Dáil Éireann Debate, Tuesday - 27 November 2012
750. Deputy Bernard J. Durkan asked the Minister for Transport, Tourism and Sport if he has examined the extent to which the development of the tourism sector has been affected by transport or other costs in each of the past three years and to date in 2012; his plans if any to address any such issues; and if he will make a statement on the matter. [53071/12]
View answerCost competitiveness is a key consideration for Ireland in attracting tourists and transport is just one of the many factors influencing that competitiveness. Clearly, transport costs have had an impact on tourism, not just over the past three years but over many decades. In practice, the main driver is and has always been the cost of oil which is ultimately set by the market. My Department has no direct control of transport costs in general but keeps under review costs arising from the services provided through our agencies. As regards overall competitiveness, the Government's plans to improve this are set out in the Programme for Government and place a heavy emphasis on the delivery of effective transport services. I have also outlined my priorities to 2016 for the transport, tourism and sports sectors on my Department's website.
With specific regard to the tourism sector, the Government has already delivered on several measures under the Jobs Initiative to reduce costs and enhance competitiveness, such as reducing VAT to 9% on a range of tourism services and halving employers’ PRSI for those on modest wages. Following on from the Jobs Initiative, the 2012 Action Plan for Jobs set out key policy actions to ensure tourism’s continued contribution to economic recovery. In line with the Programme for Government and the Action Plan for Jobs, the Government will continue to play its part in reducing business costs and enhancing overall competitiveness. With specific regard to the tourism sector, my Department, Tourism Ireland, Fáilte Ireland and the tourist industry will continue to ensure optimum promotion of Ireland overseas and continued strengthening of the competitiveness of our tourism product.
