Vol. 516 No. 1
3 Mrs. B. Moynihan-Cronin asked the Minister for Tourism, Sport and Recreation if he will clarify his statement issued to a newspaper (details supplied) on 11 February 2000 that his inclination is for self-regulation of accommodation by the industry itself rather than by officialdom; and if he will make a statement on the matter. [7048/00]
Like my predecessors, I have been lobbied to introduce a mandatory licensing system for the bed and breakfast sector. Like my predecessors, I have concluded that, in order to be effective, such a system would require a significant diversion of resources away from developing the tourism industry towards policing and administration. There is not any evidence to suggest the transfer of the current voluntary system to a mandatory basis would have any appreciable impact on accommodation standards over and above that currently brought about by market forces.
The impressive expansion of tourist accommodation over the past decade has resulted in increased competition and higher standards across all categories, not least in the bed and breakfast sector. In my recent contributions to this debate, I made the point that, rather than go down the road of mandatory registration of the bed and breakfast sector, it would be better to pursue a strategy in which the industry led in the determination of standards and quality for the bed and breakfast sector, which has matured and progressed beyond all recognition over the past decade. Such an approach had been envisaged as far back as 1994 in the A.D. Little Review of Bord Fáilte.
Furthermore, I have always contended that, due to the substantial increase in the volume and range of accommodation in recent years, there is a greater choice available to tourists, thus allowing market forces to weed out accommodation which is not of a sufficiently high standard. The recent emphasis by bed and breakfast providers on developing their own marketing capability will result in greater transparency for the consumer as to the quality of individual bed and breakfasts and the services they provide. This process will be further enhanced by the advent of the Internet and e-commerce, and the marketing and retail opportunities offered therein, directly in the marketplace, to both bed and breakfast providers and their consumer market at home and abroad. In short, there have been major changes in the bed and breakfast sector itself, in the marketplace and in consumer protection, safety regulation, etc., since the introduction of the concept of approval in its current form. The time has now come to consider a more appropriate system for a modern, sophisticated accommodation sector.
The current position with regard to approval of bed and breakfast accommodation is that, following a recommendation contained in the A.D. Little Review of Bord Failte, the approval and inspection functions were outsourced to recognised self-regulatory bodies within the industry itself. Currently, three separate companies carry out these functions for different sections of the bed and breakfast sector. Having reviewed these arrangements, Bord Fáilte has launched a tender process for the award of the new contract for inspection and approval. Bord Fáilte currently has the role of ensuring that appropriate standards are set for the industry.
The reason I put down the question is that there is confusion in the approved sector in relation to a statement made by the Minister on 11 February repeating what he said here this afternoon. The sector needs to know who, if anyone, will regulate the product. There was an advertisement in the newspaper some time ago inviting tenders from a body to approve the town and country homes sector and the farmhouse sector. There was a separate advertisement for the registration of hotels and guesthouses. This is all tied up with the proposal from Government that rates will be levied on the bed and breakfast sector. A worrying aspect is that the proposed levies on the bed and breakfast sector are contributing to the decline in the numbers applying for registration or approval. Will the Minister clarify who will regulate the product and will he go ahead with the tendering process because there is confusion in the sector regarding the matter?
The answer is "yes" in the interim. We have advertised for continual approval and recognition as was the case heretofore. Given the quality and amount of accommodation available in the past ten years, I believe the consumer is the best regulator. This country has high quality accommodation and visitors coming here are very discerning. As I pointed out previously, one dissatisfied customer can undo the work of 20 satisfied customers. One can be guaranteed that 95% of dissatisfied customers will not return. Therefore, the marketplace will dictate in future. The consumer is the best regulator because of the competition that exists in the whole area. The quality of the accommodation is far superior to that which was available prior to regulation and approval. I do not say that just because it is my view. I will meet the different people concerned and will discuss the issue with them. Some people believe there should be independent approval systems.
The Deputy also raised the rates system. That is completely different for bed and breakfast accommodation and is a matter on which I have had many representations recently. The time has come to redefine what is meant by a bed and breakfast. It is no longer in accordance with the bed and breakfast we had previously. I am of the view that a bed and breakfast has somewhere between a minimum of three rooms and a maximum of five. Most of those establishments which are regarded as bed and breakfasts are small guesthouses and small hotels.
I agree with the Minister but what people want is a level playing pitch. Some bed and breakfasts are regulated and approved while others are not. The term bed and breakfast is confused. In the traditional bed and breakfast the owner is there to meet the guests. Does the Minister agree we must protect that sector?
I agree that sector must be protected. The bed and breakfast sector, to use a pun, has been the bedrock on which the entire tourism industry started. That sector has to be redefined and we must be careful to have an approval system. The question of whether the consumer and market forces should dictate or whether the independent approvals should continue is open for discussion. This evening I will meet a certain section of that—
We must move on to Question No. 4.
