Denis Naughten
Question:10 Mr. Naughten asked the Minister for Arts, Sport and Tourism the steps he intends to take to address the forthcoming visitor loss due to the war in Iraq; and if he will make a statement on the matter. [11152/03]
Other Questions. - Tourism Industry.
Jim O'Keeffe
Question:14 Mr. J. O'Keeffe asked the Minister for Arts, Sport and Tourism the number of tourists expected in 2003 and their prospective estimated value to the economy and the Exchequer with comparative figures for 2002. [11155/03]
Pat Rabbitte
Question:26 Mr. Rabbitte asked the Minister for Arts, Sport and Tourism the projections for tourist numbers for the remainder of 2003; the recent steps taken to address the fall in tourist numbers; the steps that will be taken for the remainder of the year to promote tourism abroad; and if he will make a statement on the matter. [11021/03]
Breeda Moynihan-Cronin
Question:27 Ms B. Moynihan-Cronin asked the Minister for Arts, Sport and Tourism his views on the effects the conflict in Iraq is having on the tourism industry here; and if he will make a statement on the matter. [11030/03]
Bernard J. Durkan
Question:126 Mr. Durkan asked the Minister for Arts, Sport and Tourism his plans to boost the tourism industry in the current season; and if he will make a statement on the matter. [11305/03]
I propose to take Questions Nos. 10, 14, 26, 27 and 126 together.
The Central Statistics Office is responsible for the collection and publication of tourism statistics. Although tourism figures are not yet available from the office for 2003, tourism agencies and industry sources have indicated that war in Iraq and the outbreak of SARS are having a significant impact in certain markets, particularly long-haul markets. It is feared that 2003 may prove as challenging and difficult as 2002 as a result.
As I anticipated when last answering questions in the House, the markets which are most vulnerable in a war scenario are long-haul markets such as the United States, Canada and Australia. The intelligence available from Tourism Ireland's market offices and local tourism trade is that consumers in many markets, particularly the markets I have mentioned, are adopting a "wait and see" attitude to their holidays this year. With the possibility that the military conflict in Iraq may be winding down, the consumer response over the next number of weeks will be crucial in terms of how the peak season pans out. In this context, it is vital that we are appropriately positioned to take full advantage of any upturn in consumer confidence which might lead to people making concrete holiday decisions. Tourism Ireland will gear up its marketing activities in its key tourism markets, particularly the US, Britain and Europe, in the coming weeks to capture any upturn in business.
My objective from early on has been to be proactive and, with the tourism agencies, to support the industry in dealing with the emerging situation. I met the chief executives of the State tourism agencies before war began in the Gulf to ensure that a robust contingency plan is in place. I secured funding of €48 million for Tourism Ireland and Bord Fáilte's marketing programmes to bolster our international marketing efforts this year. This has enabled the agencies to deploy resources to optimal effect in key tourism markets. The 2003 marketing programme was developed with regard to the background of global uncertainty and is, therefore, capable of adapting to emerging market developments.
As war became increasingly likely, Tourism Ireland established an internal response team which has met on a weekly basis to analyse feedback from markets, utilising Tourism Ireland's global office network which is located in 19 countries. The team's objective is to identify the best prospects available to the tourism sector and to review Ireland's marketing messages, mediums and programmes in light of market developments. A tourism industry response group, which has been meeting regularly, has been supportive of the approach adopted by the State tourism agencies. The industry is being regularly updated, through e-zines and other means, on developments in the marketplace and significant changes in Tourism Ireland's marketing plans. Such lines of communication are vital in ensuring a co-ordinated and efficient use of marketing resources, both from private and public sector sources.
External shocks apart, the fact that a stronger focus on the European market is vital to the development of Irish tourism in the longer term has been identified as a key priority in An Agreed Programme for Government. In this regard, Tourism Ireland has stepped up its activities and targeted a significant level of resources at its campaigns in Britain and other key European markets this year. I will lend whatever support I can to Ireland's promotional efforts in Europe. In this context, I have commenced a series of promotional visits to key European markets, starting last month with a visit to Germany. I opened Tourism Ireland's new office in Frankfurt and launched a new marketing strategy for Germany which aims to increase business from what is the second largest outbound tourism market in the world, after the United States. While there is evidence that certain outbound European markets are feeling the effects of war in Iraq and the outbreak of SARS, experience suggests that such markets may prove resilient, particularly as Ireland continues to be considered a safe, friendly and close to home destination.
