asked the Minister for Transport and Power the outlook for the 1973 tourist season; and if he will indicate Bord Fáilte's plans for promotion, advertising and marketing for 1973.
80.
Ceisteanna—Questions. Oral Answers. - Tourist Industry.
79.
Mr. O'Donnell
andMr. Fox asked the Minister for Transport and Power the amount by which tourist earnings have fallen for the 1972 season; and the basis on which the figure has been calculated.
81.
Mr. O'Donnell
asked the Minister for Transport and Power the returns to date of the 1972 tourist season; and how they compare with 1971.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 79 to 81, inclusive, together.
I am informed by Bord Fáilte that they estimate that in 1972 visitors will number 1,387,900 and will spend £62.3 million here. The figures for 1971 are 1,692,000 visitors and £71.4 million. When account is taken of visitors who spend less than one day here and passenger receipts, the forecast total tourism revenue for 1972 is £87.9 million a fall of £12.9 million on the 1971 figure of £100.8 million. The 1972 figures are based on passenger returns and the board's surveys of passengers.
Bord Fáilte estimate that in the nine months ended September, 1972, tourist numbers were 952,000 as against 1,211,000 in the same period of 1971. These do not include Northern Ireland tourists as it is not possible to estimate them other than on a yearly basis.
As the Deputy will appreciate, prospects for tourism here in 1973 will be influenced to a great extent by the situation in Northern Ireland. Bord Fáilte are preparing to launch a determined and ambitious promotional programme for each of their market areas based on the assumption that the situation will improve in Northern Ireland. Their programme will involve advertising schedules in Britain, North America and on the Continent which will compare favourably in volume with previous programmes. A new range of literature for the British, American and German markets will be available. The board has introduced in the British market a guarantee on the quality of Irish holidays offered and have appointed public relations consultants for Britain. The board intend to increase significantly, in co-operation with Irish and overseas carriers and other sectors of the tourist industry, the number of travel writers, radio and television units and travel agents who will be brought from all markets during the coming months to experience for themselves the holidays to be offered to tourists in 1973.
In France, where Bord Fáilte already has a joint advertising campaign with Aer Lingus, a similar campaign will be operated with Irish Shipping Ltd. to mark the re-introduction of the direct Continental car ferry service.
In new business areas in Europe, Bord Fáilte are co-operating on advertising in Scandinavia with Scandinavian Airlines and Aer Lingus and are mounting similar operations in co-operation with Aer Lingus in Belgium, Switzerland, Italy, Spain and Austria. In addition, a new promotional booklet for these developing markets in Europe is being produced jointly by the board and Aer Lingus.
At home, Irish people will again be encouraged to "Discover Ireland" and it is Bord Fáilte's intention to develop strongly this section of the tourist industry.
Mr. O'Donnell
While I appreciate that it is difficult to make any definite forecast about the 1973 season, could I say to the Minister that the most successful form of advertising, publicity and promotion appears to be the bringing in of travel agents, tour operators and particularly travel writers from the various countries? I understand that Bord Fáilte has started to do this. Could the Minister say whether or not it is the intention to continue doing this?
Very much so.
Would the Minister agree that it is a very important method of promotion?
We have got Bord Fáilte on the lines of this all-out promotional work which, in my view, was not attended to sufficiently in years past. Now, they are totally on this area of getting into the market directly via travel agents, wholesalers and retailers in the business.
Would the Minister say if it is proposed to increase substantially the amount of money made available for tourism by the State? Would he agree that to try to prime a £100 million industry with £4 million or £5 million is absolutely ridiculous?
The amount has been increased substantially in recent years. I hope to get an increase in this year also.
Could the Minister hazard a guess as to what it will be in the coming year?
I cannot say that. That has not been settled.
Could the Minister say what has been given this year?
In the region of £6 million.
Not quite £6 million. In a bad year, when an effort has to be made to recover lost ground, does the Minister consider that to be realistic?
