Vol. 477 No. 4
4 Mr. Killeen asked the Minister for Tourism and Trade the reason for the drop in the tourism and travel balance in 1994 and 1995; when the revised figure for 1996 will be available; and whether the provisional figure for 1996 is being matched or exceeded in 1997. [9457/97]
The end of year CSO figures for 1996 show revenue from overseas visitors reaching a record £1.9 billion. This represents an increase of 12 per cent on 1995 and provides further evidence of the continuing excellent performance of Irish tourism. Last year was the third consecutive year of double digit revenue growth. I was also pleased to note from the recently published CSO figures that expenditure increased at a higher rate than overseas visitor numbers, which suggests that visitors to Ireland are spending more money per head.
With the roll-out of Tourism Brand Ireland in all our major markets and a significant expansion in air access to Ireland, I anticipate that tourism will continue to achieve significant growth in 1997.
In regard to Ireland's tourism and travel balance, the primary reason for the growth in outbound tourism in the past three years, particularly in 1994 and 1995, is due to Ireland's economic growth and the attendant increase in personal disposable incomes. A contributory factor would also be the increased competition in air and sea fares which, in addition to helping to reduce inbound fares to Ireland, has also made foreign travel more affordable for Irish citizens.
This increased propensity among Irish people to travel abroad has greatly benefited Irish carriers whose revenue from Irish tourists increased by 24 per cent from 1993 to 1996. In addition, Ireland's tourism and travel balance has been in our favour in recent times and I am very encouraged to note that the balance increased substantially in 1996 to £524 million, compared with £412 million in 1995.
With the launch of the domestic tourism marketing campaign this year, with a budget of more than £1 million, the intention is to reinvigorate the home holiday market, particularly in the off-peak and shoulder season. This campaign should go some way towards encouraging more Irish people to take their holidays at home.
I understand from the CSO that the figures published for 1996 are final. The only provisional element in the figures are the passenger fare receipts which may be subject to amendment once definitive figures are provided by the carriers.
I am pleased the Minister is placing more emphasis on expenditure by tourists rather than on numbers. I am sure he will agree that is an important matter. I take the Minister's point about the contribution made by people travelling abroad to the lowering of air fares. In that context, the attempt to promote the domestic market is very important. Are there indications that the tourism and travel balance will favour the domestic market in the future?
I believe it will. The domestic market and its revenue yield is important. That is why we gave the Minister of State, Deputy O'Sullivan, specific responsibility for that market. The £1 million will yield results. It takes time for people to accept a new image. While I agree this is an important market, we live in a free country and if people want to travel abroad on holidays, we cannot stop them. The country is booming and international air fares have decreased. At the same time, it is important to present, in their best light, the facilities we offer to home holidaymakers. Many of our citizens are not very familiar with this country, but can talk eloquently and long about places around the globe. As one of the leading tourist designations in the world, I hope as many people as possible have the opportunity and experience of sampling the delights of the facilities of their own country.
Are there provisional figures for the first quarter of 1997? I suspect there are not. Has the research indicated why the balance for 1994-5 is substantially lower than 1994 and 1996? Did particular factors make travel to foreign destinations more attractive than holidaying at home in those years?
The tourism and travel balance was £533 million in 1993, £426 million in 1994, £412 million in 1995 and £524 million in 1996, an increase of £112 million on the previous year. I am sure there are a number of reasons for that which one could attempt to identify. I do not have figures for the first quarter of this year and if they become available I will send them to the Deputy. The indications for this year are good. When one introduces a new tourism brand initiative it takes some time for the market to understand the new positioning of the country. We are seeking revenue yield from international visitors — an important element of the tourism brand. It is now in full flight internationally and I expect it will pay dividends which will be of substantial benefit.
