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Dáil Éireann debate -
Tuesday, 22 Oct 2002

Vol. 555 No. 5

Other Questions. - Tourism Industry.

Breeda Moynihan-Cronin

Question:

85 Ms B. Moynihan-Cronin asked the Minister for Arts, Sport and Tourism the number of tourists who have visited Ireland to date in 2002; the way in which this compares with the same period in 2001; and if he will make a statement on the matter. [19082/02]

Jimmy Deenihan

Question:

87 Mr. Deenihan asked the Minister for Arts, Sport and Tourism his plans to reverse the downward trend in visitors from the USA to Ireland in 2002; and if he will make a statement on the matter. [19132/02]

Brendan Howlin

Question:

93 Mr. Howlin asked the Minister for Arts, Sport and Tourism the latest information available to his Department on the prospects for the tourism market for the remainder of 2002; the prospects for the tourism market for 2003; and if he will make a statement on the matter. [19073/02]

Eamon Gilmore

Question:

94 Mr. Gilmore asked the Minister for Arts, Sport and Tourism his proposals to invest additional Exchequer funding in the marketing of the tourism industry for the remainder of 2002; and if he will make a statement on the matter. [19080/02]

Seán Ryan

Question:

97 Mr. S. Ryan asked the Minister for Arts, Sport and Tourism his proposals to increase funding for tourism marketing in the United Kingdom and Europe specifically; and if he will make a statement on the matter. [19084/02]

Pat Rabbitte

Question:

106 Mr. Rabbitte asked the Minister for Arts, Sport and Tourism his assessment of the financial losses in the tourism industry to date in 2002; and if he will make a statement on the matter. [19079/02]

Bernard J. Durkan

Question:

267 Mr. Durkan asked the Minister for Arts, Sport and Tourism the extent to which he proposes to set out a recovery path for the tourism industry; and if he will make a statement on the matter. [19352/02]

I propose to take Questions Nos. 85, 87, 93, 94, 97, 106 and 267 together.

The year 2002 has been difficult for Irish tourism. It has been characterised by a marked shortening in the booking period for holidays. This has made it difficult for operators to predict levels of business from month to month, which, in turn, has led to a high and understandable level of uncertainty in the trade.

The latest available official tourism and travel statistics available from the CSO for this year relate to the first quarter of 2002. These show an increase in the total number of overseas visitors of 10.3% on the same period last year with foreign revenue earnings up 5.8%. While these are good figures, they should be treated with a degree of caution given that first quarter business generally only accounts for less than 20% of total annual visitor numbers.

I understand figures for the second quarter of the year are scheduled to be published by the CSO within the next three to four weeks. These may be expected to show a certain softening of demand, due to a number of factors, the so-called "World Cup effect," political instability internationally, economic uncertainty in Germany and the USA and a marked reduction in airline capacity on US routes. The poor weather over the summer months has also had a negative impact on the British and domestic markets.

The market intelligence available from the industry and our tourism agencies indicates that the peak season produced mixed results. The good news is that the British market, traditionally our biggest market, has held up well with estimates of up to 6% growth in visitor numbers. This confirms the wisdom in the recovery strategy of targeting Britain as a market that could yield immediate and significant results this year. On the downside, visitor numbers from the United States have fallen. This has had a negative impact in those sectors and areas which depend heavily on this market. Estimates for mainland Europe show little or no change on last year. The German market remains weak with some good results from southern European countries.

On the issue of Exchequer funding, this year has seen the largest ever budget being 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.

Shortly after my appointment and following consultations with the industry and tourism agencies, I decided to reallocate a further €3 million in funding for front-line marketing activity. With the help of this funding, Tourism Ireland has extended its marketing activities in those markets with the best prospects for generating visitors and revenue in the short term, targeting in particular Great Britain, closely followed by Europe and North America.

In relation to North America, I am conscious that this market is particularly important for some sectors of the tourism industry. There were difficulties increasing our marketing returns in this market during the peak season because of reductions in direct air capacity. In view of high load factors and pricing on US routes, I did not favour putting extra resources into the US market during the peak period. However, I did consider that it would be worth pursuing some of the traditional fall business. Tourism Ireland is doing this.

In order to support the campaign and help kick-start the 2003 campaign, I will be travelling to the United States later this week on a promotional visit to Chicago and New York where I hope to meet key players in the tourism trade and carry out some media promotion in order to add whatever political weight I can to Tourism Ireland's efforts to reverse the downturn in this vital market.

In the programme for Government we have set ourselves the target of increasing our share of the continental European market. Our performance in the German market has been disappointing in recent years. I believe strongly that we need to look again at our approach to this market. Tourism Ireland has, in fact, conducted a major review of the German market and I hope to see the fruits of this work next year.

One good news story emerging through this difficult period for tourism has been the ongoing strength of the home tourism market. The most recent figures available show that hotel bednight sales from the Ireland market have actually risen this year by 15%. This volume of growth does not happen by accident and is a tribute to the trade and the tourism agencies which have delivered this performance through the introduction of innovative special offers and strong promotional campaigns.

As to the prospects for 2003, based on soundings from the industry and our tourism agencies, my view is that we should see some improvement next year. The medium to long-term outlook for the tourism sector remains bright. As long as we can maintain our international competitiveness in terms of pricing, access and the quality of our product, the sector should in time overcome its present difficulties.

Tourism Ireland is working in close consultation with the industry, North and South, on its marketing programme for 2003. This close interface with the industry will ensure the programme is soundly based and targets the available resources where they can deliver the greatest dividends. I intend launching this new programme in December.

The challenges faced by Irish tourism this year and last prove that there is no room for complacency. We must constantly review our product, quality, value and development and marketing efforts in order that when the right environment for international growth returns, so too will the numbers. There will be no letting up in our efforts to promote the tourism industry, both at home and overseas. Ireland continues to offer a top class tourism product and we are ideally placed to capitalise on any recovery in the international market.

Written Answers follow Adjournment Debate.

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