Vol. 568 No. 2
185 Mr. Wall asked the Minister for Arts, Sport and Tourism the nature of the problems facing the tourism industry; his plans to introduce financial incentives towards tourist accommodation; and if he will make a statement on the matter. [16153/03]
Last December, I appointed the tourism policy review group and asked it to examine the key issues facing the tourism industry and to outline a strategy for its future development. The review group recently submitted its interim report, chapter 1 of which presents a concise overview of the challenges facing the tourism industry in Ireland today. These include the fundamental change in external factors such as the nature and structure of international tourism, the economic downturn and the major uncertainties that have arisen from terrorism activity and the increasing evidence that the competitiveness of Irish tourism has deteriorated in recent years. The interim report may be viewed on, or downloaded from, my Department's website www.arts-sport-tourism.gov.ie
The review group has commented on the significant investment in the range and quality of tourist accommodation in Ireland in recent years, with the result that there is now a great deal of unused capacity. The question of financial incentives towards tourist accommodation is not included in the interim report and I have no plans at present to provide any new financial incentives for such development.
186 Mr. Wall asked the Minister for Arts, Sport and Tourism his views on the targets set for the tourist sector in the national development plan; if these will be achieved; and if he will make a statement on the matter. [16155/03]
The key tourism objectives under the national development plan are to increase overseas revenue earnings and per diem visitor yield, and to help the industry achieve a wider seasonal and regional distribution of tourist business, thereby contributing to sustainable development goals.
Over the first three years of the plan, Irish tourism experienced a number of major challenges and setbacks which are having a continuing impact on the industry in the international marketplace. The first year of the plan, 2000, was a record year for tourism in Ireland, both in terms of overseas visitor numbers and foreign earnings. However, with the double blow of the foot and mouth crisis and 11 September in the US, 2001 was the first year in well over a decade in which visitor numbers declined – they were down 5%. The following year, 2002, also proved to be difficult and challenging for tourism, particularly in the context of the continuing fall-out from 11 September on consumer travel behaviour, the unfavourable economic conditions in Ireland's key tourism markets and the deterioration in access capacity from markets such as the US.
Despite these adverse market conditions, some key targets have been met and, in certain cases, exceeded. Foreign earnings, excluding receipts to Irish carriers, of €3.267 billion in 2002 have exceeded the mid-term target of €2.918 billion, with average annual growth exceeding the 5% growth target. While a greater regional spread of tourism has not yet been realised, primarily as a result of the fall-off in longer-stay visitors from the US, the target for greater seasonal spread was achieved in 2002, with a shift of 2% away from the peak months of July and August. The mid-term target for per diem yield has also been met.
