I move: "That the Bill be now read a Second Time".
Tourist Traffic Bill, 1983 [Seanad]: Second Stage.
The main provisions of the Bill are to increase the statutory limits on the aggregate amount which may be paid to Bord Fáilte for the purpose of capital developments of an accommodation and non-accommodation nature. The statutory limit on grant expenditure on non-accommodation tourist capital development will be reached shortly and it is necessary as a matter of urgency to increase this limit to permit Bord Fáilte to make full use of their capital allocations for 1983. In addition, the statutory limit on Exchequer grant assistance for the development of tourism accommodation will be reached in 1984 and it would seem appropriate at this stage to increase that limit so that the Government can, through Bord Fáilte, continue to encourage developments in this area. The opportunity is also being taken in the Bill:
(i) to increase the level of fines for infringements of the Tourist Traffic Acts;
(ii) to provide for proceedings in the Circuit Court to prevent the unauthorised use of protected titles;
(iii) to remove statutory maxima on the level of certain fees provided for under the Acts;
(iv) to provide statutory backing for Bord Fáilte's involvement in overseas consultancy work;
(v) to provide for the establishment of a register of holiday apartments;
(vi) to provide for the display of certain information in registered premises;
(vii) to provide for the appointment of persons, who are not ordinarily resident in Ireland, as members of the board of Bord Fáilte Éireann;
(viii) to provide statutory authority for Bord Fáilte to pay death gratuities and spouses' and children's pensions; and
(ix) to provide that remunerations, allowances, terms and conditions of employment of Bord Fáilte staff be determined by the board with the approval of the Minister given with the consent of the Minister for the Public Service.
The limits on grant expenditure on accommodation development and on non-accommodation development were last raised to £25 million and £10 million respectively by the Tourist Traffic Act, 1979. These limits are nearly exhausted and now need to be increased to enable Bord Fáilte continue to provide grant assistance for this type of tourist development.
From the time the limits were last raised, up to the end of 1982, grant assistance amounting to nearly £9 million has been provided by the Government, through Bord Fáilte, for the development of holiday accommodation. This grant expenditure had a positive effect in the upgrading and expansion of our accommodation stock in that period. The initial effect was most noticeable on the hotel sector to the extent that capacity in that sector is now considered adequate and the number of hotel bedrooms with bathrooms has been increased from 60 per cent to 79 per cent of total stock in the period 1979 to 1982. More recently grant assistance has been channelled towards other areas of holiday accommodation such as the self-catering and camping and caravaning sectors which have increased in popularity. Grant assistance was also provided for the upgrading of town and country homes, farmhouses and the expansion of the youth hostel network.
In their report on tourism policy, published in December 1980, the National Economic and Social Council expressed criticism of the concept of permanent blanket type grant schemes. The council further suggested that more attention should be focused on the stimulation of accommodation outside of the hotel sector. To a significant extent these recommendations of the NESC report were already an integral part of changes in accommodation grant policy introduced since 1979.
The NESC report was one of a number of inputs to an extensive review of tourism policy recently undertaken by my Department which included an in-depth assessment of accommodation grant schemes. In the past there has been a tendency amongst the different sectors of the tourist industry to see the introduction of new grant schemes as the solution to all ills. My Department's review indicates that the implementation of grant schemes did not always have sufficient regard to changes in circumstances between their conception, launching and the final implementation of some of the projects aided. This has underlined the need for a more critical consideration of any possible future assistance of this kind so that a worthwhile return is ensured on State investment made.
With future development in mind I have instructed Bord Fáilte to prepare as a matter of urgency, a detailed assessment of current and likely future holiday accommodation capacities to establish whether supply over the next four to five years will meet demand. The results of this assessment will make it possible to identify to what extent, if any, there is a need to expand or upgrade any particular segment of tourist accommodation stock and to consider if grant schemes are the most suitable means of stimulating any developments thought desirable.
By the end of this year the aggregate amount of grants issued by Bord Fáilte for accommodation development under the Tourist Traffic Acts will have amounted to £24,228,000 leaving only £772,000 remaining before the statutory limit of £25 million is reached. I propose that the statutory limit be raised from £25 million to £30 million. This should be adequate to cover existing accommodation schemes as well as allowing some leeway for the introduction of new schemes if this is found necessary.
As I have already mentioned, I do not intend to make any decisions on future grant schemes until I have considered the implications of the assessment of future accommodation needs currently being prepared by Bord Fáilte. This will not, of course, preclude considerations of particular needs of the accommodation sector which may arise in the intervening period. The take-up of non-grant schemes offering assistance in the form of concessionary finance provided through the Industrial Credit Company has been most encouraging and I would intend to keep this type of financing under close review to ensure, in so far as possible, that sufficient funding continues to be available to the accommodation sector.
I will turn now to non-accommodation grant expenditure through which the development of tourism-related facilities and amenities is encouraged. The existing statutory limit on grants of this nature is £10 million and expenditure up to the end of 1982 amounted to £9.3 million. The provision in the 1983 Public Capital Programme for this type of grant expenditure was £929,000. The statutory limit must, therefore, be increased now to ensure the completion of this year's programme of tourism non-accommodation capital development.
In the period 1979 to 1982 the Government through Bord Fáilte have provided £5.7 million in grant assistance for the development of tourism amenities and facilities in the non-accommodation area. This expenditure has stimulated the development of a wide variety of projects ranging from cabin cruiser projects on the Shannon — which received £1 million in grant assistance — to the up-grading and replacement of tourism information offices throughout the regions on which a further £1 million was expended. A similar amount was spent on developing recreational facilities in holiday resort areas. Other areas of major grant expenditure included angling development, water sports, equestrian centres, historical and cultural sites, parks and great houses and gardens.
The Review of Tourism Policy which I have already mentioned gave particular consideration to this area of grant assistance. In the provision of grant assistance for the development of non-accommodation tourism facilities and amenities, Bord Fáilte exercise considerable discretion in the allocation of assistance. The review disclosed that the scheme has to a significant extent been responsible for stimulating very desirable amenity development throughout the country which in many instances might not otherwise have taken place.
However, it was critical of the direction in which certain grants had been channelled. It pointed out, for example, that, though the assistance provided for specific projects may have enhanced general tourism amenities in particular areas, from the point of view of the generation of additional tourism traffic the effect had been negligible. The review also questioned, and was critical of, Bord Fáilte's involvement with Government Departments, local authorities and other bodies in the provision and improvement of amenities for the general public where the primary responsibility for such works lay with these particular Departments and bodies. I find it difficult to disagree with these conclusions.
There is no doubt that Bord Fáilte have a role to be aware of tourists' needs and to ensure that account is taken of such needs when schemes of this type are being planned. However, as the public in general rather than tourists specifically are, by and large, the main beneficiaries of such development, it is unreasonable to expect that Bord Fáilte should be expected to carry a considerable proportion of the costs involved. Particularly in these present recessionary times it is paramount that the funding available to Bord Fáilte be used, in so far as is practical, to further the board's primary role which is, of course, the promotion and generation of tourism traffic.
I intend in the future generally to confine assistance provided under this scheme to aiding and stimulating projects where there is a clearly identifiable return in the form of additional tourism revenue generated. My Department and Bórd Fáilte will, at my direction, be discussing the scheme with a view to agreeing guidelines for the future operation of these grants. It will, of course, be the intention that Bord Fáilte maintain discretion in the day-to-day allocation of these grants but I would envisage this being balanced by an annual requirement that agreement be reached in advance between my Department and the board on the board direction of expenditure for the following year. I am confident that the new procedures which I have outlined will result in a more efficiently operated and cost-effective scheme. As I have said earlier, the statutory limit covering this area of expenditure will be reached shortly and I am accordingly proposing that the limit be increased from £10 million to £14 million.
Turning now to other aspects of the Bill, I would like to deal with the question of fines imposed under the Tourist Traffic Acts. Deputies will be aware that the Acts contain penalties in the form of fines for specific infringements of the legislation. Maximum fines for the majority of such infringements were set out in the Tourist Traffic Act, 1939. The impact of inflation in the intervening period has meant that these provisions are no longer realistic. The Bill proposes a ten-fold increase in all fines in order to bring them to a more appropriate level.
Certain titles are also protected under the Tourist Traffic Acts and there are prescribed penalties for unlawful or misleading use of these titles. The title "hotel", for example, can only be used legally by a premises registered with Bord Fáilte in its register of hotels. The unlawful use of this title can have serious implications for other competing premises which are legally registered. Though provision is made in the Acts for fines in respect of offences of this nature, the actual process of imposing such fines can be slow and can to a considerable degree be circumvented by the offending party. In order to improve the existing situation, the Bill proposes to make it possible for Bord Fáilte to obtain an order in the Circuit Court to prevent the use of registered titles by premises not properly registered with Bord Fáilte. This additional provision would be without prejudice to the existing provisions which allow for the imposition of fines in cases of illegal use of registered titles.
The Tourist Traffic Acts also permit fees to be charged for a wide range of services. In all cases the fees are prescribed by the board of Bord Fáilte subject to the consent of the Minister. However, in four particular cases the present legislation precludes the setting of fees above certain maximum levels. These maxima, which were set in 1939, range from 2½p for a certified copy of an entry in a register maintained in accord with the Tourist Traffic Acts to £2 in respect of an application for registration. These charges do not, of course, come near to meeting the cost of the services being provided. For example, the application for registration fee of £2 covers at best about 2 per cent of the cost of processing an average application. In accordance with general Government policy on the question of charges, it is intended that these fees be brought to more realistic levels. The Bill, therefore, proposes to remove the existing statutory maxima and bring the position with regard to these particular fees into line with that obtaining for all other fees charged under the Acts.
From time to time over the last few years Bord Fáilte have undertaken a limited number of consultancy assignments in developing countries. This has generally involved the preparation of tourism development plans or the undertaking of some form of studies as part of aid programmes. Countries assisted have included Zambia, Tanzania and the Seychelles and in many instances the studies were funded as part of a European Community Aid Programme.
Deputies will appreciate that there are certain benefits, both in terms of staff development and revenue receipts, which accrue to Bord Fáilte from this type of activity. I should stress, of course, that there are no plans to expand the board's involvement in this area and, as has been the practice up to now, such assignments will only be undertaken when staffing resources permit and no restriction is imposed on the board's capacity to fulfil their overriding roles in the promotion and development of Irish tourism.
In recent years some doubts have been expressed about whether Bord Fáilte are properly empowered to engage in consultancy work. On the recommendation of the Attorney General it is proposed to take the opportunity to remove any doubts in the matter by inserting an appropriate provision in the Tourist Traffic Acts. A similar provision was made in respect of consultancy services to be provided by the ESB in the Electricity (Supply) (Amendment) Act, 1979.
An area of tourist accommodation which has expanded noticeably in recent years has been the self-catering sector. The trend in this direction has been dramatic in continental holiday resorts and while still relatively new to Ireland is perceived by Bord Fáilte as an important concept in revitalising traditional holiday resorts in this country. To encourage this type of development and to ensure that high standards are set and maintained, I am providing in the Bill for the establishment of a register of holiday apartments to be maintained by Bord Fáilte. It would be the intention that, as is already the position with regard to other types of tourist accommodation, only holiday apartments meeting Bord Fáilte standards would be allowed to use the registered titles applicable to this type of accommodation as listed in the Bill.
I have on numerous occasions in the past spoken of the consumer's right to adequate information and the Tourist Traffic Acts make it possible for Bord Fáilte to exercise a certain influence in this area. Under the Acts proprietors of registered premises may be required to display lists of charges for rooms, meals and other services provided and may also be required to display external signs as supplied by Bord Fáilte. It is now my intention to extend the existing provisions to provide for a wider range of consumer information.
I should like to put on record that in the matter of providing consumer information the holiday accommodation sector has, in my view, a better track record than many and I would like to compliment the sector on its performance in this area. However, there are, regrettably, some establishments that could undoubtedly do more in this regard and whose reluctance to do so can reflect unfavourably on the sector as a whole. I am taking the opportunity in this Bill to provide for the display in all registered premises of certain specific information for the consumer. Bord Fáilte would be empowered to stipulate the type of information to be provided and the extent and location of the necessary notices. What I envisage is information on such matters as the grade of premises, meal times, the safety of property and the rights of guests generally.
