Martin Ferris (Kerry North-West Limerick, Sinn Fein)
Link to this: Individually | In context

Question 42: To ask the Minister for Transport, Tourism and Sport the discussions he has had with the National Asset Management Agency or with other Departments on the impact that NAMA has on the hotel industry; and if he will make a statement on the matter. [33411/11]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

NAMA has purchased eligible land and development loans and certain associated loans from participating institutions. Hotels loans have transferred only because they have been advanced to debtors who also have land and development loans. I understand from NAMA that it has acquired loans secured by some 83 hotels located within the State, of which 81 are open for business, with an estimated 8,500 rooms. There are approximately 900 hotels in the State.

I am informed by NAMA that it has developed a comprehensive strategy to deal with the hotels that are within its portfolio. The agency assures me that a key criterion in its assessment is the debt servicing capacity of each hotel relative to its income. It will not support hotels that do not demonstrate long-term viability. However, it acknowledges that there are hotels for which, ultimately, alternative uses will have to be found.

NAMA has also expressed concern that some hotels are being supported by institutions that are not participating in the NAMA scheme and are offering rooms at unsustainable rates. NAMA point out that this practice causes as much difficulty for hotels with loans on NAMA's books as it does for other hotel operators.

I have not met with NAMA since my appointment. Officials from my Department and Fáilte Ireland met with NAMA last year to discuss overall policy in the Hotels Sector and brief them on Fáilte Ireland's analysis of the sector. The Agency welcomed receipt of the analysis and I am pleased to say that NAMA will take account of overall tourism policy considerations as their own strategy development evolves.

Jonathan O'Brien (Cork North Central, Sinn Fein)
Link to this: Individually | In context

Question 43: To ask the Minister for Transport, Tourism and Sport the efforts he has made to ensure a viable and sustainable bed and breakfast sector here; and if he will make a statement on the matter. [33417/11]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context

The development of particular accommodation sectors including the Bed and Breakfast Sector is an operational matter for Fáilte Ireland. I am aware that Fáilte Ireland has done a considerable amount of work to assist the sector in recent times particularly in the development of a voluntary classification and categorisation system, supported by a new brand. The sector will also have benefitted from the Government's Jobs initiative earlier this year where there was a particular focus on stimulating tourism and hospitality. I have referred the Deputy's Question to Fáilte Ireland for direct reply. Please advise my private office if you do not receive a reply within ten working days.

Sandra McLellan (Cork East, Sinn Fein)
Link to this: Individually | In context

Question 44: To ask the Minister for Transport, Tourism and Sport in view of the recent report from the Irish Tourism Industry Confederation entitled New Directions for Tourism in the West, the efforts he has made and will make to ensure a viable tourism industry in the west of Ireland; and if he will make a statement on the matter. [33405/11]

Michael Ring (Mayo, Fine Gael)
Link to this: Individually | In context

I welcome the publication of the report by the Irish Tourism Industry Confederation on the challenges facing overseas tourism to the western seaboard. The report highlights a number of key trends and issues facing the region, where tourism is an important sector. The Government has already taken measures to assist the tourism sector generally including reductions in VAT and employers' PRSI, the National Internship Scheme and the short term visa waiver programme.

The report points to successful tourism initiatives, such as Galway's focus on events and the development of the Great Western Greenway. Both of these initiatives have benefitted very considerably from funding from Fáilte Ireland under the Festivals and Events and the Tourism Capital Investment Programmes. Tourism enterprises in the region also benefit from the wide variety of business supports provided by Fáilte Ireland, such as training, sales and marketing, web enablement, and quality and standards.

Tourism Ireland is currently targeting millions of potential holidaymakers and capitalising on late booking trends and on the many events that take place on the western seaboard and across the island at this time of year. The growth in overseas visitor numbers of 11% for the first eight months of the year is welcome news, even allowing for the poor weather and volcanic ash disruptions last year. However, we know that the distribution of visitors is uneven and some areas are performing better than others.

Tourism Ireland will be launching their marketing plans for 2012 towards the end of the year and will detail how they plan to build further tourism growth for Ireland, including the western seaboard, next year and in the years ahead.