The purpose of the Bill is to raise the statutory limits on the aggregate amounts of money which may be paid to Bord Fáilte for the giving of grants for holiday accommodation and the development of resorts under the Major Resort Development Scheme.
The Major Resort Development Scheme was inaugurated under the Tourist Traffic Act, 1959, which provided for the payment to Bord Fáilte of sums not exceeding in the aggregate £1 million for the giving of grants for the development of major tourist resorts. Under the scheme the board provides grants to enable such essential work as basic site development, the provision of facilities such as toilets, shelters, car parks, promenades, parks and other recreational activities to be undertaken in places designated for development by the board. One of the conditions of the Scheme is that there must be a minimum local contribution of 20 per cent towards the cost of the development works.
Initially 12 centres and four areas were designated for development but subsequently one resort area and two resorts were added to the programme. The scheme, which aimed at developing resort amenities on the basis of joint action by the board and local interests involved the selection of areas for development and the formation of acceptable proposals. The scheme necessitated negotiations with many interests and the planning and execution of substantial programmes of capital works involving financial commitments spread over several years. These features and the level of funds which could be made available for this work tended to prolong the carrying out of the various development plans and brought the costs of the scheme well beyond the costs first visualised. In some cases adaptation of planned works to changing patterns and tastes was also a factor.
By the Tourist Traffic Act, 1966, the financial provision for the resort scheme was increased from the initial £1 million to £3.25 million. It was intended to allocate £0.75 million of this sum for the initiation of a second major resort scheme but this did not prove possible because of escalation in costs and changes in development commitments under the first scheme.
The total amount issued to Bord Fáilte for resort development at the 31st March, 1972, amounted to £3,202,717 and this left a balance of only £47,283 under the limit prescribed for the fund. A new statutory limit of £4 million is necessary to enable Bord Fáilte to meet its total outstanding commitments in relation to works already commissioned. The disbursement of the additional £0.75 million over the next few years will bring the first major resort development scheme to a conclusion.
Before the resort scheme was introduced, public and private investment in the amenity and recreation infrastructure was minimal. The scheme stimulated the provision of worthwhile tourist facilities in the places designated, that is, Galway—Salthill, Killarney, Bray, Dún Laoghaire, Tramore, Skerries, Kilkee, Youghal, Ballybunion, Lahinch, Arklow, Lisdoonvarna, Westport and Greystones as well as in the resort areas of West Cork, County Donegal, Achill Island, the Dingle Peninsula and the River Shannon and its lakes.
The grants scheme for the development of holiday accommodation was also introduced under the Tourist Traffic Act, 1959. Provision was made in that Act for giving £500,000 to Bord Fáilte for that purpose. As a result of the provision of these funds, Bord Fáilte operated a scheme of grants with the approval of the Ministers for Transport and Power and Finance. As the tourist industry developed and accommodation needs expanded, the scheme was appraised and adopted, including the improvement in 1967 of the scale of incentives. The Tourist Traffic Acts, 1963, 1966, 1968 and 1970 permitted a series of increases in the aggregate amounts provided for accommodation development which brought the initial provision from £500,000 to £11 million. The total amount issued to Bord Fáilte for accommodation development grants to 31st March, 1972, was £9.23 million, which leaves a balance of £1.77 million before the statutory limit of £11 million is exhausted.
Bord Fáilte have not been taking on new grant commitments in respect of hotel and guesthouse development since mid-1969. In the meantime, the moneys voted for holiday accommodation grants have been used by the board to reduce the backlog of grants due to developers and a considerable reduction on outstanding commitments has been effected. Since mid-1969 the board has paid £5.63 million in reduction of the backlog. No developer at present is being held up because of shortage of grant funds and this has been the situation since 1971. Outstanding commitments now relate only to projects on which payments have not yet matured. These commitments will be cleared over the next few years but this necessitates an increase in the statutory limit on funds for the development of holiday accommodation. The Bill proposes to increase the statutory limit from £11 million to £13 million to enable Bord Fáilte to meet outstanding commitments.
Expenditure to date by Bord Fáilte amounting to almost £10 million on accommodation grants has generated a total investment of over £60 million on hotels, guesthouses, caravan and camping sites and holiday cottages. The number of bedrooms in hotels and guesthouses has increased from 17,800 in 1960 to 28,885 in 1972 and the existing volume of accommodation is considered to be adequate for the industry's needs for the years immediately ahead.
