Written answers

Wednesday, 9 November 2011

Department of Transport, Tourism and Sport

Economic Competitiveness

6:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 38: To ask the Minister for Transport, Tourism and Sport further to Parliamentary Question No. 56 of 6 July 2011, the extent to which he and his Department have examined and pinpointed the various factors affecting tourism costs and, ultimately, the competitiveness of that sector in this jurisdiction; if updated comparisons have been made with the prevailing situation in other eurozone or non-eurozone EU jurisdictions; the extent to which stakeholders in the sector have expressed their concern to him or his Department with a view to achieving the most advantageous and competitive position for this industry here; and if he will make a statement on the matter. [33383/11]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 201: To ask the Minister for Transport, Tourism and Sport the degree to which he has had discussions with the catering and tourism sector with a view to identification of any State-generated costs likely to impede the competitiveness of the sector; and if he will make a statement on the matter. [33694/11]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 202: To ask the Minister for Transport, Tourism and Sport the extent to which the total number of hotel accommodation units has been utilised throughout the country in the past 12 months; if he intends to introduce any measures to address any issues arising; and if he will make a statement on the matter. [33695/11]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 38, 201 and 202 together.

I am in regular contact with stakeholders in the tourism sector which keeps me advised of issues of concern to the industry. Recent statistics show Ireland in the second most favourable position from the top of a league table across the EU measuring the annual percentage change in harmonised CPI for restaurants and hotels to August 2011. Ireland has recorded a decrease of 0.7% in the period while the EU average has increased by 2.6%. These statistics clearly demonstrate the increased competitiveness of the tourism industry within Ireland and by comparison with our European counterparts.

Fáilte Ireland's most recent accommodation occupancy statistics cover the period January to August 2011. It records improved occupancy rates over the period January to August compared to 2010. While there was no change in room capacity between 2010 and 2011, demand for hotel rooms rose by 6% over the same period.

The Government's Jobs Initiative introduced a new lower VAT rate of 9% from July 1st for a range of tourism services and also significantly reduced the cost of employing people by halving employers' PRSI for those on modest wages, further enhancing the competitiveness of the sector.

I am aware that there are a range of other costs that are of concern to tourism businesses including labour costs. Following the conclusion of the consultation period launched by the Minister for Jobs, Enterprise and Innovation on proposals for the reform of the State's employment rights and industrial relations structures and procedures, I look forward to the implementation of the revised structures.

I have received copies of the pre-budget submissions made by tourism representative bodies to my colleague, the Minister for Finance in recent weeks. I will be taking account of their concerns in discussions on the framing of next year's budget.

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