Dáil Éireann debate -
Tuesday, 25 Jun 2002

Vol. 553 No. 5

Private Members' Business. - Tourism Industry: Motion.

Mr. Deenihan

I move:

That Dáil Éireann:

–concerned that tourist numbers are considerably lower this year than in previous years;

–conscious of the importance of the tourism industry to the economy; and

–recognising that unless action is taken to address this situation there will be job losses in the tourism sector and collapse of tourist-related business;

calls on the Minister for Arts, Sport and Tourism to make additional funding available to Tourism Ireland to launch an immediate marketing campaign in the USA and the UK to win back critical market share in those countries.

I wish to share my time with Deputies Connaughton, O'Dowd, English, Pat Breen and Durkan.

An Leas-Cheann Comhairle

Is that agreed? Agreed.

Mr. Deenihan

The Irish tourism industry is facing one of its most difficult periods in recent years. It is in the interest of the tens of thousands of Irish jobs in the tourism sector that are on the line that Fine Gael is moving this Private Members' motion this evening and it is vital now that the Government tackles this crisis head on. If it does not act, it risks losing a substantial amount of money that goes to the Exchequer in direct and indirect taxes from tourism.

Last year, a staggering €2 billion went into the State coffers from tourism, while €5.1 billion was generated by the industry. Some 145,000 people are employed in the tourism sector, 60,000 of them working in hotels and guesthouses alone. Lest the true magnitude of the problem is lost on the Minister, as it seems to have been on the negotiating teams for the programme for Government, I propose to outline the reality of tourism in Ireland in 2002.

The number of visitors from the United States is likely to be down one quarter on the numbers that came here in 2000. While Britain is spending €11 million marketing itself in the US this summer, Ireland's promotional budget has already run dry. The numbers coming from Britain will only improve if there is a late surge in booking. However, Ireland does not currently have any marketing campaign in place for the British market. There is likely to be a fall-off in the level of coach tours of around 40%, threatening closure of countless businesses, including many in the county the Minister and I share.

The continental European market is static, with problems being experienced in the Benelux and Scandinavian markets. The situation is particularly bad in Germany, with every sector except those visiting friends and relations, reportedly down. Visitors from overseas areas other than North America and continental Europe have slumped by 10%. There is nothing short of an emergency in Irish tourism and Fine Gael is now calling on the Government to act swiftly and decisively before it is too late.

It is, of course, the case that all of this was predictable, and plans should have been put in place long before now. A global recession has been on the cards for two years. The foot and mouth outbreak in spring 2001 should have set alarm bells ringing at Cabinet and the tragic events of 11 September were bound to have a detrimental impact on tourism numbers, especially transatlantic traffic. None of these events, it seems, registered with the Government and the Minister's predecessor, and the Government of which he remains a member must take the blame for the lack of preparedness in the Government's tourism strategy that has forced us to move this motion tonight.

In the past ten years, one in every three new jobs created here has resulted directly from the growth in tourism. The Exchequer benefits by 57 cent for every euro an overseas tourist spends when they arrive here. That is how vital tourism is to the survival of the Celtic tiger. It has been one of the engines behind our economic success and is now seriously threatened due to the negligence of the current Administration. The industry is sure about what needs to be done, even if the Government is not. We on this side of the House are aware of what needs to be done too.

The first most glaring problem is how to communicate an image of Ireland into the living rooms of potential visitors. Marketing the country as a holiday destination is vital to the success of tourism here, yet we are bereft of a current marketing strategy in Britain and the United States. Following the foot and mouth outbreak, the €8 million of additional marketing expenditure resulted in more than €130 million in visitor expenditure, €40 million of which was recouped by the Exchequer. It is vital that we convey the message to the world that Ireland is a country waiting for visitors and that there is nowhere better in the world to spend a few weeks. Unless that is done immediately, we risk losing market share to other countries with bigger budgets and more economic muscle.

At a time when Martin Sheen and Rob Lowe from "The West Wing" are urging Americans to visit Washington, Ireland must do something to encourage Americans to go somewhat further and cross the Atlantic. Tourism Ireland used Martin Sheen this year very effectively to promote Ireland in the early part of the season. However, despite its success, the campaign has been discontinued due to lack of funding. As Britain pumps €65 million into marketing itself in the wake of the double blow of foot and mouth disease and 11 September, our Government is spending less on marketing than last year. This is another example of how Ireland is being left behind.

The Minister must now spell out what his Government intends to do to regain the initiative in the vital British and American markets and must make additional funding available to Tourism Ireland to do its job effectively. The hands of Tourism Ireland cannot be tied by a Government unwilling to invest the money needed to support tens of thousands of jobs. The impression is given that in the midst of its electioneering and election give-aways, the Government cared little about our biggest indigenous industry. If this is not the case, let the Minister prove it by accepting Fine Gael's proposal to allocate extra funds. It is the only way we can make progress in regaining lost tourist numbers, lost revenue and lost jobs in this vital sector.

Throughout the country, the cries for help are deafening. A large Kerry hotel, with which the Minister would be very familiar, has witnessed a downturn in the coach business so great that in March of this year it catered for just three coach tours as opposed to 72 in March 2001. Even with those businesses which are doing okay, things are tough. Business currently being conducted is often at cost price or below it just to keep the visitors coming in the hope that a profit may eventually be returned at some point in the future. This is a dangerous strategy for businesses.

Visitor numbers to our numerous visitors' centres and attractions throughout the country are down considerably on previous years. Statistics do not show the true level of the problem on the ground. For example, the CSO reported that at the height of the foot and mouth outbreak, visitors from Britain to the western region grew by 27.4%. This is hard to square with the surveys reported from three out of four premises showing that numbers were actually down.

Hotels in a number of regions, particularly in Dublin, Galway and the Shannon region, including Kerry, and right across the country are facing real difficulties. I am sure my colleagues will give example after example of hotels and other tourism-related businesses that are under severe difficulties at the moment.

It cannot be overstated how important it is that Tourism Ireland launches an immediate marketing campaign targeting the vital UK and North American markets. For every €1 spent on Government funded marketing programmes, there is a €50 return to the State. We do not call for more spending in the motion, rather we insist on tourism being given the extra investment it deserves.

It is sad that we are debating this issue. The foot and mouth disease outbreak, the events of 11 September and the United States recession were out of the hands of the Government, but the last five years of economic prosperity, a prosperity it inherited from the rainbow Government, should have put Ireland in a much better position to withstand these economic shocks.

What has the Government done to alleviate the other issue holding back the tourism industry? Ireland is an island nation and for a vibrant tourism industry to thrive, access is paramount. No effort must be spared in ensuring Aer Lingus provides as many direct routes into the country as possible and that provision for low cost airlines flying directly to Dublin, Shannon, Cork, Kerry and other airports is made as quickly as possible. This Administration's record in giving support to our national airline and giving the best deal to air commuters has not been glowing. It is to be hoped that the commitment made in the programme for Government on a fast turn around facility at Dublin Airport is delivered. Over the coming years, Fine Gael will monitor the Minister every week to ensure that it is implemented.

