Bernard Durkan (Kildare North, Fine Gael)
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Question 288: To ask the Minister for Arts, Sport and Tourism the extent to which he has met with representatives of the hotel and catering industry; if he has identified specific difficulties and proposed, suggested or offered resolution thereto; and if he will make a statement on the matter. [9034/09]

Bernard Durkan (Kildare North, Fine Gael)
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Question 289: To ask the Minister for Arts, Sport and Tourism if his attention has been drawn to the difficulties currently faced by the hotel and catering sectors; his proposals or plans to address these issues; and if he will make a statement on the matter. [9035/09]

Martin Cullen (Waterford, Fianna Fail)
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I propose to take Questions Nos. 288 and 289 together.

I, and my officials, are in regular contact with representatives of the tourism industry, including the representative groups of accommodation providers and the catering sector. Amongst the groups I have met since my appointment as Minister for Arts, Sport & Tourism are the Irish Tourist Industry Confederation (ITIC), the Irish Tour Operators Association (ITOA), the Irish Hotels Federation (IHF), the Irish Self Catering Federation (ISCF), the Town & Country Homes and Irish Farm Holidays associations as well as Good Food Ireland. As a result, I am well aware of the difficulties being experienced by hoteliers, other accommodation providers and catering operators in the new economic conditions in which we find ourselves.

Indeed, as recently as yesterday I met with the President, Chief Executive and other officials of the Irish Hotels Federation (IHF) and addressed their Annual Conference in Killarney. In my address to the IHF Conference I outlined the key tourism strategies being pursued by my Department and the tourism agencies during 2009. In particular, since taking office I have been anxious to protect our marketing spend. Notwithstanding substantial pressures on the Department's budget, I have been successful in preserving the 2009 Tourism Marketing Fund allocation of €48.5million.

This has enabled Tourism Ireland and Fáilte Ireland to maintain their frontline marketing activities this year. Tourism Ireland is working aggressively in all our major markets, communicating strong reasons to visit Ireland together with clear price-led messages. On the home market, Fáilte Ireland is working hard to persuade Irish people to take a break at home this year. In my view, the primary means at our disposal to address the difficulties being experienced by hotels and catering operators is to maintain the marketing effort and to ensure the provision of a competitive and quality product offering to visitors.

In addition to marketing supports, Fáilte Ireland has also refocused its programmes to meet the enterprise support needs of businesses in the tourism sector in the current difficult climate. In 2009 they will be investing almost €6 million in the form of direct supports and advice for tourism enterprises.

The key elements of its support package in 2009 will include :

a new mentoring support service providing one-to-one advice,

a new "Biz-Check" service designed to provide operators with on-site business diagnosis and solutions support,

a further expansion of the "e-Biz" initiative to improve on-line marketing and e-business skills generally within the industry,

a significant investment in on-site training of industry employees in customer care and food preparation.

Fáilte Ireland, at its recent industry roadshow events and subsequent mentoring meetings has gone out to the industry and advised them of the support and assistance it has to offer and to date it has been very pleased with the positive reaction and level of engagement it has received.

I am aware that labour represents a significant proportion of hotel and catering establishment costs. I have been in regular contact with the Tánaiste on the issue of wage costs and industrial relations structures, in particular as regards the issue of double-time payments on Sunday.

I am also conscious of the impact of the regulatory framework and the various local authority charges on the hotel and catering sector. I am aware that the Commission on Taxation is examining funding of Local Authorities and my Department has stressed to the Commission that there is a need for broad based funding of local authorities that should not unreasonably discriminate between economic sectors. I have strongly advised the industry to engage directly with the Commission.

While I recognise that local authorities must be able to raise revenue in order to fulfil their mandates, I am anxious to avoid charges that could have a detrimental effect on the competitiveness and performance of the tourism industry. Accordingly, my officials and I have recently expressed concerns to the Minister for Environment, Heritage and Local Government and his officials in this regard.