Billy Timmins (Wicklow, Fine Gael)
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Question 93: To ask the Minister for Arts, Sport and Tourism the actions he has taken with regard to cost issues affecting the hotel and catering industry; if action will be taken to address such issues; and if he will make a statement on the matter. [16506/09]

Martin Cullen (Waterford, Fianna Fail)
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I am fully aware of the many issues affecting the hotel and catering industry, including the issues of costs and competitiveness, as are all of my cabinet colleagues. I keep in regular contact with the key industry representative groups, including the Irish Hotels Federation and the Irish Tourist Industry Confederation, and have received detailed submissions from them in the context of the recent Supplementary Budget, which was the subject of detailed discussion and consideration by the Cabinet over a number of preparatory meetings.

Tourism is an internationally competitive industry that is, like all other industries, facing challenging times, due both to recent international economic developments and movements in exchange rates – particularly in traditional source markets such as Great Britain and the United States. In that regard, it is important that all service providers –private and public- are aware of the need to sustain competitiveness if we are to continue to attract overseas visitors. Price increases should be avoided and every effort should be made to reduce costs to industry where this is possible.

Fáilte Ireland has a range of measures to help the tourism industry to address these concerns. Business Finance Workshops and seminars covering topics, such as costs and margins, cost control, pricing and cash-flow management, which are crucial to effective management of businesses in today's environment are being rolled out. Fáilte Ireland's Performance Plus Programme provides management tools in a number of important areas such as financial benchmarking and business diagnostics so that owners and managers can comprehensively assess the strengths and weaknesses of their enterprise and receive an action plan to address areas that need attention. The Web check Programme identifies ebusiness needs and guides owners to solutions to boost web performance. Business Mentoring Programmes, Tourism Learning Networks, Management and Professional Development also form part of the suite of enterprise supports available to the industry. The industry is responding well to the initiatives and the take up on the programmes is very positive.

I regularly discuss costs and competitiveness issues affecting tourism with my colleagues both at cabinet and bilaterally with a view to ensuring that the needs of the tourism industry are addressed across all Government policy areas.