How can Ireland compete with major travel destinations when, to get here, most international visitors cannot avail of cheap flights and must endure the extra cost and inconvenience of flying via London, Amsterdam or Rome? On checking the cost of flights this evening, I discovered that it would cost $1,100 to travel directly from the United States to Ireland. By contrast, it is possible to travel to United Kingdom airports from the United States for $500. That gives the United Kingdom an immediate advantage as a holiday destination. Until tourists can take their pick of low cost airlines and seek to fly directly into the country from a major international city at reasonable cost, Ireland cannot hope to compete on a truly level playing pitch. The Minister and his colleagues in Government must turn their mind to opening up this country to tourism like never before, or else face the prospect of ever decreasing tourism numbers, revenue and industry jobs.

Something must also be done about the increasing burden of cost that is being placed on those operating within the tourism sector. Insurance costs, another great area of Government failure, grew by an average of 48% last year. An aggressive stance must be taken to end the compensation culture, endemic in this country and unchecked by the Government.

The Government should also ensure that the insurance compensation fund provides assistance to Irish businesses exposed to claims after the collapse of the Independent Insurance Group in the UK, following which 30 Irish hotels, which have been exposed to claims totalling €12 million, have seen the company with which they are insured put into provisional liquidation.

The environment also offers a challenge to the Government to take action. The litter problem and the need to ensure Ireland's green image is a reality for tourists when they arrive are vital to attracting visitors and ensuring they return.

The national convention centre is another vital plank of the Government's tourism strategy. It has been much talked about, but remains only a matter of Government rhetoric. The Minister has been called on by the ITOA and others to spell out exactly what the Government means when it states in its programme that it will ensure the construction of a state of the art national conference centre. Such a centre is long overdue and will prove pivotal to ensuring Ireland continues to attract the conference travel business it has been so good at attracting in recent years.

It is unfortunate that the programme for Government does not give any details on what shape the conference centre will take, when and where it will be built, how much it will cost, how many it will cater for and so on. If the Government is to be credible, it must spell out how it intends to proceed. If it does not do so, it will lose the confidence of the tourism sector and add to the falling morale in tourism-related businesses, which already feel ignored and neglected. The industry must be in a position to incorporate the centre into their marketing and promotional campaigns so that the word can go out that Ireland is serious about catering for its visitors and that it can boast the same world-class facilities other competing countries can offer.

I understand the Minister met the Kerry hotels' federation yesterday. There is a serious problem not only in County Kerry, but across the country. Tourism in Ireland is not being promoted in America. It is not visible in the media. This year, Americans are making decisions about their holidays later than usual. Now and over the coming weeks they will finalise their plans. They usually visit Ireland in October and it is very important the Minister finds the revenue to target this market. People in the United Kingdom traditionally make up their minds later. The country is only a stone's throw from Ireland and the market there is waiting to be exploited, yet there is no presence there.

Mr. Connaughton

I thank Deputy Deenihan for introducing this motion and I congratulate the Minister on his new portfolio. I hope he will be very successful. Tourism is a very important and useful industry. It is also one of the few industries that is regionally based. In any regional development programme, tourism is at the centre because irrespective of how centralised the economy is, it is impossible to transpose tourism sites, such as the lakes of Killarney, to Dublin. Investment programmes should always play to that strength by ensuring that investment in the industry is dispersed around the country, including Counties Mayo, Clare and Galway.

The tourism industry has had four or five great years and it cannot be denied that there has been a huge increase in the number of visitors to the country. Despite this, it appears that the impetus has gone out of the industry. It suffered many body blows last year, about which nothing could be done, and I am told by many in the industry that the signals for this year are not encouraging. In view of this, it is necessary to give advertising in the industry another kick-start.

Many hoteliers tell me that the American trade does not look good for the rest of the year. According to my inquiries, some of the hotels are doing well but many others are not. For example, one hotel told me that June was well down on other years and that the outlook for the rest of the year does not look good. Another hotel in Galway told me that while the season to date was acceptable, June, a very important month, was well down on last year. Another hotel in Galway referred to a very poor take-up on bed nights until it drastically reduced the rates. It meant working for nothing to keep the hotel going. The Irish Town and Country Homes Association states that the season to date has been very poor, Farmhouse Holidays in Ireland reports its season is very bad. I am told by the Galway craft shop industry that the season to date was slightly down for the first five months but that June was very bad, which is a very worrying sign. To date, passenger numbers for sea cruising in Galway are down by 18%.

The fishing sector has been very badly hit. The North West Regional Fisheries Board advises that due to the exceptionally high water levels, there is a huge decrease in the number of visitors to the north Mayo and Ballina areas. The reasons for this are weather related. I have been informed that there is a 75% reduction on last year's sea angling numbers around Achill and that many of the bookings that were made have been cancelled. That is bad news for that scenic but remote area and many people are extremely worried about what is happening there. I suggest to the Minister that now is the time to take the initiative. It need not be very costly to do so. I am aware that advertising is expensive in America but if it is targeted, it would provide the reassurance that Ireland is still the place to which they should come. I have no doubt that our natural beauty and assets are unrivalled.

We also have to look closely at competitive pricing and other areas that I do not have time to address. The Minister would be well advised to get extra Exchequer funding and ensure it is spent in the right way both in the UK and America.

Mr. O'Dowd

A Cheann Chomhairle, ba mhaith liom i dtosach mo comhghairdeas a ghabháil leatsa agus leis an Aire as ucht an phoist nua atá agaibh agus tá súil agam go mbeimid in ann oibriú le chéile insan áit seo.

The tourism sector is a very serious and important industry which is a very large income earner and employer. Bord Fáilte has described the current state of the tourism industry as a wash-out. We have had a particularly bad year but we have also been affected by international events, particularly with regard to terrorism, which have affected and will continue to affect where people will take their holidays. Although it is a very popular destination for Irish tourists, the terrorist bombs in Spain last week will prompt many people to change their minds about going there. Since the Good Friday Agreement, in particular, Ireland is an ideal holiday location. The Minister and his Department must spend as much money as possible to target the people who are in the process of changing their minds.

I was saddened to read an article in the Evening Herald last week which stated that one of the most renowned bed and breakfast's in the Gaeltacht area of Connemara, which has 14 bedrooms had just four visitors last weekend. That is a serious matter and we need a focused marketing strategy from the Government to address it.

