Written answers

Wednesday, 31 March 2010

Department of Arts, Sport and Tourism

Tourism Industry

8:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 84: To ask the Minister for Arts, Sport and Tourism her views for the recovery, development and growth of the tourism sector; the extent to which the Irish tourism market can become competitive within the EU and elsewhere; her views on incentives to encourage employment in this sector; if she has identified particular issues currently affecting the development of the industry; if she plans to address issues with a view to extending the tourist season; and if she will make a statement on the matter. [13998/10]

Photo of David StantonDavid Stanton (Cork East, Fine Gael)
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Question 90: To ask the Minister for Arts, Sport and Tourism the actions that have been taken to date in implementing the framework for action to allow survival recovery and growth of our tourism industry as laid out in the report of Tourism Renewal Group since its publication in October 2009; and if she will make a statement on the matter. [14018/10]

Photo of Jim O'KeeffeJim O'Keeffe (Cork South West, Fine Gael)
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Question 91: To ask the Minister for Arts, Sport and Tourism her plans to reverse the recent downturn in tourism [13841/10]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 160: To ask the Minister for Arts, Sport and Tourism her plans to support and develop the tourism sector on a national basis; and if she will make a statement on the matter. [14244/10]

Photo of Mary HanafinMary Hanafin (Dún Laoghaire, Fianna Fail)
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I propose to take Questions Nos. 84, 90, 91 and 160 together.

Full-year figures from the Central Statistics Office show a reduction of 11.6% in the number of overseas visitors to Ireland in 2009 compared with 2008. These figures must be seen in the context of a decline in tourist numbers internationally. Tourism worldwide in 2009 was deeply affected by the global economic difficulties and loss of consumer confidence, with Ireland particularly hit by exchange rate challenges. Outbound trips from Great Britain were particularly affected, with the Euro/Sterling exchange rate making it extremely challenging to attract visitors to Ireland and indeed Eurozone destinations generally.

There is little doubt that 2010 will also be a challenging year for tourism. Nevertheless it is important to remember that, despite the downturn, millions of people across the world will still take holidays this year. I know that the industry and the tourism agencies are fighting hard for every bit of this business. Tourism Ireland has set an ambitious growth target of 3% for overseas visitor numbers and revenues this year, despite international experts predicting a 2% contraction. Early indications for the peak tourism season are good, with a number of operators reporting positive trends in bookings and enquiries.

To assist the tourism sector, an extensive range of marketing, product development, festival and sporting events, training and business supports are being put in place by the Tourism State Agencies under the Tourism Services budget of the Department, which was increased to over €153 million for 2010. This increased allocation of public resources in the current difficult budgetary situation is clear recognition by Government of the important role that the tourism and hospitality sector can play in Ireland's economic recovery. The provision of €44.25 million for this year's Tourism Marketing Fund will ensure that the level and value of investment in overseas marketing of Ireland can be maintained in real terms, as recommended by the Tourism Renewal Group. The Government is also investing for the future of Irish tourism through the trebling of tourism capital funding in 2010. Indeed on Friday, I announced an allocation of almost €9 million by Fáilte Ireland in the Viking Triangle project in Waterford.

Tourism Ireland will be focusing on those major markets that are likely to deliver immediate returns this year including Great Britain, Germany and the US, as research has shown these markets as our best prospects. Several euro zone economies are beginning to come out of recession and these, of course, are also important source markets for Irish tourism. €26 million is being invested by Tourism Ireland in a marketing drive in the first half of the year. This included the recent promotional programme of activities – our biggest ever – to showcase Ireland during the St. Patrick's Day period, including the "greening" of iconic buildings and attractions around the world (including the London Eye, the Empire State Building in New York, the CN Tower in Toronto and the Sydney Opera House).

On the domestic front, Fáilte Ireland has committed to its largest ever home holiday marketing programme, as a central plank in its strategy to increase the home market share of the overall Irish leisure break market. With specific regard to Business Tourism, the opening of the National Convention Centre in Dublin in September will further enhance our capacity to attract international events.

Fáilte Ireland is also working closely with tourism businesses all over Ireland. In particular, during 2009 they refocused their programmes to meet the enterprise support needs of businesses in the tourism sector in the current climate. In 2010 Fáilte Ireland will be investing almost €11 million in the form of direct supports and advice for tourism enterprises. The industry is responding well to the initiatives and the take up on the programmes is very positive.

In terms of our ability to compete in the international arena in the future, 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. The tourism agencies continue to monitor Ireland's competitiveness as a tourism destination and I am encouraging them to assist the industry in responding to changing conditions as appropriate. In 2010, great value, distinctive holiday offers are a key focus of the marketing campaigns of both tourism agencies.

Of course, 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. In this regard, the wide-ranging set of measures recommended in the Tourism Renewal Group's Framework for Action now forms the strategic basis on which Government is responding to the current difficulties. As I have already outlined in my reply to an earlier Priority Question, good progress is being made on implementing the Renewal Group recommendations.

Tourism is also a key element of the Government's wider strategy for economic renewal and, building on the recommendations of the Renewal Group, the sector was included in a range of beneficial cross-cutting measures and initiatives – including the Employment Subsidy Scheme, the Work Placement Programme and the Credit Review System.

To conclude, I am fully aware of the many issues affecting the tourist industry. However, I believe that, drawing on the Report of the Tourism Renewal Group and complemented by general supports for enterprise, my Department is identifying the right measures and is working with other Government Departments and the tourism agencies to drive their delivery, in order to position the tourism sector for recovery and growth as the Irish and global economies get back on track.

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