I wish to share my time with Sinn Féin and the Independent grouping, each being allocated three and a half minutes.
Private Members' Business. - Tourism Industry: Motion (Resumed).
The following motion was moved by Deputy Deenihan on Tuesday, 26 June 2002:
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.
Debate resumed on 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 11 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."
–(Minister for Arts, Sport and Tourism).
Acting Chairman: Deputy Moynihan-Cronin was in possession. There are ten minutes left and I call on Deputy Gogarty to speak.
Acting Chairman
Is that agreed? Agreed.
I welcome the Minister to his new position. I strongly support the original motion as proposed by Fine Gael, except that there is no point in launching more marketing campaigns in the US and the UK per se. There needs to be a targeted approach. In his amendment the Minister “notes the challenges facing the tourism industry in 2002 arising from the aftermath of the tragic events of the 11 September last in the US.” Those events have impacted on the tourism industry in particular. The Green Party joins the Minister in noting that.
Does the Government have any plans to tap into the enormous goodwill towards Ireland of over 40 million Americans of Irish descent, not to mention other Americans? Are there any plans to use this goodwill in terms of encouraging people to come to Ireland as a home away from home?
I welcome the foundation of Tourism Ireland which started up during a particularly difficult period. Under the circumstances, it has performed fairly well. In that respect, I support the amendment. However, I disagree with the Government's amendment on two points, particularly in respect of the Agreed Programme for Government, which is strong on aspirations but very short on substance. This is especially noticeable in the area of tourism. For example, some of the actions proposed in the Agreed Programme for Government include fostering expansion and competition on air and sea routes, but there is no recommendation or allusion to how this will be done. Given the input of the Progressive Democrats in this Government, it is all too likely that Aer Lingus may come under the hammer for sale. Certainly, if one is trying to increase the role of Shannon Airport in terms of having more people travel to the west of Ireland, getting rid of Aer Lingus will not help one whit.
Why bother creating a new national tourism development authority which will complement the work of Tourism Ireland? Why not just make Tourism Ireland the authority with the remit to look at developing tourism and give it more powers beyond marketing? In terms of the maintenance of standards and services at the top of the tourism agenda, what steps can the Minister take in light of the Forfás report to market Ireland as a high quality but competitively priced tourist destination? Are there any plans in this regard?
With regard to encouraging year-round, activity-based and special interest tourism, what sort of tourism are we talking about? Does the Government have any clarity or focus in respect of these issues? What is meant and how will it be done?
Acting Chairman
The Deputy's three and a half minutes have concluded.
In terms of promoting sensitive development of tourist areas and environmental best practice, are seaside holiday estates the best option in terms of Government support, given that they are idle for six months and people are desperately seeking housing in their home towns? They cannot afford housing, but there are mini-ghost towns that contribute nothing to the economy. There must be a better way, which I hope the Minister will outline in his response.
Insensitive development over the next ten or 15 years will continue to destroy Ireland's unique selling point, its greenness and heritage. We will not have an island to market. What steps will be taken to ensure that the fragile ecosystem, which attracts so many Americans and Germans in particular, will be maintained?
I call on Deputy Ferris, who should note that there are just over five minutes remaining in the slot.
According to the Forfás report on the cost of living commissioned by the Government, this State has jumped from the eighth most expensive European state in 1995 to the second most expensive in 2002. This will come as little surprise to anybody living in the 26 counties in recent years. The prices of one's weekly shopping, ticket to the cinema, few pints and lunch have all risen in recent years. While there are a number of reasons for this, it is inescapable that, since the changeover to the euro, there has been profiteering and excessive greed. Who can blame those who have increased the prices? They are only doing what the Government encouraged them to do – screw the punter and take what you can. Eircom shareholders will know all about this.
While this may seem irrelevant to the motion before the House, it points to a factor that should not be overlooked when trying to understand why tourist numbers are falling and, consequently, why revenue from tourism is down.
One must ask if Ireland is an inviting place to visit, are we targeting the right tourists, are we investing in the right infrastructure to facilitate tourism and are we pricing ourselves out of the market? While I have no doubt that we need to promote tourism in the USA and the UK, we must not limit ourselves to these markets but reach for new markets and offer new opportunities to those involved in the tourist industry.
Kerry, especially south and west Kerry, is largely dependent on German and US tourists for the generation of income and for its overall development. Since 11 September, the number of tourists visiting the area has greatly reduced. Jobs have already been lost and some businesses have gone to the wall.
We need to urgently review our attitude to tourism nationally. We need to invest and fund the development of infrastructure to cater for tourists. With regard to Kerry, I can testify that the infrastructure in place is not always able to cope with the demands made of it. When that happens, it can have a very negative impact and leave a lasting impression on our tourists. I refer in particular to the road infrastructure in west and south Kerry.
While the US and UK markets are obviously valuable they are not the only countries in the world from which we receive visitors. As members of the euro zone we need to increase our efforts to attract other European visitors. The benefits are obvious for them and us.
There are also other markets to look at. After the Italia '90 World Cup, we were told there was an influx of tourists from Italy to Ireland. Apparently, this was attributed to the great behaviour and humour of our soccer supporters while in Italy. We are told that there is plenty of evidence to suggest that our supporters in Japan and South Korea were equally well received while they were there for the World Cup. The Government and our tourism agencies must strike while the iron is hot and seek out new markets in Asia.
Returning to my original point on the cost of living in Ireland and the negative impact it has on the visiting tourists, there is also an knock-on effect that needs to be addressed – the issue of insurance and the massive price increases that have taken place in that industry. Insurance affects many aspects of the tourism industry. From the person organising hill walking tours to the owner of a family tourist farm to hotel owners, insurance costs have become prohibitive. This is all part of the general rip-off to which everybody, not just tourists, is subjected on a daily basis.
While we may not be able to force people to come to our country, we can make it easier for them by improving our infrastructure, reducing the cost of living and making insurance affordable. These issues can be tackled if there is a political will. Ireland is a beautiful country and Kerry is a beautiful county with a lot to offer.
I understand that the Deputy is sharing time with Deputy Connolly. There is just one minute remaining. Perhaps he will allow it to Deputy Connolly.
At the moment we are holding ourselves back in many ways by pricing ourselves out of the market. Before jetting off to America or the UK to spend millions promoting tourism, let us get our own house in order.
There is half a minute remaining.
We are not exploiting the potential of the tourism industry to the fullest extent. The industry has long been one of the mainstays of the Irish economy and has withstood many setbacks such as the foot and mouth outbreak and the aftermath of the 11 September tragedy in the USA. Nevertheless, there is considerable room for exploitation and expansion of this potential jewel in the economic crown of Ireland.
There are a few areas where such expansion could be applied. Not enough is being spent on internal marketing of the country's attractions. Beauty spots such as Killarney and Connemara are continually highlighted in tourist information literature but little or no mention is made of the attractions of areas such as Kavanagh country in Monaghan, the Shannon Pot in Cavan, Slieve Beagh and Lough Muckno. In the past, Cavan and Monaghan achieved an international reputation for fishing facilities on local rivers and lakes and many British and European fishing championships were held there. This contributed handsomely to the local economy. We could get back to those days with a little more aggressive marketing on the part of Bord Fáilte. In contrast with major festivals such as the Rose of Tralee—
Deputy Connolly, your time is concluded and unfortunately in Private Members' time the Chair is obliged at this point to move to the other side of the House due to the limited time available.
