Robert Molloy
Question:3 Mr. Molloy asked the Minister for Tourism and Trade if he will outline his priorities for the development of the tourism industry in 1997. [2740/97]
Ceisteanna — Questions. Priority Questions. - Tourism Industry Development.
I have set the following as my priorities in 1997 for the development of the tourism industry: to increase foreign tourism revenue by 9 per cent, or £160 million, keeping performance ahead of the six year target set under the Operational Programme for Tourism, 1994 to 1999, to achieve total foreign exchange earnings of £2.25 billion; bring total 1997 EU assisted tourism investment to £115 million, representing an increase of £20 million on the corresponding figure for 1996; secure approval for the necessary EU assistance to facilitate development of a major international conference centre for Dublin under the current Operational Programme for Tourism; maximise tourism opportunities as a result of the increase of 120,000 seats in transatlantic capacity already secured for the 1997 season, together with the introduction of a new gateway at Newark, and secure the launch of a separate initiative to boost continental European air traffic; and advance planning and establish options for the post-1999 period, following the completion of the current round of EU Structural Funds.
What was the result of the work of the steering group on Ireland-US access, particularly in respect of improving accessibility to Ireland from the western and south western states of the US?
Deputy Molloy inquired about the steering group which comprised officials of the Departments of Tourism and Trade and Transport, Energy and Communications, Aer Rianta and Bord Fáilte. It worked through 1996 to identify the best possibilities for increasing US-Ireland inbound tourism via direct air services. The group's priority objective was to increase capacity on the route and co-ordinate the use of the agencies, where possible, to support new services. As a result of its work, carriers have put arrangements in place to increase overall transatlantic capacity by an additional 120,000 for the coming season. Aer Lingus capacity from New York will increase by 4 per cent, from Boston by 11 per cent and from Chicago by 134 per cent. A new gateway at Newark will help to increase capacity. We also expect improved performance on the Dublin/Atlanta route following implementation of the new Aer Lingus/Delta code share agreement.
The Deputy will be aware that a Bord Fáilte/Virgin Atlantic Airways initiative will enable passengers travelling on that airline to Dublin from several key US states to travel on to Dublin and Belfast free of charge. Bord Fáilte and Aer Rianta will continue to work directly with American carriers — US Air and Continental — who expressed interest in opening new scheduled services at some future date. However, the steering group is not optimistic in the short-term. I am working closely with the Minister for Transport, Energy and Communications, Deputy Dukes, and we will meet next week to review the ongoing work in this area.
I am disappointed the Minister did not address my supplementary question which referred to western and south western states in the US. Does he accept that the existing fare structure makes it more attractive for American tourists to travel to Ireland through London and land at Dublin Airport? In view of the changes at Shannon, has there been an over-concentration on encouraging tourists, particularly American tourists, to land at Dublin? Does the Minister agree that the western counties, which have a large economy dependent on tourism income, are not obtaining their share of the growth in tourism to which he referred and that access into Ireland — and access in Ireland into the western region — should be a priority for the Minister in 1997?
Today's decision to postpone construction of the by-pass at Kinnegad, which tourists often spend two hours passing through, is a retrograde step and will interfere with the development of tourism and the economy in the west. Were these factors not taken into account by the steering committee and other Cabinet committees with which the Minister is involved? Is it not disappointing that access to the west, via the new motorway by-pass near Kinnegad, has been put on the long finger?
The steering group was not mandated to resolve the problem of the Kinnegad by-pass. I read reports about people living in Kinnegad exercising their right to make their views known on this issue. Obviously an element of western and south western traffic from the US will come through Chicago. After all, there are 17 million Irish Americans living in the area between Chicago and Dallas. In that context, Chicago is a major hub. We expect improved performance because of new code sharing arrangements on the Dublin-Atlanta route. Virgin Atlantic Airways carries passengers who want to fly to London directly from the cities such as Los Angeles, San Francisco and Dallas. The arrangement is that they can fly on to Dublin or Belfast free of charge.
We are also concentrating on improving traffic into Shannon and Cork. The Deputy is aware of the initiative announced recently by Aer Rianta which will run to 2001 and will eliminate any uncertainty in the period post-1999. This initiative offers incentives to airlines to develop new traffic and routes on which airport charges will not be levied at Shannon and Cork for the first three years. A discount of 50 per cent will apply in the fourth and fifth years. The continental market obviously holds major potential. In that context, I expect traffic into the west, particularly through Cork and Shannon, will increase as a result. In terms of entry further north, the DER tour company continues to expand its services into Knock Airport from several locations in Germany. That will enhance the number of tourists coming into the western region from continental Europe.
On a point of information——
It is most unusual for a Member to intrude on Priority Question Time.
Deputy Molloy has given misinformation which should be clarified for the record.
I deem that to be an unwarranted intrusion into priority time.
I read today that the Government has postponed the building of a by-pass around Kinnegad and announced the building of a temporary by-pass, which would merely transfer the traffic jam from one end of the town to the other. That is the message received in Kinnegad today.
The traffic jam at Kinnegad may be raised at another time.
It is a major block to access to the west for tourists.
Many men have survived a double by-pass.