asked the Minister for Transport and Power if he is aware of the very serious consequences which restriction of travel from the USA will have on Ireland's economy; and what steps he proposes to take to remedy this situation.
34.
Ceisteanna — Questions. Oral Answers. - Irish Tourist Industry.
33.
asked the Minister for Transport and Power whether any assessment has yet been made by Bord Fáilte of the probable implications for the Irish tourist industry of (a) devaluation, (b) foot and mouth disease epidemic, and (c) recent American restrictions on foreign spending; and, if so, if he will give details.
I propose, with your permission, a Cheann Comhairle, to take Questions Nos. 33 and 34 together.
The implications for the Irish tourist industry of (a) devaluation, (b) foot and mouth disease epidemic and (c) American proposals to reduce expenditure on foreign travel, have been under examination by Bord Fáilte and my Department.
Devaluation will mean lower prices here for visitors from countries which have not devalued. In addition, it will have the effect of increasing costs for British holidaymakers in most European countries. In this way, devaluation provides an opportunity of promoting additional tourist traffic to Ireland. On the other hand, the sterling cost of Bord Fáilte's promotional work in countries which have not devalued has been increased. I intend to introduce a Supplementary Estimate shortly to provide for increased promotional funds to offset these higher costs and to exploit the opportunities presented by devaluation.
Bord Fáilte have calculated that the foot and mouth disease epidemic resulted in a loss in tourism revenue of about £1 million in 1967.
Details are not yet available of the measures which the United States Government intend to adopt to secure the reduction of their overseas tourist expenditure. Until more information is available in the matter, it would be premature to attempt any precise assessment of the extent to which our tourist industry may be affected. However, there is no doubt that restrictions on American travel abroad could have serious repercussions for us and accordingly the Government have made representations to the United States authorities expressing deep concern about the possible effects of restrictive action on our tourist industry.
Could the Minister say at this stage if he has got any satisfactory reply, or any reply, from the US authorities?
As far as I am aware, that question should, in fact, be addressed to the Minister for External Affairs but I think the Minister would not object to my saying that no decision has yet been made by the American Government.
Is the Minister aware that hotel prices are increasing from 12 per cent to 20 per cent, according to tourist booklet information?
I have dealt at length with the question of hotel prices and the fact that they have risen both here and in other countries, and I have also made it clear that as far as we can gather from comparative studies, hotel prices here are not excessive compared with those of most countries in Europe. In only about three countries in Europe were general hotel and guesthouse charges markedly, or even noticeably, lower.
How does the Minister claim that devaluation will benefit the tourist trade here, if hotel prices are increased by from ten to 20 per cent? The Minister said devaluation would reduce prices here but how can you encourage tourists to come here if prices are rising by as much as 20 per cent?