Tourism Ireland is ready to step up its marketing campaign in the United States in the next few weeks as consumers there begin to make final decisions about their holiday choices this year. Ireland has suffered its share of the decline in outbound tourism from the US since 11 September 2001. The US is a vital market for Ireland, particularly in revenue terms. The war in Iraq has undermined the tourism sector's ability to capitalise on the restoration of key access routes from the US this year. If the military conflict winds down, however, there is an opportunity to crank up our marketing efforts there and to convert the consistently high level of interest in Ireland among US citizens into good tourism business. In that context, Tourism Ireland has identified key marketing initiatives which it will, if circumstances permit, deliver over the coming weeks and months, aimed at exploiting the best business prospects available.
The tourism industry is facing its third successive year of external market shocks. We learned a great deal from the experience of foot and mouth disease and the events of 11 September. While there are similarities with previous shocks, the tourism sector in Ireland is now more mature and resilient, and has a proven track record in adapting successfully to unforeseen difficulties and challenges. With this in mind, I am confident that, working together, the industry and the Government agencies will overcome the most recent difficulties and will position Ireland to capitalise fully on the opportunities which lie ahead.
I often think that the Minister for Arts, Sport and Tourism has the cushiest job in the world when the sun shines and the tourists pour in. Does he not accept, however, that the signs and portents for the 2003 season are very bad, as a consequence of the war in Iraq, the spread of SARS and the global economic decline? Does the Minister not accept that an emergency action programme is necessary if we are to salvage the tourism season? Does he agree that it is time for serious leadership? While I agree that the Minister should support the various promotions as part of an attempt to, as he said, "crank up our marketing efforts", does he not accept that something more, such as an emergency package, is needed from the Government? Does he agree, bearing in mind the importance of the tourism industry to our respective areas and to the country as a whole, that a special funding arrangement, supported by the tourism industry, should be put in place? The Minister should put in place emergency arrangements now so that their beneficial effects can be felt in the current tourism season.
I met tourism chiefs when it became apparent that there was to be a war in the Gulf. We had a fruitful discussion about how best to proceed in the event of war. A contingency plan was drawn up to ensure that the benefit of the 20% increase in marketing funds made available to Tourism Ireland this year could be maximised. A tourism review group, which is internal to the tourism industry, was established in Tourism Ireland to that end. The group will monitor the intelligence received from Tourism Ireland's 19 offices worldwide with a view to diverting marketing expenditure where necessary. It is clear that this plan was sufficiently flexible to enable Tourism Ireland to maximise the market's potential and I believe it is continuing to do so. For example, a very strong campaign has been under way for some time in Germany, the world's second largest outbound tourism market. If one does well in attracting visitors from Germany, it is normally a sign that one will do well in the rest of Europe. The US market has not been abandoned as it is intended to pursue a marketing campaign there to as heavy an extent as ever, if not heavier, if it is apparent that the war in Iraq is about to end.
It is too early for me to say to Deputy Jim O'Keeffe with any degree of certitude that this will be a bad or a good season. There is increasing evidence, especially from the United States, that people make decisions about holiday destinations at short notice. I suppose this can be attributed largely to the global village that has emerged in recent years. Although I cannot anticipate what the future holds, I accept that the US market suffered in 2001 and 2002 and that the industry faced great challenges as a result. I am not blind to the fact that this will be a difficult year too, but I am aware that the industry has proven itself to be resilient and that there are major opportunities to be won.
How can the Minister align his comments about the German and European market with a recent newspaper report which stated that 81% of German and Dutch tourists are dissatisfied with what they find when they come here? Their disappointment at the price of goods, such as alcohol, and services was the main factor that contributed to the findings of the survey. How is the tourism trade to overcome such an attitude from a market that is regarded as being as important as the United Kingdom market?
Does the Minister not agree that due to the increased cost of goods and services we have allowed ourselves to lose the competitive edge so necessary for tourism and which helps to overcome the shortfall due to the loss of the American trade?
When the Minister was in Germany did he receive any reaction from the German tourism operators about the findings that 56% of visitors to Ireland last year were disappointed with their holiday? Mr. John Travers, the chairman of Bord Fáilte commented on these figures at the seminar.
I am glad of the opportunity to address the issue which has been raised by Deputy Wall. He refers to a report of an address delivered at a recent tourism conference. Unfortunately, as sometimes happens when statistics are taken out of context, the report was not a completely accurate representation of the actual results from Bord Fáilte's latest survey of visitor attitudes which was conducted among overseas holiday visitors during the summer of 2002. It is important to state that the survey found that 94% of overseas visitors indicated that their holiday either matched or exceeded their expectations and only a small minority of 6% were disappointed overall with their holiday experience. When asked, almost eight out of ten visitors surveyed said that they would recommend a holiday in Ireland to a friend, with virtually the remainder saying that they would recommend Ireland with some reservations.