The Tourist Traffic Act, 1939, provides that, if and whenever a member of the board of Bord Fáilte ceases to be ordinarily resident in Ireland, he shall be disqualified from holding and shall cease to hold office as a member of the board. A consequent effect of this provision is that non-residents of this country are precluded from appointment to the board. I am of the view that this prohibition is unnecessarily restrictive in present day circumstances and denies us the opportunity to enrich the board's make-up should an individual with expertise of international tourism become available. I am convinced that in certain circumstances such an appointment could prove a valuable addition to the board, particularly in their consideration of marketing and promotional strategies abroad. I accordingly propose to amend the existing provisions to allow for the possible appointment of a non-resident to the board.
In the course of preparing this present Bill it was found that the existing wording of sections of the Tourist Traffic Acts dealing with superannuation might not adequately allow for the payment of death gratuities and spouses' and children's pensions in respect of employees of Board Fáilte. To remove any doubts in the matter a suitable amendment to the relevant sections of the Acts has been provided for in the Bill.
The Bill also includes a provision regarding remuneration, allowances and terms and conditions of employees of Bord Fáilte. This is to update existing provisions in the Tourist Traffic Acts relating to these matters in order to bring them into line with standard provisions being inserted as the opportunity arises in the legislation governing other State-sponsored bodies. The proposed amendment, therefore, provides for the remuneration, allowances, terms and conditions of Bord Fáilte staff to be determined by the board of Bord Fáilte with the approval of the Minister given with the consent of the Minister for the Public Service.
At this stage in the year I think it would be appropriate that I make some comment on tourism performance during 1983. At the start of the season we were all only too aware of the difficulties facing the tourism industry. Recognising the importance of the tourism industry the Government increased Bord Fáilte's marketing budget for 1983 by £3,000,000 over the 1982 allocation, continued to provide concessionary finance to the industry and reduced the rate of VAT applicable to holiday accommodation in order to improve our competitiveness. Despite the continuing recession the signs are that we managed to hold our own in an increasingly competitive market.
The latest estimates available from Bord Fáilte indicate that in 1983 we achieved some growth in Britain, our major market. Of great importance is that an increasing percentage of tourists from Britain are non-ethnic, that is, they are not of Irish background. This development is a direct reflection of the attention being given to promotion in this particular market.
Turning to North America, 1982 saw a record number of American tourists visiting Ireland. We had hoped to maintain this in 1983 but at this stage it would appear there will be a slight drop in numbers coming to Ireland. This was caused primarily by the fact that air fares to London were particularly attractive this summer, while there was a relative increase in the cost of flying to Ireland from North America. Despite the drop in numbers the North Americans who did come to Ireland had a higher spend per capita and I would expect a slight increase in real terms in revenue from this market.
France and Germany are our two biggest markets in Continental Europe. Deputies will recall that in March of this year the French Government imposed severe currency restrictions on French nationals travelling abroad. This posed a serious threat to our tourism revenue. I am glad to be able to say that prompt action taken by Bord Fáilte in the market place has ensured that the loss will not be as severe as originally feared. The Government expressed their concern about the introduction of these currency restrictions and have been assured that the restrictions will be removed by the end of this year.
The German market is likely to show an increase of 6 per cent over 1982 and this is a very creditable performance in these recessionary times. Notwithstanding the difficulties which faced us in the market place, and particularly in the French market, the overall performance, helped by the trend for an increasing number of non-ethnic tourists from Britain, suggests a maintenance of the growth achieved in 1982 over the two previous years.
I commend the Bill to the House.
This Bill is not contentious. It provides much-needed extra finance for Bord Fáilte to enable them to carry out their statutory obligations. It also deals with some regulatory and supervisory matters which needed attention. There are some aspects concerning consultancy work on which I will have to question the Minister further. By and large, apart from the money measures involved, it is an administrative business. It is necessary and for that reason we will not hold it up.
It affords us an opportunity to make comments on various tourist matters which are of concern to us all. While the Minister's speech gave us an end of year return, it gave us no indication of any progress which the Minister might be contemplating in this very important industry. That is disappointing. It reinforces my belief that somehow we are not prepared to give our tourist industry a proper place in the economy. It would appear that it still has not dawned on the Government and the Minister that we are talking about a growth industry, an industry which will probably be the biggest growth industry in the world by the end of the century. We do not seem to be taking steps to accommodate ourselves to what is now a recognised international fact of life.
This growth industry will not benefit us to the maximum extent unless there is a very serious Government commitment to taking advantage of that international recognition. It will not reach its potential target unless it gets Government direction and commitment at the highest level, and the necessary resources. One simple figure indicates what I have in mind. The revenue return on £1 spent in 1972 was £22. The return on £1 spent in 1980 was £27 in revenue to the State. The Minister referred to some figures which he would like to see increased, but he did not pay due attention to the overall revenue to the country from tourism and the possibility of increasing it substantially in the next decade.
Last year tourism brought in foreign revenue of about £500 million. When you consider that tourism revenue has risen from £92 million in 1972 to £500 million in 1982, you get an idea of the growth potential of the industry. Allowing for inflation during that period, it still had a real growth of about 15 per cent in those ten years. I do not know any other industry, supported or otherwise, with that kind of record; but it is not duly recognised and given the prominence it should be given by the Government.
That can be seen in the Book of Estimates. Last year the allocation to other organisations in the promotion and export field, such as CTT and the IDA, covered their requirements, as if they were the only operators in the field of economic growth which could generate a worthwhile return. Bord Fáilte had to be satisfied with a reduction in their estimate. We hear that further reductions are being sought. These reductions are not always sought from the other generators of growth capacity in the economy.
It is not made clear just how many people are involved in the tourist industry and what the industry means in the provision of jobs. Overall it must account for about 70,000 working people. These are inexpensive jobs to create. Taken on balance with the kind of money it costs to generate one job in industry, tourism as a growth industry provides jobs much more cheaply and, for that reason, much more money should be demanded by the Minister from the Government for a big generator of new jobs in the economy.
Let us take a look at some of the figures. Last year the total export of manufactured goods amounted to about £4.2 billion and of agricultural products to about £1.2 billion. Tourism generated £500 million and forestry and fisheries £81.2 million. Tourism is in third place, but with such a small investment of national Exchequer funds. Compared with the amount of money provided for the two front runners, manufactured goods and agricultural exports, tourism is a much better mark where the generation of revenue is concerned.
Look at the effect it has on our balance of payments. Without the tourism industry receipts, our balance of payments deficit would be much higher. How much import penetration is accounted for by that £500 million? Very little. All the other front runners have a very large import contribution to our balance of payments situation. In effect, we are not really facing up to the fact that tourism is one of our chief, if not our chief, money makers and job creators and could be so much more if it got the kind of resources, drive and motivation from high places that is necessary to make it deliver at that level.
The Minister referred to many of our tourists and where they come from. Half our visitors come from Great Britain but we had twice as many Europeans in 1982 as we had in 1972. The Six-Counties market is still a big tourist producer whereas the number of visitors from the United States has been falling. I would like to hear what notice the Minister is taking of these new trends and the changes in the times of arrivals of our tourists, many of whom come in the off-peak period. There has also been a change in the socio-economic circumstances of our visitors. I would like to hear what the Minister had in mind when he was dealing with these facts which are now on public record and which need attention. I thought the Minister would be stimulating the whole tourist economy by bringing fresh thinking to bear on the problem, in consultation with Bord Fáilte. We have a very good national organisation and Bord Fáilte would be the first to recognise any suggested changes that might help stimulate greater growth in our tourist trade. I noticed some figures recently on the breakdown of accommodation used by our visitors. About 50 per cent of all bed-nights are in private houses and 12 per cent of our visitors are self-catering. We see a shift from the traditional type of tourist visitor.
These figures must be put into the arithmetic to develop a new strategy in dealing with our tourist industry until the end of the century. The Minister did not mention that we now have 50,000 visitors coming for fishing alone and another 50,000 to attend conferences. Why are we not developing a package to take notice of these new trends in tourism so that we can maximise the benefits to this country, provide the money to stimulate those areas and not carry on in a hackneyed way hoping that tourism will develop of its own accord, because it will not.
Promotion work and government action in other countries have taken the initiative in this regard. They are stealing a march on us, despite the fact that traditionally we were regarded as one of the main movers in tourist growth potential up to a few years ago. Every other country had decided that they would maximise their efforts and drive so that by the end of the century tourism will be their largest single industry and that they could take maximum advantage of that growth.
I would like to think that Bord Fáilte and the Minister will get together at an early date to seek very close co-operation with the Departments of State and semi-State bodies, because they all have a vital role to play. It is time there was very close liaison and co-operation between those agencies to maintain our existing potential and to develop it. The Department of the Environment would have a very big role to play in this regard. The question of environmental control becomes a much bigger issue as far as the tourist industry is concerned each year. One essential which would improve the convenience and good humour of many of our tourists would be if we had a better sign-posting system. I do not need to tell the House how weak our sign-posting system really is. The frustration felt by motoring visitors is enormous and they complain bitterly about it. I realise it is not the responsibility of the Minister to get a ladder and start putting signposts around the country, but the Department of the Environment have a responsibility in that area and the demand should be coming from the Minister to ensure that our system would be on a par with a system that is now regarded as matter of fact in every other European country.
I find it extraordinary that the Department were not involved in a general tidying up of the country this year in particular. We have an enormous number of unemployed. We have environmental schemes, community schemes and so on, and this year more than any other considerable advantage should have been taken of the large numbers of young people and others who were available to do that tidying up. In this way some of the money which has been reported in the media as being available and unspent could have been utilised. I cannot think of a better way of spending that money, whether from the youth employment scheme, the environmental scheme or any other scheme, than tidying up the country. Not only would this have the advantage of making Ireland a more pleasant place for our tourists but it would also be a considerable advantage to ourselves. It would have the very significant advantage of making our young population aware of the need for better habits so far as litter and pollution are concerned. We have never given due recognition to that, despite the fact that every time people talk about our advantages over other countries they always come back to our beautiful scenery. The only spoilers of our scenery are ourselves.
The time has come for the Minister to take the initiative and get his colleagues to decide on a programme to tidy up lovely Ireland. I see the Department of Education as being very important in this area. For the life of me I cannot understand why civics as a subject has been allowed to decline in our curricula, especially in our national schools. Our young people should be told we have a beautiful country which is not repeated in many other countries, and that it needs to be protected and preserved, which could be done through careful handling. Young people will respond if it is explained and illustrated to them what is required to be done. I will be as blunt as this: is there anything more off-putting to a tourist, or even to ourselves, than to look over a town bridge and see the river below polluted, being used as a dump for all kinds of rubbish? That is a focal point in any town. Such focal points are the ones about which tourists talk when they leave the country. If we have a beautiful country and environment, we should take every possible measure to preserve them. I should be very pleased if the Minister would take some note of that and put it to his colleagues, because he has been asked to do so frequently. On a non-contentious Bill like this, if we collectively put it to him that there are areas which could benefit both tourists and ourselves and that he should take some initiative in that regard, perhaps we will get a better response.
I understand that we had something in the region of 2.278 million visitors last year. It must be remembered that tourism provides a return to the State well in excess of the State's investment. When one takes taxes and charges into account it will be seen that the State benefits enormously from this industry. But it is treated like Cinderella. We do not seem prepared to give the tourist industry the resources it needs despite the fact that £ for £ it yields a better return than any other industry. There was a time when it was afforded that importance. I regard it now as the responsibility of the Minister to lift up our tourist industry, to give it the political motivation it requires to restore it to its rightful place as the best £ for £ money spinner and growth and revenue generator in our economy. The advantages of tourism are not merely the creation of extra revenue for the State. It is of much wider importance to the population generally. It encourages a national pride in traditions, in the whole of our cultural heritage. These are clichés but we must get them in perspective, that these constitute facts of life, that the connection between tourism, our traditions and the preservation of our environment is enormous and is not recognised fully.
Neither the Minister nor anybody else should make any apology for seeking the moneys sought in this Bill for the provision of amenities. Indeed the Minister is treating the industry shabbily seeking such a small amount. What is wrong with the Minister? Where is his big Kerry heart? Does the Minister realise that the amenities he seeks to provide through this paltry sum of money for which he is cautiously asking—which we will give him with a heart and a half—do not constitute merely development for tourists who may or may not visit the country in a given year? These amenities are provided for our population throughout the entire year. These are amenities which can be enjoyed by all of us, sports centres and the whole list of others referred to by the Minister. The Minister should not be embarrassed about seeking substantial sums of money for their provision. He should remember that he is providing them on behalf of us all. I would have been much happier had the Minister of State allowed himself the liberty of insisting that his Minister contemplated other matters while he wrote in the appropriate figure required here. I hope the Minister of State will not be niggardly or slow in coming back seeking more money at an early date in this respect.