I wish to share my time with Deputies Collins and Nolan.
I take the opportunity of congratulating you as this is my first time speaking in your presence since your elevation to the position of Ceann Comhairle. Knowing your reputation over the past five years as Leas-Cheann Comhairle, I have no doubt about your ability for and interest in your job. I wish you well.
I also congratulate the Minister, Deputy O'Donoghue, in his new post, which is possibly the most relaxing part of the Cabinet with arts, sport and tourism all combined. Justice was finally done in giving Deputy O'Donoghue this portfolio. I say that as a colleague of the former Minister for Tourism, Sport and Recreation. I am glad to have the opportunity of reminding Deputy O'Donoghue so early in his term of office that all the work is not complete in Donegal and therefore we will be extending an invitation to him to visit the area. We all know that it is not so cold up there.
In Donegal we have lost an industry – in the form of textiles – and I see tourism as a possible big employer which could affect job creation in the area in a positive way over the next number of years. The impact is already being felt in agri-tourism, marine tourism and many other areas. We want to see real jobs. Some people in our neck of the woods feel that a tourism job is not a real job – they are not familiar with Kerry and other famous tourism destinations and see tourism as some sort of second best. I do not see tourism jobs as second best. Jobs in tourism have improved because of initiatives taken by the Government, such as the introduction of the national minimum wage. People are no longer being exploited to the same extent in the jobs traditionally associated with tourism. I am not speaking only of those working in the hotel industry as I see a vast potential for job creation within the entire tourism network.
When I spoke on tourism previously in this House I complained about our geographical location and the isolation we felt in Donegal, north of the North. Without people coming into an area there are few incentives to investment in either accommodation or facilities. Even with its natural resources, Donegal is in a chicken and egg situation. There can be no investment without people coming into the area but people will not come into the area unless there is some reason to come. We believed there was a reason to come but unfortunately there was no money coming in for people to develop their facilities. Happily, things are beginning to change and are actually changing rapidly. This has been due to the tremendous achievement of the Good Friday Agreement. We have 140 miles of border with the Atlantic and 70 miles of border with the Six Counties, but less than 7 km of border with the rest of the Republic. Therefore, the tourism of north-east Donegal was very much reliant on people whose families came from the area and who were returning home from abroad.
There has been much talk of the millions of pounds going into marketing. A significant portion of those millions is sitting on shelves or in boxes in the backs of offices as brochures and leaflets. In my own home town a number of bus operators, from Scotland and other places, such as PAB tours from Dublin, bring busloads of people to the area, not only during the high season of two weeks in August – not the three months of summer, but two weeks – but all year round. If those companies got a bit of help with their marketing they could double their current business. These are real people coming in and spending real money. I ask the Minister to consider giving an incentive to the tour operators with a proven track record of bringing people into an area. If he was to give them a small bit of marketing money he would see a return.
In the past, people were actively discouraged by our own national tourism agencies from coming north. I say that without fear of contradiction because my own father once went to a tourist office in Cork looking for information on Donegal and was told not to go up there as it was too dangerous. I am glad to say that since the Good Friday Agreement things have been getting better. The Agreement has led to more open co-operation at every level. We, in the North West Region Cross Border Group, had worked with Derry City Council, Limavady Borough Council and Strabane District Council for almost 30 years, but there was more talking and planning than doing. There was no structure for funding and no real political will at a higher level to promote such activity. It therefore pleases me to take a flight from Derry to Dublin and see people – locals or strangers – heading off or going home with their luggage. I am delighted with the ease of access created by the flight and delighted that the Government has delivered on the public service obligation and ensured that our access was improved.
On a practical level, I was very emotional on Friday, 7 June when the first car ferry sailing took place from Greencastle to Magilligan. This linking of Donegal with the counties of Derry and Antrim has been a long-imagined dream come true for many, including my father, who was in the cross-Border group for 16 years prior to my arrival almost seven years ago. It was with great pride that the members of Donegal and Limavady councils past and present took their places on the ferry for that first sailing. I was almost overwhelmed at the significance of this event which had taken almost 25 years to be realised, but very proud at having played a part in setting up the funding for it. I thank the Minister for Finance, Deputy McCreevy, for that.
Donegal was years ahead of the projections of the experts because we saw real opportunities for tourism locally. We exploited our own markets instead of reaching out to America, although I do not underestimate its importance. It has now been pointed out by the experts that Northern Ireland is an important market because of the relative values of sterling and the euro and all the advantages associated with that. We were ahead of the all-Ireland tourism body concept – we went out, put it together and delivered. We talk so much about peace and reconciliation, but what could be more appropriate than a physical link? People from the other side of the Foyle have already come over on the ferry and had their first experience of Donegal because of this piece of infrastructure. The ferry is already increasing the numbers of day-trippers and will ultimately be useful on the larger tourism access front as the marketing kicks in.
This is not the only Government support we have received in this aspect of our tourism drive. We have a ferry ready to start crossing the Swilly which will link Buncrana to Rathmullan. After the success of the Foyle ferry, which has only been operational for a couple of weeks, I await with excitement the impact the second ferry will have on the peninsula. We were speaking last night of the details of cross-Border revenue and heard that sea traffic is down. Ferries have massive potential and we intend to continue to explore links between Donegal and Scotland.
I ask the Minister to continue putting pressure on the Minister for Communications, Marine and Natural Resources to expedite the delivery of the programme for marinas, which has been earmarked for funding under the NDP. Projects are at an advanced stage for both the Foyle and the Swilly and the potential for bringing yachters into the region is huge. We look forward to its becoming reality. Yachting and water-based sporting activities are hugely underdeveloped and I hope the Minister will consider this aspect of tourism which overlaps somewhat with the area of the marine. Water-based activities are not our only offering to tourists. Our golf courses are already famous enough to make Nick Faldo want to purchase the Glashedy links in Ballyliffin although he was unsuccessful. The courses are attracting a huge number of clients and these numbers can only increase with the decision to market them jointly with the courses in Port Stewart and Royal Portrush as well as those in the rest of Donegal.
Malin Head, the most northerly point in the country, has been neglected down the years, although it should have had massive tourist potential for geographical reasons. However, even this is starting to change. I thank the Minister, Deputy Ó Cuív, for the moneys he provided to ensure that Malin Head Development Association was able to employ a development officer to assist it in implementing the recommendations of its development plan.
There is so much potential to be realised in locations such as Malin Head that I trust the Minister, Deputy O'Donoghue, can work alongside the Minister, Deputy Ó Cuív, in his portfolio of rural development to make more of the dreams become reality. Perhaps the Minister, Deputy O'Donoghue, would examine with his Northern equivalent the issue of rail links from Dublin to Derry and Donegal. Access plays an important part.
The Ring of Kerry may be fixed on the tourist map but it is nothing compared with the jewel we have held hidden for all these years in Inishowen. Having insulted the Minister, I trust he will take an interest in the difficulties our tourism representatives bring to his attention during his term in office. I know that, with his supporting roles in arts and sports, he has at his disposal a huge resource to make a difference in any region to which he turns his attention. Perhaps he would turn his attention to us.
I wish to be associated with the good wishes expressed by Deputy Keaveney to the Ceann Comhairle and to the Minister, Deputy O'Donoghue. I extend those to the Leas-Cheann Comhairle and wish them all every success.
