asked the Minister for Transport and Power if the system of payment of grants to hotels has been changed; and, if so, if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Hotel Grants.
25.
The various incentive schemes for hotels and other forms of holiday accommodation were introduced for the purpose of stimulating greater development in that sector of the tourist industry. These schemes, which have been reviewed and modified from time to time to meet changing needs, are administered by Bord Fáilte. Since the schemes were introduced, the board, in examining grant applications, took account of a number of factors, including the location of the project, the amount of existing accommodation in the area, the market needs and marketability of the proposed accommodation, the type and price levels proposed, the estimated cost of the project and the background of the developer with special reference to his experience in the hotel and catering industry.
In the light of the current competitive position in international tourism and the amount of accommodation development that has taken place, the board have been placing greater emphasis in recent times on market needs, marketability, price level of the proposed accommodation and the ability of the developer to generate new traffic. This modification does not represent a radical change in policy but reflects an adjustment of emphasis related to prevailing circumstances. These marketing criteria are being applied to all cases now being dealt with by Bord Fáilte. As Deputies are aware, the board have not been entering into any new grant commitments for the past two years and the general position about future accommodation development is at present under consideration.
Would the Minister say if the newspaper reports, which stated that no grants would be considered in future except to hotels prepared to market their own hotels abroad, represent the board's policy or the Department's policy and, secondly, in view of the fact that it does not appear that Bord Fáilte will engage in big hotel development in future, what is the position about the Bord Fáilte section which has been looking after planning and the carrying out of this work?
I should emphasise that extensions to existing hotels and facilities with regard to existing guesthouses and farmhouses are continuing. What we have stopped are grants for new hotel projects pending the consolidation of the general hotel accommodation we have, consolidation in the sense of extensions and facilities in relation to existing accommodation and the filling of that accommodation for a greater part of the year. It is a question of changing the emphasis of our tourist investment from providing more accommodation to consolidating the accommodation we have and selling it better.
While I agree with the Minister that the accommodation we have may be more than adequate for our tourist needs this year and, perhaps, for the next few years, does the Minister not agree that there is a danger that the more expensive type of hotel, which can afford to indulge in this type of marketing abroad, is more likely to qualify for grants than the small hotels which, I believe, there is need for develoing?
I believe there is need for all types of hotel, guesthouse and farmhouse accommodation. This is just a change of emphasis in order to fill the rooms that are there. Bord Fáilte have generated enough activity over the past ten years for the accommodation that is there. This policy may be changed next year or the year after.
But the Minister is still prepared to help existing hotels.
Mr. O'Donnell
Could the Minister say whether or not Bord Fáilte have any plans to encourage marketing by small groups?
They have. They are preparing plans to encourage group marketing as well as encouraging the big hotels to do their own marketing. Any hotels that have engaged in this sort of marketing, either individually or on a group basis, have already got substantially increased bookings.
Mr. O'Donnell
That is a reflection on Bord Fáilte, which should be doing it but is not doing it.
There are two types of publicity—the overall and the door-to-door type; the latter is a matter for the individual people concerned.