Vol. 504 No. 3
2 Mrs. B. Moynihan-Cronin asked the Minister for Tourism, Sport and Recreation the areas of the tourism product he will prioritise with the next round of EU Structural Funding; and if he will make a statement on the matter. [11789/99]
My Department produced a discussion paper last March, entitled "Strategy for Tourism Development in the context of EU Structural Funding 2000-2006". The paper proposes objectives, and a strategic approach, for future investment in product development, marketing and training, based on a range of possible policy actions to meet those objectives. The new directions suggested are founded on a selective approach based on environmentally sensitive sustainable tourism and regional development.
Precisely how this will be reflected in measures under the new national development plan remains to be seen. Work has already commenced on agreeing priorities for EU co-funding under Ireland's next national development plan and on clarifying the Commission's new procedures for the next round of Structural Funds. There is a separate national consultation process to be undergone, inclusive of the social partners, while the creation of new authorities for the two new regions and the possibility of regional operational programmes add further necessary layers to the planning process. Until such time as this overall process is completed, it is difficult to give any indication of likely levels of EU financial commitments or to what programmes or measures they will be made.
The process will also, of course, have regard to the paper prepared by the Irish Tourist Industry Confederation, "Strategy for Growth beyond 2000 – A Strategic Framework for Irish Tourism" and to Bord Fáilte's business plan for Irish tourism marketing 1998 – 2003.
In arriving at a proposed strategic approach to product development specifically, my Department took account of views expressed by the European Commission that in times of rapid growth, the industry should be capable of, and expected to, respond adequately to market investment needs. All the indications from the Commission are that in the post-1999 period, the industry will be expected to contribute increasingly to its own product development, responding to the needs and demands of the market. Account was also taken of the European Commission's priorities, including environmental protection, job creation, competitiveness and regional development.
The proposed strategic approach for product development in the post-1999 period, as set out in the discussion paper, will therefore be biased towards areas classified as either developing or undeveloped tourist areas; based on differentiated aid levels which are likely to be less than current levels; have an agreed level of product investment for the 2000 – 2006 period based on a much higher proportion of investment from the industry itself and less from the EU; reinforced by the selective and targeted use or adjustment of tax-based incentive schemes, subject to Government and EU approval, to stimulate physical developments consistent with sustainable tourism goals; and reliant on market forces to fund product investment in established tourist areas. State support may be provided, however, for an overall integrated planning and management approach to alleviate success-related strains such as congestion etc. based on a product mix reflecting thematic programmes, such as special interest holidays and dedicated health-leisure centres, as opposed to a project-based approach.
As part of this framework, my Department will closely monitor the new tourism and environment initiative which was established under the operational programme for tourism in response to the mid-term evaluation of the programme. It is envisaged that the initiative will play an important role in developing future tourism policy in the next round of Community Structural Funds.
Precisely how this will be reflected in measures under the new national development plan remains to be seen and will depend to a large degree on the outcome of the consultation process which I have outlined.
When will the process of consultation be completed and who will be consulted? Will the Minister ensure regional imbalance is addressed in the consultation process? The majority of tourists stay in Dublin and do not go to the regions. There are regions of this island which are beautiful but which have no tradition of tourism. These are the areas I ask the Minister to address as part of the consultation process.
I assure the Deputy those issues will be addressed. We are aware of the intense growth in tourism in Dublin city and we welcome it. We have marketed this country as an island destination and have been very successful. We expect 5.9 million visitors to the island this year. It is my intention that figure should be equally divided between the regions and I introduced policies to do so. In my meetings with Bord Fáilte, it has been my priority to insist that the main policy should be for an equal spread throughout the regions. I believe in that policy.
The national development plan is already incorporated in our approaches to the EU. It is in keeping with EU thinking because it agrees that it wants to spread funding on a regional basis. It wants product development to be extended to the regions.
We have done exceptionally well since 1989. Since then everyone involved has worked exceptionally hard and we have an excellent product. As a result of EU investment, this island has become a quality destination. We will insist that continues. I agree more product investment should be directed to the regions. The other regions which are doing well, the south-west and the east coast, are experiencing congestion as a result of this success. That is detrimental to those regions and does not give a proper picture. If we can spread this around, everyone will benefit.
The talks are ongoing at various levels. My Department is in discussions with the Department of Finance. I will insist, when putting our proposals to the Department of Finance for the national development plan, that tourism is very important to this State. It is worth £2.5 billion to the economy. In 2005-06, it is estimated that it will be worth £4.5 billion. We must protect that. Any industry worth so much is worth looking after. There is huge competition. Today there are elections in Scotland and Wales. When countries start to devolve, they start to think about competitiveness.
