I move:
That Seanad Éireann—
commends the Government, the tourism agencies and the wider tourism sector for the exceptional performance of Irish tourism in recent years, which has consistently outperformed competitor destinations in western Europe, including the number of overseas visitors exceeding 8 million for the first time ever in 2007, an increase of over 33% in the period since 2001, as well as record numbers of domestic visits;
recognises the continuing commitment of the Government to the progressive delivery of its key tourism investment priorities in tourism marketing, staff training and business development and product development, within a framework of sound public finances and value for money, noting that the total allocation of the tourism services budget has increased by 50% since 2003 to €161 million in 2009;
acknowledges the exceptionally challenging conditions now facing tourism worldwide in the context of global economic conditions, as well as the particular challenges facing Irish tourism in the context of the current cyclical downturn in the domestic economy and notes that the Government is conscious of these challenges;
notes that, notwithstanding these exceptionally difficult conditions, overseas visitor numbers reported to date in 2008 are broadly in line with 2007;
welcomes the Government's intention to build on the success of its policies and programmes to date by renewing the policy framework for tourism, as set out in New Horizons for Irish Tourism: An Agenda for Action 2003-2012, with a view to ensuring that the sector returns to sustainable growth in the medium term;
acknowledges the contribution of North-South co-operation in the tourism sector, in particular through the work of Tourism Ireland in marketing the island of Ireland overseas, with the support of the Northern Ireland Tourist Board and the Minister for Enterprise, Trade and Investment in the Northern Ireland Executive;
and notes that the Government and in particular the Department for Arts, Sport and Tourism, Fáilte Ireland and Tourism Ireland are continuing to develop and implement actions and initiatives to support the sector in responding to the current short-term challenges it faces.
I welcome the Minister for Arts, Sport and Tourism and express my thanks to him for giving up his time to be in the House. We have to accept that we have done exceptionally well in tourism over recent years. We must also acknowledge the challenging circumstances we will face in the tourism industry. The Government's ambition and support for tourism is something for which we should express our thanks.
There are different types of tourism, and Ireland is unique in the types it can provide. Be it leisure tourism, golf, hiking, cycling or whatever, we are involved in everything except sun tourism. That is important. Tourism revenue has changed in some ways over the years, but in 2007 we brought in almost €4 billion in tourism income. That is an enormous sum of money. With that income, we have shown that we are still able to compete, in spite of a number of changes that have taken place in the tourism industry and to tourist destinations. Some of this is due to the fact that we have competitively priced flights into Ireland. Our hotels and guest houses have also become very competitive in the past two years when compared with accommodation in other destinations. This was forced on them owing to the amount of development that had taken place in the tourism industry.
The figures show that we took in €823 million from North America, €1.3 billion from the UK and €729 million from other European countries. That is a phenomenal amount of tourism revenue coming into Ireland. The economic climate is more difficult now, but I know that the Minister is doing his utmost to promote Ireland as a tourism destination.
There have been some tremendous successes at an international level, such as the Irish stage of the World Rally Championship, which will return in 2009. The amount of revenue created in the north west by that event was enormous in such a short period. The number of bed nights filled within a 60-mile radius of Sligo was phenomenal. It was so difficult to get beds that some people hired cruisers on the waterways and stayed in them while they commuted to and from Sligo. It shows that if we produce a high quality niche product, people will follow it and spend money.
Success in this area also comes from the type of facilities provided and the type of back-up we supply. Back-up means everything from hotels, restaurants and pubs. Anyone who comes to Ireland does so partially for its rugged beauty and its friendliness, and we all accept that the Irish tourism industry has an orientation towards friendly service. Golf has also become a major player in attracting people into this country. Many have come to play three or four of the famous courses. We may have spent a lot of money on the K Club a few years ago, but the knock-on effect in promoting Ireland has been enormous. Certain golf courses, especially those in the south west, are very popular with overseas visitors, especially those from the US. We are facing tougher times and the currency situation has caused problems with the American market. However, we have still managed to maintain our tourism levels and our income from tourism.
Other events are very important to tourism here. Racing fixtures attract many people from the UK and from other parts, and these people spend a lot of money. There are major festivals in Galway, Punchestown and elsewhere, but these attractions need major sponsorship. I fear that the level of sponsorship available from the private sector for racing could have an effect on how it is developed. Many overseas visitors are attracted here because there is much more prize money in racing than is available in the UK. The racing industry has always made an historic contribution to society as well as a contribution to tourism.
We must look also at the hotel industry. Certain hoteliers and hotel groups make a great contribution to attracting tourists into Ireland. Some hotel groups promote coach tours here, especially during the low season. They manage to have an occupancy rate of between 70% and 80% at off-peak periods. That is very important, because one hotelier once said to me that he is better off having a head in the bed for a €5 profit than having nobody in the bed. That is a progressive approach to the problem because once he had somebody in his hotel, he could make extra money in the bar or the restaurant. The area in which the hotel was located would also benefit. Such hoteliers often do not get the recognition they deserve, but so called "golden age" or senior citizen tourism is a major player.
If we are to have a progressive tourism industry we must consider two issues, namely, our competitiveness compared to other destinations and what we deliver for that money. From now on, tourism will be much tighter and people will be more cautious in how they spend their money. We should start to focus on the senior citizens' market as well as getting people to spend holidays in this country. Every euro that goes to Spain, Portugal or elsewhere is a euro lost to our economy. We must target the domestic holiday market, even though it is not the easiest thing to do, especially after the summer we had this year. People will become more conscious of value for money, however, so we will make progress if we can maintain the high quality tourism product we currently have. I thank the Minister for attending the House for this debate.