The question of America is very much in our minds. Parity between the dollar and euro presents a difficulty in that costs will rise for Americans coming here. We have an issue to address in terms of costs and making Ireland more attractive as a destination. I agree with Deputy Deenihan's point about the difference in airfares depending on which way one travels between America and Ireland. We need to have a much more aggressive marketing campaign aimed at Irish-Americans in particular. The same article in the Evening Herald pointed out that Americans not alone believe that foot and mouth disease still exists here, but that if they come here they may contract it. That is incredible but true.

Coming from County Louth, I urge the Minister to make contact with his colleague the Minister for Transport, Deputy Brennan, in regard to a toll which is proposed for the town of Drogheda, which will affect many thousands of tourists who will come from north of the Border to visit Drogheda and the Boyne Valley. As they come off the new motorway they will pay a toll to visit the town and a second one on leaving it to visit the Boyne Valley, Newgrange and so on. That is unacceptable and will have a serious and detrimental impact on the tourism and trade of the town.

Many Irish people, especially with young families, wish to holiday in Ireland. There have been changes especially in regard to the licensing laws and it is now possible for people with young families to get food up to 7 p.m. in pubs. There is a lack of adequate investment in indoor recreation and amenity throughout the country and as somebody who has spent the last 20 bliain ag dul go dtí Corca Dhuibhne, níl aon rud ansin ach an Ghaeltacht féin. Níl aon áit ann gur féidir le clann dul ann, seachas óstán nó pub. Ba chóir go mbeadh a lán áiteanna eile, mar shampla linn snámha nó áit inar féidir cluichí a imirt nó a bheadh sásúil do pháistí óga. Níl go leor acu sa tír. We need investment in indoor recreational amenity outside of pubs and hotels for young families in particular; that might encourage young families to holiday in Ireland.

Mr. English

In supporting the motion proposed by my colleague, Deputy Deenihan, I run the risk of being called a whinger but I will take this chance as the situation is very serious. In my own county of Meath, tourists are more scarce than hair on an egg, or even Meath goals in the match on Sunday.

Mr. O'Dowd

And next Sunday.

Mr. English

Do not mention next Sunday. In the past few months a hotel in County Meath that caters mainly for American tourists has had one American guest. That hotel is under serious financial pressure, as are many other hotels, and it is our duty to help.

We all remember the rhetoric and fine words of the Government during the foot and mouth crisis. We were told the Government would not be found wanting when this phase was behind us, but that is not case. What extra resources have been made available to see these promises through? The people of counties Donegal, Kerry, Mayo and even my own County Meath played their part during the crisis; indeed they went beyond the call of duty to ensure the plague was kept at bay. Many groups unbegrudgingly called off sporting and entertainment events. I had first-hand experience of this as I was involved in a festival committee in my home town of Navan. The Government did not direct us to call off events, but rather advised us to think hard about it. Like many other groups we acted from loyalty to this country by calling off our festival. People cancelled their plans and deserve to be rewarded for that. I know what the cancellation cost our committee, but it was only a fraction of the cost to the many families and businesses that are in the tourism sector and have invested heavily in facilities to attract and cater for tourists.

These people were encouraged to invest heavily by Government. Many of them used their houses as security and built their businesses around their homes. If these businesses were to fail, it would lead to a loss of jobs, which in itself would be a disaster, but also to the loss of family homes. To apportion blame for the foot and mouth crisis is another day's work, but it is wrong to make thousands of families involved in the tourism sector its victims, and for this I blame the Government. The Government has not done enough to help the tourism industry since the FMD crisis or since 11 September and no extra funding has been invested into marketing Ireland abroad to address the obvious and predicted drop in tourist numbers due to the World Cup. If the people on the street knew this, then surely to God the Department knew it. It is not too late.

If we give more resources to tourism marketing, an effective campaign will make up for the lack of investment to date. It will make up for the problems I have outlined and for the bad weather conditions. The price of insurance has certainly not helped but that is another debate to which I look forward. Failure to make additional resources available will, as I have already said, spell disaster for many. We must present a positive message. We must show that we are prepared to back our tourism industry and show how important it is to our economy. We must acknowledge that visitor numbers are down on previous years and unless action is taken now, jobs, homes, etc., will be lost, both directly and indirectly. It is up to the Minister to make available the funding that the tourism sector needs and deserves. Let us stop fighting over cents because it does not make any sense to let our tourism market drop.

Tourism is vital to Ireland's economy. It does not take anything from our country. It does not involve the removal of natural resources, a requirement for open cast mining or a rapid deterioration of our environment. The only requirement is that the tourist has a good time and leaves our country happy. For the tourist to have a good time, however, we must get him or her here. We must market abroad to get the tourists here.

Mr. P. Breen

I also wish the Minister well in his new brief and hope he is tremendously successful in it.

Last year was a bad year for tourism. There was the foot and mouth disease crisis, which affected us in the prime months of April, May, June and July, and the horrifying events of 11 September, which devastated the tourism industry in the later half of 2001 and which still affects us ten months later. When one adds to this the miserable weather conditions over the past two months which have affected the domestic market, the outlook is very bleak.

Most commentators compare the figures for the first six months of this year with those of 2001 and the current indications are that tourist numbers are down about 15%. It would probably be more realistic to compare these figures with 2000. In that case, that percentage would be much higher – possibly 20% or more.

As my colleague, Deputy Deenihan, stated, there are 145,000 people working in the tourism business in Ireland, that is, one in every 12 jobs. Some €2 billion went into the Exchequer last year in indirect and direct taxes from the sector. In County Clare, the barometer for indicating the tourist numbers in the region is the number of people attending the castle banquets at Bunratty, Dunguaire and Knappogue and attendance is considerably down on previous years. In addition, transatlantic business is down by 21% as a result of fewer flights on the transatlantic route and as a result of few Americans travelling into Europe because of the events of 11 September. Whereas last year there were Aer Lingus flights from New York airport and from Washington, this year these are no longer taking place because of the cutbacks in Aer Lingus.

Over the weekend I talked to a number of prominent guesthouse owners in the area. This is the first time in many years that many of their guesthouses were empty for the June bank holiday weekend. Neither had they any walk-in business, which is normal for this time of the year. I also spoke to a prominent Ennis hotelier who told me that there are no coach tours anymore.

The Government must take immediate steps to protect this important industry. In recent months the British Tourism Authority – BTA – has marketed a huge newspaper and television advertising campaign here to publicise the various regions in England and the American Government has done likewise by investing millions of dollars to protect its tourism business. As Deputy Deenihan stated, the additional expenditure of €8 million in 2001 which followed the foot and mouth disease crisis generated €130 million in visitor spending last year. If €20 million was invested in marketing funding, it would boost visitor spending by €300 million, with €180 million ending up in the Government's coffers.