I should have preferred that the Minister would have dealt with any new attitudes he might have in regard to the development of our tourist industry. While many things militate against the improvement of our tourist numbers and revenue, there is no doubt that one of the central aspects that make it difficult for us to gain as much from tourism as other economies is the question of transport and particularly that of access transport being so expensive. To give one example, car rentals are too dear when a tourist arrives here. But the cost of access transport here is too expensive in the first instance. I believe the return would far outweigh the cost of doing something positive to get many more aeroplanes bringing in tourists, providing some kind of special arrangement, special fares, both in the high and off-peak seasons and applied to the sea routes also.
Rather than closing down routes because of lack of business, selling off modes of conveyance between this country and others, servicing half-empty planes on certain routes, if a proper strategy was developed we could bring into effect a much reduced access transport cost which would result in an enormous increase in the number of tourists coming here. We are a secondary location. Because of that we must cope with the factors which make us such, the principal one being the costings of access transport. I do not notice any strategy being developed or talked about that would utilise the plant available and in the service of this country, both State and semi-State to create a situation in which that excessive cost of access transport could be minimised and not act as a deterrent to larger numbers of tourists.
When reviews and surveys are being undertaken they seem always to be critical of the same factors and advance others as the main attractions to tourists coming here. Yet these attractions are given no prominence in other Departments in order to maximise their benefits. The reason tourists come here, we are told, is always because of the unspoiled scenery and beauty of our country. I ask the Minister of State, along with his colleagues, to take positive steps to effect the environmental improvements that can be done through the funds already available to them.
Tourists seem always to refer to the natural friendliness of our people. I think sometimes it is just as well that such tourists do not observe the operations within this House or they would not think we were too friendly to one another on occasion. Be that as it may, there is that tradition of friendliness here. While it is expected to continue ad infinitum nothing positive is ever done to maintain it. One might well ask: how can one do that? One can do so very simply through good communications, putting it to people on a continuous basis that this is the second most important way in which additional money can be made. The people in the front line of communications in the tourist industry are those who make the most lasting impression. Something could be done by way of working on that aspect without my going into specifics now.
Our way of life and our sporting activities are regarded as a third spot in our attractions. Taking into consideration all the aspects advanced as being the generators of tourists coming here, the conservation of our environment, the control of pollution and a general tidying up of our country are those most in need of urgent attention.
Bord Fáilte, as I said, are quite used to people standing up here and telling them they are doing a magnificent job. I have no doubt but that they are experts in their field and I have no doubt at all but that they wish to reach the kind of target I would set for them but they cannot do that with the miserable pittance being offered to them. The public perception of Bord Fáilte is that they are somehow isolated or divorced from the ordinary tourist operator. Now Bord Fáilte have been endeavouring to put it across to the Irish public that the cheap tourism package is available but they are now selling an expensive product in this country. I put it on record that people, even if the package is expensive, will avail of it so long as the quality and service are up to standard. So far as that is concerned Bord Fáilte are in the hands of the politicians. They can only deal with the product offered to them pricewise by the politicians.
Now that expensive product contains in itself the question of price, competitiveness, inflation, VAT, which is something arranged here and has to be dealt with by Bord Fáilte and many a budgetday heart attack must have been suffered by Bord Fáilte, but they have survived and developed a strategy to deal with the situation. They are now developing the tourist industry in the light of the new trends and taking note of the socio-economic groups coming here. I do not know what role the Government have in mind for tourism to play up to the end of this century. It should not be left entirely to Bord Fáilte. Bord Fáilte need the Minister's help. They need money to develop and reach the targets they know they can achieve. But they cannot reach those targets without the active participation of the Minister and his Government.
There are many areas I could develop but I will just refer to one particular area and I trust the Minister will pay attention to what I have to say in regard to capital expenditure programmes and the miserable couple of pounds he is asking this House to give him this morning. I refer to our internal waterways. I doubt if anyone fully appreciates the resources we have in terms of internal waterways. We have a holding capacity of three or four weeks with very small expenditure. That could easily make six weeks in so far as internal waterways development tourist-wise is concerned. The potential is enormous. It needs to be tidied up and restructured. Some of our waterways could make this country first in all Europe from the point of view of attraction. I do not know if the Minister has the money. If the row between CIE and the Board of Works is not resolved satisfactorily as to the control of these waterways, surely the Minister could take the initiative so that someone will finance them to bring them to the potential they have. Thousands could be attracted to this country if proper development of our waterways were to take place.
The face of world tourism is changing. We have to recognise current trends and the time has now come for the Minister to spend some of this miserable pittance in specially designated areas in order to provide special facilities. This should be done with all possible despatch. Some areas cannot take advantage of the potential that exist because the basic facilities are not there. I make no apology for promoting the west because the west has a unique attraction for tourists and it has a potential unmatched by any other area. However, certain basic facilities are missing and if those basic facilities were there the result would be a tremendous inflow of tourists. It is a pity the Minister does not take the initiative and provide the money to develop this potential.
Reference has been made to the hotel industry. I wish people would stop moaning about how bad tourism has been because that only results in debilitating the industry. It is bandied about abroad and it creates a climate we can well do without. The tourist industry is holding up its head well despite recession, despite cutbacks and everything else. It has done reasonably well. It has more than repaid the financial injection into it by the State. We should be going forward in a positive way instead of talking about how much it is hurting, of course it is hurting. Worldwide the industry is hurting. We should adopt a positive approach, put in more money to develop new growth. That is what we want.
Hotels are a significant part of the structure. If you remove a hotel from an area you kill off future development in that area in more ways than just tourism. Numbers of people work in hotels and the hotel industry is one which should be protected and developed. If we have 26,000 people working in our hotels we must remember that 85 per cent of them work in hotels outside Dublin. Dublin, with a smaller population as compared with the rest of the country, has the advantage of conferences and seminars of various kinds. The hotels elsewhere depend mainly on tourists. These hotels provide jobs in areas where jobs would otherwise be very difficult to provide. We know the difficulties experienced in hotels but we must realise that the bulk of the jobs in this industry are mostly sited in rural Ireland.
I am not going to get into a political argument with the Minister as to what happened this year on the question of VAT. He put it on to take it off. In effect, there was no reduction because VAT was left at the same rate as far as hotel bedrooms were concerned. The Minister will have to take strong measures to deal with the hotel industry if it is to be kept alive and the structure which is vital for the tourist industry and the industrial development of the country is to be maintained. The hotel industry cannot continue to survive with the type of taxation that is imposed on it.
The tax on hotels at 18 per cent is 10 per cent too high because the average European norm on bedrooms is about 10 per cent. If we are to maintain our competitiveness we must get tourists here by a proper access transport strategy and keep them here. It should be remembered that out of a total of seven million bednights only 2.2 million were spent in hotels. That is an important figure because they are the biggest spenders who come here. We must provide the competitiveness that makes it reasonable for tourists to come here to spend their money compared to other countries. We will have to take strong measures to reach the growth targets I would set for the industry.
Whether we like it or not tourism is an export industry. I do not know of any other export industry that has the same type of VAT and taxation penalties attached to it as the tourist industry. Why is that? Why is it that we do not recognise the tourist industry as an export concern capable of generating foreign revenue to help our balance of payments deficit? Why is it that we do not give that industry the same accommodation and input we give other export industries? If that happened our taxation bands would be changed dramatically and there would be increased growth in the industry.
In these difficult times the services of Fóir Teoranta should be extended to the hotel industry. Hotels have had financial difficulties because, like many other industries, they over-extended. If they get into difficulties Fóir Teoranta should be utilised to assist them. There is nothing more debilitating than to have hotels being closed without any prospect of reopening. I am not referring to industrial relations problems but to strict financial difficulties which this export industry has got into because hotels over-extended. If we had confidence in reaching the targets I believe the industry can achieve we should make all the agencies of the State with a capacity for dealing with problems available to it, including Fóir Teoranta.
The total bed capacity here is satisfactory and can deal with our requirements in the immediate future. Therefore, there is no need to talk about spending some of this miserable sum on building new hotel bedrooms. It would need to be an exceptional case before I would agree to spending money on such work. The money should be used to provide a structure of improvement grants for existing hotels because there has been a big deterioration of hotel plant with the result that the service is suffering. As a result of the low profitability which hotels have suffered from in recent years they do not have the resources to make any further investment for the protection of their existing plant. As in any concern if the plant wears out the industry is in difficulty. The plant in some of our 700 hotels is pretty old. If we are to maintain the high international standard being demanded by concerned and heavily taxed tourists we must keep hotel plant in top shape. The Minister should embark on a scheme to improve plant and this side of the House will support such an arrangement.
The Minister should consider providing interest subsidies for existing loans borrowed for capital development. Many people in the industry took the initiative over the years. We are constantly telling people in the private sector to put up venture capital and we demand greater investment in all industries. In doing so we must take some of the responsibility if those industries get into difficulty. If some of the difficulties have been generated because of efforts that were made to keep our hotel establishments to the highest international standards, then we should provide a subsidy to help in the short term.
Ultimately the success or otherwise of the tourist industry, and of Bord Fáilte's annual accounts, depends on marketing and promotion strategy. There are a number of sides to this business, how to keep our plant and environment, how to keep the frontline people in the tourist operation in top condition and how successfully Bord Fáilte can promote the country. That is where promotion and strategy come in. A pittance has been provided in Estimates over the years for Bord Fáilte notwithstanding the fact that we all know that the total expenditure of £24 million last year produced a return greater than investment in any other industry. However, we continue to give Bord Fáilte a miserable sum of money to carry out their promotion and development work. More money should be invested in that activity. Operators throughout the country agree that they must get involved in workshops, and be given the proper type of advertising and marketing. They are quick to point out that it is important to have a proper pricing strategy but how can those things be done if the resources are not given to the organisation that has the world outlets to promote Ireland as a tourist area? If we are to accept that this growth industry will reach its peak in the year 2000 we must plan now. I would give Bord Fáilte additional money for marketing and promotion and charge them to show results within three years.
An extra £1 million was spent last year trying to improve the British market but we must face the fact that Britain and the Six Counties provide our greatest number of tourists. We lost the British motoring tourists and all of us know the reasons. I should like to see the Minister make a greater attempt to bring them back. He could adopt schemes and initiatives that would bring back to our roads the cars with GB plates. People who were involved in tourism when it was at its peak 20 years ago will remember that it was this kind of tourist who had the real spending power in local areas. Much closer attention should be given to this aspect.
Frequently there is criticism of Bord Fáilte by people in the trade and by the operators on the ground. The views of the operators are very important. There must be the closest co-operation between those providing the services on the ground and the higher echelons of Bord Fáilte. There should be seen to be closer co-operation between the various groups, whether in Donegal, Cork or anywhere else, who are interested in getting together for a promotional drive. They should be helped so that the end result will be a massive publicity campaign for the country as a whole. There are strains in the area of promotion that come to our notice from time to time. In this industry we cannot afford to have any strains. It is one country, one location and one national organisation promoting and servicing the industry. It should be possible to keep under that umbrella all organisations spending money, whether it be private or public money, in developing tourist traffic. I am hinting at something and the Minister may take it up with me later.
As it is one location there is a range of facilities and activities but perhaps there are too many spending money on promotion and marketing in individual cases which might be better spent if a joint approach were used. I will mention a few of the agencies involved in the industry; Aer Lingus, CIE, the Irish Hotels Federation, SFADCo and others. When one adds up the money involved the average is a considerable amount. Perhaps the time is coming when, with Bord Fáilte as the prime mover in the marketing and promotion of Ireland as a tourist location, we may have to have some kind of national marketing agency incorporating representatives of all the agencies, with a pooling of resources to maximise the total benefit that would accrue from a joint marketing campaign.
A matter that is causing considerable disquiet is the question of the OIE chain of hotels. It has been suggested that there may be moves afoot to change the status of that chain. I wish to put it on record that I am totally against any such moves. To put it politely, it would be a stab in the back to Irish tourism at this time to contemplate selling off the major upmarket chain of hotels outside the east coast, and particularly Dublin city. The CIE hotels are good properties. They have the right standards and their location is vital to the healthy promotion of tourism outside this city. Most of the hotels are located in the west, and in the south-east and in the south-west. They provide a vital link in the promotional activities of selling Ireland. To consider breaking them up or selling them would be breaking the standards that have been applied to tourism in rural Ireland in the past 20 years.
