Vol. 562 No. 2
113 Mr. P. Breen asked the Minister for Arts, Sport and Tourism his views on the slowdown in the number of US tourists booking holidays here in 2003; the contingency plans he will put in place to target alternative markets to compensate for a downturn from the US market; and if he will make a statement on the matter. [5668/03]
114 Mr. R. Bruton asked the Minister for Arts, Sport and Tourism his views on the slowdown in the number of American visitors booking Irish holidays for 2003; and if he will make a statement on the matter. [5671/03]
129 Mr. Rabbitte asked the Minister for Arts, Sport and Tourism the number of tourists to Ireland since 1 January 2003; the way in which this compares with the same period in 2002; and if he will make a statement on the matter. [5606/03]
137 Mr. J. O'Keeffe asked the Minister for Arts, Sport and Tourism if an assessment has been carried out on the likely effect on the tourist industry of a war in Iraq; the measures that might be taken to counteract a downturn; and if he will make a statement on the matter. [5663/03]
141 Mr. Connaughton asked the Minister for Arts, Sport and Tourism if his attention has been drawn to the widespread concern among tour operators in the USA due to the downturn in demand for holidays here; the contingency plans he has in place to target alternative markets; and if he will make a statement on the matter. [5501/03]
I propose to take Questions Nos. 113, 114, 129, 137 and 141 together.
As I said in reply to a priority question on today's Order Paper, the reported downturn in the US market this year is based on the booking trends reported by tour operators for the month of February. There are, no official visitor statistics available at this stage in the year as these statistics are released on a quarterly basis. On the general issue, it is important that we keep things in perspective and ensure that our responses to an ever-evolving situation are based on the best information and expertise available.
While contingency planning in the context of Iraq has been under way for some time now and the tourism marketing programmes for 2003 have been devised to cater for a variety of contingencies, we should not start reacting in haste or in a knee-jerk manner to what are very early trends emerging in one market.
Tourism Ireland has worked closely with the industry since its establishment and it will continue to engage closely with the sector in setting out a course of action aimed at addressing any adverse fall-out from a war in Iraq should this arise. The primary focus continues to be on securing quality tourism business wherever the best prospects exist. If the "wait and see" approach to booking foreign holidays persists in the US, Tourism Ireland's marketing programme is sufficiently flexible to enable it to re-allocate resources to markets and marketing activities which may offer a better return. It is simply too early to make this call based on the evidence to hand. If and when this situation arises, Tourism Ireland will make the strategic and tactical decisions which are deemed appropriate, in tandem with the industry. Contingency planning in this type of situation is far from an exact science. There are many unknown factors which will have a key influence on how this situation plays out over the weeks and months ahead. The reaction of air carriers, international tour operators and most importantly, the consumer are crucial yet impossible to predict with any degree of certitude.
While the tourism agencies and industry have learned a great deal from previous experiences of external shocks, the global tourism market and consumer behaviour patterns have changed in many significant ways since 11 September 2001. Similarities with the previous Gulf War do not necessarily apply now. There is no doubt that, in the early 1990s, the US consumer felt safer at home. Whether that is still true to the same extent, having regard to the impact of 11 September, is difficult to judge. The type of consumer Tourism Ireland is increasingly targeting is a more well-informed, independent traveller who may not be as easily deterred from travelling by an outbreak of war in Iraq.
With all the uncertainties pervading the sector at the moment, there are some things about which we can be certain – Ireland continues to be a top class tourist destination offering excellent value for its premium product. Our tourism agencies have an enviable record when it comes to winning business internationally and the Government has resourced them sufficiently and in such a manner as to allow them get on with the business at hand. What we need now is a steady hand and a sense of perspective. I am confident both the industry and the tourism agencies will rally together to meet whatever challenges lie ahead and that Ireland will continue to fight for and win good quality tourism business.
Given that the phone inquiries from American tourists directly to Ireland have almost stopped, it is time the Minister considered seriously other markets to make up the shortfall. During the Gulf War there was a fall-off of 20%, with much smaller numbers. This time we are talking about a decline of 20% on a figure of approximately 850,000 to 900,000, which would reduce the number to 700,000. I am sure the Minister will agree that this will have major implications for the tourism industry, particularly in our own County Kerry, which depends so much on the spending power of American tourists. The likelihood is that there will be a decline in the number of tourists from America.
The Minister said in reply to Deputy Wall that he will be proactive. What marketing arrangements is he putting in place in the UK? Has he put extra resources into marketing Ireland in the UK, our nearest neighbour, with possibly the greatest potential for future customers? What marketing arrangements is he putting in place in the European markets such as Germany and France, in particular, and the Northern European countries?
The Deputy has exceeded his one minute.
I have other questions.
The Deputy will have other chances to come back.
Has the Minister approached Aer Rianta or the Minister concerned to drop landing charges for European carriers so that they will bring more tourists into Ireland in the next six months?
First, I have made no direct approaches to Aer Rianta because that is a matter for the Minister for Transport, with whom I am in regular contact on improving access to the country. As Members will be aware, access is about to be improved from the United States as a result of two additional routes. There will also be 11 additional routes from Europe.