Low-cost airlines must be encouraged into the west of Ireland as that area will always be the first to suffer from a tourism slow-down. The terminal at Shannon Airport, which cost €30 million in 1997, can handle up to 5.5 million passengers but is handling only 2.2 million passengers at present. Ryanair promised that four new routes into Shannon would be opened in return for Pier D and this promise must be honoured. More competition by low-cost airlines must be developed, particularly following the merger of Go and Easy Jet. The four European routes which Ryanair currently operates from Shannon are very successful and bring many low-cost passengers into the mid-west region.

The Minister must look into the rip-off which followed the introduction of the euro in 2002. We share a common currency with our European neighbours and this must be promoted with our European colleagues.

I call on the Minister to make additional funding available to Tourism Ireland to launch an immediate marketing campaign in the US, in the UK and in the rest of Europe so as we can win back the critical market share in these countries.

Mr. Durkan

Like my colleagues, I congratulate the Minister on his appointment and wish him well. It is unfortunate that his entry into office seems to coincide with a downturn in the tourism industry. In that regard, we all must put our shoulders to the wheel and offer what assistance we can.

The time for referring back to last year is gone. This year is a new era and what happened last year, with the foot and mouth disease crisis and other matters, is history. There is a danger that the industry might decline, using that as the excuse for the problem. There is no sense in looking for excuses. We must compete and the competition is tough. As previous speakers have said, we are competing against our next door neighbours and other holiday offering facilities all over the world, and all over Europe in particular.

There are three grounds on which we can compete, that is, hospitality, price and standards, and all three grounds have a very serious impact on what happens. If there is a bad year in the business, it tends to replicate in the following year because the experiences are still fresh in people's minds. Therefore the kind of promotions to which my colleagues have been referring are needed urgently to encourage people to take up the offers and to encourage the hotel industry and the catering industry. It will be too late in a month's time. It is needed now. It is in everybody's interests to bring together the best thinking available to concentrate on the business at this stage and to see what can be salvaged from it for the rest of the year. We are only half way through the year and there is sufficient time left to recover if everybody recognises that they have a role to play and plays it.

We should appeal to domestic tourists, many of whom, for want of fine weather, tend to go abroad. However, we can still compete, even in that area. In the past we were always able to compete, even when the weather was bad. Even in the rain, we had something different to offer. We need to ensure that adequate resources are made available to the industry to promote itself and to ensure that it is capable of competing with anybody.

No doubt the events of 11 September had a negative impact but we must recover from such situations and there is no use in waiting for two or three years to recover. We must recover quickly. It is important that the Minister put in place whatever resources are required by the industry in general to give it an opportunity to recover early rather than late.

One must remember that there is another aspect to all of this. There are a number of issues which have been mentioned by my colleagues like the differential between the euro and the dollar, which has a negative impact from our point of view in attracting tourists here, and there are a number of other issues which have arisen in terms of the economy generally which have a tendency to leave a bit of a question mark over it. There is a grave danger that an industry would suffer unnecessarily as a result of talking itself into gloom. Success is still there for the taking. It is up to all those involved to put their shoulders to the wheel and do the job that has to be done in order that we can avail of some kind of recovery in the current year. The weather forecast should not be the only criteria to determine where people will go on holiday. The weather forecast should not determine whether a hotel has its doors open, whether its beds are full or whether there are tours arranged and operating in an area. It should not all be down to the weather forecast. It is also down to the Minister who must lead the charge and co-ordinate the efforts of everybody involved. He must assist, encourage and promote what we have going for us, which we were always able to use in the past to cope with all eventualities. We should be able to do the same now.

Minister for Arts, Sport and Tourism (Mr. O'Donoghue)

I move amendment No. 1:

To delete all words after "Dáil Éireann" and substitute the following:

–notes the challenges facing the tourism industry in 2002 arising from the aftermath of the tragic events of the 11th September last in the US;

–acknowledges the successful start-up of Tourism Ireland Ltd. and the substantial levels of Exchequer funding being provided this year for the international marketing of the island of Ireland as a tourist destination, with a budget of close to €50 million in 2002, of which €27 million is for programme marketing spend;

–acknowledges also the substantial levels of Exchequer funding being provided this year to Bord Fáilte, which has a budget of over €50 million in 2002, of which some €25 million is being deployed for marketing-related activity; and

–commends the Government for the series of actions proposed in An Agreed Programme for Government which recognises that the tourism industry will continue to be a vital industry in the Irish economy and that it requires sustained support and investment in the coming years."

I wish to share my time with Deputy Cassidy. I congratulate Deputy O'Hanlon on his elevation to the position of Ceann Comhairle and wish him every possible success in that position. I congratulate and wish well Deputies Deenihan and Lynch on their promotion to the position of senior spokespersons in their respective parties in the areas of arts, sport and tourism and look forward to a constructive working relationship with them. Knowing their record in the House, I have no doubt that this will be the case.

I thank the Deputies who contributed to the debate so far. In particular, I wish Deputies O'Dowd, English and Breen, who are all newly elected to this House, every possible success and happiness during their time here. It would be remiss of me if I did not welcome back Cork's Deputy Lynch to the House.

I welcome the opportunity this evening to address the House on the current circumstances in the Irish tourism sector. Coming as I do from Kerry, which is arguably the home of Irish tourism, I believe I have a good appreciation of the importance of the industry to the national and local economy. In my first week in office as Minister for Arts, Sport and Tourism, I took the initiative of meeting the chief executives of the key tourism State agencies to get an initial briefing on the most critical issues facing the sector and the current state of the tourism season. Later this week, I will meet a high level delegation from the Irish Tourist Industry Confederation – the key industry representative group – to hear at first hand its assessment of the situation and to see what the Government can usefully do to help. My intention is to be a listening Minister and to have an open door policy in respect of the industry and the main Opposition spokespersons and Members of this House, building on the partnership approach which was successfully developed by my predecessors.

It is useful to reflect on the scale and success of the development of Irish tourism over the past decade. Up to last year, we had ten successive years of uninterrupted growth in which overseas visitor numbers doubled to over six million and foreign revenue earnings increased threefold to almost €4 billion. International comparisons showed us to be one of the strongest growing European tourist destinations. The industry flourished and investment reached unprecedented heights with the support of Exchequer and EU funding.

Today the industry supports in the region of 145,000 jobs and makes a major contribution to our economy. My objective as Minister, reflecting the Agreed Programme for Government, is to help to ensure that tourism will continue to be a vital industry and that it gets the necessary sustained support and investment in the coming years.

Last year the industry faced its first setback in many years, with the double blow of the foot and mouth crisis in the spring and the aftermath of the tragic events of 11 September in the US. However, although there were varying fortunes within and between sectors and regions, the hard evidence is that we coped well. This was due to a combination of resolute actions at industry and Government levels. While official CSO figures for 2001 show that the number of overseas visitors to Ireland fell by 5% in comparison with 2000, they were still at an extremely healthy level of over six million. Even more remarkable is the fact that despite this first decline in numbers in over ten years, total foreign revenue earnings from all overseas visits in 2001 actually increased by nearly 8% to €3.96 billion. In addition, domestic holiday business remained buoyant last year, with expenditure rising by 16% according to Bord Fáilte figures. Contrast this with the circumstances in Britain, where British Tourist Authority figures indicate that there was a 7% decline in overseas visitor numbers and a drop of 14% in revenue compared to 2000.