The State should have an investment in tourism. It has an investment here this morning in the industry because it is providing the moneys necessary to supply facilities and amenities. Why should it not have an investment in tourism? Other countries with a greater success rate have hotel chains. Some countries with huge revenue resources from the tourism industry sustain losses in their national hotel chains but they regard it as good business because standards can be controlled. That standard has been set in selling Ireland successfully for many years. Now there is talk of throwing it out as though its usefulness is past. I ask the Minister: is this confidence in our tourist industry and in the future of the industry? We must say now that that chain of hotels which has served this country well will not only be kept in existence but will be developed.
These hotels were started in 1961, when the wholly owned subsidiary was set up. I do not mind saying that some of the mistakes were made at that time. The OIE chain enjoys a longer season than hotels in Cannes or Nice. They could be made profitable and viable and I will suggest a few ways by which this could be done. It is not good enough to demand that the State continues its investment, interest and support without at least giving some indication as to how success might be achieved. Viability is very important but before I deal with that I would remind the Minister that many jobs are involved. If the Government sell that chain of hotels they will create an enormous number of redundancies and the jobs will never be restored. In addition, there will be a loss of standards that cannot and will not be replaced.
In 1962 the chain had seven hotels. During the period 1969 to 1972 four hotels were added and there were also some extensions. We will not talk here about how and where they were provided, but during the period 1976 and 1977 four were sold for the princely sum of £555,000. I say that the selling off of hotels at Kenmare, Mulrany, Sligo and Bundoran was a mistake. They were sold for a pittance — £555,000 for some of the finest structures and what could have been the finest chain of hotels in Europe. This chain was profit-making from 1962 to 1971. They had a bad patch between 1971 and 1979 but this happened to every hotel chain in the world. I do not think that a time of recession is the time to start stripping assets, particularly when they are basic and fundamental to a national industry. When a company starts losing money sometimes it is necessary to go for liquidation but more often than not it is a last resort. If possible, restructuring should always come before liquidation.
The Russell Court in Belfast was given away recently. It cost £3.2 million to build and equip and it was sold for £.8 million. I wish Christmas would come a little more often like that for me. I never supported the sale of that hotel. I put it on record now that there were many other options which could have been utilised which would not have involved the immediate disposal of that prime property for that sum of money. That particular property was bonded on three occasions in the seventies and never reopened. It is significant that the servicing of that debt on the capital expenditure, together with the loans which had to be floated to keep it alive and the security, which cost £50,000 a year, meant that the chain were not able to afford that millstone around their neck. They should never have been asked to do that. How could they be expected to do that when that limb in the North was losing money on a daily basis?
The chain in the South were not able to support this great financial loss in the North. It is because of the drag over the years from the Russell Court that the idea is now rampant that the chain in the South should be sold off. It is not new to have rumours like this, but it has always been resisted. The Minister should resist the sale of those hotels and he will have the full support of my party. The chain in the South should be maintained in a new set of circumstances.
There are six hotels in the chain and one restaurant. Three of the hotels operate all the year around and three are seasonal. There are 674 beds involved. The organisational structure of that chain is wrong. They have a headquarters and the staff there is too large for their requirements. The cost of the administration there is too great a burden for a hotel chain, even in good times, to survive. Twenty years ago the chain had a whole range of activities to control — from river boats to canteens and kitchen cars as well as seven hotels — and the whole show was run with half the staff there are at headquarters today. Each hotel in the chain has its own manager and accounting staff. There is duplication; and it is time, if the hotel chain are to survive, be viable and have a break-even situation, for the organisational structure at headquarters to be looked at. It is important to have a new board to control those hotels. The board at the moment also run CIE, but their business is railways. We want a new board orientated towards tourism and the hotel business. The new board must have marketing and financial expertise in dealing with the hotel industry with a strong bias towards the tourist industry.
The headquarters administration of the hotel chain needs to be revamped. I believe that the number needed there to act in a supervisory capacity so far as direction, policy and accountability is concerned could be very small if they were specially chosen people. the chain have never had a proper marketing and pricing policy. There has only been an ad hoc kind of pricing system rather than a proper pricing strategy based on research. This has resulted in lost revenue on one side and over-pricing in other areas. The chief executive officer should be concerned with that as far as the hotel chain are concerned.
The location of the hotels is superb. I believe their potential for revenue growth would have been enhanced enormously if some of the money available to the organisation over the years was spent in adding self-catering units at locations such as Parknasilla and Killarney and perhaps utilising some of the space in Rosslare for self-catering as well. We must take note of the new trends in tourism. I referred on another occasion to the 50,000 people who came here in 1982 to attend conferences. That was a great growth area. This hotel chain were better placed than any hotel chain in Ireland to benefit from the growth in conference business. A major facility could have been provided in the Galway location to deal with that, but those initiatives were not taken.
I would set out a three year programme of activities, and I would get proper management advice with a new board and a new superstructure with proper hotel experience. The most important thing is accountability for each hotel, which I would leave with the manager of each hotel. The chain are not so big that this could not be done. I agree there must be supervision when public money is involved. We will never get the type of drive and initiative which the hotels need if the manager of each hotel is not given sufficient power. We hear a lot of rumours about various things which go on in the hotel chain. They will not be trotted out here, but I know that the management of each hotel and their staffs were prepared to do everything possible to keep the chain as the prime mover of tourist hotel growth in rural Ireland if they were given a chance.
A mistake was made in the early sixties when that chain were not allowed to develop into the cities. The hotel chain at that time — I see no reason why they do not need it now — needed the back-up services of a hotel in Dublin and another in Cork to complete the chain and give them the chance to sell a total package. They did not have to get involved in capital expenditure because sufficient hotels came on the market to allow them to go into it by contract or lease. This weakness could still be rectified if there was dynamism there and the chain would show over a three year period that they had the capacity to break even and live up to their commitment.
There is talk now about a rationalisation programme. I hope whatever programme comes out of the talks going on that it does not necessitate the selling off of the assets of CIE. In the 1976-77 selloff we lost the hotel that was world renowned, world famed. I warned the Minister that he must not let it happen in his time, that his county must not lose what has proved to be a very great sales asset for Kerry tourism for over a quarter of a century.
I will finish by saying that other measures have been used by other Ministers in dealing with situations where insolvency existed but I do not think that such a solution need be contemplated here. What is required is the political motivation and the determination that we have a national tourism and the potential for real growth and job opportunities. We have something that very few other countries have that £ for £ is bringing in more than any other export industry and if we give it the resources it needs it will do for our tourism and balance of payments what has been done for many other jurisdictions in Europe.
I congratulate Deputy Moynihan on his appointment as Minister of State at the Department of Trade, Commerce and Tourism. He is very close to the ground and I wish him well in his appointment. I pay tribute also to the former Director-General of Bord Fáilte, Mr. Joe Malone, even though he might be of a political persuasion different from mine and a Mayoman like Deputy Flynn. He was very professional, and in my own way I would like to pay a special tribute to him for the part he played for tourism here. Also I welcome Mr. McNulty to the position of chief executive of Bord Fáilte in this country and I would like to say a few words of advice to him here this morning in that role.
It is only right that members of the staff of Bord Fáilte should have applied for that position when it became vacant. There was nothing wrong in their doing that. It is only right that those members should have applied for the job of chief executive, and I hope that the scattering of some of those professional gentlemen to the four corners of the world is not in any way vindictive because they applied for this position. It is only right and proper that the staff of Bord Fáilte complained when Mr. McNulty tried to bring one of his cronies from Dunlops into a position in Bord Fáilte. Bord Fáilte is not a place for old cronies, it is a place for professional gentlemen knowledgeable and dedicated to the cause of tourism. I would hate to think that there is a lack of trust in the professionalism of Bord Fáilte by the CEO. If such was the case I would abhor it. In Bord Fáilte a professional team was built up. Some people may call them whizz kids, but they were professional gentlemen who were able to keep tourism here moving forward all the time despite the hunger strike in Northern Ireland and the bombings in Britain. These gentlemen fought with their backs to the wall to keep tourism on the ground and growing in revenue, and that they did very successfully.
Having said that, I wish Mr. McNulty every success in his appointment and hope that he will take note of my remarks and that the professionalism that has been acquired by his officials will be called on and their advice accepted all the time.
Looking at tourism for the eighties and nineties one must say, without looking at Old Moore's Almanac, that tourism will be the biggest industry in the world when we move into the nineties. Everybody knows that the four-day week is not very far away and that retirement will gradually come down to 60 years of age. It must if we are to do something for the unemployed. Therefore, people in all parts of the world will have more leisure time. Will we be ready when that takes off? It is well known that some countries now are moving in the direction in which Ireland moved in the early seventies but they are putting more money into their tourism organisation, and it is timely to say to the Government when they are discussing Estimates—they are discussing the Bord Fáilte Estimate now—“Be cautious; whatever you do do not cut the Bord Fáilte Estimate”. We are fortunate that we have such a professional group in Bord Fáilte and that on the other side we have such a professional civil service to balance it out. I hope that more co-operation will take place between the civil service, Bord Fáilte and the Minister of the day. I have no doubt that the Minister of State, Deputy Moynihan, will prove equal to the task. He has initiative and the guts to see that initiative through.
Tourism will be the biggest thing in the world in 1990, and it is about time that we looked at how Bord Fáilte and other associated bodies operate abroad. It is ridiculous in this day and age that CIE have a booking office in New York, Bord Fáilte have a booking office in New York, Aer Lingus have a booking office in New York and SFADCo have a booking office in New York. It is crazy that four groups are competing against one another for the tourists coming into this country. It is time initiative was taken by the Government and other bodies and that these groups came together under one umbrella. Deputy Flynn touched on this and I will elaborate the point further. They should make a co-ordinated effort to attract tourists to this country. It is not good enough to see an advertisement in a British newspaper inserted by Aer Lingus and showing a man looking very sick and ready to puke because he has travelled by boat to Ireland whereas if you fly by Aer Lingus it will be smiles all the way. That is not good enough. That is taxpayers' money used by bodies competing against one another, and that money is a very scarce resource today. I hope that the bodies I have mentioned will be big enough to cop on and stop fighting a war between themselves abroad. Let us have one united effort to get the tourists in. That is the way it should be.
Let us turn to our tourist industry. We have the regional offices and the boards. When these regional boards were set up originally they were supposed to be self-financing, but that is far from the reality. They are heavily subsidised by the State. Constructive questions should be asked. How many are making money out of tourism and not putting any money back into it? There are the fly-by-nights who make the quick shilling and will not put their hands into their pockets and subsidise their regional office. The public should be more aware of this. The souvenir shops, singing pubs, jarveys and boatmen are all making money out of tourism and should contribute. Are the big industrialists, the supermarket chains, Waterford Glass and Cavan Crystal helping their regional office in any way? By their contributions they would be helping themselves.
The former chairman of South-West Kerry Tourism, the famous Joe Reilly from Cavan, asked where had the Irish welcome and the Irish smile gone. Where have Irish hospitality and friendliness gone? Have we become so commercialised that we just want to take the pound and do nothing more? Ireland is renowned for its hospitality, but the first complaint of many tourists is that the Irish are not inclined to talk to them. That is a startling announcement because these people come to see the Irish scenery and mix with the people. I hope that my words will be noted in some hotels which charge exorbitant prices for drink compared with local public house prices and the tourists, instead of drinking in the hotels, drink among the locals at the public houses.
When I was in tourism the European Investment Bank went out of their way to make money available to our tourist industry. How much of this money has been availed of and how many applications have there been for it?
Ireland has reached full capacity as far as large hotels are concerned and Bord Fáilte should now give some of these hotels an incentive to provide self-catering units. No tourist can afford to pay the exorbitant price of £70 or £80 a night for a double room. That is why more and more guest houses are springing up and self-catering chalets being built, which development should be encouraged. The hotels which are not full would very quickly fill up if Bord Fáilte gave them an incentive to turn some of their rooms into self-catering units. These have been a tremendous success on the Continent and would be here, too.
Some of the regional tourism organisations are very parochial and turned in towards themselves. The points of entry, whether they be Rosslare, Dublin, Shannon Airport or Cork, should have national rather than regional offices. I invite the Members here to visit, for example, the offices at Dún Laoghaire and at Rosslare where they will find that the brochures prominently displayed are of little spots in Wexford, Dublin, Wicklow, instead of catering for every section of the country. Admittedly, the Cork Office may feel that they have to look after Cork first and then take Kerry next, and this happens elsewhere also. However, the offices at points of entry should be national ones under the guidance of Bord Fáilte.
