Written answers

Wednesday, 11 January 2012

Department of Transport, Tourism and Sport

Tourism Industry

8:00 pm

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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Question 1043: To ask the Minister for Transport, Tourism and Sport if he will report on the numbers of overseas visitors to Ireland in 2011; the way these figures compare with those of the past four years; and the targets being set for 2012. [1256/12]

Photo of Marcella Corcoran KennedyMarcella Corcoran Kennedy (Laois-Offaly, Fine Gael)
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Question 1052: To ask the Minister for Transport, Tourism and Sport if he will provide an update on the number of overseas visitors here in 2011; and his targets for 2012. [1377/12]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 1043 and 1052 together.

Statistics in relation to overseas visits to Ireland, like other official statistics, are compiled and published by the Central Statistics Office (CSO), under the Department of the Taoiseach. Final figures for 2011 are still being compiled. However, the Overseas Travel Survey for the first 11 months of 2011 was published by the CSO on 9 January and it reports that there were 6,001,100 overseas visits to Ireland in that period, representing an increase of 6.8% compared to the corresponding period of 2010. Numbers of visits to Ireland grew from all our main market areas, including Great Britain, our largest and most important tourism market.

The number of overseas visits to the Republic of Ireland for 2010 was 6,037,100, the number of overseas visits for 2009 was 6,927,500 while the number of overseas visits for 2008 was 7,839,000. 2011 is therefore on track to see growth in overseas visits to Ireland for the first time since 2007.

The target for growth in overseas visits, set out in the 2012 Marketing Plan of Tourism Ireland, the agency with responsibility for marketing Ireland as a holiday destination overseas, is to increase visit numbers to Ireland by a further 4.5% in 2012.

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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Question 1044: To ask the Minister for Transport, Tourism and Sport his views on the effects of the measures contained in the jobs initiative for tourism and tourist-related businesses. [1257/12]

Photo of Pat DeeringPat Deering (Carlow-Kilkenny, Fine Gael)
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Question 1054: To ask the Minister for Transport, Tourism and Sport the impact the reduction in VAT has on overseas visitors; and if the reduction in revenue is justified by this change. [1399/12]

Photo of Eoghan MurphyEoghan Murphy (Dublin South East, Fine Gael)
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Question 1059: To ask the Minister for Transport, Tourism and Sport his views on the tourism measures contained within the jobs initiative and their impact on helping tourism here regain cost competitiveness and support employment. [1498/12]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 1044, 1054 and 1059 together.

The Jobs Initiative introduced a reduced 9% VAT rate from July 1st on a range of services, including hotels and restaurants. The Government also halved employers' PRSI for those on modest wages and introduced a visa waiver scheme that makes Ireland more accessible for tourists from important new and emerging markets. These measures were aimed at supporting the creation and maintenance of employment within the tourism sector as well as helping tourism businesses lower their cost base, and allowing them to offer a more competitive product to tourists. Finally, the reduced VAT rate for tourism and leisure related products and services was important in order to correct a perception of Ireland being an expensive place to visit. This latter point is particularly important in terms of the British tourist market, which is our main source of visitors and the market from which we have lost most share in the past number of years.

At this stage it is too early to accurately assess the impact of these measures on either tourism numbers or on employment in the sector. With regard to tourism numbers, we will need to consider the figures over a longer period of time to properly assess the impact of the initiative. In relation to the impact of the measures on sustaining employment in the tourism sector, the most recent figures from the CSO only relate to Quarter 3 of 2011 and do not fully measure the impact of the Jobs Initiative. It will be later this year before we can begin to properly form a view on the effect of these measures on competitiveness and employment.

I am, however, pleased to report that overseas tourism numbers have increased by 6.8% to the end of November in comparison to the same period last year. I am also encouraged that employment in accommodation and food services increased by 6,000 over the six month period to end September, 2011. I have every confidence that the tourism industry will have exceeded the targets set for 2011 when the full year statistics are available in approximately one month from now.

Furthermore, as mentioned above improving the perception amongst both domestic and overseas visitors that holidaying in Ireland offers good value for money was an important part of the Jobs Initiative measures. In this regard, I would draw the Deputies attention to the most recent Consumer Price Index which shows that in the year to November 2011, the price index for Restaurant and Hotels is down 0.9% and for Recreation and Culture related products and services is down 1% for the same period. The overall CPI was up 2.9% during that same period. Furthermore, it should be noted that the Restaurant and Hotels index is at its lowest level since March 2007, whilst the Culture and Recreation index is at the lowest level since March 2006.

These price reductions were driven by a wide number of factors, including the VAT reduction, and are showing the increased competitiveness of the Irish tourist market. Delivering value for money is a crucial to the recovery of the Irish tourist market, and this improving cost competitiveness is an important part of that.

Photo of Seán KyneSeán Kyne (Galway West, Fine Gael)
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Question 1045: To ask the Minister for Transport, Tourism and Sport the main strategy to sustain and increase tourist numbers on a regional basis, in particular the west; and his views on the role being played by the State agencies under his remit. [1258/12]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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The Government recognises that tourism is very important to all regions of Ireland. It generates total revenue of the order of €5 billion and employs an estimated 180,000, spread throughout the country and much of this in rural areas.

The Government's Jobs Initiative last year placed the tourism and hospitality sector at the heart of our economic recovery, recognising its vital contribution to employment, economic activity and foreign revenue earnings. The VAT reduction on a range of labour-intensive tourism services from 13.5% to 9% with effect from 1 July 2011 enhances further the competitiveness of our tourism product. The new 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.

In addition, the necessary structures to deliver "The Gathering" in 2013 are being put in place. This year will be critical in starting our marketing efforts to help achieve the target we have set of bringing an extra 325,000 visitors to Ireland.

We are beginning to see a recovery across the various overseas source markets for Ireland with year-on-year growth of just under 7% in visit numbers in the first eleven months of 2011.

Operational responsibility for promotion and development of tourism in individual regions, rests with the State tourism agencies.The Government is providing more than €138 million to support tourism in 2012 across a diverse range of activities including overseas and domestic marketing, investment in the development of tourism product and vital business supports to tourism enterprises.

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