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Dáil Éireann debate -
Wednesday, 11 Apr 2001

Vol. 534 No. 4

Adjournment Debate. - Tourism Industry.

I wish to share my time with Deputy Stanton.

The impact of the foot and mouth outbreak on the tourism industry is now reaching crisis point. During the initial weeks of the foot and mouth restrictions the main loss of business to the industry arose because of the cancellation of conferences and events. Domestic tourism also took a hit. However, there are still some people coming here from abroad who had advance bookings prior to March. The problem now facing the tourism industry is that people are simply not booking holidays in Ireland. In fact, they are cancelling their trips. There is now a real fear that bookings will completely dry up leaving an enormous void in the tourism industry during the summer months.

The reality is that unless there is the same concerted national effort displayed to protect the agricultural sector from foot and mouth disease, some operators will be put out of business. I strongly believe this crisis needs to be dealt with in a co-ordinated and structured way. That is why I am suggesting a working group headed by the Taoiseach is established immediately to ensure the right message is sent out at home and abroad about our openness to tourists. All those involved in the tourism industry, from workers to business owners, are dismayed that no specific group has been established to deal with the crisis in this sector. While I accept the expert group on foot and mouth, which is attached to the Department of Agriculture, Food and Rural Development, has the primary objective of containing and preventing the disease, I do not see this as an excuse for not having a specific group to deal with the problems in the tourism sector. The pace with which we are dealing with the crisis in tourism is too slow. For example, attempts to fence off major tourist attractions from lands where animals are kept are still under way, despite the fact that the restrictions have been in place since March. As a result, these sites will be closed over the Easter period, which is generally accepted as the beginning of the busy season.

Another instance of the slow pace in dealing with the crisis in tourism was highlighted in correspondence to me from a tour operator. This operator contacted the Department of Agriculture, Food and Rural Development on 2 April for advice on an activity. He was informed that his query would be dealt with by the expert group for consideration on 10 April. Effectively, he was left on hold for eight days and, consequently, he lost a big tour from America. These people were not prepared to wait eight days for an answer.

It bothers me that the Department of Tourism, Sport and Recreation is so opposed to making marketing funds directly available to the tourism industry which is prepared to do the work and provide matching funding. It is time the Taoiseach played a part in assisting our ailing tourism industry. He has managed to front some of the key developments in relation to sport, which come under the remit of the Minister, Deputy McDaid, and his Department. His involvement in the GAA grant and with Stadium Ireland compare starkly with the Taoiseach's entire lack of interest in the crisis facing the tourism industry which, I would like to remind him, is our largest growth industry.

I now call for a working group, headed by the Taoiseach, to help rebuild the ailing tourism industry. This group should be responsible for ensuring an accurate and up to date message about the fact that this country is open for tourists goes out abroad. This group should also work closely with Bord Fáilte and the industry to market this country. It should have a duty to compile a profile of the losses in the industry so that measures can immediately be put in place to minimise damage and save thousands of jobs. The Taoiseach and his Cabinet should have a role in direct marketing by visiting and promoting Ireland in the countries from much of our tourism trade emanates.

I thank Deputy Moynihan-Cronin for sharing her time with me.

I am disappointed the Minister is not present tonight. I agree with Deputy Moynihan – Cronin that the Taoiseach must take control in regard to this issue. The Minister for Tourism, Sport and Recreation said in committee last week that it was not possible under the law for local authorities to waive rates in order to assist badly pressed tourism operators. I understand from the Department of the Environment and Local Government that that is not the case. Under the Local Government (Rates) Act, 1970, rates can be waived. This proves the Government and the Minister for Tourism, Sport and Recreation do not know what they are doing. The sooner the Taoiseach takes control of the matter the better before hundreds of people are out of work and very valuable industries go to the wall.

I ask the Minister for State to go to the Taoiseach and the Minister to get action on this matter. As Deputy Moynihan-Cronin said, this is our biggest growth industry. These people are entrepreneurs who have taken risks. They have invested money and have not asked the State for very much up to now. However, these people are now in trouble and need help. The incompetence of the Minister telling us this in committee is unbelievable. I want the Minister of State to sort out this mess, go to her Cabinet colleagues and the Taoiseach and get action before it is too late.

I thank both Deputies for raising this issue. I apologise on behalf of my colleague, the Minister, Deputy McDaid, who unfortunately is not in a position to be here this evening.