In connection with tourists' complaints, there are not enough amenities. Are there snooker saloons, squash courts, swimming pools, anglers' advice centres? No. There might be the odd private hall or private room attached to a hotel, but the amenities are very limited, and it is about time that local communities, particularly in the popular tourist areas, were given grants to provide the necessary amenities for the tourist.
I welcome the increased number of tourists from England this year. That is the market which must be tapped. People with Irish blood in their veins, even as far back as great-grandparents, like to see where their ancestors came from. I ask the Minister to give a positive response as regards this market. Many Irish communities in London would be delighted to receive a personal visit from him for the purpose of selling Ireland in a special package available at a particular time of the year.
One of our best amenities is angling. More people in Britain go angling than go to soccer football games at the week-end, and that is the market about which we are talking. Bord Fáilte have shown excellent films of the many fish being caught, but we are not doing enough. Angling clubs should be visited and shown, as Deputy Flynn has said, the fine fish in Mayo. We are one of the few countries which still have at least the vast majority of our lakes pollution free. Some are being threatened, but the new rules brought in by the Department of the Environment will speedily stop that threat.
I would have hoped that the Minister would have offered some incentive to tourists, for instance, that he would have provided petrol vouchers at points of entry as is done in Italy and other European countries. Places like Kerry, Galway and Mayo are very far from the points of entry. If a tourist travels to Kerry, Galway or Mayo he will burn quite an amount of petrol. I see no reason why these vouchers could not be issued at the points of entry for tourists. I could go on for quite some time on this issue.
I agree with what Deputy Flynn said about the CIE hotels. It would be a retrograde step to sell them. I know the Minister of State agrees with me that it would be a bad step. Everybody knows there is wastage in those hotels. I have in my pocket a list which was posted to me, anonymously of course, of 30 CIE executives who are entitled to free apartments and free breakfast when they visit these hotels. I am sure that lovely invitation is taken up by those 30 executives. It is wrong that they should be milking the system which is providing bread and butter for the many people who are working in those hotels. Possibly those executives have company cars. I do not know. God help the State cars.
And the drivers.
I am not too sure about that issue. This document is not private and confidential, and this elitist group can go into any CIE hotel at any time of the year, I suppose with their families, and possibly make a block booking during peak time and sign their names in the morning having had a nice time. It is no wonder the hotels are showing a loss. The Minister should approach the Department of Finance before any decision is taken and get them to look at that type of overhead and eliminate it as soon as possible.
Tourism has a mighty potential but everybody must promote it, not only Bord Fáilte, but also the man in the street, the county councils and the different Government Departments. Years ago, Frank Hall was severely criticised for displaying public toilets night after night on his television programme, but he did us a tremendous service. Many public toilets under the care of local authorities were cleaned up. There are still institutions such as hotels and public houses where the public toilets are not hygienic. This is the first thing a tourist will notice, especially when he has had a few pints of beer.
Bord Fáilte should be encouraged to take another look at their tidy town competition. This has been held for a number of years and it is about time new incentives were offered for that project. The Bord Fáilte officials know what I am talking about because I have discussed it with them already. If everybody plays his or her part in providing higher standards of hygiene, the prevention of litter dropping, the elimination of overcharging and the construction of proper signs we will have a great tourist industry. The lead must come from somewhere. I hope when this Bill is enacted Bord Fáilte will not use jackboot tactics on some establishments, and that a limited period of time will be given to enable people to put their house in order, that they will not be dragged into the courts the moment an offence is committed. Everybody has to be educated. I am quite sure the Irish public will respond in a very positive way.
The Minister should get involved. He should get out and about. I went to where the ferries come in the morning and go out at night and I met the tourists. The Minister will be surprised at what they will tell him and the frank way in which they will discuss problems with him. I hope the Minister will encourage people to complain if they are overcharged, first to the manager of the hotel and, if he is not prepared to listen, to Bord Fáilte and finally to the Minister.
Tourism will be the biggest industry in 1990. We have the scenery and we have the facilities. There is a shortage of amenities in some areas and it is about time that Bord Fáilte became aware of the fact that some amenities need to be improved. Some people may think I am off the mark when I suggest that we should provide a facility which is available in European countries, that is, licensed gambling casinos in different tourist centres. Thousands of Irish people go abroad every year and, when they come back, they tell you they went to a gambling casino. I am sure some Americans, Germans, Dutch and French expect to find the same facilities provided here as in their own country. Without upsetting any sacred cow the Minister should suggest to Bord Fáilte that they should look very closely at how gambling casinos operate in other countries. They will be taxed and will provide badly needed revenue. I am sure the revenue that would accrue from these casinos could be ploughed back into tourism.
I wish the Minister well in his new appointment and I am sure he will invite us when he opens the first gambling casino, whether in Killarney or Dublin.
My contribution will be brief. I join with the Minister, Deputy Flynn, and, in particular, Deputy Begley in praising the work done by Bord Fáilte down the years. I would also like to join with their kind words for Mr. Joe Malone former chief executive of Bord Fáilte, who has retired and to wish his successor every success.
Our structures for the promotion of tourism are good — regional boards comprising people from local authorities, local tourist organisations and voluntary organisations. We have a tie-up in these tourist areas because the local people can put their views across to the regional boards and from there they can be conveyed to the central authority. We do not appreciate fully the efforts made by local groups, organisations and regional boards for the promotion of tourism. These people are entitled to a great deal more assistance from Bord Fáilte and the Government than they are getting.
My praise for the work of Bord Fáilte and the local authorities stops there, because I see the great efforts of these local organisations being stifled by the actions of the Government through the Revenue Commissioners and, in many cases, the social welfare officers. If people show initiative, spend money improving their homes and try to add to their incomes by putting a sign in their windows offering accommodation, immediately there is an assessment from the Revenue Commissioners for several thousand pounds. This discourages people from trying to provide accommodation for tourists and from providing necessary services in rural areas where tourism is being promoted.
In a recent RTE interview I heard the chief executive officer of Bord Fáilte giving a figure in the region of £700 million for tourism for 1983. We must all realise the importance of tourism to this country. Down the years Bord Fáilte have administered a scheme of grants but they have been placing too much emphasis on larger hotels. The backbone of the hotel industry is the family hotel. I would like to see family hotels getting greater consideration by way of grants from Bord Fáilte. They are not in a position to develop in a big way.
They have their own ideas of how to improve their premises, but when they get an estimate from a Bord Fáilte inspector more often than not they get a figure which is frightening and they are discouraged from carrying out improvements which they realise are necessary and important.
Over the years Bord Fáilte had a scheme which, in conjunction with the local authorities, provided funds to build public toilets, to provide access to beaches, improve caravan parks, provide playgrounds and so on. It is a shame that Bord Fáilte do not appear to be providing that type of grant any longer. They appear to be saying that these are matters for the local authorities and that they should not be interested in that type of development.
At present our local authorities are short of money. Local representatives know it is important to provide money for tourist development, but at the same time local people are crying out for improvements to their own areas. The local representatives have a choice as to where they will spend the money. Naturally they will come down on the side of local people. That is why I believe that if the Bord Fáilte grants were continued we could provide many more tourist facilities than are available at present. There could be more liaison between the Department of the Gaeltacht and Gaeltacht local authorities to provide extra facilities which are very necessary.
Caravan holidays are on the increase. We do not have a sufficient number of caravan parks throughout the country. People are realising that if they buy a caravan they can get cheaper family holidays than going to hotels or guesthouses. We should provide more lay-bys with water laid on so that motorists can pull in and have picnics. We are falling very far behind in these areas and it would not cost very much to provide these facilities for holidaymakers. We are inclined to think of the top brass, people who can afford holidays in hotels, rather than ordinary people who cannot afford such luxurious accommodation. In my view, we should concentrate on these matters. For instance, at present AnCO schemes could make young people conscious of the need to provide these facilities. Money would be better spent on providing these services rather than on many other schemes which are grant-aided at present.
AnCO are doing quite a good job. I do not want to be taken as being critical of them in any way. We might well initiate a broad range of activities in which young people could engage, doing the jobs about which I have been talking in the summer months, in this way also improving the facilities so necessary to the development of our tourist industry. A great many of our people go abroad on holiday at present and we must ask ourselves why. The Minister did not give the figures involved but I am sure it is an interesting one. Indeed if it were compared with the income quoted by Bord Fáilte from tourism here it would perhaps demonstrate that we are not doing as well as the overall figure quoted maintains. We must ask ourselves why this is happening. To a certain extent we can blame ourselves in so far as we have been falling down on little matters which mean so much to families who may want a holiday at home but who, for one reason or another, decide to go abroad.
The whole question of the promotion of tourism abroad is of great importance. And let us face it: we do not give thanks or credit to our people abroad who return here on holiday, our people who return home from England and America and who endeavour to promote the image of Ireland at all times. We do not give them the credit they deserve for all they do for their country. Even though we engage in a tremendous amount of tourism promotion in England I often wonder would the effort be better spent if we did so somewhere else. It is my belief that most of the tourists from England would come here anyway. We might do better to concentrate our efforts on, say, Germany or the Continent generally, getting a better return from tourism from these areas rather than concentrating most of our effort on the English market, although we appreciate that that constitutes our best market. I am convinced that the majority of people who return home on holiday would come anyway because of their Irish ancestry or their links with this country in some form or other.
We should also examine the hotel industry in many rural areas, where people are dependent for the whole year on the income derived from a short season of five or six weeks. Despite the fact that they are in business for such a short season they are obliged by law at present to pay their annual rates. If one takes my county where at present the rate is £26 in the £, that means a colossal imposition on people with a high valuation. There should be a rebate of rates for people with a part-time business. I do not know how one could go about that but I do know that at present such people are merely keeping their doors open making no profit. It is necessary that that situation in regard to the seasonal hotel be examined because many of them are selling, getting out of business because they cannot meet their overheads. I am sure the Minister of State is familiar with this situation in his own county. Perhaps he would ask his colleague, the Minister for the Environment, to examine the possibility of doing something for the seasonal hotels in regard to their overheads.
I referred earlier to the action of the Revenue Commissioners in some of these areas. To say the least of it, it is galling for a person offering accommodation of one, two or three bedrooms to have the Revenue Commissioners issuing notices to them, making an assessment of several hundred, sometimes thousands of pounds in tax. It appears that immediately one erects a bed and breakfast sign one receives such a notice from the Revenue Commissioners. I remember when a former Minister for Finance, Deputy Richie Ryan, introduced a Finance Bill here under whose provisions guesthouse owners and so on would be held liable to tax. I do not have the record of that occasion here with me but I recall at the time asking the Minister if these people would be held liable to tax. The Minister asked me to give him time on it and he returned and gave me a definite "no", that they would not be held liable. But the Revenue Commissioners seem to have put their interpretation on the matter and continue to harrass such people for tax. While I accept that everybody should pay tax fairly on their incomes, the attitude of the Revenue Commissioners seems to be one of making an assessment, arriving at a bald figure and frightening people. It is doing the industry no good. There is the situation obtaining in which Bord Fáilte are doing a tremendous job but their efforts are being continuously stifled by other Departments in relation to the promotion of the tourist industry.
Those are just a few comments I wanted to put to the Minister and his officials. I believe that the potential is there within the tourist industry. However, there is needed a concerted effort on the part of every section of the community, Bord Fáilte, the regional boards, local organisations and the public in general to ensure that we create the best possible image of our country so far as tourism is concerned.
Molaim an tAire agus an obair atá idir lámha aige. Tá mé cinnte go dtuigeann sé na fadhbanna ar fad agus go ndéanfaidh sé a dhícheall an tionscal tábhachtach seo a chur ar aghaidh gach bealach ar féidir leis.
I welcome the provisions of this Bill in so far as they go. The Bill provides an opportunity to exchange some views in a cordial atmosphere across the floor of the House about the tourist industry. I find myself very much in agreement with many of the things said by Deputy Flynn. However, I have some views of my own to offer as well.
It would be unrealistic not to recognise the financial climate in which the Minister must operate. In a general way I would contend that no Government in recent years has done enough or recognised the importance of tourism. I would encourage the Minister to do so and endeavour to convince his colleagues that the industry is one that stretches across and affects nearly all Departments of Government, as it does a vast number of people.
I should like to comment generally on a couple of the provisions of the Bill. I am glad to note belated recognition of the part which apartments will and should play in the future of our tourist industry. Many of us who go abroad on holidays, especially families, would not contemplate staying in any other form of accommodation. Ireland is no different from anywhere else and because of the totally inadequate state of apartment type development here we are losing out on a large sector of tourist potential, particularly from the point of view of family groups who cannot afford to stay in good quality hotels. It is a worldwide trend. It is no reflection on our hotels. It is simply a matter of a different market, a market with which we are not coping.