I was glad to hear the Minister state the other evening that he took the initiative of meeting with the chief executives of the key tourism State agencies to get an up to date briefing on the most critical issues facing the sector and the current state of the tourism season. No one can deny that, after the terrorist attacks of 11 September last, many challenges face the tourism industry. Some 70% of all passengers on transatlantic flights every year are flown by Aer Lingus to and from the United States. The immediate consequences of the attacks in America was a falling off in passenger numbers travelling to Ireland on tourism breaks. We know the importance of American tourists travelling to Ireland.
As a Member of the House for the constituency of Limerick West, I am acutely aware of the important role tourism plays in the development of the mid-western region. Shannon Airport is a central cog for tourism development in the region. Some two million passengers travel through Shannon Airport every year and we must build on these figures at every opportunity. We do not want under any circumstances to lose the right to retain transatlantic travel to the mid-western region. That is because we know from our statistics that a large proportion of the people who travel to Ireland book their holidays so that they can disembark at Shannon Airport. I hope this remains the position for some time to come because it will help to ensure that the tourism industry in the mid-west remains competitive.
This is an ongoing political issue of concern to people living in the mid-western region and the Government must remain highly vigilant when this issue comes up for discussion within the European Union in future. The Government supports the principle of balanced regional development. Supporting the tourism industry and the ongoing development of Shannon Airport contributes to improving the economic climate in this important region.
The Government is due to publish a national spatial strategy which is premised on the need to develop smaller towns and villages. Such a spatial strategy must include an element that supports the tourism industry where it plays an important role in the development of the local community. The spatial strategy, by its definition, is premised on outlining a framework for the future development of our country. Tourism plays a central role in the development of our country and should be part of the final strategy when it is published.
I welcome the recent decision by Ryanair to increase flight numbers at Shannon Airport. The introduction of low cost travel certainly helps to boost passenger numbers from Shannon Airport to and from Britain and other European destinations. I hope Ryanair will increase the number of flights that will be made available from Shannon Airport in future. I believe in competition in the airline business. Good competition has a direct consequence on the cost of flights for passengers. That is a plain and simple fact and one hardly anyone could deny. I support continued assistance for regional airline routes in Ireland. Flights to and from Dublin to other destinations, such as Kerry, must continue into the future.
The Government recognises that substantial funding must be available to market Ireland as a tourism destination. That is why I welcome the successful start-up of Tourism Ireland and the fact that €50 million is being made available for the international marketing of Ireland as a tourism destination. I acknowledge that that amount is being made available to Bord Fáilte this year, of which €25 million is being used for market-related activity. Under the national development plan, the objectives over the next five years include the increase in tourism revenue and helping tourism achieve a wider seasonal and regional distribution of business. These key objectives can best be achieved by marketing Ireland on an all-island basis and by the international marketing of special interest products, but we can only achieve them by increasing the level of radio, television and print advertising in new and evolving markets.
The United States is still the fastest growing market for us at this time, but other countries such as the Netherlands, Italy and those in Scandinavia are performing well in terms of the numbers of tourists coming to Ireland. We must ensure that adequate resources are made available to market Ireland on the Internet and that we use every advertising tool at our disposal. This is an expensive business but one which clearly bears fruit in terms of securing increased tourist numbers.
I wish to make a few points about niche marketing. Special interest products such as golf, cruising, conference facilities, angling, marine tourism and walking are especially important in developing a sustainable tourism industry because such niche markets deliver higher yield visitors, are more inclined to benefit from wider geographical areas and are more environmentally friendly. Support will be provided for the branding and marketing of special interest products, with priority being given to those which incorporate an industry partnership approach to development. In addition, smaller and less developed niche businesses must and will develop. Small operators, including bed and breakfast and other small accommodation providers which are essential to the tourism industry, must be given support to market their products at home and abroad.
I welcome the support which is and will be given to the tourism industry in the Agreed Programme for Government between Fianna Fáil and the Progressive Democrats. It is clear that we will broaden our tourism source markets so that we will not be overly-reliant on any one market. We want to increase our share of the continental market in particular. We will foster expansion and competition on air and sea routes, continue to support the bed and breakfast and small accommodation sector through specific marketing initiatives and ensure local authorities take account of the needs of the tourism industry in the provision of infrastructure.
It is not only an increase in the level of financial support for national roads that is needed to develop our tourism industry further. We must also continue to support financially the development of our secondary and county road network in rural parts of the country. I urge the new Minister for the Environment and Local Government to continue to allocate the necessary resources to develop all aspects of our road infrastructure. We will encourage year-round tourism activity and special interest tourism.
One element of the joint programme I am pleased to see is the support for the Tourism Ireland initiative. This new body was set up in December 2000 under the framework of the Good Friday Agreement to market Ireland, North and South, as an international destination. The Government will support and promote Tourism Ireland in its work of promoting the whole island of Ireland as a tourism destination.
We will complete the task of creating a new tourism development authority which will complement the work of Tourism Ireland. The National Tourism Development Authority brings together the functions of Bord Fáilte and CERT. The establishment of this authority is especially appropriate at a time when the industry is at a pivotal point in its development. This authority can help shape the most sophisticated tourism products which are available in a changing international marketplace. The National Tourism Development Authority can build on the proven knowledge, skills and experience of Bord Fáilte and CERT and combine these to create new syn ergies which will provide highly effective institutional arrangements to support the development of tourism.
Tourism is in a healthy state despite the setbacks presented by the events of 11 September and the foot and mouth scare in 2001. Tourism and travel statistics for last year show that earnings from overseas visitors increased by 5%. It appears the domestic market for tourism is substantially improving and our tourism agencies are correct in encouraging Irish people to take holidays at home in an effort to support such an important national industry.
It is clear the Government intends to support the tourism industry and I was pleased to hear the Minister for Arts, Sport and Tourism say so last evening. It is putting in place a wide range of measures which will help further the development and quality of tourism products.
I congratulate the Minister on his appointment to the Department and wish him well in what will be a difficult area. Indeed the figures the Minister gave us last night in relation to the tourism industry are indicative of the task ahead of him. Last year, for the first time after ten years of growth, we saw a fall in tourism numbers but, given the problems the international market has faced, figures are holding up relatively.
It is apt to have this debate as it comes at a time when the Government is facing belt-tightening. I commend the Minister on what he has done in his short time in office and for what he outlined to us last night as his vision for tourism in Ireland. We should acknowledge the many successes of Irish tourism. We have seen ten years of uninterrupted growth with overseas visitor numbers reaching almost six million in 2001 and foreign tourism revenue earnings reaching almost €4 billion. This is not an insignificant feat and all those involved in the tourism industry throughout the country are to be commended on it.
International comparisons show us to be one of the strongest growing European tourist destinations but we should acknowledge that we came from a very low base and that ten years ago the tourism industry was in a poor state when compared with our Continental colleagues because they had been in the market before us. We may have been late starters but we have done particularly well in recent years.
Last year our tourism industry suffered severely on two fronts. First, we had the unfortunate foot and mouth outbreak in early spring which severely restricted foreign tourists coming into the country, particularly from the UK, and had a devastating effect on some sectors of the tourism industry. Second, was the attack on the twin towers in New York on 11 September which effectively shut down tourism world-wide for a short time. We are only now beginning to recover from that. Central Statistics Office figures suggest that in 2001, overseas visitor numbers were down by about 5% in comparison to the 2000 figure of six million visitors. Even with this decline, the volume in revenue receipts increased by 16% according to Bord Fáilte figures issued this year. The knock-on effect of this is that employment is down slightly. CERT maintains that the recruitment of skilled personnel for the industry remains a problem as evidenced by the number of foreign nationals employed in this sector.
