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Dáil Éireann debate -
Wednesday, 14 Nov 2001

Vol. 544 No. 1

Other Questions - Tourism Industry.

Bernard J. Durkan

Question:

78 Mr. Durkan asked the Minister for Tourism, Sport and Recreation the steps he has taken or proposes to take to stabilise and assist the tourism industry in the wake of the 11 September 2001 atrocities and the consequent international economic retrenchment; and if he will make a statement on the matter. [28041/01]

Michael Finucane

Question:

82 Mr. Finucane asked the Minister for Tourism, Sport and Recreation his views on whether greater emphasis should be placed on exploiting the United Kingdom market in the context of the positive political developments in Northern Ireland; and if he will make a statement on the matter. [28001/01]

Denis Naughten

Question:

83 Mr. Naughten asked the Minister for Tourism, Sport and Recreation the marketing programme he plans to support in the coming months for the 2002 tourism season; and if he will make a statement on the matter. [27094/01]

Dinny McGinley

Question:

86 Mr. McGinley asked the Minister for Tourism, Sport and Recreation if he has met Bord Fáilte recently with a view to a greater concentration on the European tourist market for 2002; and if he will make a statement on the matter. [28027/01]

Brendan Howlin

Question:

91 Mr. Howlin asked the Minister for Tourism, Sport and Recreation his plans to review the targets set for the tourism sector in the national development plan in view of recent developments; and if he will make a statement on the matter. [27876/01]

Denis Naughten

Question:

92 Mr. Naughten asked the Minister for Tourism, Sport and Recreation the action he intends to take to support the tourism sector in the coming months following the fall-out from foot and mouth disease and the 11 September atrocities in the United States. [27093/01]

Alan Shatter

Question:

95 Mr. Shatter asked the Minister for Tourism, Sport and Recreation the most recent date on which he met Bord Fáilte; if he has discussed with it its marketing plans for 2002; and if he will make a statement on the matter. [27958/01]

Dinny McGinley

Question:

96 Mr. McGinley asked the Minister for Tourism, Sport and Recreation if he has met the shipping and airline industries recently to discuss the difficulties encountered as a result of the declining tourist market; and if he will make a statement on the matter. [27993/01]

John Browne

Question:

99 Mr. Browne (Carlow-Kilkenny) asked the Minister for Tourism, Sport and Recreation his views on whether greater marketing emphasis should be placed on the Northern Ireland market; and if he will make a statement on the matter. [27991/01]

Brendan Howlin

Question:

102 Mr. Howlin asked the Minister for Tourism, Sport and Recreation if Bord Fáilte has estimated that tourism revenue could fall by as much as £230 million as a result of the combined impact of foot and mouth and the terrorist attacks in the US; the assistance he intends to provide for the tourism sector in view of these figures; and if he will make a statement on the matter. [27875/01]

Liz McManus

Question:

105 Ms McManus asked the Minister for Tourism, Sport and Recreation his views on the call by the Irish Hotels Federation for a five-pronged strategy to assist the tourism industry; and if he will make a statement on the matter. [27874/01]

Michael D. Higgins

Question:

108 Mr. M. Higgins asked the Minister for Tourism, Sport and Recreation the progress which has been made regarding the objectives set in the national development plan of spreading visitor numbers more widely throughout the year and increasing business captured by the BMW region; and if he will make a statement on the matter. [27877/01]

Michael Bell

Question:

117 Mr. Bell asked the Minister for Tourism, Sport and Recreation if his attention has been drawn to the serious concerns expressed by the Irish Tourist Industry Confederation which forecast that visitor numbers could fall by up to 500,000 with the potential revenue loss of £200 million; his views on the forecast by the ITIC; his plans to support the provision of a £2 million emergency support package sought by the ITIC; and if he will make a statement on the matter. [27872/01]

Michael D. Higgins

Question:

118 Mr. M. Higgins asked the Minister for Tourism, Sport and Recreation the latest estimates available to his Department of the likely impact on visitor numbers and tourism revenue of the terrorist attacks in the United States and the general economic downturn; the action he is taking to deal with this situation; and if he will make a statement on the matter. [27873/01]

Breeda Moynihan-Cronin

Question:

120 Mrs. B. Moynihan-Cronin asked the Minister for Tourism, Sport and Recreation if his Department has undertaken an assessment of the likely implications for the tourism industry of the planned reduction in Aer Lingus routes; and if he will make a statement on the matter. [27871/01]

Ivor Callely

Question:

210 Mr. Callely asked the Minister for Tourism, Sport and Recreation the estimated financial impact in the year ending 2001 on our tourist industry following the events of 11 September 2001; the measures which are under consideration to attract tourists here in 2002; and if he will make a statement on the matter. [26569/01]

David Stanton

Question:

223 Mr. Stanton asked the Minister for Tourism, Sport and Recreation the most recent estimates available regarding the loss of tourism business and possible projected losses and related revenue implications; and if he will make a statement on the matter. [28123/01]

David Stanton

Question:

225 Mr. Stanton asked the Minister for Tourism, Sport and Recreation if, further to Parliamentary Question No. 1 of 4 October 2001, he will outline the areas and programmes where funding was reduced to create this fund; his plans to provide additional funding; and if he will make a statement on the matter. [28125/01]

David Stanton

Question:

227 Mr. Stanton asked the Minister for Tourism, Sport and Recreation if his attention has been drawn to the request that local authority rates might be waived in cases of economic hardship especially in relation to the hotel, restaurant and guest house sector; his views on the request; and if he will make a statement on the matter. [28127/01]

David Stanton

Question:

228 Mr. Stanton asked the Minister for Tourism, Sport and Recreation if he will reform the high level tourism action group in view of the current difficulties being experienced by the industry; and if he will make a statement on the matter. [28128/01]

Bernard J. Durkan

Question:

243 Mr. Durkan asked the Minister for Tourism, Sport and Recreation if he has given any instructions with the objective of assisting the tourism industry following the foot and mouth epidemic; and if he will make a statement on the matter. [28270/01]

Trevor Sargent

Question:

250 Mr. Sargent asked the Minister for Tourism, Sport and Recreation the measures he is taking to ensure Irish resident companies hold conferences here and arrange incentive based holidays for their Irish staff here. [28304/01]

Trevor Sargent

Question:

251 Mr. Sargent asked the Minister for Tourism, Sport and Recreation the measures being put in place to address the concerns and problems for the tourism sector created by the terrorist attacks on Washington and New York, in the United States of America. [28305/01]

I propose to take Questions Nos. 78, 82, 83, 86, 91, 92, 95, 96, 99, 102, 105, 108, 117, 118, 120, 210, 223, 225, 227, 228, 243, 250 and 251 together.

There is a long response to these questions, parts of which are new. With the agreement of Deputies I will omit those parts of the answer which overlap with answers to previous questions.

No official estimates are as yet available on the loss of tourism business from the United States or elsewhere arising from the tragic events of 11 September 2001. However, while it may still be too early to assess the overall impact on international travel patterns, it is clear the terrorist attacks will impact on visitor numbers to Ireland, in particular from America, for the balance of this year and into 2002, probably leading to the first annual decline in visitor numbers for a decade. Under the framework of the National Development Plan 2000-2006, published in November 1999, a number of indicators and targets have been set for tourism performance over the life of the plan. Foreign exchange earnings from tourism were projected to grow at an annual average rate of 5%, while a reduction of 2% was targeted over the seven year period in the number of visitors arriving during the peak July-August period. In addition, an increase of 3% in the proportion of total out-of-State tourism revenue accruing to the Border, midlands and western region was targeted over the life of the plan.

For the year 2000, the first full year of the NDP, foreign exchange earnings from tourism increased by approximately 15% – well ahead of the target of 5% – while there was a reduction by 1% in the number of visitors arriving during the peak July-August period. Progress against the regional target was also satisfactory, with a gain of more than 2% in the proportion of tourism revenue accruing to the BMW region. While the above outcome is encouraging, caution must be exercised in interpreting the results for a single year in the context of multi-annual target setting. It is inevitable that the recent unexpected setbacks will make the achievement by industry of the NDP targets more challenging over the life of the plan.

Meanwhile, the new chief executive of Tourism Ireland Limited, Mr. Paul O'Toole, spearheaded the review of marketing plans for 2002, which culminated in the launch on 7 November in Dublin and Belfast of marketing plans for 2002 and details of a new and exciting TV and print international advertising campaign for the island of Ireland, developed at a cost of approximately £4 million. The plans for 2002 will be flexible in nature to take account of the changing circumstances arising from the events of 11 September. The focus on Britain, our nearest and largest market, will be emphasised by Tourism Ireland Limited in the light of recent events. There is an opportunity for the short breaks and additional holiday market and Ireland is well positioned as a destination that is easily accessible by sea, particularly for the own car segment. Tourism Ireland Limited also intends to revive the holiday market from Europe during 2002 through prioritising geographic markets, by selectively encouraging and supporting new access gateways and routes into Ireland and by fostering switch selling by tour operators. Particular importance is attached to the partnership approach with industry and there has been extensive consultation, including two meetings of the Tourism Marketing Partnership, in the drawing up of these plans. I believe the TMP, rather than the reactivation of the High Level Foot and Mouth Industry Group, is the best mechanism to input the views of the tourism industry present.