I welcome the Minister's recognition of the situation and its importance and I welcome the provision made in regard to it. I am sure Bord Fáilte are conscious of the proliferation of apartment blocks in tourist areas. One has only to look at Spain and elsewhere but, looking at Spain and elsewhere, one must be aware of the dangers of uncontrolled development. Development here must be consistent with the character of our island. The most suitable type of development is cottage development rather than large apartment blocks. We would all be very alarmed to see large apartment blocks going up around the Lakes of Killarney, for instance, because that is a type of development which would not fit into the Irish scene.
I am interested in the possibility of appointing non-residents to Bord Fáilte. I spend a good deal of time in the United States. Earlier this year I spent three weeks there during which I visited 18 different States. I was struck by the lack of any real link between the large Irish community there and our tourist agencies. This is not a criticism of Bord Fáilte. Their resources are limited and so are their people on the ground but there is a well of goodwill which is at present untapped in the United States, particularly amongst the ethnic Irish, and the Minister should look at that more closely. International boards should be appointed, perhaps, in collaboration with the IDA and other State-sponsored bodies, which could be involved in a broad structure designed to promote tourism. I believe the ethnic Irish would be glad to help. They would be ambassadors for Ireland in their country of residence. I see no reason why we should continue with this exclusive notion that the work can only be done by ourselves. It should be done in co-operation with the nationals of other countries. I do not propose that Irish-Americans should be asked if they would like to become directors of Bord Fáilte and visit Dublin for meetings once a month. It would be much better to appoint a series of international boards. They would cost very little because the Irish-American who has prospered is more than anxious to give something back to Ireland. If he is given a certain status then he is really a representative of Ireland. The same is true for the United Kingdom. I visualise a series of international boards subsidiary to the main board. I ask the Minister to have a look at that in the context of promoting Ireland in the United States, in Britain and elsewhere.
I am a little concerned about the reference to overseas consultancy work. I recognise the value and importance of a certain amount of work of that nature, particularly in the Third World, but the resources of Bord Fáilte are already inadequate to do the job of promoting Ireland. I know the Minister qualified that by recognising it should not be the main job. I do not think it should interfere at all and if there is any danger that the promotion of Ireland would suffer as a result of that activity, then we should be very circumspect about it.
On the general question of the promotion of Ireland overseas, one can only judge promotion by results, by looking at our overseas achievements, particularly in the United States where there is a population of approximately 200 million. In the last census 40 million stated they regarded themselves as of Irish origin. Yet we cannot attract more than 300,000 out of that 40 million. Our performance has been pitiful in that respect. We must look very seriously at our promotional efforts in the United States. We have several bodies involved in promoting Ireland — the IDA, Córas Tráchtála, CIE, Aer Lingus, SFADCo and so on. They are all involved in promoting Ireland one way or another. It is difficult for these individually to make any significant impact on that potentially enormous market. Should we not be thinking of some rationalisation of that total effort? Deputy Flynn referred to that. These different agencies operate under different Departments and no one seems to be able to co-ordinate their efforts. An Ireland House embodying all these under one roof might result in a much better impact in the market place. All that is required is co-ordination.
The UK market is relatively untapped. Deputy Flynn referred to the loss of the British motorcar tourist. He was the backbone of tourism here. He is so no longer. We should look critically at that development. This is the most convenient country for UK tourists and, despite unfavourable trends, we should not underestimate the value of it. We could introduce petrol coupons and allow the tourist's motorcar in free of tax or at a reduced rate of tax. That would pay for itself in results.
With regard to our major transport companies — this is not entirely in the Minister's domain — the Government must grasp the nettle. The Government must decide the purpose and position of our major carriers in the area of tourism. Is it to be Aer Lingus, an unduly self-servicing organisation? How do we get the maximum number of tourists in here?
I have heard it said in the United States that the Irish are daft because they are more concerned with the viability of Aer Lingus than with getting tourists to Ireland. It has been said that barriers have been set up. Aer Lingus is a powerful company and we are all proud of it, but many carriers who could bring in tourists that Aer Lingus cannot accommodate cannot get permission to land here. A typical example is in relation to Air France. Last year Aer Lingus resisted tooth and nail the introduction of Air France on a Paris-Dublin route. Air France were entitled under EEC Regulations to operate on that route but there was an objection and I understand the reason for it was that it was felt such a move would affect the business of Aer Lingus.
The other side of the coin is that a major international carrier like Air France has the potential to attract more French people here, something Aer Lingus could never do. For the same reason that we would use Aer Lingus to go to America, Americans will use Pan Am or TWA to travel outside their country. Aer Lingus cannot hope to tap the full potential of the tourist market. Therefore the Ministers involved must consider the relationship between Aer Lingus and the tourist business in regard to that. I suspect that at the end of the day the national interest would best be served by an open skies type of policy. The solution is not as simple as that because obviously we must have some controls and restraints. However, too many carriers around the world are saying that they cannot get into Ireland unless they work through Aer Lingus. That means that they cannot get in at the best price and we cannot get the numbers of tourists we badly need.
The situation in my region, the south-west, in regard to carriers is ludicrous because we have a problem about the B & I. The problem of that company seems to have taken on importance far in excess of the need to get tourists to the region. We are being told that tourists will come through Rosslare to Killarney as readily as they will come through Cork which is so much closer but that is utter nonsense. To contemplate eliminating from the south-west region, the biggest tourist region in the country, a direct entry and exit point to the UK is madness for tourism. The Minister should make that case to the Government as strongly as he can because it is common sense to hold that route. I accept that the B & I have their problems and must be made viable but I do not accept that it is not possible to have a viable carrier route between the south-west and the UK. Traditionally it has been the main entry and exit point and has made profits over the years. We do not care who carries on the service as long as it is operating. I understand that another State company, ICL, are looking at the route but it is ludicrous that two State companies should be investigating it. Surely the two of them can amalgamate on that route.
With regard to Cork Airport I should like to refer to the need for schedules to benefit the area and not suit the carriers only. I accept that we live in difficult times and that we all expect Aer Lingus, the B & I and ICL to run viable and efficient operations, but that must be balanced against the need of the tourist industry which has become the poor relation of our major transport companies. The Minister should address himself to that subject and make his views known.
I should like to refer to some of the problems which the new Bill on fire services and regulations will impose on our major hotels. Most of our hotels were developed in the last 40 or 50 years and are deficient in some respects but it is a rather typical Irish situation that, having allowed premises to exist which were a fire hazard, and perhaps a scandal, and in the wake of two appalling fire tragedies, we bring in regulations overnight. I am aware that fire officers in many areas are agonising about the impossible position they are in. If they were to apply the regulations rigidly, as they are obliged to do, they would close half of our hotels. The Minister for the Environment must give some orderly directions on how this matter can be dealt with in a planned manner over a number of years. As a quantity surveyor I have been involved in advising a number of hotels about the cost of complying with the new regulations and in some cases that can amount to £300,000 or £400,000. That is not on. The alternative for those hotels is to close down or to hope that a fire officer will give them a number of years to comply with the regulations. In the meantime fire officers are in trouble if there is a fire in one of those hotels resulting in the loss of life.
Tourism is a greater source of revenue than successive Governments have recognised. In fact, that industry could be the major source of employment in the years ahead if we planned properly. However, when policies and budgets are being prepared there is never a total view of the effect of tax and other measures on this fragile industry. The Government recognised the necessity to give some relief and reduced the rate of VAT from 23 per cent to 18 per cent, a significant gesture in the direction of tourism. Most people in the tourist industry complain that our taxes and interest rates are too high and that national inflation over which the industry does not have any control has placed the industry in the price-inflation trap that agriculture is in. In other words, our prices are being determined in low inflation economies such as the US, Germany, France and the UK, while our costs are determined by Irish inflation. The tourist industry has been a major sufferer in that respect.
Those involved in the industry are less concerned about getting grants than they are about knowing that Bord Fáilte are carrying out a proper marketing job for the country, that Ireland is being promoted abroad. Individual operators can only do a limited amount and Bord Fáilte must fight that battle. Our marketing efforts abroad have not given the return they should or, perhaps, we have not put sufficient resources into those efforts. The future of tourism lies in aggressive professional marketing operations rather than in the provision of grants. The industry can provide the product from its own resources, given a reasonably friendly tax policy by governments. The marketing of that product is the major task in the years ahead for Bord Fáilte just as it is for the IDA and other State agencies. I urge the Minister to use the resources of his Department, and Bord Fáilte, mainly in that direction.
I should like to support the notion of a "Tidy up Ireland" campaign. That is something we could do which would not cost us much money. I have some experience of this matter because when I was Lord Mayor of Cork earlier this year we started a campaign under the title of a famous Cork song called "Beautiful City". The main thrust of the campaign was in the schools. It was a heartening experience, particularly in primary schools, to see the response of the children once it was explained that in terms of our national and civic self-respect we should do something to clean up our country and that, in addition, if we did not do this our tourism would be hurt badly and also our industrial promotion efforts. Young boys and girls who now have a high level of education will respond to such an appeal to their intelligence to do something about the appalling amount of dirt and litter here. We have a small population and it is quite incredible how we deface and destroy our country. I support the idea of a national "Tidy up Ireland" campaign but unless it is professionally run and promoted it will not work. People tend to have a switch-off mechanism about the subject. The whole idea needs to be attractively promoted.
Deputy Gallagher referred to bed and breakfast operators and the activities of the Revenue Commissioners. That has to be balanced by the undoubted damage that has been caused and is being caused to owners of hotels and registered guesthouses in certain areas. These operators are not paying VAT or taxes and their activities in some areas are a threat to employment in hotels and registered guesthouses. That subject should be looked at in a balanced way.
Tourism is and can be a major source of revenue and job creation but that will happen only if there is a definite approach by Government to tourism and a better understanding of the effects of the actions that are taken in other areas and which often have a detrimental effect on tourism.
My contribution will be brief because many of the points I intended to raise have been referred to already and I do not propose to be repetitious.
I welcome the Bill and I congratulate the Minister of State, Deputy Moynihan, on introducing it this morning. It gives us a chance to discuss our most important industry which has the greatest potential growth rate. However, I am disappointed the Bill does not go far enough because it will only increase the accommodation grants section from £25 million to £30 million. I think the amount should be £40 million. The amount in respect of non-accommodation, for tourist-related facilities, has been increased from £10 million to £14 million but I think it should be £20 million.
During the period 1972 to 1982 the rate of growth has been in the region of 16 per cent. This is tremendous in view of the recession during the past four or five years. At the height of the recession last year we had more than two million visitors. It is well known that the job potential in tourism is the greatest in our economy and is the least expensive to promote. For that reason it needs special attention. Trends in tourism are changing and, therefore, new thinking is needed. I am very glad that Deputy Moynihan introduced this Bill because I know he is aware of that fact.
The potential for fishing and for conferences was mentioned. In each case it brought us 50,000 visitors last year. I am disappointed with the marketing in this sector, especially with regard to conferences. Most of them have been staged in Dublin but if they were organised to take place throughout the country the visitors would have a chance to see the country. I ask the Minister to discuss this matter with Bord Fáilte.
Now is the time to expand. Because of the growth potential in the industry Bord Fáilte should be given more powers especially with regard to negotiating travel arrangements to this country. Deputy Coveney spoke about this matter. Many planes arrive here half empty. Aer Lingus hold the whip-hand but Bord Fáilte and tour operators should be able to negotiate with the many airlines who are anxious to come to Cork and Dublin. They should be able to organise attractive holiday packages. The greatest disadvantage to tourism here is the cost of getting to Ireland. I have discussed this matter with the Minister of State and I know he is anxious about it. It should be taken up with Bord Fáilte who should be given additional powers. The matter should also be discussed with Aer Lingus. It is heartening to note that although we are going through a recession the indications this year are that we are on a par with last year, which was a record year.
Deputy Begley referred to overlapping. It is well known in the tourist trade that this exists. There is considerable lobbying for business, especially in New York. Advertising is costing a fortune. There are nine different units who advertise tourism but this should be centralised through Bord Fáilte. They are the professionals and they are doing a tremendous job. I should like to endorse the sentiments expressed regarding Joe Malone who has recently retired from Bord Fáilte. I congratulate him and thank him for the work he did during his years as Director General of the board. I also welcome Mr. McNulty. I believe he will do a very good job. His fresh thinking and ideas should be beneficial.
