Brendan Howlin
Question:6 Mr. Howlin asked the Minister for Arts, Sport and Tourism if he will make a statement on his address to the Travel Trade Ireland 2003 conference in Killarney. [16138/03]
Other Questions. - Tourism Industry.
Kathleen Lynch
Question:10 Ms Lynch asked the Minister for Arts, Sport and Tourism if his attention has been drawn to concerns expressed by delegates at the Travel Trade Ireland 2003 conference in Killarney regarding the impact of inflation on the Irish tourism industry; his plans to encourage the industry to keep prices down; and if he will make a statement on the matter. [16139/03]
Bernard J. Durkan
Question:13 Mr. Durkan asked the Minister for Arts, Sport and Tourism his plans to ensure the competitiveness of the tourism industry; and if he will make a statement on the matter. [16160/03]
I propose to take Questions Nos. 6, 10 and 13 together.
As I stated in my address to the Ireland travel trade workshop on 12 May, as never before, tourism business will be won or lost on the basis of value for money. I went on to suggest that the Irish industry will need to redouble its efforts to ensure that the quality of the product and service on offer matches the price being sought. Already, we are seeing initiatives from, for example, the restaurant sector which aim to address the pricing issue head on. With the euro strengthening against the dollar and sterling, the industry will need to focus its efforts on this issue to maintain and grow its share of the international market.
It is increasingly clear that the tourism industry is exposed to a very competitive international marketplace. While Ireland has never been perceived as a cheap destination, the issue of value for money is now emerging as a serious issue and must be addressed by all involved. As I have mentioned already, in response to the earlier priority question on inflation in the tourism industry, Sustaining Progress – the Social Partnership Agreement 2003-2005, proposes that different responses, from the public and private sector alike, will be required to tackle inflation. Renewing competitiveness, not just in the tourism sector, but for the economy as a whole, is central to the Government's overall macro-economic policy of sustaining non-inflationary economic growth and high levels of employment.
It is appropriate that the tourism industry leads the way in improving satisfaction ratings by continuing to control costs, improve productivity, better manage its human resources and utilise modern technology to best advantage.
Given the Minister's statements today, is there a problem in regard to our linkage with the UK in attracting tourism? He spoke about a possible holding of the US market and a possible increase in regard to mainland European countries, and yet we do not seem to have developed in regard to the UK market. I would have imagined, given the exchange rate between sterling and the euro, that we would have seen a major increase in UK visitors. However, the Minister has not reflected on that.
Were there any informal talks with UK representatives at the conference? Was there any explanation of the failure of the expected improvement to materialise? Many people I know in the tourism industry certainly expected such an improvement. What is the Minister's view of what is seen to be, and should be, our biggest customer for tourism?
There is no doubt that the UK is of immense importance to Ireland in tourism terms. The number of visitors coming from the UK far outweighs the numbers from any other country and accounted for 4.5 million in 2002. We know from the CSO figures released today what the position is for the first three months of the year. While the backdrop has been difficult, with war in the Persian Gulf, SARS and the global economic downturn, the industry has again proven itself to be extremely resilient. At this point, the fall in numbers appears to be small for the first quarter and is in the order of 0.3%. It is encouraging, however, that the value of this has increased by 10%, which is to be welcomed.
In recent times, the UK market has shown a remarkable fall on the outbound holiday market, in the order of 15%. Ireland's fall over the first quarter would appear to be in the order of 3%. That indicates that, relative to other destinations, Ireland is actually gaining ground. That is down to the fact that we have put in a huge effort in the UK and will continue to do so. I repeat my prediction that, while we will have a difficult year, I do not believe it will be as bad as many have predicted.
Did operators at the travel trade conference express their concerns about the increasing costs in tourism and our lack of competitiveness vis-à-vis other destinations, given that some of their customers will have provided them with feedback that Ireland has become expensive?
Does the Minister agree that the number of tourists visiting from the UK is somewhat distorted because of the large number of people who commute on a weekly and even daily basis to the UK for work and the number of people at college in the UK who return home? A different type of traveller comes from the UK, as opposed to the US, from where more tourists come. Does the Minister agree, therefore, that the UK tourism figures are distorted because of the differing definitions of what is a tourist? Perhaps the Minister will give the House his definition of what is a tourist.
We must face the reality that, in general, prices are set by industry providers. Many of the increased costs in food, drink and entertainment, which absorb a huge proportion of a visitor's budget, must be met on an everyday basis by all of us. In the debate on pricing, it has often been argued that Ireland has never been a low cost destination and that visitors are prepared to pay for a quality product. To my mind, this is the crux of the matter. It is worrying that visitors' perceptions of value for money have decreased so sharply. However, this should also be seen in the context of a great many overseas visitors still recommending Ireland as a holiday destination to their friends.
From the outset of my appointment as Minister, I have been a strong advocate of ensuring our international competitiveness in terms of pricing, access and the quality of our product. I am confident that the programme of action for competitiveness and inflation, identified in the social partnership talks and the tourism review, will address this issue in greater depth.
With regard to my definition of a tourist, I am greatly reminded of Lord Denning's description of how to know when a man is drunk, which is that when he is lying prostrate on the ground, and he falls off, he is definitely drunk. One man's beer is another's poison, therefore, it does not matter what my personal definition of a tourist is. Nonetheless, Tourism Ireland has ways of monitoring the number of tourists coming to the country and it supplies those figures to the Department. The CSO also has its method of deciding who is and is not on holidays. When the CSO produces its figures, I must take them at face value. I respectfully suggest that Deputy Deenihan writes to the CSO seeking the detail and data he has requested.
A group of footballers and I travelled to Old Trafford a week ago and we were interviewed on the way back and declared to be tourists. Therefore, we added to the tourist numbers by virtue of the fact that we were in Old Trafford. There should be a clearer definition of what a tourist is, in order that we can plan properly with a greater appreciation of the real numbers visiting. Some 2.3 million real tourists come to this country each year, according to incoming tour operators. It would be better for everyone if we had clearer definition of the number of actual tourists coming here, rather than casual and commercial visitors.