Skip to main content
Normal View

Dáil Éireann debate -
Thursday, 21 Nov 1957

Vol. 164 No. 6

Tourist Traffic Bill, 1957—Second Stage.

I move that the Bill be now read a Second Time. The principal purpose of this Bill is to extend, for a further period of five years, the powers of the Minister for Industry and Commerce to guarantee loans for the extension and modernisation of hotel premises and for the provision of improved amenities at tourist resorts. These powers, which were first conferred by the Tourist Traffic Act, 1952, came to an end in July last because, under the original Act, they were expressed to be given for a period of five years only.

I am sure Deputies will agree that there is still need to give inducements to secure the extension and improvement of our hotel accommodation. It continues to be the major bottleneck in the development of our tourist industry. Further and very substantial private investment in the hotel business is needed to secure that the tourist industry will be in a position to meet the demand for more hotel accommodation and the now quite perceptible demand for improved accommodation.

Tourism is a rapidly growing business all over the world. Since the end of the war there has been a tremendous increase in international travel. All the indications are that, subject to wars and rumours of wars, that trend will be maintained. The international authorities who examine these matters have expressed the view that tourist traffic in European countries will continue to grow at an average rate of about 10 per cent. per year. It is important that we should organise and equip ourselves to get our proportionate share of that increase. It is clear that we cannot hope to get that increase in tourist business unless we organise ourselves for that purpose.

The anticipated extension in the volume of business available can be of very substantial benefit to this country and to those who are engaged in this industry, provided we can avail of it. As regards American tourist traffic, the experts predict that, with the technical improvements taking place in the means of transport—especially the coming into use of jet airliners with very large seating capacity—there will be an enormous increase in American tourist traffic within the next number of years. The experts are not thinking of a mere doubling of the number of American citizens travelling to take holidays in Europe but of even greater increases than that.

The increase in the carrying capacity of the airliners, coupled with the introduction which is anticipated next year of substantially lower tourist fares by all the airlines on the transatlantic service, will create a vast new traffic potential which is certain to be exploited by the airlines provided there is available here and in the other countries seeking to participate in the business the volume and standard of hotel accommodation needed for the increase of tourist traffic.

We are all anxious to see that so far as Ireland is concerned, the necessary additional accommodation will be provided. Without it, we cannot hope to cater for the increased volume of business that will be available and, with it, we can hardly fail to benefit. There has been a steady increase in hotel accommodation in this country during the past few years. However, the rate of increase is not nearly sufficient to meet requirements, having regard to the outlook for the tourist industry over the next few years.

It is important that this matter of extending and improving our hotel accommodation should be tackled in an energetic manner. It is a development which calls not merely for urgent treatment but for courage and enterprise on the part of those concerned. Certainly, the outlook is such that anybody entering into this business, or anybody in the business who is proposing to extend his stake in it, should feel that there will be a rapidly increasing volume of business available for five or ten years ahead.

So far as the Government are concerned we fully appreciate the importance of the business and the need for energetic action to secure its development. We want to do all that can be reasonably expected of a Government to facilitate the hotel proprietors and other interests in their efforts to construct new hotels, extend and improve existing hotels, and to develop other forms of holiday accommodation. In view of that need, and of the opportunities which are there, I am sure the Dáil will agree it is necessary that the powers to guarantee loans to people engaged in the business to effect these developments should be renewed for a further period. This Bill proposes that these powers should be renewed for five years.

I must say that the degree of utilisation of the scheme for guaranteed loans for hotels, which has been in operation since 1952, could be considerably increased. I think that scheme could play a much bigger part than it has done so far in promoting the extension and improvement of hotel accommodation. It has proved to be less productive of results in operation than I had anticipated when introducing it in 1952. During that period of five years guarantees have been given in respect of loans amounting to about £250,000, and a much higher target was contemplated when it was originally introduced. Undoubtedly, making available with the aid of Government guarantees new money for hotel extension and improvement to the extent of £250,000 represents progress, but it is progress at a rate which is far too slow to solve the problem of inadequate hotel accommodation within a reasonable time. Considerable acceleration of that development of hotel construction and renovation will be needed if we are not to miss the tide.

Considering the reasons for that comparatively unsatisfactory result, from the inauguration of that scheme of guaranteed loans, I came to the conclusion that certain changes were required and, in so far as these changes involve legislation, they are being made in this Bill. Firstly it is proposed to increase from three to five years the period during which Bord Fáilte can make grants to hotel proprietors to cover the interest payable on guaranteed loans raised by them for the extension of their hotel accommodation. That should be of considerable assistance to those concerned. It is recognised that many hotel proprietors are reluctant to incur the burden of loan capital until they have developed more confidence in the availability of increased business. With the prospect of being exempted from the interest charge for a period of five years I think many of them will be induced to avail of the scheme.

Secondly, it is proposed that Bord Fáilte should be empowered to make these grants in respect of interest charges on loans raised by hoteliers otherwise than loans guaranted by the Minister for Industry and Commerce. No matter how we try to improve the machinery for considering applications for guaranteed loans there are bound to be some delays. It has frequently been found that hotel proprietors were in a position to get the money they required on loan by other means, with greater speed and on simpler conditions, but if they availed of it they could not get grants from Bord Fáilte to cover the interest charge. There is no reason why that restriction should be maintained and, consequently, it is proposed that Bord Fáilte may make these grants, no matter what source the money is borrowed from, or whether the State guarantee is given in respect of the loan.