Air and sea passenger movements this year have seen an increase over last year, however it has been suggested that a major proportion of this is accounted for by outward movements which can be put down to the poor weather we have experienced this summer. The US continues to be a difficult market with some improvement becoming evident in the Continental market. The news this evening that Aer Lingus is preparing to axe some of its Shannon-based schedules to the US for its winter season does not encourage confidence. The US market, where a big effort has been made, remains strong according to Bord Fáilte. The domestic market remains good which many competitors put down to the competitive pricing by hotels and I have noticed aggressive marketing campaigns by hotel chains which is to be welcomed.
The shortfall in tourists, particularly from the US, means that some sectors of the industry, most notably the coach tour business, have been badly affected. The knock-on effects will be felt most severely in areas such as Cork, Kerry and Connemara which are more dependent on this type of tourism than other areas. Tourism Ireland Limited has a budget of €50 million which is supplemented by regional budgets through Bord Fáilte. I understand from the Minister's statement that extra funding will not be made available. This is understandable given the pressure on public finances however, it is important that Tourism Ireland Limited and Bord Fáilte maximise the budgets they have left for the remainder of the season.
I will turn my attention to some of the counties which would not have traditionally been seen as attractions, including my own county of Carlow. Over the past five or ten years, small counties have done much to attract tourism. Carlow has invested heavily in its efforts and resources over the past five to ten years in promoting a novel gateway for foreign visitors and there are many other counties which could benefit from a little imagination and the assistance of the national state agencies.
Small towns and villages throughout the country have much to offer. For example, Leighlinbridge is a small village in County Carlow which won a gold medal last year in the Entente Florale competition. Many would say it is a tourist's dream. Just off the beaten track and the Dublin to Waterford road, it enjoys many facilities including its beautiful location on the banks of the River Barrow with boating, angling, river cruising and river side walks as well as first class accommodation, food and drink all within an hour of the port of Rosslare and an hour and a half from Dublin airport. Other towns in the county such as Rathvilly, Borris and Tullow boast international standard golf courses and facilities. Regrettably, our national agencies are not promoting these sufficiently. Bord Fáilte estimates that the number of overseas visitors to Ireland will have declined by some 7% in 2001 and are not expecting a great improvement this year, however I compliment the Minister and the Government on trying, in what is a difficult season, to encourage as many Irish people as possible to holiday at home. I also commend them in their marketing efforts overseas on the Continent, in the UK and the US to encourage people who have not had the opportunity to visit Ireland to come for the first time.
I ask the Minister to continue his good work, implore the State agencies not to forget the small, off the beaten track counties like Carlow and wish the Minister well with his new portfolio.
I wish the Minister well in his new job and congratulate him and the Leas-Cheann Comhairle on their appointments. I wish to share time with Deputies McCormack, McGinley, Perry, Crawford and Enright.
I congratulate and commend Deputy Deenihan on bringing forward this motion. There is no better person to do so, given that like the Minister he comes from County Kerry which is probably the jewel in the crown of the tourism industry. People from that county have intimate and detailed knowledge of the industry and it is interesting to see the Minister and the Deputy debating this issue. I commend Deputy Deenihan's motion to the Minister and urge him to invest money in this area in order to attract visitors to Ireland and counteract the negative aspects that have developed in tourism during the past 18 months.
Tourism is extremely important to our economy. When I was young, agriculture was the mainstay of the economy. However, tourism has now become another mainstay and employs 145,000 people, 60,000 of them in hotels and bed and breakfast establishments, and brings in €6 billion to the State coffers each year. We must recognise its importance to our economy. At a time of crisis, we must also recognise that action needs to be taken in order to counteract the downturn in the industry. It would be a good investment to market our country as a tourism resort. Last year, for every euro spent there was a return of €50. Surely we must seek to exploit this and I urge the Minister to respond to Deputy Deenihan's motion in a positive fashion.
The Minister must be concerned that there has been a downturn of 25% in the number of visitors from the United States, that the number of visitors from the UK is also down – a strong marketing campaign must be engaged in to reverse this position – and that the European market is static. We must promote Ireland and its image as a tourist and holiday destination, particularly because we have a valuable and unique product to offer.
We must be extremely concerned that the Shannon survey has given a very gloomy forecast for 2002. Feedback from the June survey, which was undertaken on 135 tourism businesses by MRBI on behalf of Shannon Development, has confirmed that there was a downturn in holidays in the Shannon region, in which my constituency is located, during the period January to May. The survey also highlights the difficulties the trade will face over the full year.
I represent an area which is dependent on tourism and I live just three miles from Adare, which is known as the prettiest village in Ireland. We have felt the immediate effects of the difficulties experienced by tourism providers in our community. Shannon Development has confirmed that over half of the tourism businesses across the sectors in the Shannon region have indicated that trade was down in 2001. It has been an extremely difficult year for tourism interests in the west because of the foot and mouth crisis and the impact of 11 September. According to the Shannon Development regional tourism manager, less than one fifth of companies and operators are indicating growth.
While tourism in 2002 is generally down, the performance of the overseas market is of greatest concern with 55% of Shannon region tourism businesses experiencing a downturn and less than one in five experiencing growth. These are grounds for extreme concern and I urge the Minister to invest in attracting visitors from abroad and to take action to counteract what is happening in the tourism industry. Trade feedback also indicates that the North American market – this was anticipated to some degree – is proving the most difficult, with two thirds of those surveyed who deal in this market experiencing a downturn in their business. The German market is also giving cause for concern.
Even coach tour operators, who have been quite active members of the industry for many years, are experiencing a downturn in trade. Visitor attractions and the entertainment sector have been particularly badly affected and 80% of visitor attractions have indicated that a segment of their business is significantly down.
The year 2000 was very good for tourism interests in Ireland, but it is unfortunate that since then it has been all downhill. In early 2001 we had to introduce foot and mouth restrictions which was followed later by the tragedy of 11 September. These events greatly affected tourism interests and the result was that 2001 was the most difficult year ever for Irish tourism, with great losses being experienced by many businesses. Hotels, guesthouses, B&Bs and the economy in general all suffered. Business from North America has been greatly reduced and seat capacities on airlines flying directly to Ireland have been reduced by 21% nationally, while seat capacities on direct flights to Shannon have been reduced by 30%. The latter will have a serious impact on tourism in the west. There has also been a significant reduction in the number of American coach tourists visiting our shores.
The reduction in the number of tourists to Ireland will have a serious affect on hotels and guesthouses. However, the impact has far wider implications for the entire tourism industry. Approximately 60,000 people are directly employed in hotels and guesthouses but there are also coach tour operators, coach owners, those who service and repair coaches, car hire operators, the owners of golf courses, those who offer angling holidays and those involved in other tourism interests whose business is being affected and reduced. In addition, the various spin-offs from tourism have also been affected. There will be serious job losses unless corrective action, such as those outlined in the Fine Gael motion, are put in place.
