I move:
That Seanad Éireann, recognising the important contribution of tourism to the economy, requests the Minister for Tourism, Transport and Communications to encourage all initiatives directed towards increasing Ireland's share of the world market, especially in view of the downturn in tourism consequent on the Gulf War and its aftermath.
I welcome this opportunity to open the debate on what, after agriculture, is the most important contribution to the Irish economy, the tourism industry. I should also like to take this opportunity of welcoming the Minister of State at the Department of Tourism, Transport and Communications, Deputy Lyons who has responsibility for tourism. I look forward to hearing what he has to say in the context of the motion before the House.
I will start on an optimistic note. Contrary to earlier predictions, the latest tourism figures available from Bord Fáilte indicate that there will be an overall increase this year. Last year we attracted 3.1 million overseas visitors, one million more than in 1987, and we are on target at the end of the first three years of the Government's five-year target for doubling tourism.
Obviously, growth targets for this year will not be met. The motion acknowledges the events of the early part of this year. It has been a rather turbulent year so far due, of course to the Gulf War but also to the recession in our largest market, Great Britain, and our third largest market, the United States. The economic impact of unity on Germany has also had an effect on the thinking and attitudes of that country's population in relation to tourism this year. It is rather disappointing that the heady days of the ending of the Berlin Wall and the promise and expectation of a more affluent Germany seems to have, while not coming to a shuddering halt, certainly had to be revised in the light of experience. That is unfortunate not just for Germany but for us here in Ireland because mainland Europe has been targeted by Bord Fáilte as an area of substantial growth. Last year almost 750,000 visitors came to Ireland and Bord Fáilte are confidently predicting an increase of 30 per cent plus in that market. One can only welcome and encourage Bord Fáilte's marketing and their initiative in mainland Europe to realise that ambitious figure.
It is virtually certain at this stage that there will be a significant downturn in the United States market. Obviously our larger market, the United Kingdom, will not be as buoyant as heretofore but interestingly Bord Fáilte suggest that there will be an increase in the pure British holidaymaker as distinct from the friends and relatives sector. Many of my colleagues, on all sides of the House who travel around the country will testify to the fact that in recent weeks there has been a welcome and significant increase in the number of UK registered vehicles on our roads. Certainly in County Leitrim and in the area that might be loosely referred to as the lakeland area, the upper midlands, there has been a welcome increase in the number of coarse fishermen and their families since the beginning of May.
I would like to take this opportunity on this side of the House of welcoming the British holiday maker back to our shores after an absence of several years due to the sad and continuing situation in Northern Ireland. It must be a matter of great satisfaction to Bord Fáilte and all tourism interests that their persistent marketing of the positive image of Ireland has helped to some extent to counteract the adverse publicity that emanates from this country among people abroad who take no more than a passing interest in the country's affairs and who, as those of us who travel abroad will testify, sadly have a perception of Ireland sometimes as an island engaged in a massive conflagration involving bombs and bullets on a regular and daily basis. I am glad that tourism interests and Bord Fáilte have managed to significantly counteract that, especially in our largest market. The traditional British holiday makers who were the mainstay of the tourism economy when I was growing up in my part of the country, and in many others, have returned. I hope they will find a welcome here and that when they go back home they will tell their friends who, in turn, will make a visit to the Emerald Isle next year.
At a time of gloom and disappointment at the spiralling unemployment figures here it is heartening to learn that between 1988 and 1990 17,000 new jobs directly related to tourism were created in the economy, well ahead of the Government's target of 25,000 new jobs in the five year plan from 1988 to 1992. At a seminar organised by Bord Fáilte in early May where those facts and figures were spelled out to tourism interests, I was pleased to see that the tone of the conference was upbeat. Mr. Dully and his team at Bord Fáilte, specifically their head of communications Mr. James Larkin, pointed out that the 15 per cent growth target set by the Government was three times the international rate. Although we might not be meeting our growth targets this year obviously the Gulf War was as Mr. Larkin put it, the first punch in the solar plexus of the Irish economy. He was still confident that there would be an overall growth in the Irish market.