The third change, which is not indicated in the Bill, or rather the third set of changes, will arise because of a review which is being made of the administrative procedures which apply at present to the guaranteed loans scheme. The purpose of that review is to see whether it will be possible to speed up the applications and to reduce the formalities which have to be complied with. I am hopeful, as a result of that review which is taking place, that there will be a much simplified procedure which will be certainly helpful to hotel proprietors who desire to avail themselves of the scheme.

In view of the estimates which are forthcoming from the various international organisations, about the growth in the volume of tourist traffic anticipated in years ahead, it can be said that conditions here were never more propitious than at the present time for the extension of our tourist industry. I am sure the hotel proprietors, on whom rests the responsibility for widening this bottle-neck which is limiting our development, will agree the Government are providing numerous and varied incentives to enable the industry to derive the maximum advantage from the present situation. They will have, on the enactment of this Bill, for a further period of five years the advantages of a State guaranteed loan scheme which assures them of the capital they need for the execution of works of development and improvement. They will have the benefit of these grants from Bord Fáilte to cover the interest charges on loans during the first years that they are in operation. If they carry out improvements to their hotel premises they qualify for a remission of two-thirds of the local rates attributed to the improvement and, finally, 10 per cent. of the capital expenditure incurred in any year in the extension and improvement of hotel accommodation is allowable as as deduction in computing profits for income-tax and corporation profits tax.

Hear, hear!

Each year the Government authorises the expenditure of up to £500,000 through the medium of Bord Fáilte, with the object of developing our tourist industry and publicising our resorts. The hoteliers benefit directly from that expenditure of State money. The concessions and advantages available to hoteliers at present may be of a temporary character only, and there is no guarantee they will be continued for a definite period. For that reason I urge these hoteliers, in their interest, to take advantage of the present opportunities and to put in hands at once plans for the construction, extension and improvement of holiday accommodation.

I should refer to some of the other provisions of this Bill which, though of less importance, may be of interest. Section 5 of the Bill provides for the registration of motor hotels by Bord Fáilte. They are generally called motels. Registration means that Bord Fáilte will set standards of accommodation to be provided and they will have the power to prevent the use of the word "motel" or any of the other words set out in the section in respect of any premises which do not conform to the standards which they set.

That form of holiday accommodation, which was first developed in the United State of America, is becoming increasingly popular on this side of the Atlantic. It is a form of accommodation which is designed to meet the requirements of the increasing number of tourists who like to travel by car or to avail themselves of bus tours and all the evidence is that a growing proportion of our tourist trade is taking that form. We must assume, therefore, that there is a possibility that that type of accommodation will develop in Ireland, and Bord Fáilte consider that it is desirable that there should be power to register those premises, just as they have power now to register hotels and guest houses.

There are many visitors to this country who do not stay in the type of accommodation which has to be registered with the board, that is to say, people who prefer to stay in boarding-houses or in private houses which provide partial board. Bord Fáilte are frequently asked by people abroad or by visitors to the country for information regarding accommodation of that kind available. The board desires to have lists of such accommodation available for visitors and power to enable them to prepare such lists is given to them under this Bill. It is not intended that the board will exercise continuing supervision over the accommodation provided and, of course, no person's name or the address of no premises will be entered on the list, except at the request or with the consent of those concerned.

There are some other minor amendments set out in Sections 6, 7 and 10 of the Bill which I do not think are of any great interest. I think I should say that it is not anticipated that the enactment of this Bill will involve any substantial increase in the expenditures falling on the board's revenue. Bord Fáilte, as the House is aware, are financed by Grants-in-Aid and have to carry out all their functions within the limits of the grant made to them.

I have said that I am convinced that if we set about improving our tourist amenities and make an all-out effort to develop the potentialities of this holiday industry, we can achieve a very substantial increase in the present level of business. We have been advised by experts who were brought in for consultation that it should be possible for us to double our present income from the tourist trade, if we tackle our problems with thoroughness and energy. Any increase in tourist revenue would not merely react favourably upon our balance of international payments, but would benefit all sections of the community engaged in any aspect of the tourist trade or which supply goods or services for the industry.

This Bill provides machinery for dealing with what we think is the vital question, that is, the extension of hotel accommodation and I am sure, therefore, that it will commend itself to the House. I should, perhaps, say before concluding that I have received quite a number of proposals and suggestions for other measures which would be beneficial to the development of this industry. A number of these are under consideration as well as certain proposals which have been submitted to me by Bord Fáilte. It is possible that when examination of these proposals has been completed, I will have further proposals to make for legislation. It is desirable, however, that this Bill should not be delayed pending examination of these other proposals because of the fact which I have mentioned, that the existing power to guarantee loans for hotel improvements has already expired and, while the board has been proceeding upon the assumption that the power will be renewed, the sooner the legal position is rectified, the better.

In any case, I think it is likely to take some little time before we can go through all the suggestions which have come to us from various interested organisations and groups and decide as to which of them it is possible for us to support.

Debate adjourned.
Top
Share