Consideration must be given to the increased costs the tourism industry must face. Insurance costs for hotels, guesthouses and related tourism activity have escalated and increased by 48% in one year, despite the fact that business volumes decreased. Tourism is one of the few industries which is regionally based and investment in it should also be regionally based. In the west, angling tourism has been hit and the number of angling tourists visiting the Corrib region is down. The numbers of people taking sea cruises are down by 18% and sea angling figures and also down.
I ask the Minister to indicate his views on the success of the marketing efforts of Tourism Ireland, which was introduced for the first time from January this year. I understand that the Irish Tourist Industry Confederation has sought further promotional aid. Will the Minister indicate the nature of the confederation's request for such aid? I suggest that now is the time to take this initiative, which needs not be very costly. I am aware that advertising expenditure in America is costly, but not if it is properly targeted at the potential Irish-American market. The Minister would be well advised to obtain Exchequer funding for that purpose because it would be money well spent.
It was depressing to read in the Evening Herald last week that one of the most renowned bed and breakfast guesthouses in the Connemara Gaeltacht, which has 14 bedrooms, played host to only four visitors in one weekend. This is a serious matter and the Government needs to put in place a focused marketing strategy to improve the situation. The point has been raised about the difference in air fares, depending on the way one travels between America and Ireland. We need to instigate a much more aggressive marketing campaign aimed at Irish Americans in particular. The article in the Evening Herald to which I refer pointed out that Americans are not alone in believing that foot and mouth disease still exists in Ireland and some of them even believe they could contract it if they come here. That may sound hard to believe, but it is true.
We need to do a great deal of work to establish a clear market. We all remember the heroic efforts people made during the foot and mouth crisis when they voluntarily stopped travelling and called off many sporting and other events. At the time we heard fine words from the Minister and the Government to the effect that they would be rewarded. Perhaps now is the time to do so. It would cost just a fraction of what the crisis cost. The owners of some tourism businesses, particularly those running and developing small bed and breakfasts, remortgaged their houses. They are now in serious trouble and need assistance. I welcome the Minister's appointment and ask him to concentrate in his new capacity on these people. The Government has not done enough to help the tourism industry since the foot and mouth crisis.
I congratulate the Minister on his appointment and wish him the very best in what is a very important job. Tourism is one of our biggest industries and has the potential to surpass all others. While the opportunities are immense, the industry is facing huge problems. Many villages and towns across the western region are dependent on this significant sector of the economy. We cannot assume that past performances offer a way forward. In the north-west we must ensure that those involved in the tourism industry compete at the upper end of the market. It is essential to provide a quality brand. The real problem is that business has not started, the year to date has been disastrous and the season will be very short. It is now late June and the growth envisaged from the US, UK and European markets has not materialised.
I wish Deputy Gallagher well on his appointment. It is good to see a man from the north-west in office as he will examine the issue of the region's growth, which is very much needed. We need new attractions because many of the tourists who have been visiting for years go to the same destinations. They want a change and if we are to develop tourism in the region, it is very important to offer them new attractions. It is not good enough to direct tourists to the same attractions a second time.
The previous Government allocated funding to the BMW region for a very ambitious plan for clustered developments. While I welcome this possibility, I hope it will be accelerated and ask the Minister to give a clear indication of the projects under consideration.
We must encourage enterprise. The growth in the economy, particularly the tourism sector, is due mainly to people who have taken risks. We do not want the tourism industry to be taken over by massive consortia. People who take risks in small business and provide services in the tourism sector are entitled to some support. Unfortunately, they are offered very little comfort and no support. They have to make considerable investments and as the sector is very staff intensive, staff costs are high. The biggest difficulty, however, is VAT. By just putting food on a cooker, its cost increases by 21%. Every €1,000 in income a businessperson gets has a net value of only €790. One must also subtract from this figure the cost of the product. The consumer in the restaurant or hotel does not realise the difference between gross and net income. Revenue from tourism is huge and it is time to reconsider this tax.
Sligo is Ireland's best kept secret and, while Donegal is very well promoted, there is major potential for growth in the region through cross-Border development and co-operation with the Northern Ireland Tourist Board. I have pointed out that the greatest difficulty in the past 30 years was the lack of cross-Border growth. The work of the Minister's predecessor, Deputy McDaid, on this issue needs to be accelerated. Guesthouses and hotels need to be offered major encouragement. The British Government has extensively funded businesses in the six counties of Northern Ireland. Very little support has been allocated by the Programme for National Recovery fund, INTERREG or the International Fund for Ireland despite the huge potential to do so. While there are fantastic people working in those bodies, it is regrettable that more funding has not been allocated to grow cross-Border tourism. We have 32 county tourism potential.
I was very disappointed by the contract awarded by the State for commuter flights between Galway, Kerry, Derry, Sligo and Knock. A new airline, Eureka, which operates from Waterford, was brought in. This raises questions, particularly with regard to the fantastic service being built up by Aer Arann, which allowed people to fly to Copenhagen and offered an international link. I appeal to the Minister to check out this matter as Sligo was seriously disadvantaged by the Minister for Transport last week when he awarded the contract to an airline which does not offer the possibility of international travel. The decision has far reaching implications for the growth of tourism in Sligo and the Border counties.
The tourism industry is a very important sector which needs to be nurtured. Historically, agriculture was the number one industry in the State. With its decline, there is a great need to build up and retain as strong a tourism industry as possible in order to maintain rural Ireland. Although foot and mouth disease and the events of 11 September have undoubtedly hit tourist numbers during the past 12 months, we cannot ignore the issue of increasing costs which have been discussed in the House in the past few days. As they will damage our competitiveness against other countries, they will need to be managed properly at Government level.
I pay tribute to the tourism industry in County Monaghan under the chairmanship of Mr. P.J. Russell. Historically, County Monaghan has attracted one of the lowest number of tourists in the country. We have some great hotels catering for passing traffic along the N2, but only some 20 registered guesthouses and a number of family run hotels.
Great efforts are being made to build up business in Canada and the USA, for example, P. J. Russell has been there for several weeks in a personal capacity trying to promote the county. I welcome the fact that people can now fly into Dublin directly from Toronto. However, with numbers from the US and Canada down by up to 50%, we must use every opportunity to advertise and promote for the future. This is what the motion is about.
The Rally School based near Scotstown, County Monaghan, which won the AIB rural tourism award last year, is a good example of how local people with some support can create a niche market. This business was estimated by the AIB experts to be worth £2.5 million to the area and the school uses much of the accommodation in County Monaghan and the Border region. We need more support in areas such as north Monaghan where tourism had a poor record in the past. We need support for bed and breakfast establishments and for family run hotels in town such as Clones and Ballybay.
The wedding of Sir Paul McCartney and Miss Heather Mills at Castle Leslie in Glaslough, County Monaghan was of major benefit to the tourism potential of the area and of the whole of Ireland. I spoke to someone in Canada who had watched the event on television and had a very positive response to the coverage. We must make sure that such benefits continue. Ms Samantha Leslie and all those working with her in Glaslough deserve credit and need support in building up a business in an area which was hard hit by the closure of roads and the Border activities of the past.
Cross-Border involvement is essential if we are to build up a tourism culture in the Border region. It was Deputy Enda Kenny, as Minister, who initiated co-operation between North and South to promote tourism on an all-Ireland basis. Problems later arose regarding the Shannon but Deputy Kenny promoted a very positive attitude and we must build on that. A fast link exists through Northern Ireland between Larne and Stranraer and between Belfast City Airport and Britain. This should be used, as well as Dublin, to bring tourists to the northern part of the country. In the past the tourism industry was geared to bringing people to places such as Donegal, Kerry and the west in general.