On the question of the marketing spend, as the programme currently stands, 34% of the budget is being targeted at Britain, Ireland's highest volume market. In addition, 32% will be focused on continental Europe, which generates a good market. The British market accounts for 62% of visitors while the Continent currently generates 20% of total visitor numbers. As things stand, there will be a very strong focus on the European market. It was stated in An Agreed Programme for Government that we would seek to increase our share of the continental market, which is why there will be a strong marketing campaign on the Continent this year.
It is true that there has been a fall-off in the number of American tourists since 11 September. The fall-off for 2001 was estimated at 13% and the fall-off last year was estimated at 10%. The experience during the Gulf War was that there was a reduction of 20%. An outbreak of hostilities would have a very serious impact on our plans. As I said, however, I have been proactive. I have met the tourism agencies and many people dealing with contingency planning, and contingency plans are now in place.
In recent days, a number of American carriers have decided not to fly into Shannon but to use continental Europe as a base. While they said this was happening for logistical reasons and not security reasons, is the Minister concerned that this will have a detrimental effect on the American tourism industry. It will be difficult to prove that these carriers are not coming to Ireland for logistical reasons as opposed to security reasons.
It has been reported that the Minister will travel to Scotland in March for the St. Patrick's Day parade. What are his plans to use the occasion to try to beef up visitor numbers from the UK, or has he plans to visit England and Wales in this regard?
I am pleased that there will be additional access this year from the United States. We previously had six gateway cities and we will now have two additional gateway cities. The Baltimore-Washington route is being restored by Aer Lingus and US Airways will fly directly into Dublin and Shannon from Philadelphia. That will increase the air carrying capacity from the United States this year by 25%, which everyone will welcome.
In regard to visits abroad, I am very conscious that visits by Irish Ministers during the St. Patrick's Day celebrations worldwide provide a tremendous opportunity to sell Ireland, which is precisely what will be happening during visits this year. Each Minister travelling will be given the fullest possible assistance. For the first time, I am co-operating with the Department of Foreign Affairs to ensure that each Minister has a sufficient brief and sufficient material to enable him or her to sell Ireland in a serious way. That is not to say that Ministers were not doing so before – they certainly were – but it will now be more formalised in the sense that each Minister will be provided with excellent briefing and material. Few countries in the world have the opportunity to ensure their country gets maximum exposure and St. Patrick's Day provides Ireland with an opportunity it would be foolish to miss out on.
On the question of landing charges, will the Minister ask the Minister for Transport to request Aer Rianta to waive charges for a certain period, for example, six months of the year, for European operators? The consequences of landing charges have recently been to the benefit of Kerry and to the detriment of Shannon. However, it would certainly help if landing charges were waived for a certain period.
That is the responsibility of another Minister.
In view of the fact that a number of incoming tour operators from America had pre-contracted a number of contracts prior to the budget in December, will the Minister approach the Minister for Finance to see if he will make some transitional arrangements to accommodate these people? The reduction in American tourists this year, together with the increase in VAT, will make it almost impossible for some operators to remain in business.
I will have to leave the whole issue of landing charges to Aer Rianta and the relevant Minister. On the VAT rate, the Minister for Finance said that the increase in VAT is marginal at 1% and should not have a major adverse effect on business. Some business people say it will have a major adverse effect and, in those circumstances, I will approach my colleague again to see if he has a change of heart in regard to transitional arrangements.
The Minister referred to the forthcoming war in Iraq and targeting the well informed independent travellers. Will he not agree that this well informed independent traveller is the sort of person opposed to the aims of the US Administration? These people are well aware of Ireland as a safe tourism destination and will be more concerned about the rip-off culture, increased dumping, increased litter, lack of accessible public transport and the decreasing access to land. Given that war is approaching and the decline in the economy, travel access will be diminished, people will be more penny-pinching and the well informed independent traveller is more likely to be discerning. Is the Minister aware that the July-September 2002 figures showed a 2% decrease in visitor numbers to this country and a 20% decrease in the length of stay, indicating that people are moving in line with their pockets?
Will the Minister set up a task force to put pressure on his colleagues in the Departments of Agriculture and Food, Transport and the Environment and Local Government to make sure that when Ministers go abroad to market Ireland as a tourist destination, we have a destination of which we can be proud?
While I would hazard a guess at what goes on in the mind of the man on the Clapham omnibus, I would not hazard a guess at what goes on in that of a well-informed, independent traveller. Ireland, in so far as its environment is concerned, can complete with the very best. We should not under sell ourselves in this respect. Ireland's tourism industry is based on people, place and pace.
The Minister did not see his colleague, Deputy O'Flynn, on TV3 last night.
It would be unfair not to point out that Ireland's environment is one of the cleanest in the world. In fact, the net increase in visitors last year was of the order of 2%. As I outlined earlier, the US trade was down. I also stated that we are trying to increase the US trade this year by 10% and are trying to increase visitor numbers generally by 5%. It is important to point out that in the most recent survey carried out, the majority of visitors to this country expressed themselves very satisfied with their holiday. We never said this was a low cost, mass destination—
The quality is falling.
—but we have a relatively clean environment and a very fine product.
