Bernard Durkan (Kildare North, Fine Gael)
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Question 733: To ask the Minister for Transport, Tourism and Sport the extent to which he has had further discussions with the tourism sector with particular reference to the need to maximise job opportunities and thereby contributing to national recovery; and if he will make a statement on the matter. [32400/12]

Leo Varadkar (Dublin West, Fine Gael)
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I am in regular contact with stakeholders in the tourism sector and am very conscious of the issues affecting tourism businesses.

Last year's Jobs Initiative and the Government's Action Plan for Jobs 2012 recognised the vital contribution of tourism to employment, economic activity and foreign revenue earnings. The VAT reduction on a range of tourism services from 13.5% to 9% enhances the competitiveness of our tourism product. The Visa Waiver Scheme is encouraging visitors from emerging markets to add Ireland to a trip to the UK and the halving of employers' PRSI for those on modest wages will significantly reduce the cost of employing people.

Following discussions with the Minister for Finance, I was happy to be able to confirm that the lower rate of VAT will be maintained during 2013. This will allow businesses, tour operators and customers to plan for the 2013 season. The tourism agencies are also supporting many big events this year which will bring in overseas visitors including the Navy-Notre Dame American Football game, the Tall Ships in Dublin and the finale of the Volvo Ocean race in Galway. In addition, "The Gathering 2013" will take place next year - a major tourism initiative with the target of bringing an extra 325,000 visitors here.

While overseas visits to Ireland decreased marginally in the first five months of 2012, prospects remain good for the year as a whole. The tourist industry is positive about the coming months, reporting increased enquiries and advance bookings compared to this time last year.