price and costs. It is generally agreed that Ireland cannot and, indeed, should not attempt to compete on the basis of costs with mass tourism destinations.

In considering the competitiveness of any industry, a key measure is the extent to which it can maintain and increase market share. We have been fortunate in recent years to enjoy record growth in numbers of overseas visitors and associated revenue. The Central Statistics Office figures for 2007 show that we welcomed over 8 million overseas visitors to the Republic of Ireland, with associated foreign revenue earnings of almost €5 billion.

With regard to the future, I am pleased that the tourism agencies are forecasting that the Irish tourism industry will show further growth. Tourism Ireland's Corporate Plan for 2008-10 contains ambitious and challenging targets for tourism growth for the island of Ireland over the next three years. It aims to increase overseas visitor numbers by between 4.2% and 5.1% per year, which, if achieved, would mean total overseas visitors to the island of Ireland of over 10.5 million in 2010. The plan also sets tourism revenue annual growth targets of between 6.6% and 7.1%, which, if achieved, would mean that overseas tourism would generate up to €16 billion in tourism revenues for the island of Ireland in the three-year period.

While the targets are ambitious, there is little doubt that global economic factors such as currency and oil prices are likely to impact on the number of outward travellers from some of our most important markets such as North America and Great Britain. Whereas we have little influence in relation to such global economic factors, our agencies monitor market performance during the year and adjust their marketing campaigns as appropriate.

The tourism agencies will continue to monitor Ireland's competitiveness as a tourism destination and will assist the industry in responding to changing conditions through a variety of programmes in marketing, human resource development, quality enhancement, product development and productivity improvement. By doing this I am confident that the ambitious targets can be met.

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