The point is that it is very important that money allocated in this area would be well spent. This is what Deputy O'Donnell was addressing his remarks to. We are now determining that what is spent is properly spent and in the right areas.
Is the Minister suggesting that it was not properly spent previously?
It is important to get maximum realisation out of the money spent and the area that Deputy O'Donnell suggested is precisely the area where it can be spent to the best advantage.
Bord Fáilte will be glad to hear that.
Why does the Minister not tell his civil servants, when they get these figures calculated to the last digit from the fools in Bord Fáilte, to give him round figures because they will be wrong anyway but at least, if they are round, they will not be that wrong? They will be nearer correct if you give a round figure than one calculated to the last digit.
82.
asked the Minister for Transport and Power whether he will make a statement of the present position of the tourist industry; whether he is aware of large scale threatened redundancy amongst Dublin hotel workers; and whether any remedial measures are under consideration.
As I have indicated in reply to previous question today, the tourist industry has been adversly affected by the situation in Northern Ireland and many tourist businesses have experienced decreases in revenue. I am not aware, however, of any large scale threatened redundancy such as that mentioned by the Deputy.
Bord Fáilte have arranged for consultants to study the situation of a representative sample of hotels to enable them to appraise the state of the industry. It would be premature to consider possible action before completion of the study. Both the Minister for Labour and CERT are keeping in close touch with the situation with a view to initiating any remedial action which may become necessary.
Is the Minister aware of the hotels closing down in Dublin recently and of the fact that in the local area of Dublin the tourist industry appears to be under greater threat than in the remainder of the country? Is the Minister aware of the special problems posed for workers in the hotel industry in the Dublin area, that there is a particularly bad problem in Dublin as a result of the merger of various interests recently?
I am aware of the problem but in this particular area of economic activity I cannot interfere with what happens in regard to business decisions made by companies. The Government do not own the hotels.
The Minister is aware that there is a special problem in the Dublin area of fully trained hotel workers being now without jobs. In the Dublin area there are some of the best trained hotel workers in the country. What are we to do with such people?
There is no point in generalisation. The Deputy is aware of the specific problem, which is the Intercontinental/Jury's takeover. This is a business decision that has been made. I understand that the managements are at the moment in discussion with the trade unions as to how best to deal with the problem the Deputy has raised. I am concerned also and I have discussed the matter with managements and understand that everything is being done to iron it out. I am aware of the difficulties involved and I am aware of the problems involved for people.
83.
asked the Minister for Transport and Power if he is aware of the possibility of hotel prices increasing from 10 to 15 per cent next year; and if he will make a statement on the matter having regard to the importance of the tourist industry.
I am informed by Bord Fáilte that hoteliers have submitted their prices for inclusion in the board's 1973 list of registered accommodation. While it will be some time before the board will be in a position to effect a comparison between 1972 and 1973 prices, Bord Fáilte are satisfied from discussions with individual hoteliers over the past few months that the hoteliers are very conscious of the need to keep prices as low as possible. Hoteliers, in fixing their prices for 1973, approached the revision of their 1972 prices with extreme caution but had, however, to take into account increased costs since their maximum prices were last settled in October, 1971, and anticipated cost increases in 1973.
Is it not a fact that once the tourist industry began to open up a bit here during August and September the hotels, in fact, departed from the figures that were published by Bord Fáilte this year?
It is not my position here to defend them because that is a commercial area; but in fairness to them they did, by reason of the toughness of the season and as part of the whole holiday campaign, cut rates substantially at all levels.
Some of them did.
They did. They have had a difficult year and in catering for the whole holiday campaign they cut it down to the bone. The same margin was not there as it would have been in regard to the visitors coming in from abroad. There have been exceptions but I am satisfied that overall they were very price conscious, for their own reasons if you like, this year and they cut their rates to the bone.
It is quite true that certain hotels gave excellent value this year but this is not true of all hotels.
I accept the Deputy's point there.