Brendan Ryan (Dublin Fingal, Labour)
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789. To ask the Minister for Transport, Tourism and Sport his views on a recent survey that found that the cost of hotel room prices here rose by 15% in 2015 to an average of €118 per night; his further views on the potentially negative impact these rising prices are having on the tourism sector; and if he will make a statement on the matter. [23440/16]

Brendan Ryan (Dublin Fingal, Labour)
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790. To ask the Minister for Transport, Tourism and Sport his plans to address the acute shortage of hotel bedroom stock in Dublin that Fáilte Ireland has identified as a key threat to future tourism in the capital and one which is leading to significant yearly price increases; if he agrees with Fáilte Ireland that an additional 5,000 units are required to increase the capacity of the Dublin hotel sector; and if he will make a statement on the matter. [23441/16]

Shane Ross (Dublin Rathdown, Independent)
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I propose to take Questions Nos. 789 and 790 together.

The improved viability of the hotel sector is very welcome not least because it is a large employer and significant contributor to the economy.  Having survived difficult times, accommodation providers are entitled to a fair return on investment, but increasing returns must be done at an appropriate rate and in a sustainable way that visitors perceive as reasonable and does not jeporadise continued sustainable growth.  In this regard, giving the tourist a good value for money product has been key to the turnaround in tourism performance. 

A range of measures were introduced by the last Government to enhance and sustain Irish tourism's competitiveness and help regain our reputation internationally as a good value destination. Encouragingly, Fáilte Ireland research shows a very significant improvement since 2010 in overseas visitors' perception of value for money in Ireland.  However, we must be constantly aware of our visitors' disapproving views of value for money in the years leading up to 2010.  We cannot become complacent about the improvement of more recent years and we must be constantly vigilant to maintain these ratings otherwise we will seriously endanger the health of the tourism sector. 

If the sector does not strive to remain competitive and offer value to the visitor, it will not only risk losing the gains it has made but also make it very difficult for Government to continue to support tourism the way it has, when so many other sectors also seek support. 

I am well aware of the capacity constraints that exist in Dublin and of Fáilte Ireland's analysis which shows that there are already approximately 5,500 rooms in development for delivery over the coming years.  The delivery of this stock of rooms will be essential to alleviate the pressure on supply of rooms in the city.  This will, of course, be subject to the individual investment decisions by hotel owners and developers and I intend to do all that I can to assist in that delivery.