Since taking office the Government has allocated significant funding to tourism. Under the national development plan, a total of £350 million has been earmarked for product marketing and human resource development. The first ever multi-annual tourism marketing fund has been established, with a commitment of £150 million over seven years.

As regards calls for rates relief by the Irish Hotels Federation, I should point out that such relief is primarily a matter for the local authorities and the Minister for the Environment and Local Government.

The tourism industry has matured greatly in recent years and has built up a tremendous product base which makes Ireland a very attractive international tourist destination. I welcome the response of many businesses in the sector who are already readjusting their marketing and pricing strategies to secure extra business in the current difficult climate. We must maintain competitiveness and keep prices as attractive as possible. I am confident the recent attractively priced offers from the air and sea carriers, accommodation providers and others will begin the process of working our way out of present problems. The Irish population and Irish businesses can play their part too in taking a decision to holiday and hold conferences at home and I have specifically written to my ministerial colleagues asking them to encourage their Departments and agencies to hold conferences and events in Ireland whenever possible.

We have had nine uninterrupted years of growth in tourism. The years 2001 and 2002 will undoubtedly be challenging but we have a strong and vibrant industry with the strength to get through this unprecedented crisis and I believe we will do so.

I wish to return to issues I raised as priority questions. The Minister said the best case scenario in terms of tourism figures is a return to 2000 levels. Can the Minister give an estimate for the worst case scenario? Does he agree there is a need for a flexible approach to be taken in relation to the grants paid by Bord Fáilte in light of changing circumstances, including foot and mouth, 11 September, 12 November and the downturn in the economy? Does he agree it is necessary to ensure none of these grant aided developments closes and that the infrastructure must be in place for the future development of tourism? Does the Minister agree there is a need for a co-ordinated approach to marketing programmes within and outside the country between Tourism Ireland and organisations such as Heritage Ireland, and the houses, castles and gardens of Ireland organisations? Given the loss of 30 jobs in the Minister's constituency with the closure of Go-Ireland.com in Letterkenny, does he believe it is necessary to review the contracts of groups with Gulliver in relation to selling hotel beds and holidays, and that the structures should be opened to realise the maximum potential from such services?

The worst case scenario in terms of tourism figures is minus 17%. I believe in flexibility and will inquire about the issue raised by the Deputy in this regard. I am not sure about the contracts as they involve EU money, and I cannot give a definite answer, but I will try to get information regarding flexibility. Regarding co-ordination, that is not a matter for TIL. I agree with co-ordination between the regional tourism authorities and the various enterprises mentioned by the Deputy, but we must remember that the one specific focus of TIL is marketing Ireland as a destination. TIL will focus on all our main markets, be it the UK or the US or the 15 different markets in Europe.

Regarding job losses following the closure of Go-Ireland, and Fexco and the Gulliver system, I am not sure I understand the Deputy. The extended contract with Gulliver ends next July and it is open for enterprises to tender thereafter.

Bord Fáilte is making £750,000 available. Am I correct in saying that is from the board's own resources? Is the Government providing additional funding for the marketing programme mentioned by the Government? If Bord Fáilte is making it available from its own resources, on what programmes has it cut back? Regarding the request from the Irish Hotels Federation and others for rate relief, does the Minister agree there are businesses in serious trouble through no fault of their own? Does he agree he has more or less rubbished the request? Does he know why the Northern Ireland package was not taken up? It seems strange for businesses not to take up money that was going abegging? Was the package not good enough?

The £750,000 is additional Bord Fáilte money which is being provided for the markets I indicated. About two weeks ago ITIC came to me requesting further funding be made available, particularly for the UK where statistics show approximately one million people were not going to take a holiday this year. Consequently, the campaign has been running there, mostly through the Sunday newspapers, and it has been very successful. It requested additional funding to carry on that campaign until the end of the year, and an additional £1.15 million—

Is that money from the Exchequer?

No, we had to find it from within Bord Fáilte and my Department.

What was cut?

Nothing was cut.

I would prefer if the Minister did not answer questions which are asked by way of interruption in fairness to other Deputies who wish to ask supplementary questions.