There are eight regions so far as tourism is concerned and the largest region is that of Cork and Kerry. This fact should be considered when capitation grants are being allocated. It is not fair to put Cork and Kerry on a par with other regions. The grant should be based on registered accommodation in each region. I am satisfied that Cork and Kerry from their own resources have raised a considerable amount of money in the past three years. The Minister should discuss that point with Bord Fáilte. I am convinced that that region is entitled to a greater slice of the cake in view of their work and the amount of registered accommodation. It is well known that approximately 33 per cent of visitors to this country visit Cork and Kerry. Private initiative and enterprise in that region has been of considerable benefit to the area but there has been very little help from national sources.
I agree with Deputy Coveney's remarks about the B & I. In the past 12 months several deputations have met various Ministers in connection with this matter. I compliment Deputy Coveney on the part he played in organising the deputations. It will be a severe setback if the B & I service is not replaced or if there is not an alternative route to Cork. There is no way that tourists will find their way from Rosslare to the Cork and Kerry region.
I know the Minister is very interested in tourism and is conscious of the problems facing the industry. I congratulate him on being instrumental in reducing the rate of VAT from 23 per cent to 18 per cent in respect of accommodation but that is not enough.
Many hotels and guesthouses face serious financial problems at the moment and they now find it impossible to meet repayments. If VAT was substantially reduced to about 9 per cent it would help very much. The Minister also faces the problem of rescue packages because many hotels, especially down the country, are faced with large rate demands and many other charges. They are entitled to special concessions because many of them are providing good employment and are not in a position to meet those demands. Some of them will be forced to close. Many jobs are at stake if some of those hotels have to close. I am sure the Minister will ask that special concessions be given to people in the hotel industry.
When we speak of tourism we seem to concentrate a lot on hotels but we must never forget that the real tourist business was built up over the years by guesthouses, town and country homes and farm houses. I hope in any future plans which the Minister draws up, that he will take into consideration the registered accommodation from this sector. The Minister referred to the bed and breakfast accommodation but I do not believe it will be long before many of them are registered with Bord Fáilte. Those people are afraid to register because no sooner are they registered and appear in the book than they receive demands from the Revenue Commissioners for a large sum of money. That is the real setback to those people registering and it must be sorted out. Many of the bed and breakfast houses provide good accommodation and they have the personal touch.
I appeal to the Minister to seriously consider bringing in special grants to help large hotels to switch over to self-catering units. At least 30 per cent to 40 per cent of hotels should be converted to self-catering units because this is the trend at the moment. It is obvious from the figures available that over the last two to three years this type of accommodation has increased by 30 per cent. We must cater for the people who provide entertainment, the traditional Irish groups, the Comhaltas people and others, who provide good service and are helping to create a good image for tourism. A lot of those people who put on shows have to pay VAT. They should be exempted from this.
I would like to refer to the closure of the CIE hotels. I know the Minister is very concerned about this because it affects Kerry in a big way. These hotels have provided a big input into the tourist industry over the years. It would be a great setback if those hotels were sold. It would show a lack of confidence by the Government in those hotels and in the tourist industry and it would be a serious setback to Kerry if the hotels in that county were sold. I am sure the Minister will play his part in ensuring that this does not happen. Many jobs are at stake. It is a well-known fact that if these hotels are sold they may never again open. I ask the Minister to consider taking a very strong line in relation to this matter.
Marketing has been referred to. I hope the various regions will be given a greater input into the marketing of the resorts. We have overlapping. There are eight regions going out marketing their own regions. This should be done through Bord Fáilte on a central basis. Now is the time to draw up a comprehensive five-year plan for tourism involving hotels, guesthouses and town and country homes. The Minister needs extra money for this and he should go back to the Cabinet and get it. If we do not plan now we may fail in the future. If we take the recession into account and plan now, I believe that in the next few years if we can assist the major hotels and the people involved in tourism who are in financial straits to get over their difficulties, this will pay dividends. I congratulate the Minister on his portfolio and wish him every success.
I welcome the Bill as a natural progression of the attempt by Bord Fáilte with considerable success over the years to promote and develop our tourist industry. I would like to deal very briefly with the three sectors involved, the non-accommodation grant, the accommodation grant aid and the self-catering type of holidays. The best possible advertisement for tourism in any country is a satisfied customer. You can employ all the media in the world but one dissatisfied customer can do untold damage to the tourist industry of any country. It is of paramount importance to ensure that the highest possible standards apply here in relation to hotels, guesthouses and restaurants. The vast majority of hotels, guesthouses and restaurants are of very high standard and give a service which is competitive in price as well as in service with anything that can be got anywhere in the world. Unfortunately not all accommodation comes under that category.
A short time ago I had the dubious distinction of travelling around the country seeking votes in a Seanad election. I had an opportunity then to sample the fare that was available for week-end tourists and our visitors. While a very high standard is provided by a great number of people, there are some establishments who do very little to enhance the Irish reputation for giving good service and for the hospitality for which we have become renowned. Bord Fáilte should have as their goal the introduction of even stricter standards in ensuring that, when anybody who operates in the country giving service, whether it be a restaurant, guesthouse or hotel, the highest possible standards apply and the highest possible standard of service is made available to customers.
When you enter a town or village and you go to a hotel you will get a reasonably high standard of service, the hotel is clean and there is a high standard of hygiene and you pay a reasonable price for bed and breakfast. You can go to another hotel in the same town or village with probably a more imposing entrance and a more impressive name, but without any shadow of doubt you could pay three times what I consider to be a realistic charge. I do not believe that does anything for our tourist industry. My criticism does not apply to all hotels or guesthouses but, as has been pointed out already here this morning, it certainly applies to a number of them. Off the top of my head I can think of quite a number, one of which I had unfortunate experience of, where bed and breakfast cost £35. The bed was comfortable, the breakfast was good, but it was not worth £35. Aer Lingus and other international airlines can encourage any number of people they like to come into the country but if we do not treat those people fairly they will not come back. I compliment Bord Fáilte on their efforts to improve the standards and to ensure that a fair return was given for the prices charged. Generally the board has been effective in that area, but I would like to see stronger standards applied and stronger measures taken to ensure that a certain level is maintained. That can be done in a number of ways.
Reference has been made already by the Minister to unregistered people who operate in this area. Whether such places as hotels, guesthouses and restaurants have Bord Fáilte approval or not it should be possible to visit all such establishments and ensure that whenever a tourist arrives on the doorstep that tourist will get the kind of service we would like him to get and that we would not be ashamed of it with regard to standards of hygiene, prices charged and the general atmosphere of the place.
The next item which needs attention is aid from Bord Fáilte to areas which do not involve accommodation. I am thinking of the great houses, fishing attractions, water sports, canals, lakes, inland waterways etc. and how we can best develop them. Many speakers who contributed here this morning represent constituencies which have a long association with the tourist industry. Representing a county which has not such a renowned association with that industry, I would like to put to the House that the eastern region has far greater scope for development than has been recognised. In relation to package tours, which are most important, there is a great market in the area of, for instance, medieval banquets, fishing package tours etc. In my county of Kildare we have the blood-stock industry and many famous race meetings and I see no reason why further development cannot take place around those meetings which would involve package holidays, which could take in fishing and other sporting activities and which would have the net result of the visitor to the area staying longer in the area and spending more money there.
A great deal of work has been done by voluntary organisations in relation to the development of canals, and it is to the eternal credit of the people involved that visitors have come back again and again to participate in both coarse and game fishing, and perhaps they should get a little more encouragement. In particular we are not near to realising the full potential of the Royal Canal. When millions of pounds are being spent throughout the country on the development of recreational facilities generally it seems a national scandal that we can have a canal with the potential of the Royal Canal within easy reach of the capital city and flowing through areas of dense population and have not developed it to its full potential. I know there are difficulties with regard to ownership and so on but all such difficulties can and should be resolved. It is a terrible failure on the part of all of us that we have not seen fit to spend a certain amount of money there with the object of encouraging individuals who have taken upon themselves the development of such facilities and struggled through the years to this end.
We could do a good deal more than is being done in relation to the great Irish houses, I had occasion to pass through Lough Key Forest Park some time ago and I must compliment everybody involved in that development. It is a pity that we have not more of the same throughout the country. Here again we have potential. Coming from Maynooth in County Kildare I must allude to Carton House and estate which is the ideal location for such a development and I hope that the opportunity will not be lost.
For the tourists, whether they be hitchhikers or the caravanners coming off the ferry and driving out of the capital, it should not be beyond the bounds of possibility to introduce a system of centres where they could camp overnight en route to other areas or enjoy fishing, golfing and other facilities which might be made available and could be developed easily. Camping holidays could be incorporated in a venture of that nature very successfully. Regarding the holiday business generally, not nearly enough emphasis is placed on the camping or caravan holiday. Some years ago people in Bord Fáilte suggested that not a great deal of money was accruing from that type of tourist. They were right in saying that, but it must be remembered that the camper of today could be the businessman of tomorrow and that a tourist coming into the country from Britain, the Continent or the US as a camper today might come back with his family in ten or 15 years time and spend more money when he has more money to spend. We should be very aware of the potential there and ensure that we give such tourists the kind of service they can get elsewhere on the Continent now and that they will remember Ireland for that service and come back to it.
There is far greater potential for tourism than we have recognised in the midlands. I suppose I can be pardoned for mentioning County Kildare and coarse, game and freshwater fishing, racing, the bloodstock business and the development of tourism associated with the great houses.
A number of speakers have referred to the importance of encouraging the British tourist, particularly the British motor tourist, to return to this country, and I agree with them. That tourist was our best spender, and I hope that we can introduce a system, or at least create the atmosphere, that will make him feel welcome and happy to drive along our roads. We do not see now as many of the wall slogans to greet him as he passes through our country as have been obvious in the past. I am referring to such slogans as "Brits out" which are less than helpful. If I were a tourist visiting another country and I saw a wall slogan suggesting that I should get out I would feel that I was not welcome there.
Deputy Flynn mentioned the importance of the proper presentation of our countryside and the protection of our environment, and I subscribe fully to what he said. So many of our public open spaces are semi-derelict. We give so little thought to the debris and refuse dumped all over the countryside despoiling it. It is to our eternal shame that those sights should meet the tourist's eyes. What must they think of us?
It requires a certain amount of imagination to understand why some of our almost 200,000 unemployed cannot, with some assistance from social welfare and from the Youth Employment Agency be gainfully employed on improving the sights which greet the tourists. It would be logical to use that available workforce and the unemployed would be grateful for the opportunity to do this work. It is most important that there be a good presentation of what one wants to sell. In this case we are selling Ireland, and if we do not package and present it well, we will not sell it. If we do not treat well our tourists, they will not come back.
Mention was made of the French currency restrictions and their effect on our tourist industry. Bord Fáilte have very successfully mounted a campaign which has offset any disadvantages which might have accrued from these restrictions. This has been made clear by the number of French-registered cars seen, particularly in the west, this summer. All credit is due to Bord Fáilte. We are in the EEC and I would not suggest that any countermeasures be taken, but measures taken by one EEC country against another should be given a hard look.
I welcome the Bill and congratulate Bord Fáilte for their efforts in promoting tourism. I hope my suggestions will be acted upon and that as a result everybody who visits this country, whether young or old, will wish to return and will do so. That is the best possible advertisement for our tourist industry.
I welcome the Minister of State and wish him well in his appointment. This is perhaps the first legislation which he has put through the House since his appointment. He comes from an area which has been the key to tourism promotion development over the past hundred years. With his experience he will bring to the Department not only a practical knowledge of the difficulties which beset the industry, but also a fair recognition of its present needs. I hope that in the course of his period in office he will ensure that action is taken to resolve many of these difficulties. The tourism industry has the potential to make a very significant contribution to our economic development, and we look to its further encouraged expansion.
There has been general agreement from all sides of the House on the importance of the industry in its contribution to the economy, in export earnings and in regional development. I am deeply conscious of the impact which tourism can have, in the isolated and outlying regions, particularly those which are severely depressed for various reasons. Tourism development will be far more important in the future than it has been up to now in bringing into these regions badly needed earnings to help the regional economies. The industry has tremendous potential not only nationally but regionally in the creation of employment in isolated areas. The need, highlighted in many other areas also, is to concentrate on getting the best quality product onto the market and marketing it efficiently and effectively and, above all, creating an image for Irish tourism which will enable it to flourish and take part in the development of an industry which is substantially increasing in spite of the recession. We must create an awareness of the quality of our product which is not always apparent within the industry itself. Any money which can be put into promotion, publicity and development will get results. It has been proved that where a campaign has been mounted and publicity and promotion undertaken, it has brought positive, worthwhile results. We must look carefully to how we can increase substantially our input in that area. As everybody knows, that would get results.