I would also like to add my voice of disappointment to that of Bord Fáilte and other tourism interests at the decision earlier this year of British Airways to pull out of Dublin. Obviously, this is bound to have a knock-on effect. According to the information supplied at that seminar the decision affects US business particularly. British Airways carried 40,000 Americans last year and were able to offer entire back-track fares to Ireland from destinations such as Los Angeles, Dallas and Chicago. Aer Lingus had done a marketing deal with British Airways to pick up some of that business but British Airways' agents were probably less enthusiastic about selling fares on Aer Lingus flights. However, when a major airline of the international stature of British Airways pulls out of our capital city and out of our country it obviously must have an adverse effect.
Like many interested in tourism I made my voice known to British Airways and expressed the concern of the tourism sector in my part of the world. I am pleased to say that the British Airways management are conscious of the impact their decision could have on the Irish tourism industry. They acknowledged that the decision was not easy and they hope it can be reviewed. I hope that review will be carried out speedily and that there will be a return by British Airways to this country, with its attendant benefits.
I am thinking specifically of Dublin as a capital city in a modern European Community context being literally wiped off the map of British Airways in travel agents all over the world at a time when Dublin, particularly in this year of culture, has been attempting to profile itself and present itself as a modern European city. One cannot underestimate the damage that the withdrawal of British Airways has done to our tourism industry. I said at the outset that I would start with good news and I will maintain that momentum if possible.
There are a number of specific issues that I would like to address. This motion allows me the opportunity to direct some comments to the Minister, the first, strangely enough being one that he and his Department may not ultimately be responsible for. In my contribution I will record what appears to be an anomaly in relation to the concept of agri-tourism. My understanding is that agri-tourism comes under the brief of the Minister for Agriculture and Food rather than the Minister for Tourism, Transport and Communications. Perhaps Minister Lyons will clarify that but it is rather strange that if that is the case the conditions attached to implementing the agri-tourism package must go through Bord Fáilte which comes directly under the brief of the Department of Tourism, Transport and Communications.
I am disappointed by the conditions attached to the agri-tourism package. When this exciting proposal was first mooted in Irish tourism many of those involved, especially in my own part of the country — the Leitrim Tourism Council and people in other disadvantaged areas — welcomed the development as an important new initiative that would break the cycle of emigration and unemployment that has faced many of our people in disadvantaged areas. These are areas which have a natural beauty which attracts tourism.
The agri-tourism package was, at last, an opportunity for farming families to supplement their meagre incomes by going into the tourism business. At least that was the theory. The facts are somewhat different. I had thought this would be an opportunity for small income farming families living on marginal land with no other visible means of support, apart from social welfare, or a breadwinner in the house — a son or a daughter — to supplement the family income by putting a room at the disposal of a potential tourist. Obviously standards would have to be met; standards must be maintained in the tourism industry if we are to have an effective image abroad, but that was not the case. Bord Fáilte operate a system whereby they will only give a 20 per cent accommodation grant to a family wishing to get involved in agri-tourism. That in itself might be a start. However, the family who wish to avail of this grant must also provide a business plan to the regional tourism organisation, a plan which must incorporate the additional amenities that Bord Fáilte require before that family can enter the tourism sector. This is a detrimental step and is of no benefit to the small farming families at which it was targeted, it will help only those who are already firmly established in the tourism industry, the people who do not need a great deal of financial help. They are the people who will benefit from the agri-tourism package as it is at present constituted.
I hope in my limited contribution this evening to impress on the Minister the need for urgent reform in that area. The main problem facing small farming families wishing to get involved in agri-tourism is the lack of seed capital, the lack of core capital. It cost money to get involved in tourism and I would have thought that the concept of agri-tourism was to help those families who did not have the financial wherewithal. Yet, they are excluded from the process as at present constituted. If sufficient was granted to permit a faming family with one or two surplus rooms to convert the room or rooms into an acceptable bed and breakfast standard it would be a start. Firstly, it would give them the incentive to get involved and, secondly, on the basis of the ongoing marketing and promotion now taking place in every county, particularly those that are tourist-oriented, they could eventually go back to Bord Fáilte and say that having got involved in the business and generated a certain amount of income they were now in a position to develop by putting in extra amenities and facilities. As it is constituted, this package is of no benefit whatsoever to the small farmers of the west.
This will be my final point, because, with the permission of the House, I wish to share part of my time with my friend and colleague, Senator Honan.