While evidence from a CERT employment survey shows there was a marginal reduction in permanent employment in Irish tourism, recruitment of skilled staff remains a continuing challenge for the sector, with evidence of a continuing interest in recruiting labour from third countries. There was little hard evidence of major permanent job losses or closures in 2001, although margins were undoubtedly under pressure in many cases.

As official CSO figures are not yet available for tourism performance in 2002, it is very difficult at this stage to predict the outcome of this year's season. While air and sea passenger movements are up on last year, the indications are that outbound business is more buoyant than inbound business. Recent qualitative industry surveys by Bord Fáilte and CERT show a mixed picture, with equal numbers of respondents indicating higher and lower levels of business than last year.

Tourism Ireland believes that the first part of the year was reasonably good with a good response from the British market, which has been the major focus of its marketing activity. The German market is soft for outward travel generally, but France and the southern continental destinations have produced a good response. The US market continues to be a challenge, with the pace of recovery slower than was hoped. It is of interest that US Airlines is reporting that its peak season is generally slacker than anticipated so that Ireland will not be the only country experiencing continuing difficulties in respect of the US market. It cannot be ruled out that the recent reversal in US psychology, the drop in the value of its currency and its financial markets and the perception of its economic prospects may also impact on US visitor numbers.

There are indications that the very strong performance in the domestic market towards the latter part of 2001 has continued into 2002 and this has been beneficial to many businesses, especially hotels. Tourism operators will have to continue to offer competitive prices and good value if they are to retain this market. It is a matter of concern that recent price surveys indicate a level of price inflation in the hospitality sector which is considerably above the national average.

It may well be that the World Cup will have an impact on travel trends this year, especially in June. It does seem that there has been some softening in the British market in the past three to four weeks and some commentators have linked this to the World Cup. The combination of poor weather and the World Cup may also have had an adverse impact on domestic tourism. It is clear too that all major markets have witnessed a marked shortening of the booking period, which has created an ongoing and understandable sense of anxiety on the part of the industry, and has made it extremely difficult to call the season.

A much shorter booking horizon combined with overall softness in the US market meant that the coach tour business has taken a hit and this is borne out by some general operator surveys emerging from Bord Fáilte and Shannon Development. This may impact, in particular, on destinations such as Killarney, Blarney and Connemara, which have a traditional dependence on coach business. However, it is not clear whether the decline in the escorted coach tour business reflects a short-term reaction to geopolitical uncertainty and economic softness in the US market or represents the acceleration of a fundamental long-term trend towards more independent travel, driven in particular by the Internet. If the latter is the case, then it will be a major challenge for those resorts and businesses which have been traditionally dependent on the coach tour phenomenon to re-orient themselves to deal with possible new market realities.

This year has seen the largest ever budget deployed for the international marketing of the island of Ireland. Tourism Ireland Limited, which was successfully launched towards the end of last year, has a total budget of €50 million this year, of which €27 million represents direct programme spend. This is supplemented by substantial budgets for regional and product marketing by Bord Fáilte of the order of €25 million with special incentives in the areas of sports tourism and a new budget for festivals and cultural events. Tourism Ireland, in close consultation with the tourism industry through the tourism marketing partnership structure, took a strategic decision to front load its marketing spend for 2002. While this means that our international advertising campaigns are now virtually complete, the benefits of our marketing efforts earlier this year are still flowing and general promotional work will continue up to the end of the year.

I am aware that the tourism industry, principally through ITIC, has been pressing for additional State funding for marketing this year. Given the high level of our existing tourism spend relative to comparable destinations and the general pressure on the public finances, my Department has not been convinced to date of the need for incremental marketing funding. However, certain expenditure within the existing tourism budget has already been redeployed. This has allowed the advertising programmes in certain key territories to be extended somewhat. I understand there may be some limited scope for further redeployment of funds to front line marketing activity and I will consider the options in consultation with the State agencies and the industry later this week. Those who argue for more funds for Tourism Ireland must be absolutely clear about how much can be usefully spent and when, where and on what they want to spend it. A clear order of priorities must be set out. There would seem, for instance, to be little sense in spending money now to try to attract additional US peak season business.

While I accept that urgent decisions are required, it is equally important that the decisions taken are the right ones. It is critical to get the best advice from the industry and the State tourism agencies before deciding if such extra activity would be productive and cost effective. Consultation and agreement with the Northern authorities, who have joint responsibility for the operation and financing of Tourism Ireland, would also be desirable. I would also like to explore with the industry the options for its making a direct financial contribution to any additional front line marketing activity this year, as was the case with the recent British advertising campaign. While marketing is a key element of Government policy for the tourism sector, I am convinced that a much broader strategy is required to underpin the medium-term and long-term growth of the sector. As Minister for Arts, Sport and Tourism I will pursue such a policy on the basis of the actions set out in the Agreed Programme for Government. I take the opportunity this evening of outlining the principal actions proposed.

We will broaden our source markets so that we are not over-reliant on any one market and, in particular, seek to increase our share of the continental European market. Tourism Brand Ireland was redeveloped last year at a cost to the Exchequer of some €5 million and is being successfully rolled out this year by Tourism Ireland. Brand presence will be maintained in all key markets. While a strong effort was maintained this year in the US market, bearing in mind the continuing difficulties in that market there will be a particular focus on developing business from the British and mainland European markets.

The Department has been pressing Tourism Ireland and Bord Fáilte for some time about our poor relative performance in terms of attracting holiday visitors from the key continental European markets, particularly Germany and France. The German outbound market – the largest in the world – has been soft in recent years due to general economic difficulties but we must reposition ourselves there and get more business. Tourism Ireland is due to undertake a fundamental reappraisal of all overseas markets over the coming year and I will seek to accelerate this review in light of the commitment in the Programme for Government.

We will foster expansion and competition on air and sea routes. The maintenance of competitive access links by air and sea to Ireland is critical to future success in tourism. We are particularly well served by the levels of investment in recent years in sea access. We have seen the emergence of a high quality and competitive route network across the Irish Sea and to France. My Department will work closely with the new Department of Transport to safeguard as much of the air access route infrastructure as possible so that as traveller confidence is restored and as the recovery comes we will be best placed to avail of it. The extension by Aer Rianta of its incentive scheme for new routes to Dublin, Cork and Shannon airports is encouraging and I welcome the new air services for 2002 which will go some way to compensating for the loss of services arising from the shake-out of the airline sector that has occurred since the events of 11 September.

