Dáil Éireann debate -
Wednesday, 28 May 2003

Vol. 567 No. 6

Written Answers. - Tourism Industry.

Jack Wall

Question:

195 Mr. Wall asked the Minister for Arts, Sport and Tourism his views on the effect of the strengthening euro against the dollar in regard to tourists from the US visiting Ireland in 2003; and if he will make a statement on the matter. [14915/03]

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

The relative strength of the euro against the US dollar over recent times is a cause for concern for the tourism sector, not only in Ireland but throughout the eurozone. Currency fluctuations are a commercial reality for the tourism industry and for this reason I understand that many tour operators and travel agents take the necessary hedging precautions to mitigate against unfavourable currency movements. In this context, I am informed that the prices of holiday packages on offer to US tourists this year would already include an element of built-in protection against a weakening dollar. For this reason, Tourism Ireland does not envisage a significant impact on US visitor numbers in 2003 arising directly from currency variations.

The real impact of a weakening dollar will be felt by US tourists who arrive in Ireland, and other eurozone countries, this year to discover that their spending power has been diminished. The key challenge for the industry here will be to ensure that tourists continue to get the best possible value for money on the ground, relative to our competitors. In this regard, the measures being introduced by the industry along with Government action to curb inflation over the coming months will be a key determinant in offsetting any adverse impact of the prevailing currency situation.