Vol. 488 No. 7
29 Mr. Allen asked the Minister for Tourism, Sport and Recreation the reason a decrease has occurred in traffic from a number of mainland European destinations in view of the overall growth in tourism traffic; and if he will make a statement on the matter. [7393/98]
As the Deputy will be aware from the most recent figures released by the Central Statistics Office, the total number of visitors to Ireland in 1997 is estimated to be 5,164,000, an increase of 9 per cent on the 1996 figure. I am delighted to report that 1997 was a record year for tourism with estimates for foreign exchange earnings expected to be in excess of £2 billion. We are now on target to meet and exceed the ambitious targets set out in the operational programme for tourism, 1994-99.
In 1997 there was a strong performance from a number of northern Continental European markets with the Benelux countries, Denmark and Sweden all recording good growth. However, tourist numbers from Continental Europe as a whole remained static at just under 1.2 million. The reasons were varied. For example, most mainland European countries recorded only marginal economic growth in 1997. More importantly, some major currencies, such as the deutschmark and the French franc, were at their weakest for some four to five years against the IR£. According to Bord Fáilte, this discouraged individual travel and was a deterrent to active promotion by many tour operators. The temporary cessation of year round direct ferry links may also have had some impact on shoulder and low season group traffic.
These difficulties were not unique to Ireland and were experienced also by Britain, Scandinavia and other northern "non-sun" destinations with which Ireland competes. For example, the European travel monitor, which is a standard Europe wide travel survey, shows that German traffic to all northern Europe, including Britain and Scandinavia, declined by 15 per cent in 1997 while French traffic to northern Europe was down by 11 per cent.
Nevertheless, the tourism sector shares my concern about the relative under performance of the mainland European market for Ireland in recent years given that Ireland has performed exceptionally well elsewhere and made market share gains in British, North American and Australian markets. Specifically, a full examination of the prospects for Ireland in the German market is currently being undertaken by Bord Fáilte in conjunction with its industry partners.
One expects substantial growth in tourist numbers during an economic boom and Bord Fáilte is good at putting forward a rosy picture. Does the Minister agree we should look beyond economic stagnation and currency fluctuations as the reason for tourist numbers from continental Europe remaining static? When will the 1997 visitors' attitude survey be published? My main concern is about the German and Italian markets. Does the Minister agree it is unsatisfactory that Dublin and its surrounding areas should experience double digit growth while the south west and west experienced low single digit growth?
The Deputy is moving away from the question.
Most of our tourist traffic is funnelled through Dublin and as 60 per cent of European visitors are under 40 they are more attracted to the bright lights of urban areas. Will the Minister ask Aer Rianta and Aer Lingus to emphasise the attractiveness of Shannon and Cork as access points?
I will communicate with the Deputy on the publication of the visitors' attitude survey. The reasons I outlined for the difficulties with the French and German markets are genuine. People from those countries are not travelling to northern European countries or to the UK. There has been a 10 per cent decrease in the number of German tourists and a 5 per cent decrease in the number of French tourists. However, there has been an overall increase of approximately 213,000 tourists from the rest of Europe.
There is a huge potential for attracting more tourists here. Even though approximately 5.2 million tourists visited Ireland in 1997, it is only 1 per cent of the entire European market. I intend to make the selling of Ireland abroad a priority in the next few months. A mere 1 per cent of the European tourism market is not sufficient during an economic boom. We are trying to attract visitors from Germany and France from a Dublin base. While that should not be impossible with the necessary technology, I have indicated to Bord Fáilte that I would like a more hands-on approach to those markets and I asked it to consider placing people in Europe with a view to attracting more tourists from those countries.
I agree with the Deputy that Dublin is benefiting most from the increase in tourist numbers, but there has been an increase in revenue and numbers in all regions although some have not has fared as well as others. For example, there has been a 20 per cent increase in the north-west as opposed to an 85 per cent increase on the east coast. I have held discussions with representatives of Aer Lingus regarding access points and its response was that if there is a demand for Cork, Galway or Donegal they will meet it. Aer Lingus is a commercial company and will operate only where there is a demand.
