Tá sé soiléir dom go bhfuil ganntanas ama orainn agus dá bhrí sin déarfaidh mé an méid atá le rá agam chomh tapa agus is féidir liom.
I welcome the opportunity to respond to this Motion. It was with some satisfaction that I noted the Seanad's acknowledgement of the upturn in the Irish tourism industry and of Government efforts to ensure that this upturn is maintained. No doubt 1987 was a record year for Irish tourism. For the first time in the industry's history total tourism revenue is estimated to have topped the £1 billion mark. Over 2.1 million visitors came to Ireland in 1987 and total out-of-State revenue amounted to over £720 million. This represented an increase of 12 per cent and 11 per cent, respectively, on the previous year. The domestic market, where preformance in recent years had been disappointing, improved dramatically in 1987 also, with estimated revenue at £290 million. This represented an increase of 33 per cent on the 1986 performance. Arising from this improved performance, Bord Fáilte estimate that 4,000 new jobs were created in the tourism sector in 1987 while a further 3,500 new jobs resulted indirectly from the increase in tourism revenue.
The improved 1987 performance of Irish tourism did not happen by chance. In their pre-election manifesto, "Putting Growth Back Into Tourism," this Government recognised the vast potential of Irish tourism and the fact that this potential was not being realised. In that document, we pointed out that Irish tourism had lost ground in recent years and that we were not maintaining our market share. What we said then was underlined subsequently in the Price Waterhouse report on improving the performance of Irish tourism. This is now widely acknowledged and the same point has been made more forcefully on a number of occasions during this very debate in the Seanad.
It is fair to say that the entire community is now focusing attention on the tourism industry and I welcome the response and enthusiasm being expressed. Immediately on assuming office the Government set about the task of revitalising the industry. An emergency package of measures was introduced last May designed to boost tourism numbers in 1987 — a little late but nevertheless very effective. This involved such action as a reduction in air and sea fares into Ireland and concessions on petrol for British motoring tourists. It met with a most positive response from within the industry which produced its own package of special incentives for the tourist season. That was very important. The Government gave the lead and the industry responded.
Our 1987 performance is a testimony to the success of this approach. Let there be no mistake. This was not a once-off burst of energy on the Government's part. It was the first step towards the intensive and comprehensive development of the national tourist industry. It is one of the key planks in the Government's sectoral development policy outlined in the Programme for National Recovery. I am pleased that Members of the Seanad share our view that tourism has the potential significantly to increase its current contribution to the economy by way of jobs and wealth creation.
Tourism has quite rightly been targeted as a growth area which can provide an extra 25,000 jobs and an additional £500 million in tourism revenue through a doubling over the years of the number of foreign visitors. These are ambitious targets. They are, however, realistic and attainable.
Access transport will be a key element in the Government's strategy for achieving these targets. Our commitment to improving the range of access transport services, increasing competition and making access fares more competitive was evident from the moment we merged tourism with the crucial area of transport under the one ministry. The Price Waterhouse report referred to the non-competitiveness of air fares particularly from continental Europe, and of sea fares for motoring tourists from both Europe and the UK. The House will agree that our policies in the transport area are very quickly addressing these problems as evidenced in the large number of new routes and reduced fares which have been approved since our coming into office. More has yet to be done especially on the continental side and we look forward to a bit more co-operation from France and Germany and further liberalisation and fifth rights for airlines to bring more people to Ireland.
Recently, a substantial number of further new services by Aer Lingus, Ryanair and Club Air have been approved. All of this will help the development of competitively priced air services to Ireland from our main markets. More competitive air access has also brought about a positive response from the sea access carriers who have introduced a broad range of competitively priced fares aimed at boosting car passenger traffic.
Senator McMahon mentioned the dangers of carriers entering into below-cost selling. I would, of course, be worried about such developments. However, I can assure the Senator that, when examining fares filed for approval, the Minister operates on the principle that carriers are expected to charge the lowest possible fares consistent with an adequate service and economic and continuing operation. All fare filings, therefore, are examined critically within my Department to ensure that they are geared towards improving capacity and increasing traffic rather than undermining current services.
