Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 246: To ask the Minister for Arts, Sport and Tourism the steps he has taken to reduce costs to the hotel and catering industry; and if he will make a statement on the matter. [32572/09]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 247: To ask the Minister for Arts, Sport and Tourism if his attention has been drawn to the financial position of hotels, pubs and guest houses in the current economic climate; his proposals to address same in view of the need to promote and maintain the tourism sector; and if he will make a statement on the matter. [32573/09]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 248: To ask the Minister for Arts, Sport and Tourism the steps he has taken or proposes to take to identify the issues negatively affecting the tourism industry here; his proposals to address same; and if he will make a statement on the matter. [32574/09]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 249: To ask the Minister for Arts, Sport and Tourism the steps that have been taken to ensure the cost effectiveness of the tourism industry here; and if he will make a statement on the matter. [32575/09]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 250: To ask the Minister for Arts, Sport and Tourism if he has taken initiatives by way of policy directive to assist the tourism industry in view of the current economic climate; and if he will make a statement on the matter. [32576/09]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 246 to 250, inclusive, together.

Latest figures from the Central Statistics Office show a reduction of 10.4% in the number of overseas visitors to Ireland for the first seven months of 2009 compared with the corresponding period of 2008. While any reduction in the number of overseas visitors is disappointing, it must be seen in context. Ireland enjoyed several years of successive growth in visitor numbers, reaching a record of just over 8 million in 2007.

There is no doubt that the period to date in 2009 has been very difficult for tourism globally and this trend has been reflected in overseas visitor numbers to Ireland. There have been significant declines in GDP, personal spending and consumer confidence across all our major source markets. Exchange rates, particularly the dollar and sterling, and reduced air access to the island of Ireland have also had a negative impact on the number of visits to Ireland.

In this context, I am fully aware of the many issues affecting the hotel and catering industry, including the issues of costs and competitiveness. I keep in regular contact with the key industry representative groups, including the Irish Tourist Industry Confederation, the Irish Hotels Federation and the Restaurants Association of Ireland. While the management and effectiveness of individual companies is a matter for those companies themselves Fáilte Ireland has a range of measures to help the tourism industry to address costs and competitiveness. In particular, they have refocused their 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 Fáilte Ireland's support package in 2009 include:

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

a new "Biz-Check" service is being rolled out designed to provide operators with on-site business diagnosis and solutions support, covering issues such as costs and margins, cost control, pricing and cash-flow management, which are crucial to effective management of businesses,

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.

The industry is responding well to the initiatives and the take up on the programmes is very positive.

Furthermore, I am glad to see that the changes that I had called for in Sunday pay rates in the hotel and catering sectors are now taking place. As a result, the cost in those sectors of labour on Sundays nationally will now be at time and a third as agreed through the JLC process. Given the high labour input in the tourism industry these important changes should have a positive impact.

As regards marketing, Tourism Ireland is keeping its marketing programmes for 2009 under constant review, to ensure necessary flexibility and responsiveness. It front-loaded its campaigns across all markets to secure as much business as possible for the peak and shoulder season and has now intensified its tactical and cooperative marketing activity for the second half of the year with an €18 million autumn campaign.

On the domestic front, Fáilte Ireland committed to its largest ever campaign to promote home holidays in 2009, with in excess of €3 million being invested in a year-round marketing programme promoting awareness of, and interest in, taking a home break. The Autumn Initiative, co-ordinated and implemented by Fáilte Ireland with funding from members of the tourism industry, was launched last week by An Taoiseach, Mr. Brian Cowen T.D., and is intended to boost business between now and the end of the year.

While I know that our businesses and tourism agencies are responding positively to current challenges, it is just as important that the strategic framework for tourism development responds to the changing environment. Accordingly, I established the Tourism Renewal Group, which has been tasked with reviewing and, where appropriate, renewing the current tourism strategy to ensure that it is focused for the short term and, looking further ahead, that the tourist industry is well placed to benefit from the upturn when it comes. I understand that the Group has now completed its deliberations and is currently finalising its report, which will contain recommendations in the form of a Framework for Action for the period to 2013. I expect this report will be submitted to me very shortly.

The industry deserves great credit for its commitment to quality in responding to the current challenging economic conditions through more flexible pricing and offering special value offers and packages. I am confident that, with the support of the agencies, the tourism sector here has the capacity to manage the current cyclical slowdown and that, looking further ahead, the Renewal Group's Review will help the sector to return to sustainable growth in the medium term.