The marketing of Ireland as a tourism destination has had positive results. Dublin is the most cosmopolitan city in Europe and has benefited from weekend breaks. I urge the regional tourism authorities, who have been given additional funding this year, to promote the regions as attractive destinations. There is no reason the weekend short-stay holidays, that have been a great success in Dublin, could not become a feature of other parts of the country.
I am sure the Minister is aware the figures published by Bord Fáilte are spectacular, but it was honest enough to admit there are difficulties in respect of France and Germany.
What form of a hands-on approach should be taken to attract more tourists from the continent, in particular the French and Germans who are big spenders? I hope we can attract them to Shannon and Cork as well as to Dublin. I have had preliminary discussions with Bord Fáilte with a view to assisting it in bringing a political dimension to tourism promotion in the countries we are trying to target. Does the Minister agree with that line of attack?
We should make every possible effort to attract tourists from the European market, particularly from the huge German and French markets. Of course there should be a political hands-on approach and Ministers adopt such an approach when they go abroad on European business. I cannot over emphasise the importance of marketing, particularly with the advent of an expected reduction in EU funding. That is why, in conjunction with the private sector, we are trying to ensure that funding is maintained and increased. While there is a political dimension to it there is nothing to compare with the private sector approach. I was approached recently by a person in the bed and breakfast sector in County Down who complained they were not getting adequate numbers of visitors because they happen to feature in a Bórd Fáilte brochure. They took the initiative, travelled to a certain part of Germany where they did their own marketing and as a result increased their business that year by 350 per cent. While we have to market at national level the private sector must play its part also. We have a tradition and a culture and it is popular to be Irish in the world today. We have much to sell and it is only a matter of providing the finance and the hands-on approach.
What are the current projections for an increase in tourist traffic for 1998 over 1997? Is the Minister concerned about the possible adverse implications of the fragile industrial situation at the main access airport, having regard to the ongoing provocative actions of Ryanair——
The Deputy is moving away from the question.
I thought the Minister was in agreement that we were not.
We are deviating from the question submitted by Deputy Allen.
While projections for the UK are excellent, we expect an increase of a further 10 per cent on our 1997 record of almost three million, given that major sporting events — the Tour de France on the weekend of 12 July and the tall ships in mid-August — are taking place here. We have huge potential for increasing tourist numbers particularly from the UK. We expect a 7 per cent increase from the buoyant US market but the indications are that the European market will continue to be sluggish unless something is done about it. That is the reason I have asked for a hands-on approach, in other words that somebody in charge of the European market should be based in Europe to stimulate that huge market which has enormous potential.
As regards the situation at the airport I am disappointed the dispute arose, particularly as it involved tourism and the business area, but that is a matter outside my Department.
The Minister will be aware of the traffic growth figures for the past ten years. Of an increase of 8.5 million, 7 million went to Dublin, 0.9 million to Cork and 0.6 million to Shannon. Those figures speak for themselves. Will the Minister agree that marketing alone is not the answer? We need to review policy in relation to access to Ireland. If everybody is coming through Dublin, a large number will stay in the greater Dublin area and therefore there will be an imbalance of growth. There is need for a review of transport policy in relation to access. Is the Minister concerned that one of the major ferries has pulled out of the southern region which means people are even more dependent on coming through the east coast? Will the Minister review the question of access in conjunction with his colleague who has responsibility for communications?
I agree the question of access is of enormous importance. Given our airports, this is the best way to attract people to Ireland. The whole question of access should be appraised. Dublin has a huge benefit because of its access facilities. Aer Lingus has done a tremendous job by providing extra flights to the US in recent months. Continental tourists will be coming in the next few months. Extra charters from four European cities will go to various destinations during the summer. Delta will play its part.
A recent survey indicated that 90 per cent of visitors to Glasgow and Edinburgh eventually make their way to London. If visitors come on charter flights to Cork, Shannon and Galway it is possible they will find their way to Dublin. In my discussions with Aer Lingus it was pointed out that if there is a demand to get to the regions, it will have no hesitation in providing extra capacity. I look forward to 1998 when increased capacity will be provided by Delta, Aer Lingus, Continental and four chartered routes from Europe.