Without proper roads, railways and airports we cannot promote tourism. I am frightened by the information coming from Government regarding the danger that roads such as the N2 from Dublin to Derry and Donegal – Derry is the third largest city in the country – may be left out of the national plan for road development. Without proper road structures people will not be encouraged into an area.
Since the railway was done away with in the 1950s successive Governments have promised support for the main road arteries but this has not happened. I trust the Ministers for Finance, Transport and Arts, Sport and Tourism will make sure these roads are created.
Everyone accepts the importance of the tourism sector. In the midlands, my own part of the country, the sector has been growing in the last number of years. We must be conscious of our need to promote Ireland internationally but also to ensure that we give a fair and even spread to the promotion of tourism.
I welcome the work of the regionally extendible fund but I am concerned that it is only available to organisations with international elements in their programme and is primarily geared to new projects. New projects can receive 75% funding, reduced over a number of years but the fund ignores an important reality in the tourism sector. In my own area Ely O'Carroll Tourism has benefited from the fund. However, many organisations cannot become commercially viable in the short number of years in which funding is available. Unless funding is provided to small organisations which promote their regions on an ongoing basis it will be impossible for these organisations to exist. Some such organisations have benefited from the social economy programme and are trying to venture into the commercial sector but that was not their original aim or intention. These organisations must spend their time and energy organising fundraising events in order to survive and cannot focus on their original objective of promoting tourism in their own areas.
Little help is available for the promotion of domestic tourism interests. We must encourage Irish people to holiday in Ireland. Funding tends to be concentrated on new ventures so that projects find it difficult to fund themselves on an ongoing basis. This problem must be addressed.
Many people have taken risks with their own money in recent years but this willingness to take a risk in the tourism business is declining, which is understandable. A new heritage hotel with 118 beds opened recently in Port Laoise and is a tremendous local amenity. However, there is a reluctance to set up smaller amenities. After last year's experience of foot and mouth and the events of 11 September people are nervous to take risks. There is also considerable uncertainty regarding the continued threat to air travel from industrial action.
We have a high quality tourism product in Ireland. We are still "Ireland of the welcomes" and people still want to come here but we have not marketed ourselves as effectively as we might have done. A tourism operator from County Laois who visited the Bord Fáilte office in New York after St. Patrick's Day last year found that the office had no promotional or information literature on County Laois. Eventually a book on the county was found but it was eight years old. If information on all counties is not available we cannot promote the entire range of our tourism product.
We must address the high insurance costs. This is becoming a debilitating factor for those who are trying to set up in the tourism sector. People are working very hard to provide a good product but this is becoming increasingly difficult. Promotion is the key. Our favourable exchange rate should entice large numbers to Ireland from the United Kingdom but unless we promote all our counties we will not persuade visitors to come. This is our greatest failing.
Tá áthas orm an dheis seo a fháil chun páirt a glacadh sa díospóireacht tábhachtach seo faoi tionscal na turasóireachta. Mar Theachta Dála as Dún na nGall, tuigim cé chomh tábhachtach is atá an tionscal seo don tír go léir, ach go háirithe do na réigiúin. Tá a fhios againn go maith go bhfuil an tionscal seo ag fás níos tapúla ná tionscal ar bith eile sa tír nó ar fud an domhain. Dá bhrí sin, ós rud é go bhfuil an tionscal ag cur an oiread sin jabanna ar fáil is ceart agus is cóir go mbeimís ag díriú ár n-áird air.
I welcome this opportunity to respond to the debate on this motion and to the contributions made by the various speakers.
For decades, tourism, like the services sector in Ireland, was very much the poor relation of manufacturing. Its potential to generate employment, foreign revenue and wealth was poorly recognised in a practical way. That attitude began to change with the launch of two integrated, EU co-funded, investment programmes for the tourism sector during the latter part of the 1980s and into the 1990s. This, in turn, prompted private investment in facilities and services for tourists of a multiple of that figure, including non-grant aided investment in the accommodation area – in hotels, in hostels and self-catering. These major investment programmes coincided with the advent of low cost access, an increase in the "fashionability" factor for Ireland plus a series of targeted marketing programmes implemented by Bord Fáilte in co-operation with the industry. All of these factors, placed in the context of the general economic boom that Ireland has experienced over the past decade, combined to make the success story that was Irish tourism by 2001.
There was a strong sense from a number of contributions during this debate that the tourism industry countrywide is facing a major downturn for this year – or a "washout" as described by one Deputy. I think Deputy Durkan struck a more balanced tone when he cautioned against talking ourselves into a recession and stressed the need to maintain competitiveness within the industry. As the Minister pointed out yesterday, official CSO figures are not yet available for tourism performance in 2002, and it is very difficult at this stage to predict the outcome of this year's season. Of course many people are concerned due to the many factors mentioned.
Recent qualitative industry surveys by Bord Fáilte, CERT and ITIC show a mixed picture. For example, ITIC's recent survey showed a number of niche markets such as incentive travel, meetings and conferences, events and sporting holidays proving to be strong this year. Tourism Ireland Limited believes the first part of the year was reasonably good. There has been a good response from the British market. The German market is soft – that is the case for its outward travel generally – but France and the southern continental destinations have produced a response ahead of target. There are also indications that the very strong performance in the domestic market towards the latter part of last year has continued into 2002 and this has been beneficial to many businesses, especially hotels. We all accept that this is a difficult and challenging year for Irish tourism. Such variations in the business cycle apply in the case of many other industries. However the medium to long-term prospects for tourism are undoubtedly bright.
Many speakers commented on the softness of the US market. I agree this continues to be a challenge, not alone for Ireland but for tourism the world over. In her contribution to the debate, Deputy Lynch seemed to criticise the fact that the Government and the Minister insist on applying a value for money approach to the deployment of additional resources to the marketing of tourism. I remind the Deputy and this House that this year has seen the largest ever budget of €27 million being deployed for the international marketing of the island of Ireland and that we will spend close to €110 million overall in Exchequer funding this year in support of the tourism industry. I can assure the Deputy and all Members that decisions on the deployment of the marketing element of this contribution, which were taken in close consultation with the tourism industry itself through the tourism marketing partnership structure, were very clearly informed by a value for money approach.
Coming as I do from a Border county and having listened to other deputies from Border counties, I recognise the great return on marketing investment in our home and the Northern Ireland market.
I commend the Government amendment to the House.
I wish to share my time with Deputy Deenihan, with five minutes for me and ten minutes for him.
I listened to the Minister speak about the amount of money the Government has spent this year in promoting tourism in the country. However he neglected to tell us that most of that money was spent this year setting up Tourism Ireland to promote tourism on both sides of the Border. I come from a major tourism destination in the west and I have been told Bord Fáilte and Tourism Ireland have no visibility in America since last April because they ran out of money. It is time we lived in the real world.
At the end of every year we are told by Bord Fáilte about the record number of people that come to the country. It does not tell us it counts every cow and sheep and everybody who enters or leaves the country. Everybody who comes into the country for a funeral or a wedding is regarded as a tourist by Bord Fáilte. For the past three years there has been slippage in the numbers of people coming into the country. Anybody living in the real world, particularly the people who have invested in the hotel sector and other aspects of tourism say we have had three bad years because we are not out there aggressively fighting to try to get the market. We have let the American market slip. We should be out there battling now. The people of America are only now getting over 11 September. Some of them have not even made plans for their holidays this year. They are now flying John Travolta around the world to try to get people to come to America. What are we doing about it? We are doing nothing. It is time we got out there and promoted our product.
