asked the Minister for Transport and Power the reasons why the bed occupancy rate in CIE hotels show a 28 per cent reduction for June, 1971 as compared to June, 1968.
Ceisteanna—Questions. Oral Answers. - CIE Hotels.
16.
Mr. O'Donnell
I am informed by Óstlanna Iompair Éireann that their business has been adversely affected by external factors outside their control which are also affecting other sectors of the tourist industry. The fall in the occupancy rate in the company's hotels in June, 1971 as compared with June, 1968 can be ascribed to these factors. When the possibility of a fall-off in traffic became evident, CIE took special measures, including additional promotional work and the introduction of package deals, in order to improve business.
Apart from the fact that this is a further confirmation of the serious decline in tourism traffic, would the Minister not admit that the correct thing for him to do is to tell the truth regarding the exact situation of the tourist industry? If he did this he could prevent ill-informed comment on this matter. Will the Minister tell us the truth and give us a proper assessment of the factors mentioned by him?
In reply to earlier questions, I have already told Deputy FitzGerald and other Deputies that I am meeting the National Tourism Council on Friday. We will have a complete discussion of the entire tourist industry with all the people involved — carriers, hoteliers, guesthouse owners, car-hire operators and travel agents. From that meeting we will make our own assessments from informed contributions and I will make the assessments available to the House.
Have the increases in prices in these hotels, due to the Government's policy of inflation, got nothing to do with this matter?
That is a separate question. I am calling Question No. 17.
It is not a separate question. The question relates to the bed occupancy rate in CIE hotels.
I think I mentioned the meeting was being held on Friday—I should have said tomorrow, Thursday.
Is the Minister aware that people in the hotel business, who cater only for tourists, not for people from this country, regard this as export business on which they should be getting tax relief the same as any other exporter of industrial goods? Would the Minister consider referring this to the Minister for Finance?
That is a separate question.
That is another day's work.
It is an important question.
Question No. 17.
17.
Mr. O'Donnell
asked the Minister for Transport and Power whether CIE are at present building extensions to any of their hotels; and, if so, why.
I am informed by Óstlanna Iompair Éireann that they are at present building an extension of 16 bedrooms to the Great Southern Hotel, Killarney. The purpose of the extension is to provide adequate accommodation to enable the hotel to cater for incentive group and conference business.
Mr. O'Donnell
Surely the Minister will agree that it appears to be an extraordinary decision to build an extension of 16 bedrooms to an existing hotel in view of the bed occupancy returns which we have had. Is it fair to the private hoteliers in the district?
I do not think the Deputy is fully au fait with the situation. This is one of the reasons for the conference we are having tomorrow. The tourist business is very varied. It differs from area to area, and in the type of tourist and the type of accommodation.
Mr. O'Donnell
We know all that.
The Killarney Hotel happens to be the top profit earner as far as the Óstlanna Iompair Éireann chain of hotels is concerned. The expenditure on this additional accommodation is fully justified.