I also very much support the decision for Aer Rianta to proceed immediately with the provision of a rapid turna-round facility at Dublin Airport to meet the specific needs of carriers operating at the lower-fares end of the market. My colleague, the Minister for Transport, Deputy Brennan, will closely monitor this project to ensure that Aer Rianta provides the facility at the lowest possible cost, taking full account of the needs of the low fares carriers, and has the facility operational at the earliest possible date. I will also ask Tourism Ireland to work closely with the air carriers and with Aer Rianta to ensure greater co-ordination and co-operation in marketing activities.

We will support Tourism Ireland Limited in its work of promoting the whole island of Ireland as a tourist destination. The agreement with our Northern counterparts under the Good Friday Agreement is to sustain an annual programme marketing budget in the order of €27 million for Tourism Ireland. Our immediate priorities are to establish the new company in terms of personnel, operations and overseas office network and to establish its credibility with the industry at home and overseas. The company has a strong, industry-orientated board with which I hope to work closely. The new North-South arrangements have already delivered incremental funding to the marketing effort, with the largest ever all-island destination marketing campaign budget of €27 million for this year financed on a South-North 2:1 basis.

We will complete the task of creating a new national tourism development authority which will complement the work of Tourism Ireland Limited. Following high level consultations with Bord Fáilte and CERT, the previous Government last November approved the creation of a national tourism development authority to promote the development of sustainable tourist facilities and services, including the promotion of training, human resources and marketing skills. In January, my predecessor established an implementation group to report back to him with an implementation plan for the establishment of the new body. The group consulted widely, within the time available, with representatives of the tourism industry, staff representatives in both Bord Fáilte and CERT, the regional tourism authorities and Tourism Ireland Limited and produced its report in April.

The report sets out a clear vision, mission statement and top organisational structure for the new body. It outlines a number of clear steps to be taken so that the new body will be in place for the 2003 tourism season. These include the appointment of an interim board, the early appointment of a chief executive officer-designate, liaison arrangements with staff and links with other bodies. I am making early arrangements for the appointment of an interim board and have asked my Department to move forward with the establishment of the new body as a matter of priority. The draft legislation to give legal effect to the new body is currently with the Office of the Parliamentary Counsel for drafting and I hope to bring it through this House and the Seanad at the earliest possible date.

We will ensure the construction of a state of the art national conference centre and promote Ireland as a venue for international conference business. Much preparatory and planning work has already been carried out on the case for a dedicated national conference centre, including commissioning a major consultancy review last year on maximising Ireland's position in the international conference market. I have asked my Department to examine the options to deliver on the Government's commitment with a view to presenting the position to Government later this year.

We will put the maintenance of standards and services at the top of the tourism agenda. Bord Fáilte's visitor attitude surveys show that Ireland is highly rated by visitors, surpassing the expectations of one third of visitors in 2001 when only 4% expressed disappointment with their holiday experience. However, there are growing indications that standards and service may be slipping and that the quality of the Irish welcome may be under threat.

CERT has initiated a number of programmes, including the Best Practice Programme, Ireland's Best Service Excellence Programme and Award and the RETAIN initiative to assist tourism and hospitality businesses to undergo the process of moving towards best practice and achieving the highest standards of excellence. Earlier today I launched a new national awards scheme for Bord Fáilte which will recognise individual excellence in this area. My intention is to ensure that due regard is given in establishing the National Tourism Development Authority to the maintenance of standards and quality assurance as envisaged in the report of the implementation group.

We will continue to support the bed and breakfast and small accommodation sector through specific marketing initiatives. Bord Fáilte already provides a programme of supports for small and medium sized enterprises, including a special initiative for bed and breakfasts, farmhouses and small hotels. Co-operative marketing opportunities through product marketing groups will be encouraged as the most effective means of accessing overseas markets in a cost effective way.

We will encourage year-round activity-based and special interest tourism. This objective will be pursued principally through the new tourism product development scheme which was launched in January 2002. This includes three principal categories of projects: the development of major attractors and clusters of attractors; the development of special interest pursuits; and tourism environmental management. Independent product management boards have recently been appointed to assess projects under this scheme which have been submitted following an open call for applications earlier this year.

We will ensure that local authorities take account of the needs of the tourism industry in the provision of infrastructure. My Department will use every opportunity available to it to press the case for ensuring that the needs of tourism are taken into account in determining the infrastructural needs and priorities of the local authorities.

We will promote sensitive development of tourism areas and encourage environmental best practice among tourism providers. Projects selected for support under the tourism product development scheme will have to demonstrate that they have taken account of the best practice that emerged from the Operational Programme for Tourism, 1994-1999, pilot initiative on tourism and the environment. In addition, we will ensure that due regard is given in establishing the National Tourism Development Authority to integrating a strong environmental focus with its product development functions, as envisaged in the report of the implementation group.

I have set out my initial assessment of this year's tourism season and have outlined the general policy objectives which will guide my work over the coming years in line with the Agreed Programme for Government. I intend consulting widely with the industry and the tourism State agencies to guide me further in my work.

With regard to the motion, I accept that the current indications are that this is a difficult season. However, I believe from my initial soundings – and this view is shared by the tourism State agencies – that the degree of difficulty varies from region to region and from sector to sector. We will spend close to €110 million in Exchequer funding this year in support of the tourism industry. I will urgently review the situation to see what further steps can be taken to help the industry to meet the unique challenges it faces this year.

I look forward to the debate on this motion and the contributions by the various speakers. I commend the Government amendment to the House.

Mr. Cassidy

I congratulate the Leas-Cheann Comhairle and the Minister, Deputy O'Donoghue, on their respective appointments. This is my first opportunity to address the House and I do not wish to let it go by without saying that the last person from the Coole electoral area to address the House, the late Joe Kennedy, did so in early 1965. I am deeply honoured to be a Member of the 29th Dáil and it is only fitting that I should make my maiden speech on the subject of the tourism industry. I have been associated with it over the years and am delighted to be in a position to say a few words on it.

The tourism industry is a wonderful one to which we as a nation have looked to generate employment and growth in the past 15 years. It is also one which is very high in the services sector. Anyone involved in it knows it is a seven day week industry. These days value for money is the key and those in the industry who will survive will be those who give value for money. Ireland in the main gives very good value for money and standards have improved enormously over the years. This is mainly due to the commitment of everyone in the industry and of the Government which has shown how seriously it treats the tourism industry. Those of us in tourism who must invest in major capital programmes have been encouraged and given the incentives in our budgets by having those invested capital moneys acknowledged to allow us to continue to reinvest in the industry.

It has been suggested by many Members that something should be done in the short-term. We plan ahead in the tourism industry as regards bookings. If investment is needed in the short-term, there are only two ways that can be done. It is widely known throughout the world that television advertising has a penetration rate of 70%. Therefore, any money invested in advertising must be television related. On the other hand, there is no point advertising in markets, be they in Europe, the United States or elsewhere, unless flights are available.