Deputy Durkan mentioned the success in countering the actions of the French authorities. The Minister should visit his French counterpart to explore the possibility of a concession to exempt Ireland from the present restrictions. Along with many, I understand the difficulties facing the French authorities. Every country has difficulty managing its own affairs and looking after its own business and it is understandable that the French authorities should take measures to halt the drain of funds from their economy. The restrictions were directed, not at the small number of French people who visit Ireland but at stopping, as far as possible the export of revenue from France to other parts of the Continent. We have a very good case to make. The French Government are sympathetic about our problems, and if a personal visit were made, there might be a derogation of those restrictions next year. In my constituency there was no evidence to show that the restrictions had any serious effect on the industry.
Deputy Durkan said there were as many French visitors around as there were in other years, and probably more. The potential of that market is huge. In my view we did not get the same benefit from the French tourism market as we got before. In west Clare we always had many French holidaymakers, but we did not have the same level of activity this year. The restrictions imposed by the French Government had an effect which could be minimised if an approach were made to the French authorities to look favourably at the possibility of easing the restrictions as they relate to Ireland. This would be of enormous benefit to our industry and would not make any major differences in the overall context of the French economy.
Since 1979 we have seen a decline in tourism due to a combination of factors. The international recession has had an effect, and the developments in the North of Ireland have had a serious effect on our tourist industry. We do not need reviews by the Department, by Bord Fáilte or by the NESC. People involved in the industry know precisely what the problems are. All the views have been made known since 1970. All those views and reviews should be put together in this document. I welcome the Tourist Traffic Bill, 1983, but in a sense it leaves a lot to be desired. While we welcome and support it, we must point out that the time for reviews and studies is long since past.
It is now time to take action in the various areas which have been identified. This action could increase significantly the revenue we can get from tourism over the next number of years.
I mentioned the necessity for an effective marketing programme. Various bodies and organisations have been engaged in marketing. That is good. The more marketing and publicity we can organise, the better, and the more tourists we will get. Whether that promotional publicity is undertaken by Shannonside, or Bord Fáilte, or the regional tourism organisations, or Aer Lingus, or the Shannon Free Airport Development Company, it will be useful and important. They all have their own expertise and they are all directing their efforts, their resources and their inputs into the areas they know, where they have contacts and where they can improve the position.
It is necessary to bring those agencies under one umbrella. It is not desirable that there should be any cutbacks. The Youth Employment Agency is now funding activities carried on by various Government Departments and they are not putting any additional finances into their own area. That is why I am concerned about the Minister's remarks that he intends in future to confine assistance provided under this scheme to aiding and stimulating projects where there is a clearly identifiable return in the form of additional tourism revenue generated. He was talking about the role of Bord Fáilte and about making the industry aware of tourists' needs. He said the review carried out by the NESC was critical of Bord Fáilte's involvement with Government Departments, local authorities and other bodies in the provision and improvement of amenities for the general public where the primary responsibility for such works lay with those Departments and bodies. He found it difficult to disagree with those conclusions.
In a sense one is central to the other and you cannot have one without the other. Amenities and facilities would encourage tourists to come here. It is all right to confine assistance to the bodies and the agencies with responsibility, provided there are no cutbacks in other areas. I am concerned about any new arrangements which would limit in some way the amount of money and resources devoted to doing whatever job needs to be done in the provision of amenities, in marketing, in publicity or any other area where action is needed. We have to increase promotional activities in areas where there would be positive effects on tourism receipts.
In my own constituency we have seen the importance of developments like Bunratty Castle with the castle entertainers and the whole complex of the folk park and the museum. That is a central attraction in keeping tourists who come to Shannon in that region. There is evidence to show that. If we have a range of these attractions we can keep them longer in the locality and also longer in Ireland. Any high quality amenities are central to the development of Irish tourism. There should be no cutbacks in these areas which might inhibit the prospects of future developments.
Like everybody else the tourist wants value for money. Looking at the Irish scene there is evidence to show we are pricing ourselves out of the market. This is mainly the responsibility of the Government. Their policy is not helping the tourist industry to provide value for money. We are pricing tourists out of the market. Government policy should not make it more difficult for us. Every relief should be given to encourage developments which will be of benefit to the whole economy.
We have to look very carefully at the areas which are creating difficulty. One is the question of the car hire service which is in a chaotic state with no overall strategy on prices. The Minister should look very carefully at this to see how it is possible that in one brochure a car is advertised for hire at £200 a week and in another at £100 a week. This has been the subject of debate before. In remote areas a car is essential for tourists. The car hire industry should be looked at and some concessions should be given to firms which specifically hire cars for tourists. We should try to do away with discrepancies in charges and do all in our power to make hiring cars more attractive to tourists because this can seriously affect regional and isolated areas.
Hotel staff should be well educated and very well trained because their attitude and performance can influence tourists. These employees should have the highest skills possible and pay and working conditions should be attractive enough to encourage qualified people to work in this very important industry. We should look at the area of employment, conditions of service and so on of these people to see if they can be improved. We must ask ourselves if we are lowering our standards in this area and if we can do much more to improve the situation. Many tourists will return if they got good service and a warm welcome.
I come from west Clare and I want to make a plea for resort hotels. Everybody living in tourist areas knows that resort hotels have gone through a very difficult period. Many of them have closed down and others have gone into receivership. The resort hotels cannot survive under present conditions because they depend on a very short tourist season. In Kilkee there are two hotels in receivership at present. One hotel with 99 bedrooms was closed for almost seven years. Sometime ago it was taken over by a new developer who invested a great deal of his own money but got no help from Bord Fáilte.
If Bord Fáilte have been involved in the establishment of hotels and resorts, they have a responsibility to keep these expensive hotels and resorts in operation. If these hotels get into difficulties Bord Fáilte should look carefully at the situation to see how they can help. We cannot accept the present situation. We have to look at the reasons hotels are closing down and going into receivership and find ways of dealing with the problem.
By switching to self-catering and apartments some hotels have managed to stay alive, even though they are not being run strictly as hotels. I maintain that in areas where hotels are closed, in receivership or in difficulties Bord Fáilte should look at each case. I can name two or three hotels in my constituency which are closed and are starting to deteriorate.
Bord Fáilte, in consultation with the owners, could change these hotels into apartments, thus keeping the hotel complex in the resort.
I would like the Minister to consider giving an abatement of rates to resort hotels. Crippling rates have been a major factor in closing hotels. Many of them have not been able to pay their rates and are in arrears. Hotels which are closed for nine months of the year might be given a rate abatement, even for the months when they are not open. It might be possible to devise a system where this could be done. This would relieve a very heavy burden on these hotels and enable them to get out of their present financial difficulties.
Deputy Flynn mentioned the importance of the environment and fisheries. As a spokesman for fisheries, I am aware of the important contribution fisheries development can make to the tourist industry. It is estimated that visiting anglers generate approximately £50 million a year. We are not fully exploiting the possibilities offered by our natural environment. There are about four million registered trout anglers in Britain, not to mention coarse fishermen and deep-sea fishermen, who are scarcely aware of our fishing facilities and amenities. The potential there is enormous. Bord Fáilte, in co-operation with the Central Fisheries Board and the regional fishery boards, have, under recent legislation, the authority to establish developmental programmes for fisheries within their regions and they are getting under way with those plans. There is need to sit down now with Bord Fáilte, with the Central Fisheries Board, who have done tremendous work in the development of fisheries, and the regional fisheries boards and adopt a co-ordinated approach enabling them to market in the United Kingdom especially, and indeed on other continental markets, the huge attractions we have here for visiting anglers, whether they be trout, salmon, coarse, deep-sea fishermen or whatever. There is huge potential in the whole of this area not being tapped. There is huge potential for development alongside centres which have been attractive in the industry to date, in small developments on lakes, on inland waterways, like "put and take" streams and reservoirs near resorts which can be a major element in attracting tourists. We had a development like this in Kilkee, when the old reservoir there before the West Clare Regional Water Scheme was put into operation was transformed into a valuable resort fishery. It constitutes a valuable attraction for the town of Kilkee. It has been a central feature in attracting many tourists to the town who might otherwise not have come were it not for the fact that this "put and take" fishery is within walking distance of the town. There are many towns throughout the countryside which could be developed similarily at a small outlay but which could have an enormous impact in drawing people to the locality. These should be developed further with the co-operation of the Central and Regional Fisheries Boards and Bord Fáilte, all of them working together to provide these important amenities which will help to stabilise tourism in those localities.
I could not allow this opportunity to pass without complimenting Bord Fáilte on the work they have done to date. I want in particular to compliment the regional tourist organisations on the work they have done in their regions. I might compliment the people involved in Shannonside in the mid-west region on the far-sighted and dedicated way they have tackled the problems in their region, on the work they have done not alone in my constituency but throughout the mid-west region. It is important that anything embarked on in this area is done well. The efforts made by Shannonside in my constituency has been fairly successful within the limits of their resources.
There are areas within my constituency needing special attention. The Minister of State will recall that earlier this year I made representations to him about the situation in places like Lisdoonvarna, which received much publicity in recent times which we hope will be of benefit to that resort in the future. Publicity is very important for any resort. It is particularly important for a resort like Lisdoonvarna which is not alone an attractive locality but which also contains valuable spa wells which are an attraction in themselves. Serious problems have been encountered in that resort, similar to those experienced by some smaller resorts. There is a very short tourist season with people dependent on a few week's income to make a living for the remainder of the year. Special attention is required if those problems are to be resolved. I would ask the Minister of State to examine carefully places like Lisdoonvarna which have suffered badly in terms of tourist development. Indeed, perhaps the Minister will have an opportunity to visit Clare, places like Kilkee, Lahinch, Killaloe, some other areas, and see firsthand the problems being experienced there.
Regardless of whatever studies the Minister undertakes, regardless of whatever inquiries he makes here or abroad, regardless of whoever he engages to advise him on the future prospects and needs of the tourist industry, nobody can better advise him than the local people in each of these regions. They deal with the problems on a day-to-day basis. They know what are the difficulties. They know what is the potential market. Many of them have been involved in the development of tourism for perhaps 30, 40 or 50 years and have their contacts and communications worldwide. They know what is needed in each area and what action should be taken, all of which could be embodied in a central strategy enabling us to tackle and resolve some of the major problems encountered in the industry in recent years.
I wish the Minister well in his endeavours. I can assure him that we on this side of the House will co-operate with him in every way possible, offering him every assistance we can, ensuring that whatever is right for the industry is done.
Representing a constituency considerably dependent on tourism for its income, I must stress that tourism should be nurtured, protected and developed as far as possible. It is also a major contributor to our economy.
I must compliment the Minister of State on his foresight in having increased the overall Estimate by almost 25 per cent. I listened to Deputy Flynn this morning when he described it as a very small amount of money. I contend that had that pattern been followed by previous Governments — the pattern initiated by the Minister of State today — then tourism might not have been in the doldrums in recent years.
It is a well known fact that price-conscious tourists are becoming very plentiful nowadays. The tourist wants a good, honest return for his money, needs good food and not to be fleeced in charges. If there is to be a future for the industry there must be emphasis placed on those aspects. It is also a well-known fact that many of the prices being quoted by hotels are exorbitant. This may not be altogether the fault of the hoteliers and management, because the cost of running hotels has risen considerably in recent years. For instance, there are the crippling VAT charges imposed on hoteliers which have almost priced them out of the market. Anybody who travels abroad will see that the standard there is fairly high. To maintain a similar standard here it is essential that hoteliers maintain an up-to-date, high quality standard and not allow tourists gain the impression that they are being fleeced here.
We have very great attractions to offer potential tourists, particularly those from the Continent, and it must be remembered that a satisfied customer will return. There appears to be a certain amount of apathy among certain bodies about the development of tourism here. I dislike the concept of this "get rich quick" system whereby one charges tourists exorbitant prices while at the same time expecting them to return. Tourists will not be fooled in that way. It is most important that the tourist gets a good honest return for his money. There should be some system devised by which the VAT charges imposed on hotel accommodation and food could be recouped to tourists on leaving the country. Would that not constitute a very attractive proposition for potential tourists?
Debate adjourned.