Since the introduction of the major resort development and accommodation development schemes 13 years ago, increasing material prosperity has stimulated new consumer demands in all fields of activity including holiday making. For example, distance limits on holiday travel have practically ceased to exist even for people of quite moderate means. In addition to general change, changes in detail which have had a pronounced effect on Irish tourism include:
(a) Serious damage to our markets in Britain and Northern Ireland attributable to events in Northern Ireland.
(b) The increasing proportion of Continental visitors and the need to cater for this new type of customer.
(c) The ending of our "island" status with the introduction of vehicle ferry services.
(d) The greater wish for holiday mobility and the consequent popularity of the independent touring holiday.
(e) The recession in coach tour business.
(f) The increasing popularity of do-it-yourself holidays whether camping, caravanning or in purpose-built rented accommodation, and
(g) The demand for more varied entertainment.
In view of these influential factors and with the discharge of all outstanding commitments in relation to major resorts and accommodation development in sight, I consider it both opportune and desirable that a comprehensive review of progress to date should be carried out with a view to developing, if necessary, a completely fresh approach to accommodation and resort infrastructural needs for the future. Bord Fáilte are at present carrying out this study and in the course of it they are taking account of their own experience and of a number of studies and consultancy research reports on physical planning, accommodation development and tourists' needs.
The provisions of this Bill will enable Bord Fáilte to complete major resort and accommodation development projects. The limits of £4 million for resort development and £13 million for accommodation development proposed in the Bill do not include any funds for new schemes. By the time the limits included in the Bill have been reached, Bord Fáilte will have to come to firm conclusions on the direction which further development should take. Proposals for continuing assistance in some form for accommodation and resort development are likely to emerge from the board's studies. The implementation of any such proposals will, of course, need further legislation and Senators will get an opportunity to debate in full any proposals for further financial provision for accommodation and resort development.
I consider it appropriate at this stage, to say something about the present tourism situation. Senators are aware of the difficulties confronting the industry since 1969 when the unrest in Northern Ireland became aggravated. Tourism revenue in that year was £98.7 million and represented an increase of £5.7 million on the 1968 figure. Tourism revenue fell in 1970 to £96 million and rose in 1971 to £100.8 million. On the basis of constant 1970 prices the 1971 figure represents a fall of close on 4 per cent on the 1970 figure. Bord Fáilte have forecast a revenue of £87.9 million for 1972.
These figures were only achieved through the massive amount of development, promotional and marketing work, undertaken by all the interests concerned. Full credit is due to Bord Fáilte, the regional tourism organisations and all other interests in the industry for their performance over the past few years in very difficult conditions.
Unfortunately there are yet no strong indications of a very early return to stable conditions in Northern Ireland. Bord Fáilte are, however, optimistic about a resumption of tourism growth and they have set a target of an increase of £6.9 million for 1973 to bring tourism revenue exclusive of carrier receipts in that year to £69.2 million at constant 1972 prices. The board are undertaking an ambitious promotional programme for 1973. Their programme involves advertising in Britain, North America and the Continent. New marketing literature for their overseas markets is being prepared. Promotional work in the new Continental market areas is being extended. The board are guaranteeing the quality of a programme of holidays offered in Britain and they have appointed public relations consultants for that market area. The board are trying to increase significantly, in co-operation with carriers and other sectors, the number of travel writers, radio and television units and travel agents to sample the holidays to be offered to tourists here in 1973. The convention bureau is endeavouring to increase the number of conferences and incentive travel visits.
Every possible effort is being made to improve the Irish tourist product and the flow of visitors to Ireland. I hope that it will not be long before the industry again enjoys the growth trends of the early sixties. The industry is sound and I am convinced that it will emerge much stronger from the difficulties it had to face in the past few years.
I should like to take this opportunity to thank the very many Irish people who spent their holidays at home in Ireland in 1972. Bord Fáilte estimate that tourism revenue from this source in 1972 will be about £18.7 million. On this basis, the "Discover Ireland" programme was a success and it is the board's intention to develop strongly this section of the tourist industry.
The Bill will facilitate the provision of important tourism facilities and I, therefore, confidently recommend it to the House.