Dáil Éireann debate -
Wednesday, 24 Nov 1999

Vol. 511 No. 4

Written Answers. - Tourism Industry.

Thomas P. Broughan

Question:

46 Mr. Broughan asked the Minister for Tourism, Sport and Recreation his views on the recent suggestion by the Irish Hotels Federation that future hotel development should be curbed having regard to the needs of the tourism industry; and if he will make a statement on the matter. [24537/99]

Minister for Tourism, Sport and Recreation (Dr. McDaid)

The Deputy will be aware that the recent substantial investment in hotels is market-driven and based on investor confidence in continuing growth in visitor numbers. Ensuring that occupancy levels and returns are not adversely affected by this rapid expansion has to be a key preoccupation within the industry, both for the well established and new entrants, who must ensure that they have the capability to provide the necessary marketing, manpower and management to attract and retain new business. The creation of the new £150 million marketing fund, announced in the national development plan, will also be a further support to the industry in pursuit of further tourism growth from key overseas markets.

With regard to grant assistance for hotel developments, it has been the policy, for some time, not to provide direct grant support for tourist accommodation projects, on the basis of the proven ability of the commercial accommodation sector to respond to growth in visitor numbers without grant assistance. In view of the significant growth in tourism accommodation in recent years, there are no proposals at present to introduce any further new schemes of assistance for the provision of additional tourist accommodation.

In relation to the federation's pre-budget proposals, I recently met with them and we agreed that the priorities for the sector related mainly to issues on the labour supply side; regarding the growth in product, this is primarily, as I have stated, a matter for the market to determine and I have no plans for the State to intervene directly, either in terms of boosting, or curbing, the provision of hotel accommodation.