Austin Deasy
Question:59 Mr. Deasy asked the Minister for Tourism, Sport and Recreation his views on whether the strengthening of the Euro will have serious repercussions for the tourism industry in 2001. [1899/01]
Other Questions. - Tourism Industry.
The results of Bord Fáilte's surveys of overseas travellers indicate that perceptions of overall value for money in Ireland improved significantly among visitors from the British and US markets in 2000, and this appears to be due primarily to the strength of sterling and the dollar. Most forecasts suggest that the euro will strengthen over the next few years against both the dollar and sterling. The expected improvement in the value of the euro will mean that Ireland, together with the other euro zone countries, will appear to be more expensive as there will be an erosion of relative competitiveness for US and British visitors. However, I understand that Bord Fáilte considers it unlikely that the current exchange movements will impact significantly on the 2001 season. On the other hand, I understand from Bord Fáilte that a recent survey suggests that the Irish tourism industry and the hotel sector, in particular, have experienced price increases above the general levels of inflation.
At a recent Irish Tourist Industry Confederation dinner, I referred to this worrying trend and underlined the importance of all economic operators taking appropriate measures to maintain and improve competitiveness. I referred to the constructive exchange of views which I had with ITIC on this subject last summer during which I highlighted the need to keep prices as low as possible and to take other initiatives to improve marketing and human resource management to increase our international competitiveness.
Does the Minister agree that despite the weakness of the euro and the punt versus sterling last year that our tourist figures from the UK were relatively stagnant when one sees the growth in numbers from elsewhere? Will the Minister explain how he can have confidence in UK tourist figures for this year when those figures were so weak last year in a favourable economic climate?
In addition, will the Minister do something about tourists and Irish people being ripped off by the service industry? We have seen an increase of 10p to 12p in the price of drink recently and no matter where one goes in the restaurant sector there have been massive increases that are totally out of line with inflation. Is there any communication between the Minister and the Minister of State at the Department of Enterprise, Trade and Employment, Deputy Kitt, on this matter? We are pricing ourselves out of the market.
It is of concern to us that we could be pricing ourselves out of the market. It is outrageous that the price of drink can be increased by 10p to 12p with a click of the fingers. I understand that this occurred mostly in Dublin and that only 6% of public houses elsewhere put up their prices.
I have mentioned the price of food in restaurants in the past and all these matters will come back to haunt us one day if we are not careful. We should remember the adage about killing the goose that lays the golden egg. The Taoiseach asked each Minister to bring in industry representatives from his or her sector to talk to them about the dangers of inflation. The main reason we had to do so related to the high prices being charged. There is room for improvement but there was an increase of 5%.
I agree with the Minister in that the biggest problem I see is overcharging. I may be giving my age away but I worked in a bank when decimalisation was introduced and I saw that prices were levelled up, not down. Individuals will do so again. Will the Minister introduce regulations to penalise those who overcharge? This will have to be policed and the Minister's Department could do so in the tourism industry.
I am in favour of competition, as that is the way this can be overcome. I do not think I can introduce regulations, as that is a matter for the Tánaiste or Deputy Tom Kitt, but the issues raised by Deputies Allen and Moynihan-Cronin were recently discussed at Cabinet. Com petition in all sectors is the way to keep prices competitive.
Will the Minister discuss this with Deputy Kitt?
I will mention it to him.
Written Answers follow Adjournment Debate.