A further indication of the Government's commitment was their decision to allocate an additional £4 million in this year's budget for the introduction of further measures to boost tourism traffic in 1988. A special advisory group, the "task force" referred to by Senators in this debate, was established by the Government specifically to bring forward recommendations to the Government on how best to spend these funds for the benefit of Irish tourism in 1988. This has meant that the group must report as soon as possible to ensure that any recommendations to be implemented could be put in place in good time for this year's tourist season.
The group have taken on this very demanding task with great enthusiasm and energy and have already met on a number of occasions. They have received numerous submissions from a wide range of tourism interests. I would like to acknowledge the interest shown by all those who felt they had something to offer and did so in response to the request for these ideas to be submitted to the committee. These have been considered along with the large number of recommendations which emanated from the tourism forum convened by Government in January. I understand that the group are aiming to report their findings to the Government shortly and these will be given immediate consideration. The Government are acutely aware of the importance of getting any special package of measures for 1988 into the marketplace in good time to allow holiday makers to take them fully into account when determining their holiday destination, or indeed destinations, for this year.
These pressing time constraints on the work of the special advisory group meant that they could not possibly contemplate the round of consultations envisaged by Senator McGowan. Regarding the tourism development in Donegal and the Border counties, since the Senator is the proposer of the Motion and spoke for a half hour on it, I think it is only reasonable that I should reply in some detail to the points he raised. Apart from reaping the benefits of national and overseas promotional and marketing campaigns and incentive schemes such as the business expansion scheme, this region will also be reaping the benefits of special funding made available specifically for tourism there.
The board of the International Fund for Ireland has to date allocated £3 million towards the development of tourist amenities in these counties and for the marketing of the area through tour operators in North America. In addition there is £8 million available in funding from the European Regional Development Fund Special Border Area Programme for the development of tourism in the same region. A steering group chaired by the Department of Finance has been assigned the task of selecting projects suitable for funding from the large number of submissions already received to date.
Emphasis in both the IFI and ERDF programmes will be on revenue-generating projects which make a positive net added-value contribution to the local economy and have significant potential for job creation. Concern was expressed by Senator McGowan last week about the unemployment on both sides of the Border regions. All in all they represent considerable capital injections for tourism development in the region and should place it in a very strong position when the programmes are complete.
We are also aware of the opportunity for closer co-operation with the Northern Ireland Tourist Board who have developed a close working relationship with Bord Fáilte in overseas marketing and more recently in developing the tourism programme with the International Fund.
I now propose to move to the second point in this Motion which refer to support for a restructuring of Bord Fáilte on a regional basis. Bord Fáilte are the existing national State body statutorily responsible for the development and marketing of Irish tourism. They are assisted in carrying out their role by six regional tourism organisations. SFADCo have responsibility for tourism in the mid-west region covering the counties of Limerick, Clare, North Tipperary and west and south-west Offaly.
The RTOs have two major tasks: (a) to encourage and promote the development of tourist traffic to their region; and (b) to provide and encourage the provision of tourism amenities, facilities and services for visitors. Under their memoranda of association they are required to do this in accordance with national policy and overall direction of Bord Fáilte. Bord Fáilte, who last year provided an average of 50 per cent of the RTOs' budget, have one director on the boards which vary in size from 15-35 directors.
Here I would like to indicate the widely-held view that these numbers of board directors need examining. I am at present giving consideration to and having consultations with the industry and all involved in this matter.
RTOs have a crucial role to play in the development of tourism, especially in the area of product development, as stated by a number of Senators in the course of this debate. By virtue of their localised structure they are ideally positioned to identify tourism investment opportunities most advantageous for the region, having regard to its natural and cultural heritage, access to tourist markets and capacity to attract and cater for increased visitor numbers. They also play a promotional role. They actively promote their regional attractions for the home market. In so far as overseas marketing is concerned, they organise local industry participation in Bord Fáilte marketing campaigns and, where appropriate, participate themselves, particularly where local knowledge and expertise is vital to the selling of a particular product, e.g. angling.
