Cuirim fáilte roimh an Aire. I tabled this Adjournment matter last week but, unfortunately, it was not selected until today. I acknowledge the work done by the Minister since last week when I first tabled this motion. There is need for a wider debate on the strategy we as a country need to have in place for tourism if we are to attract more visitors and to assist the Irish tourism industry, and not just in monetary terms.
The Joint Committee on Arts, Sport, Tourism, Community, Rural and Gaeltacht Affairs last week met a delegation from Tourism Ireland, Fáilte Ireland and the Irish Hotels Federation. While not wishing to be negative, the tourism industry is in difficulty, many people employed in it are losing their jobs and the country is losing revenue as a result of falling tourist numbers. Leadership is required from Government if we are to stop this never-ending spiral.
There were one million fewer visitors to Ireland last year, leading to a fall of €1 billion in revenue. I understand from speaking to people in the hotel and restaurant industry that we have excess bed capacity in hotels. However, that is perhaps an issue for another day. To date, 30 hotels and 800 pubs have closed, resulting in the loss of approximately 10,000 jobs. If we are serious about job retention and creation in our tourism industry, we must do all we can to prevent this rot. We must recognise that the daily job losses in this area are a consequence of bad political, business and planning decisions.
The Irish Hotels Federation identified at last week's committee meeting a number of positives which we must ensure are highlighted, including the quality of our hotels and guesthouses, many of which are of a much higher standard than those in any of our European competitors. The federation also said we must highlight customer satisfaction. The Irish Hotels Federation has, where possible, reduced costs, thereby allowing its cost base to become more competitive. There has been much debate on the competitiveness of the industry. I am aware of discussion within Government about joint labour committees and the cost of working on Sunday in our restaurants and hotel industry. There is much that can be done by Government, including scrapping the departure tax because it is hurting the economy. This is an issue on which I am sure I will hear political argument from the Minister. VAT rates on hotel accommodation and restaurants are also hurting the industry. We must take care of our small and medium restaurants and hotels.
Last week's Dine in Cork week, which received massive promotion by the Evening Echo, was a huge success. One could not get a restaurant booking in Cork last Saturday night owing to the huge demand as a result of reduced prices. The quality of food and service was unbelievable. I know from speaking to friends of mine who work in the industry, be they chefs or restaurant owners, that it was a huge success. I know, having visited Boston, which runs a very successful restaurant week, that we must think outside of the box in terms of coming up with ways to entice people into our restaurants. This is not just about handing out aid.
We have been told by Government that the tourism industry is worth €500 million. The Taoiseach, during his Cabinet reshuffle, stated that the tourism industry is one of the key pads for the relaunch of Ireland. We need to reduce our taxes, including the departure tax, and encourage people to visit Ireland if we are to rejuvenate our ailing tourism industry and promote businesses which are indigenous to Ireland. In particular, we must address with the banks the issue of liquidity and cashflow for restaurants and businesses. We must also assertively and aggressively promote the domestic market. I am aware, having heard this morning on "Today with Pat Kenny" and previously on other radio stations, that there is tremendous goodwill for the tourism industry and Ireland. It is important we sell the island of Ireland to the people of Ireland. One has only to take a Twenty-six Counties tour, as promoted in the Shannon campaign, to appreciate the product we have to offer.
I look forward to hearing the Minister's reply. We have an extraordinary product that should be sold domestically and internationally. I commend the chief executive of Aer Lingus on his bravery in terms of seeking different data in respect of the Icelandic volcano. While I am not qualified to make any judgment in this regard, I believe he is right to challenge the status quo.
