Bernard Allen
Question:4 Mr. Allen asked the Minister for Tourism, Sport and Recreation the policy initiatives, if any, he will take to reverse the alarming drop in tourism figures from the United Kingdom and parts of Europe. [6940/00]
Priority Questions. - Tourism Statistics.
Although tourism business from Britain to Ireland remained buoyant in 1999, Bord Fáilte expects that the holiday segment will be down on previous year figures for the first time since 1992.
As I said in my recent address at the annual conference of the Irish Hotels Federation, our most important tourism source market, the UK, may be showing signs of fatigue in terms of pure holiday numbers, despite the strength of sterling and an absence of violence in Northern Ireland. While we have to await the final figures for 1999, preliminary indications are that we may be experiencing a peak in our current fashionability in Britain at the same time as many newer and competitively-priced alternative holiday options are opening up from that market. Bord Fáilte is currently reviewing the British market to try to get to grips with any fundamental underlying changes and to see what marketing repositioning and revamp of packaging by the industry may be required in the future to maintain our strong place in this market. I am anxious that this work is completed as soon as possible.
In the case of continental Europe, which represents more than a quarter of our business, our overall market performance has been stagnant in recent years. while I acknowledge that we have been doing well in Italy and the Nordic countries, for example, this has not compensated for performance out of France and Germany – our two most important European source markets – where we had similar levels of visitor numbers and revenue earnings in 1999 as in 1995. Bord Fáilte has devised and is implementing a new three-year strategy for the German market. A formula simply must be found for doing better in continental Europe.
Bord Fáilte is also well advanced in a total review of Tourism Brand Ireland which was launched more than three years ago. This review involves a reappraisal of prospects in the individual markets, detailed research among consumers and ultimately the development of refined visual, communications and promotional material. Bord Fáilte is looking at the opportunities and challenges associated with the wider use of the Internet as a tool in tourism marketing and promotion. This exercise will build on experience with its own award-winning site, recent feedback from the industry and the growing importance of new media and new technology in the tourism business.
Under the National Development Plan, published in November 1999 in excess of £350 million will be available in public financial support for tourism marketing, training and product development over the period 2000 to 2006 to complement investment by the industry itself. This funding will facilitate a range of initiatives, including the creation of Ireland's first ever multi-annual tourism marketing fund, which will support the continued successful development of the tourism sector.
Will the Minister agree that the alarm bells are ringing loud and clear, notwithstanding the double advantage of peace in Northern Ireland and the strength of sterling against the punt? Is he now admitting that the figures for the first time in many years from the UK and our main customers in Europe – Germany and Holland – will be either stagnant or show a reduction? Has the Minister and Bord Fáilte addressed the issues that may be affecting this trend? Has he considered our litter-strewn countryside and the difficulty in getting to the regions outside of Dublin? Is he aware that it takes four hours to get to Cork as opposed to three hours 12 months ago? Has he considered the issue of duty free sales? Given that the Minister said £350 million will be available I hope he is not depending on throwing money at the problem. Surely more thought should be given to the fundamental reasons our tourism market in the UK and for our main customers in Europe is entering a period of stagnation? The alarm bells should be ringing loud and clear in his Department and in Bord Fáilte.
The figures are estimates taken by Bord Fáilte from approximately 10,000 people. This is far short of the 350,000 to 400,000 figures which the CSO take into consideration. The words "alarm bells" used by the Deputy are somewhat strong. I am certainly concerned about the figures. We have indicated that Bord Fáilte should keep its finger on the pulse and it has done so. That is the reason Bord Fáilte has been successful in maintaining the tourism market. The figures are a matter of concern given that we have peace in Northern Ireland and sterling has never been so much in our favour. Regardless of the question of access to the regions, litter and so on – which I will deal with later – we are an island economy and, as such, are vulnerable to any increase in price changes. Consequently I resist anything that has to do with increasing access or airport charges coming into this country. We would all agree that this success has been based on—
The Minister's time is up.
May I ask one question?
Very quickly. I must apply the rules.
The Minister referred to one of the problems. He is now saying we are marketing and have been in recent months for this season. We do not know the statistics for last season. Therefore, we cannot market effectively. By the time we get the figures we will be into the tourist season. There is a major problem in planning and getting the statistics which are necessary for marketing. Will the Minister address that issue?
Bord Fáilte is already marketing for 2001. For example, Ryanair has added eight continental destinations out of London. A person in Britain planning a weekend break who sees a flight to Milan costs £69 while one to Dublin costs £79 will certainly go to Milan. We must resist anything which would increase access fares or airport charges.