I am aware of the industry's concern, widely articulated at recent tourism fora, that we should have a more effective regional tourism structure. Price Waterhouse in their report also stressed the potential of the regions to play a much greater role in the organisation and development of Irish tourism. They did add, however, that it is essential that their activities are consistent with national tourism development efforts and that there is no wasteful duplication or overlap.
The Irish tourist industry embraces many small and independent operators. This should be one of our strengths. At local level there is a wealth of talent, ideas and expertise which, if properly harnessed, can make a significant contribution to the overall development of tourism. The Government's aim is to ensure that this important source of local expertise is fully exploited.
It is true that existing institutional structures may not be availing adequately of this expertise or inciting local communities to commit themselves fully to the drive for growth in tourism. There is a clear need for a strong central executive tourism body to (1) co-ordinate local and regional efforts in product development and, (2) to lead and organise promotional and marketing efforts, especially overseas, where markets are large and often complex.
The Government are currently reviewing all aspects of State expenditure on national and regional tourism structures. Government strategy is to build up from local to regional to national level and to ensure that the channels of communications encourage a two way flow of information and ideas for the development of the industry. Public bodies, both at national and regional level, have an important but not exclusive role to play in product development. However, the private sector have an expertise in relating these products to market demands and packaging them for sale. It is vital, therefore, that our institutional structures are designed to ensure close co-operation with the tourist industry and to build up confidence in the industry in order that it can achieve its full potential.
I found Senator O'Callaghan's comments on the current regional structure very interesting. I was particularly interested in his comments regarding the failure, in many instances, of local industry to contribute their fair share to the cost of RTO promotional and developmental activities. There is a strong and growing groundswell of opinion that a leaner, less cumbersome administrative structure, resourced mainly, if not exclusively, from local funding sources is what is required. Such a structure would better facilitate the more dynamic, creative role, which I know local interests would like to play in tourism development. There is a need, particularly for local businesses and commercial interests who benefit considerably from successful tourism, to contribute to and become more involved in their local RTO.
It has been suggested that a slimmer, more locally funded RTO structure would ensure a more productive and effective utilisation of local resources. There is also a need to ensure that the functions of the RTOs do not overlap with those of Bord Fáilte, the local authorities, other public agencies and the private sector. As pointed out by various Senators during the debate, there are a large number of agencies whose work impinges directly, or indirectly, on tourism. It is important at local level that each agency knows what its responsibilities encompass. It is equally important that the RTOs continue to prompt and encourage such agencies to give priority in their work to those aspects of greatest importance for developing the region's tourism potential.
The recent appointment of a full-time chairman to Bord Fáilte, combining the functions of board chairman and director general for the next five years, reflects the high priority and the urgency which the Government have accorded to the development of tourism.
I join with the Members who have expressed their appreciation of the tremendous work done by the late P.V. Doyle. In the course of managing his own business, he spearheaded and led development in the accommodation sector. He did tremendous work during his time as chairman of the board. Go ndéana Dia trócaire ar a anam.
The appointment also presents an ideal opportunity to look at structures, both national and local. The criteria for the appointment are to be seen as another proof of the Government's determination in this area. It will be seen that the Government are determined to create the necessary structures to ensure that the vast potential of Irish tourism is fully tapped and, in so doing, eliminate some of the overlapping of the present structures. We will be addressing the question of appropriate regional structures in our review and I will ensure that the views of the House, as expressed in the course of this debate, receive the fullest consideration.
Finally, I would like to thank Senators for their contributions and support. I acknowledge the desire of many Members to contribute but time constraints prevented them from contributing. I went into top gear as quickly as I could to save time for some Members. I hope I have done that. I will remain to hear what other Members have to say.