Foot and mouth disease and 11 September were cited as two major difficulties which arose last year to which the industry had to respond. When another major tourist attraction, the Disney corporation in Orlando, one of the most powerful in the world, had difficulties, it turned to television advertising and looked at where flights were available. Delta Airlines came to the rescue of the Orlando based corporation and was its saviour.

From my experience over the years as a hotelier and being in the industry, Bord Fáilte and all those charged with responsibility in this area have done a marvellous job with the resources available to them. I compliment Aer Lingus and Aer Rianta for the wonderful job they have done over the years as well. I also acknowledge the marvellous contribution of Ryanair and all it has done for the tourism business.

The Minister and Deputy Deenihan, great Kerrymen representing their county, and Deputies Moynihan-Cronin, Lynch and O'Connor – Dublin had a wonderful win last Sunday – will be aware of the importance of sporting activities in the domestic market. These are available every weekend to anyone who wants to fly in from the United Kingdom or anywhere else and it is an important market. People in the industry will say that the backbone of their business is their Friday and Saturday business. This is where Ryanair should be acknowledged for what it is doing by making transportation affordable from the nearest large market of 60 million people, namely, the United Kingdom. We should work hand in hand.

The Minister has issued the invitation and we should be working with everyone who can help the tourism industry including Ryanair which will be asked to play a part. The low fare airline's advertising campaign for its website, Ryanair.com, was transmitted four times an hour, 24 hours per day and seven days per week on the Sky News television channel right across Europe. It was one of the best marketing ploys I have seen since I became involved in the industry in 1963. The company has great expertise available to it and we can look forward to it making a major contribution to bringing tourists here.

I compliment the Minister's predecessors, Deputies McCreevy and McDaid, who marketed Ireland on the European golf circuit with an invitation to audiences and competitors to come golfing in Ireland and to enjoy other sporting activities here. I could speak for an hour on this issue but I am content in joining the Minister and being associated with the Government amendment.

Ms Lynch

I am sure Deputy Cassidy could speak on this issue for an hour and I was worried he would do so. His argument that advertising works is effectively the same as mine. He spoke about how effective it is which is essentially the point of tonight's debate. I congratulate the Minister on his new post and hope he does well and that his post is a benefit to the tourism industry.

In preparing for this debate, I wondered if the Opposition motion was a fruitless exercise because the Minister has already been reported in this morning's press as having ruled out any additional funding for marketing tourism in the US. To rule this out before he met representatives of the Hotels Federation or attended this debate was a bad start to his tenure. I was shocked to read that he appears to be taking a McCreevy-ite approach to his new brief which is that, unless the value to be obtained from investment in a crucial industry far exceeds the cost to the Exchequer, the investment is not worth making. The value for money approach we have seen in the health service seems to have been adopted in relation to tourism. Perhaps the Minister has not had time to read himself into his brief but he should know that money invested by successive Governments in the tourism industry – particularly in marketing – has always generated a multiplier effect in terms of income from that investment.

In recent years, the Irish Tourist Industry Confederation – which the Minister has said he intends to meet – has estimated that investment by the State in tourism marketing yielded an extraordinary 50 to one return to the Exchequer. This effect means that, for every €1 invested in marketing tourism, there was a return of €50 to the economy. I doubt the same could be said about any other industry.

The Minister's comments in today's edition of the Irish Independent could be mistaken for those of Deputy McCreevy. Indeed the Minister's comments were reminiscent of Deputy McCreevy's statement around this time last year when he declared that the Government would not even consider compensation for the tourism industry in the wake of the foot and mouth crisis. Again, this was before he had even met industry representatives to discuss the crisis. Last night, the Minister for Arts, Sport and Tourism again wielded the financial hatchet before he met the Irish Hotels Federation saying that “to go off now and have a substantial spend on the US, even if we did have the money – which we don't – would not yield the results”. The implication in this statement is that any further investment in marketing in the US in the immediate future is worthless. How does he know this when, as Deputy Cassidy pointed out, advertising works well?

At a stage when Americans are beginning to get over the events of 11 September and travel again, it is surely time to invest heavily in marketing in the United States. A substantial marketing campaign in the US for the remaining half of the year would lead to an increase in visitor numbers in the next six months if the ratio of expenditure to income was similar to recent years.

One thing that can be salvaged from the Minister's comments last night is a willingness to concentrate more resources on the European market. The apparent excessive reliance placed on the American market, ignoring the huge market on our doorsteps in the UK and the rest of Europe, has always puzzled me. Although I am not suggesting we invest less in the American market, we need to examine whether we are doing enough to attract visitors from the Continent and the UK, particularly given the difficulties in North America. It is, after all, easier and cheaper to travel from Europe and the UK to Ireland than it is to do so from America. Will the Minister outline his plans for investment in marketing in the European market to the House as soon as possible?

The tourism industry has been taken for granted too often. There is a common assumption that, along with agriculture, tourism has a strong base and will continue to supply the Exchequer with a stable and reliable income in the future, as it has done for many years. It is taken for granted that Ireland is always a sure destination for holiday makers, regardless of the cost of getting to or staying here and despite trends in the international tourist industry. Sadly, it has taken the setbacks of the last two years to challenge those assumptions more than ever before.

Nobody can say that the setbacks of the last year could have been foreseen. However, the foot and mouth problem and the events of 11 September, which came within months of each other, were particularly severe. Now that we have evidence of how badly these events affect tourism, we must use the facts and figures at hand to prepare for short to medium term future.

Valuable information which highlights the importance of the tourism industry is contained in the March 2002 briefing document of the Irish Tourist Industry Confederation. It estimates that Irish tourism is a €4.8 billion industry and that the Exchequer earned over €2 billion from tour ism last year. The industry now supports 145,000 jobs – or one in 12 – in the Irish economy and is vitally important in sustaining regional economies. Investment by the State in tourism marketing yields an extraordinary 50 to one return. The commercial sector spent an estimated €134 million on overseas marketing in 2001.

As a source of employment, the tourism industry is vital to this country. Tourism supported 145,000 full-time job equivalents in 2000 or 8.7% of the total number of employed people in Ireland that year. If that number of jobs were vulnerable in any other industrial sector, there would be public uproar. In the context of rising unemployment in other industries, losses in the tourism industry are often forgotten. This is another symptom of the fact that our tourism industry is taken for granted.

Last year, growth in Exchequer earnings from tourism reached a peak. Over a five year period up to 2001, there was a 55% increase in earnings from tourism which reached a total of €4.84 billion last year or 4.2% of GNP. This is beginning to decline and the Government must take steps to arrest such a downward trend given the importance of the sector to the Exchequer.