As the Deputies are aware, during the course of the current foot and mouth emergency, the primary preoccupation of the Government has been to ensure every conceivable step is taken to contain the one outbreak that has already occurred in this country. The Minister has already indicated in two recent Dáil Adjournment debates and in two full day sessions of the joint committee, of which the Deputy is chairperson, held on 22 March and 5 April, and separately in statements in the Seanad and in this House during Private Members' time on 3 April, that the possibility of a widespread outbreak of foot and mouth disease threatens our economic security and livelihood not just those of farmers and the agriculture and food industry, but potentially of every citizen.

The Minister, Deputy McDaid, has said that the recent heartbreaking and stark images from County Louth and Britain give some indication of what a full scale outbreak would mean and puts into perspective the sacrifices we have all had to make to date. It is important to appreciate that for tourism, a full outbreak would result in sustained negative international publicity, the possibility of even more intense internal and external travel restrictions and prolonged closure of many key tourism attractions and facilities. It is hoped that we do not have to face such an appalling scenario.

On behalf of the Government, I want to again thank the tourism and hospitality industry, who are at the economic front line in the battle against FMD, for their support and patience in recent weeks in accepting the control measures which have had to be put in place. There is no doubt but that the industry has taken a substantial hit in terms of lost business but has been mature enough to see it as part of an essential contribution to the bigger objective of fighting the disease.

As the Deputies know through the work of the committee, the tourism and hospitality industry is now hurting as a direct result of the FMD emergency. The most up to date assessment of losses is put at £200 million, excluding the impact on air and sea carrier receipts which are also substantial. If the current situation continues until August, it is estimated that the potential loss of overseas tourism revenue could rise to at least £500 million. This does not take into account the separate and very significant losses in domestic tourism and hospitality business due to cancelled events and conferences and some continuing reluctance on the part of the general public to take short breaks in Ireland.

Since the onset of the current emergency, the Minister, Deputy McDaid, his Department and Bord Fáilte have been working very energetically to support the industry and we have taken a range of measures to deal with the situation. The Minister has already outlined on a number of occasions in this House the ten specific actions he is taking. As details of these are on the record of the House, I do not propose to repeat them here this evening. One of these measures is that the Minister set up structured arrangements to ensure that the views of the tourism industry are taken on board during the present emergency and that its concerns are made known, in particular as key decisions are taken about the control measures in place. On 8 March, the Minister, Deputy McDaid, met a delegation from ITIC to discuss the situation and has kept in close contact with the industry since then. He is a member of the key Government task force which at present convenes daily, under the chairmanship of the Minister for Agriculture, Food and Rural Development or the Taoiseach, subject to his availability, to monitor and review measures to prevent the spread of the disease.

In addition, a separate high level action group, chaired by the chief executive of Bord Fáilte and including key ITIC representatives and the Department of Tourism, Sport and Recreation, has been established to monitor the situation on a continuous basis. This group has been meeting twice weekly in recent weeks with the active participation and support of the industry. The objective is to actively manage issues which are affecting tourism business already booked and limit any medium to long-term damage to the industry's image and prospects overseas.

Following a meeting the Minister had with the chairman and the chief executive, Bord Fáilte launched a special tourism marketing and promotion reassurance programme which commenced last weekend. This programme, which will have an initial component costing £3 million, will consist of tailor-made trade and consumer campaigns, joint activity with trade partners and special consumer events in key European and US cities. The Minister intends to lead some of these campaigns in the marketplace beginning later this month. Bord Fáilte has already identified savings from within its budget to help meet the costs involved in mounting the campaign and the Minister has sought supplementary funding from the Minister for Finance for this purpose.

The House will be aware that before Christmas, the Minister launched the largest ever annual tourism marketing programme for 2001, involving the joint expenditure by the tourism industry and Bord Fáilte of almost £100 million, of which approximately £35 million is Exchequer funding.

The Minister also appealed to the industry to put together a programme and range of attractively priced short break packages to encourage a greater level of domestic holiday taking this year. Further initiatives have already been launched to give home holidays a particular boost and the Minister has already publicly appealed to people to holiday at home this year.

The Department and Bord Fáilte are keeping the situation under close review with a view to making appropriate further adjustments, in consultation with the industry, to marketing and promotion activities planned for this year. While we are all conscious of the threat to agriculture, we must not lose sight of the extent of the economic impact on the tourism and hospitality industry. Our shared objective must be to ensure that unnecessary medium to long-term damage is not done to the tourism industry, which is now so important in economic terms.

The tourism industry has dealt successfully with crises in the past, including the fallout from the Gulf War and the Northern Ireland troubles. It is a resilient and strong industry. While the Government is aware that the industry is suffering at present, if we work together, we can successfully overcome this crisis.

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