I accept Deputy Wall's argument and since becoming Minister I have consistently spoken on the subject of the level of dissatisfaction from all markets with overall value for money in Ireland. Less than half of all overseas visitors last year were satisfied with the value for money on offer to them. This must be seen in the context that the main influence in the choice of a holiday destination for 50% of holiday visitors to Ireland is word of mouth recommendation from friends and relatives. While the primary items considered by overseas holiday visitors to Ireland to be of less than good value for money were the cost of eating out and drink and food in shops and supermarkets, there is also evidence of increased resistance to the cost of accommodation, car hire and extended coach tours.
When I made this point on a previous occasion I was attacked from various sectors. The truth is that this crucial industry is now of prime importance to our economy and it is of immense importance that all those involved in it realise that competition from external sources is fierce and either there is value for money or there is not. The introduction of the euro has unmasked deficienc ies which might not have been spotted in the past. Everything is transparent now and people know whether they are getting value for money or not. Market share is lost if there is no value for money and we must ensure that is provided across the sector.
Has the Minister consulted with the tourism interests in this country with a view to identifying areas where competitiveness has been lost and, if so, to what extent has he expressed his views and to what extent have they been taken on board? When will the outcome be known of his Department's promotional efforts in Germany to counter the downturn in the tourism industry? At what stage in the season will it become known? If information on advance bookings is available, will it be possible for the industry to assess the position with a view to either becoming more competitive, if that is possible, or taking some other measures?
To address the Deputy's latter question first, it is normally possible to give some indication a quarter in advance of the potential bookings for the season. I visited Germany recently and there is evidence from the German market that there will be an increase in numbers of German visitors to Ireland this year.
The German market takes a total of 58 million holidays a year and our share was a mere 307,000 as at 2001. That is a very small share of a very large market. There has been evidence of a decrease in the number of German visitors to Ireland – arrested for the first time last year – from 1996 onwards. The challenge is not just to arrest that decrease but to increase the numbers of German visitors. We are making a big effort to achieve that. We have held nine road shows in nine different German cities. We are participating in international trade fairs and organising electronic and print promotion in Germany. Following meetings I have had with those who organise travel to Ireland I remain convinced that we will increase our share of the market from Germany for this year.
Will the Minister answer the second part of my question in relation to addressing the competition?
Addressing the competition is one of the terms of reference which has been given to the tourism review group which has been asked to submit an interim report by the end of this month and to speed up the production of its final report on the state of the Irish tourism industry and to provide recommendations for the future. The question of competitiveness is one of the principal issues which the tourism review group has been asked to address. I await their recommendations with great interest.
The Minister is no doubt aware that with visitor numbers falling because of war there is a need to have a more quality package on offer. Foreign visitors are becoming much more discerning. Given the contributions from other Deputies I assume the Minister is aware of the need to ensure that visitors receive a friendly welcome and are charged fair prices and receive value for money.
Is the Minister aware of a recent report by CERT on the green agenda and the challenge for Irish tourism and hospitality? This report states that green tourism, although firmly on the agenda of global tourism business, was not necessarily on the Irish agenda and that we are playing catch-up. Besides friendly people and beautiful scenery, the most important factor for tourists considering visiting Ireland is our environment. Is the Minister aware that one of the consultants who wrote the report says that if we do not go green, the market will disappear?
The EU EUROPA Enterprise Directorate has produced a report on the use of natural and cultural heritage to develop sustainable tourism. The report comments that the growth rate of alternative or green tourism at 8% well outstrips the growth rate of traditional tourism. The reasons given are more experienced travellers seeking new destinations, greater mobility in the EU, the tendency to take shorter, more frequent trips, an older but more active population, greater concern for the quality of the environment. I ask the Minister to give a commitment to the House that he will read this report if he has not done so already. Will the Minister give an undertaking to set up a task force in co-operation with the Minister for the Environment and Local Government to examine the issue of greening tourism and to enact legislation if necessary?
Ireland has one of the cleanest environments on the planet and this has been acknowledged by visitors to the country.
It is also one of the dirtiest.
I have no difficulty in greening the country further if that is possible. If there are solid suggestions for improving the environment, I am particularly susceptible to taking them on board. Under the tourism product scheme we have a scheme of grants to improve the environment and there are a number of applications which are being considered at present. I hope the war will end soon. I am particularly pleased in the tourism context that we did not take on board Deputy Rabbitte's suggestion prior to the Gulf War that we should give asylum to Saddam Hussein.
The Minister should read the whole text.
That was meant to lead the Minister astray.