Another factor often forgotten in the debate about investment in tourism is the effective role tourism plays in regional development. Tourism tends to be concentrated in areas which have little else by way of indigenous industry. For example, in many rural areas – particularly those in the west – where few factories or industries are located, tourism is the mainstay of many families. It is, therefore, an essential element in maintaining a regional distribution of wealth. According to the Tourist Industry Confederation, 40% of visitors to Dublin also visit at least one other region in Ireland. Although this figure is very good, we must ensure it is improved upon. We must also ensure that these tourists visit the west and the south, regions which suffer from a lack of tourism.

As everyone is aware, the year 2001 was extremely difficult for Irish tourism. This was due primarily to three factors which have already been outlined by several Members. The foot and mouth crisis had a huge impact on visitor numbers throughout the year. This was compounded by the terrorist attacks on 11 September which had a particularly harsh impact on the number of tourists coming here from North America. The third factor was the significant slowdown in global economic activity which impacted severely on the Irish tourism industry.

The first half of this year has not been much better. The decline in visitor numbers in 2001, based on figures from the Tourist Industry Confederation, resulted in a loss of 770,000 visitors against target, a real term loss of €317 million in tourist expenditure against target, the loss of between 7,000 and 10,000 jobs in the tourist industry and the loss of at least €180 million in Exchequer returns. Those figures are startling and I do not believe any Government could stand back and not take action. Only initial figures are available for the first half of the current year, with some areas reporting a drop of up to 25% in visitors. However, unless there is a dramatic reversal of fortunes in the next six months, the end of 2002 will be particularly difficult. Indeed, Tourism Ireland's forecasts suggest that any recovery will not be attained before 2003.

What can be done to deal with the situation as it now stands? In the short-term, marketing is the key to arriving at a solution. I ask the Minister to review his apparent unwillingness to invest in marketing in the US as a matter of priority. He must also look at the UK market and particularly marketing of autumn and winter breaks. I fully accept that, at this stage, the Minister probably has less available to him in terms of Exchequer funding than was the case for his predecessor. If that is the case, the Minister has only his own Government to blame. We have reached this position as a result of Fianna Fáil's and the Progressive Democrats' extravagant pre-election splurge and the state of the public finances after their five years in Government. I appeal to you Minister, as someone who represents an area which benefits hugely from tourism, to prioritise funding for marketing so that our largest indigenous industry can be restored to prosperity.

Mrs. B. Moynihan-Cronin

I congratulate the Minister, Deputy O'Donoghue, on his appointment. As has been said in many quarters, I cannot think of a more appropriate ministry for a Kerryman. Indeed, the last Kerryman in the Department was my late father who served as Minister of State in the mid-1980s. I wish the Minister the very best of luck in his new role. I also wish to congratulate my colleague, Deputy Lynch, on her appointment as our party's spokesperson on tourism. I assure her of my full support in her work.

As Chairman of the Oireachtas Committee on Tourism, Sport and Recreation in the last Dáil, I was very aware of the immense difficulties the tourism industry experienced in the wake of the foot and mouth crisis in early 2001 and the horrific events of 11 September. The crisis in the tourism industry has affected nowhere more than my hometown of Killarney and my constituency of Kerry South. The downturn in tourism has compounded recent industrial job losses in Killarney, the latest of which came about on Friday last with the announcement that Sara Lee is laying off 104 people. This was a horrendous blow coming in the wake of similar announcements from ALPS and Leibherrs in the past number of weeks. I will be raising this matter with the Tánaiste on the Adjournment later this evening.

The Minister is aware of the crisis in the tourism industry in Killarney, Kenmare, Dingle and other towns in south Kerry. A downturn of the degree of that currently being experienced is having a number of effects. In the first instance, the drop in tourist numbers has meant hard times for accommodation providers. Hotels, guesthouses and bed and breakfast establishments have had to cope with many cancellations and a loss of income. The early months of the year made for slim pickings for accommodation providers. The outlook for the remainder of the year appears somewhat better, but the overall picture is still extremely bleak. Many operators are concerned about their ability to retain staff.

Another consequence of the downturn has been the knock-on effect on tour bus companies, jarvey operators, those working in tourism offices, those who work at tourist attractions, etc., who have been struggling to make ends meet in recent months. In addition, local businesses, shops, restaurants and gift shops have noted a marked decline in trade in recent weeks. Despite the common perception that a decline in the number of visitors to our shores impacts only on hotels and guesthouses, that is clearly not the case.

As Deputy Lynch stated, marketing is the key to restoring the high number of tourists who visit Ireland. I was surprised to read in this morning's newspaper that the Minister has completely ruled out any additional funding for marketing in the US in the coming months. In my opinion, marketing in the US is the only way we will get out of our dilemma. There is also a need to give consideration to what we are doing in terms of the season up to December. The UK must also be the target of increased investment in marketing. It is amazing that the British Tourist Board is spending five times more on marketing Britain in this country than is being spent by authorities on promoting Ireland in the UK. Given the fact that Ireland has on its doorstep a market of over 60 million people, this ratio should be reversed. The tourism industry is facing unprecedented challenges, not least of which is the most significant decrease in international tourist numbers since the Second World War.

I took a walk in the national park in Kerry last Sunday evening and it was frightening to see that so few people were doing likewise. Usually on a Sunday evening in the summer months we would avoid the park because it would be so crowded. I went there again on Monday for an hour and I counted only 13 tourists during that time.

I do not believe that people in the tourism industry are crying wolf. They are not seeking grants or anything of that nature. In fairness to them, they also agree that marketing appears to be the only way out of this situation. I agree with Deputy Cassidy that television is an excellent medium for tourism advertising. I recall the Spanish Tourist Board spending a huge amount of money some years ago on a television campaign aimed at marketing Spanish resorts. A small island such as Menorca spent a great deal of money on its part of that campaign and it paid off because more people watch television than read newspapers. In my opinion, that is the way we should proceed.

I do not intend to preach to the Minister because I believe he fully understands the position. I merely wish to take this opportunity to place on the record the difficulties that are being experienced. I know the Minister has only been in the job a number of days and there is no blame attaching to him. In addition, no Minister or Government can be held responsible for 11 September or the foot and mouth crisis. However, given the constituency the Minister and I represent, we are more than aware of the difficulties involved. The tourism industry will benefit from the good fortune of having a Minister from south Kerry because there is no one better who understands what is required.

I ask the Minister to reconsider investing in the marketing fund. He should try to find additional moneys to allow him to market our beautiful country and rescue us from the dilemma with which we are faced. When I was growing up, every student paid their university fees by working for the summer in a shop or hotel. We do not want to let the industry collapse because we have a fantastic product to offer. If there is any way some funding could be found to invest in a huge marketing drive in the US and the UK, we could save jobs in a number of industries.

Debate adjourned.