In the context of recent tragic events, does the Minister think it advisable for his Department to examine the tourism industry from the perspective of potential tourists with a view to making Ireland an attractive place to visit, with the highest possible standards and economical and viable transportation to and from the country? Will he undertake to review the infrastructure with a view to making this country more competitive and more attractive and giving good value for money, particularly in the current very competitive circumstances?

Before the Deputy came into the House I mentioned we have examined and refocused on the marketing programme for the end of this year and into 2002. This is a very attractive country to visit. We have a number of things in our favour, including in the past few weeks decommissioning and the idea we are a safe place to visit. People who may have planned to go elsewhere are readjusting their plans and I hope we are in a position to benefit from those changes in plans. Access is important. It has been proven time and time again that where the cost of access is low people will respond. This has been proven in parts of Europe where, for example, access has been opened up from Frankfurt to Shannon and is a huge success simply because of the low cost involved. Since 11 September, most carriers have become low cost carriers and we must provide the necessary incentives to ensure we are at the coalface.

Is the Minister aware of a confidential survey carried out by MRBI on behalf of Bord Fáilte which examined rural tourism. I was alarmed at the newspaper report that the reputation of Irish food among European tourists is not good. Other points made were that accommodation is expensive and food and hygiene is poor. That is not my experience but I would like the Minister to clarify the issues for me.

I am not aware of the MRBI report. I was of the opinion that in niche areas such as food this country had an excellent reputation. Accommodation can be expensive in some areas. All of us have continuously pointed out that if operators make Ireland a high cost destination we will no longer be a popular destination. Members on all sides of the House have repeatedly appealed for competitiveness given the discerning visitors who now travel here. We must be as competitive as possible and I appeal to people in areas where accommodation is expensive to rethink that aspect. If what the Deputy says is true, I foresee problems ahead if we become known as a high cost destination.

(Mayo): Does the Minister accept it is ironic that this confidential internal report which obviously has been leaked to the media should be presented on the week the Minister and his colleague in the North launches Tourism Ireland? Does he accept that such a report by an organisation directly under his command should be addressed immediately? The report refers to over-priced hotels, guesthouses and B & Bs, seaside holiday villages and high density hotels not being the preferred option of holidaymakers. It states that traditional, natural and affordable accommodation is the preferred choice and, in the context of European tourists in particular, it complains about lack of entertainment for children. As these key elements are identified by an organisation which has commissioned a report by the top marketing bureau in the country they should be addressed as a matter of urgency to identify the defects.

I agree with the Deputy and I would be very concerned about such a report. I have been considering restructuring Bord Fáilte and CERT who deal with these specific issues. I am trying to bring about a merger of these two organisations to be named the tourism development agency or another name yet to be found. That will bring together the remnants of Bord Fáilte and CERT, given the excellent work that organisation has been doing, to ensure the statistics the Deputy says have been leaked do not occur. We are doing everything possible to ensure this country remains a very popular destination and, given the funding which is being provided, I hope we will be able to overcome these difficulties.

I will take brief questions from Deputies Naughten and Boylan.

My question relates to marketing and the regional tourism boards. For example, five different organisations promote holidays on the River Shannon. Does the Minister consider there is a need to reform this area to ensure there is a co-ordinated marketing approach for various sectors?

The American market is and will be an important one again. In the meantime, I regularly come across English, French, German and continental tourists who have come here to fish and who say this is their first visit to Ireland and that had they been aware of what we have to offer they would have visited here sooner. That indicates our marketing strategy is not satisfactory and that there are thousands of people in England, France and Germany who are anxious to come here but are not aware that we have such facilities to offer. We take it for granted that these people are aware of what we have to offer. While I do not wish to be critical, I believe those involved in marketing have not done a satisfactory job.

On the regional tourism authorities, there are far too many groups involved in marketing tourism. This is the case, in particular, in regard to print. There are tonnes of print material available and we should be cutting down in that area. However, I agree with the Deputy that there is a need for co-ordination.

I agree with Deputy Boylan in regard to angling. When the Government took up office there was a problem in the area of angling and there have been problems in the past four or five years. We have put a great deal of funding and marketing into golf in the past ten or 12 years which has paid handsome dividends. We should now concentrate more on angling tourism which has huge potential. I am told there are more anglers in the UK than the numbers who go to football matches on Sunday afternoons. These people are high spenders and I assure the Deputy that marketing will focus on the new niche area of angling.

Written Answers follow Adjournment Debate.

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