I want the Minister to bring this message to Bord Fáilte. It is time the tourism sector in this country lived in the real world. I am tired of people saying there is a goodwill factor from America and Britain towards Ireland. They want good value as well as goodwill, but they are not getting good value. There is a report in today's newspapers saying we are the second dearest country in Europe. It is time we got value for money. It is time the tourism sector and Bord Fáilte woke up and did their job. All they are good for is wining and dining. They are good at selling themselves, but not selling the product or doing the job for which they are paid. The taxpayers are providing the funding, but we are not getting value for money.
We are not getting the people who should be coming here. We are not over in Britain selling our product. The British people are flying all over the world but are not coming into this country. We did well for a few years with people coming to Dublin and other cities for weekends. However, we want the tourist that used to come from Britain. That was the tourist that saved for ten months and came here with his family to spend his money. We cannot do that if we do not have people out there marketing our country.
The tourism sector here must start trying to give value for money and cannot take it for granted that we will fill the country for ten or 12 weeks of the year. That is not going to happen. We must have the product, including food and bed and breakfast accommodation, at a reasonable price. However, that is not happening because the Government has done nothing about controlling insurance costs. We should be ensuring these people give value for money. As a result of the fact that they are not giving value for money, people are going to Spain and elsewhere. Bord Fáilte needs to be shaken up because too many of its members are there too long and have gone stale, a bit like the product we have.
One would never think the Deputy came from Westport.
We did it ourselves. If we had been depending on Bord Fáilte we would not have many visitors. We had to collect the money ourselves and sell ourselves.
Fine Gael put down this Private Members' motion in response to the calls from the tourism industry for help. These pleas for help are coming from all parts of the country and from all sectors of the industry. As I outlined yesterday evening in introducing this motion, there is an impending crisis in the industry.
The Minister lives in the heart of Ireland's tourism industry. As he drives through Killarney, Killorglin, Glenbeigh and Waterville, he can witness for himself the decline in the number of tour buses coming to Kerry and the fact that many tour buses are half empty. All he has to do is call a number of tourism operators in his constituency and he will be told bluntly that business is down considerably, staff will have to be let go and that the prospects for the rest of the season are bleak. He was told this by members of the Kerry branch of the Irish Hotels Federation in Killarney on Monday. I understand that the Minister will receive a similar overview of the current state of tourism at the meeting with the Irish Tourist Industry Confederation tomorrow. Those people will confirm what I said here yesterday evening.
The Bord Fáilte tourism barometer survey, which was published last week and covered 1,000 tourism enterprises nationally, confirms that 2002 is proving to be a very difficult year and that a recovery cannot be taken for granted. This survey shows that bed and breakfast and guesthouse accommodation, which was badly hit in 2001, is showing no sign of any significant recovery this year. The numbers indicating a deterioration in business compared to last year are more than double those reporting an improvement in conditions. Around 40% of hoteliers reported a less favourable position than 12 months ago while 66% of coach operators reported business down on a year ago, despite the problems of foot and mouth disease then. A large Kerry hotel, that is well known to the Minister, had 72 coaches visit in March 2001 and just three coaches this March. This is a clear indication of the magnitude of the problem facing the industry. Golf courses, which have a heavy reliance on the US market, are also taking a hit. Tourism visitor attractions are reporting a significant drop in visitors, due almost entirely to the decline in the US market.
Feedback from the June 2002 "Shannon Pulse" tourism survey, undertaken among 135 tourism businesses by MRBI on behalf of Shannon Development and published yesterday, confirms a dramatic downturn in holiday and leisure business in the Shannon region during the January to May period and also highlights gloomy trade forecasts for the full year. There is a marked decline in demand for Ireland from the US market, with the coach tour sector servicing this market experiencing a decline of 40%. The number of US tourists coming here could be down from 1.1 million in 2000 to almost 850,000 this year, which is a return to 1996 levels.
While I agree with the Minister's objectives of broadening our markets and further developing our continental markets, we must never forget that the greatest yield per visitor comes from the American tourist who spends almost €900 per person –€83 per day – in the country. This compares with €63 per day for the British visitor and €53 per day for Europeans. Over 40 million US citizens claim Irish ethnic links and it would be a major retrograde step for tourism if we diluted in any way our marketing efforts in this lucrative market. This was insinuated last night by the Minister when he suggested that we would look at other markets. It has been mentioned that the projected increase in British arrivals will make up for the shortfall from the US. However, it should be noted that in 2000 the average length of stay in Ireland by British visitors was approximately 5.6 days compared to 9.6 days for US visitors. It takes almost two British visitors to equal one US visitor in terms of time and money spent in the country. It has been insinuated that we will get more visitors from Britain to make up for the shortfall from other locations. They will not make up the shortfall from America unless they come in large numbers.
The achievement of tourism in 2001, which the Minister mentioned yesterday, was amazing when account is taken of the traumatic events of that year. However, 2001 would have been a disaster except for the additional €8 million provided to Bord Fáilte for a reassurance marketing campaign in the US and Britain and the extra €1.3 million provided to promote domestic tourism. This confirms what I said last night: if extra money is provided the people will travel here. Industry sources estimate that this additional overseas effort resulted in an extra €130 million of overseas tourism revenue and the home market initiative boosted domestic activity by more than €100 million. The Exchequer benefited by at least €120 million from this additional activity. This action maintained at least 20,000 jobs which would otherwise have been threatened. A similar effort is now necessary for this year.
Despite the statement that record funding is being made available for marketing this year, industry sources are saying that there is less advertising activity by Tourism Ireland in our two main overseas markets, namely, the US and Britain, than there was in 2001. I would like the Minister to clarify that as soon as possible. A large amount of the money that was committed for marketing has, I understand, gone into start-up costs for Tourism Ireland which is establishing new offices etc. The industry is convinced that less money is available this year than was available last year.
Our spend in those markets is even more important when our competitors are spending substantial additional sums in promotion. Britain is in the middle of a high profile £40 million advertising campaign which includes Tony Blair appearing on US television. It is also spending a considerable amount of money here; we see that in our newspapers and on television every day. I see more advertisements for holidays in Britain than for this country and it is very effective advertising. Britain is also spending considerable amounts of money elsewhere. Canada is spending $20 million on promotion on the American east coast and our major competitors in the British market are also substantially increasing their spend, France being a case in point. All this activity is continuing as we speak and Ireland is missing an opportunity and doing virtually nothing. These competitors do not share the view that it is too late to advertise for the peak July to September season. This is of greater importance with the phenomenon of very late booking so evident this year. We are missing out on this opportunity.
We should be reminded of the saying, "You cannot put last night's empty hotel room or the empty seat on an airliner which left ten minutes ago, in a freezer and sell them at half price at the end of the season". Tourism is an industry where action must be taken now. Otherwise we will lose the potential which is still there for this peak season. Immediate funds should be made available to allow Tourism Ireland to continue its highly effective television and radio advertising campaign in the US featuring Martin Sheen of "The West Wing". This campaign was very effective following the foot and mouth outbreak last year and in the early part of this year. A similar campaign should be carried out in the UK.
