Robert Troy (Longford-Westmeath, Fianna Fail)
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40. To ask the Minister for Transport, Tourism and Sport the measures his Department is taking to address the very significant cost inflation in accommodation and other items in Dublin being experienced by overseas visitors; and his views on whether a special body under the aegis of his Department should be tasked with examining the way to address this issue to protect the reputation of the tourism sector. [30172/17]

Brendan Griffin (Kerry, Fine Gael)
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A shortage of available hotel bedrooms in Dublin city has caused hotel room rates to increase in recent years.  While I welcome the improved viability of the sector and accept the need for a fair return on investment, hotels must ensure that this is done at an appropriate rate and in a way that visitors perceive as reasonable.  This is a point made frequently by both Minister Ross and my predecessor and one which I will also be stressing in my own engagements with the industry.

I have no plans to establish a dedicated body to monitor and address tourism competitiveness issues.  These are tracked and monitored by my Department and the tourism agencies on an ongoing basis.

For example, I am informed by Fáilte Ireland that the most recent information available to them indicates that the rate of increase in hotel room pricing is slowing.  Furthermore, Fáilte Ireland's most recent assessment of hotel accommodation in Dublin indicates that there should be sufficient stock to meet projected demand after 2018, with approximately 5,500 bedrooms coming on stream by 2020, which should further moderate price increases. 

Revised Hotel Regulations introduced last August should also make investment more attractive by allowing hotel operators provide more rooms and operate at a lower cost base, thus improving hotel capacity, competitiveness and profitability.  Consumers should also benefit from this change.

More broadly, the Government has continued a range of supportive measures, such as the reduced VAT rate, aimed at enhancing competitiveness. 

I welcome Fáilte Ireland research which shows a significant improvement in overseas visitors' perception of value for money in Ireland.  Nonetheless, I urge the tourist industry to remain vigilant and to maintain a focus on value and competitiveness. To do otherwise could seriously jeopardise continued growth.