Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 35: To ask the Minister for Transport, Tourism and Sport the steps he is taking to support tourism in the regions; and if he will make a statement on the matter. [18665/11]

Leo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 33 and 35 together.

The Government recognises that the tourism sector is very important to all the regions of Ireland. It generates an estimated employment of 170,000, spread throughout the country and much of this in rural areas.

The Government's recent Jobs Initiative has placed tourism nationally and regionally at the heart of our economic recovery, recognising its vital contribution to employment, economic activity and exports. The decision to reduce the level of VAT on a range of labour-intensive tourism services from 13.5% to 9% with effect from 1 July 2011 is a major concession, which provides an opportunity to enhance further the competitiveness of our tourism product.

The Visa Waiver Scheme will encourage visitors from emerging markets to add Ireland to a trip to the UK. The Government has also significantly reduced the cost of employing people by halving employers' PRSI for those on modest wages and also by reviewing the regulatory framework for employment in a range of sectors.

We are now beginning to see a recovery across the various overseas source markets for Ireland – with year-on-year growth of 8.6% in visit numbers in the first quarter of 2011, including growth of 12% from areas outside Europe and North America.

Operational responsibility relating to tourism promotion or development, including operational budgets for the promotion and development of rural tourism and tourism in the regions, rests with the State tourism agencies. I have no function in regard to such operational matters.