The future of the Irish tourism industry is now in the Minister's hands. Another disastrous season will wipe out many of our tourism operators across the country. The whole future of our tourism industry will be irreparably damaged and, like farming, the strong will survive and the small operator will go out of business. Our tourism product will suffer if that happens.
In his contribution the Minister said he intends consulting widely with the industry and the tourism State agencies to guide him further in his work and that he would urgently review the situation to see what further steps can be taken to help the industry to meet the unique challenges which it is facing this year. The Minister should already know what they will tell him. There is no need to consult them, he should just provide the funding for which they have asked.
Last night the Minister introduced a Supplementary Estimate of €30 million for sport which I welcomed. If the Minister is serious about helping this struggling industry, he should support the motion and introduce a similar Estimate for tourism before the Dáil rises tomorrow.
Amendment put.
Tá
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Ahern, Dermot.Ahern, Michael.Ahern, Noel.Andrews, Barry.Ardagh, Seán.Aylward, Liam.Brady, Martin.Brennan, Seamus.Browne, John.Callanan, Joe.Callely, Ivor.Carey, Pat.Carty, John.Cassidy, Donie.Collins, Michael.Connolly, Paudge.Cooper-Flynn, Beverley.Coughlan, Mary.Cregan, John.Cullen, Martin.Curran, John.Davern, Noel.de Valera, Síle.Dempsey, Noel.Dempsey, Tony.Dennehy, John.Devins, Jimmy.Ellis, John.Fahey, Frank.Finneran, Michael.Fitzpatrick, Dermot.Fleming, Seán.Fox, Mildred.Gallagher, Pat The Cope.Glennon, Jim.Grealish, Noel.Hanafin, Mary.Haughey, Seán.Healy-Rae, Jackie.Hoctor, Máire. |
Jacob, Joe.Keaveney, Cecilia.Kelleher, Billy.Kelly, Peter.Killeen, Tony.Kirk, Seamus.Lenihan, Brian.Lenihan, Conor.McCreevy, Charlie.McDowell, Michael.McEllistrim, Thomas.McGuinness, John.McHugh, Paddy.Moloney, John.Moynihan, Donal.Moynihan, Michael.Mulcahy, Michael.Nolan, M. J.Ó Cuív, Éamon.Ó Feargháil, Seán.O'Connor, Charlie.O'Dea, Willie.O'Donnell, Liz.O'Donoghue, John.O'Donovan, Denis.O'Flynn, Noel.O'Malley, Fiona.O'Malley, Tim.Parlon, Tom.Power, Peter.Power, Seán.Ryan, Eoin.Sexton, Mae.Smith, Brendan.Smith, Michael.Treacy, Noel.Wallace, Dan.Wilkinson, Ollie.Woods, Michael. |
Níl
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Boyle, Dan.Broughan, Thomas P.Connaughton, Paul.Costello, Joe. |
Coveney, Simon.Crawford, Seymour.Crowe, Seán. Deasy, John. |
Níl–continued
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Deenihan, Jimmy.Durkan, Bernard J.Ferris, Martin.Gogarty, Paul.Gormley, John.Hayes, Tom.Higgins, Joe.Higgins, Michael D.Hogan, Phil.Howlin, Brendan.Kehoe, Paul.Lynch, Kathleen.McCormack, Pádraic.McGrath, Paul.McManus, Liz.Mitchell, Olivia.Morgan, Arthur.Moynihan-Cronin, Breeda.Naughten, Denis.Neville, Dan.Noonan, Michael. |
Ó Caoláin, Caoimhghín.Ó Snodaigh, Aengus.O'Dowd, Fergus.O'Keeffe, Jim.O'Shea, Brian.O'Sullivan, Jan.Pattison, Seamus.Penrose, Willie.Perry, John.Quinn, Ruairí.Rabbitte, Pat.Ring, Michael.Ryan, Seán.Sargent, Trevor.Sherlock, Joe.Shortall, Róisín.Stagg, Emmet.Stanton, David.Timmins, Billy.Upton, Mary.Wall, Jack. |
Tellers: Tá, Deputies Hanafin and S. Power; Níl, Deputies Durkan and Stagg.
Amendment declared carried.
Question put: "That the motion, as amended, be agreed to."
Tá
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Ahern, Dermot.Ahern, Michael.Ahern, Noel.Andrews, Barry.Ardagh, Seán.Aylward, Liam.Brady, Martin.Brennan, Seamus.Browne, John.Callanan, Joe.Callely, Ivor.Carey, Pat.Carty, John.Cassidy, Donie.Collins, Michael.Connolly, Paudge.Cooper-Flynn, Beverley.Coughlan, Mary.Cregan, John.Cullen, Martin.Curran, John.Davern, Noel.de Valera, Síle.Dempsey, Noel.Dempsey, Tony.Dennehy, John.Devins, Jimmy.Ellis, John.Fahey, Frank.Finneran, Michael.Fitzpatrick, Dermot.Fleming, Seán.Fox, Mildred.Gallagher, Pat The Cope.Glennon, Jim.Grealish, Noel.Hanafin, Mary.Haughey, Seán.Healy-Rae, Jackie.Hoctor, Máire. |
Jacob, Joe.Keaveney, Cecilia.Kelleher, Billy.Kelly, Peter.Killeen, Tony.Kirk, Seamus.Lenihan, Brian.Lenihan, Conor.McCreevy, Charlie.McDowell, Michael.McEllistrim, Thomas.McGuinness, John.McHugh, Paddy.Moloney, John.Moynihan, Donal.Moynihan, Michael.Mulcahy, Michael.Nolan, M. J.Ó Cuív, Éamon.Ó Fearghaíl, Seán.O'Connor, Charlie.O'Dea, Willie.O'Donnell, Liz.O'Donoghue, John.O'Donovan, Denis.O'Flynn, Noel.O'Malley, Fiona.O'Malley, Tim.Parlon, Tom.Power, Peter.Power, Seán.Ryan, Eoin.Sexton, Mae.Smith, Brendan.Smith, Michael.Treacy, Noel.Wallace, Dan.Wilkinson, Ollie.Woods, Michael.Wright, G. V. |
Níl
|
Boyle, Dan.Broughan, Thomas P.Connaughton, Paul.Costello, Joe.Coveney, Simon.Crawford, Seymour.Crowe, Seán.Deasy, John.Deenihan, Jimmy.Durkan, Bernard J.Ferris, Martin.Gogarty, Paul.Gormley, John.Higgins, Joe.Higgins, Michael D.Howlin, Brendan.Kehoe, Paul.Lynch, Kathleen.McCormack, Pádraic.McGrath, Paul.McManus, Liz.Mitchell, Olivia. |
Morgan, Arthur.Moynihan-Cronin, Breeda.Naughten, Denis.Noonan, Michael.Ó Caoláin, Caoimhghín.Ó Snodaigh, Aengus.O'Dowd, Fergus.O'Keeffe, Jim.O'Shea, Brian.O'Sullivan, Jan.Pattison, Seamus.Penrose, Willie.Perry, John.Ring, Michael.Ryan, Seán.Sargent, Trevor.Sherlock, Joe.Shortall, Róisín.Stagg, Emmet.Timmins, Billy.Upton, Mary.Wall, Jack. |
Tellers: Tá, Deputies Hanafin and S. Power; Níl, Deputies Durkan and Stagg.
Question declared carried.