asked the Minister for Industry, Trade, Commerce and Tourism the action he proposes to take to help the tourist industry reach its full potential.
Ceisteanna—Questions. Oral Answers. - Tourist Industry.
33.
The Government's policy for the development of the tourist industry is set out in the White Paper on Tourism Policy which was published at the end of September. The White Paper details the measures proposed by the Government to develop and expand tourism and includes new initiatives in relation to marketing and promotion, access transport and environmental matters. Among these measures is the developmental role to be exercised by the National Development Corporation which will be empowered to make investments in suitable tourism projects.
More recently the Government have introduced a new grant scheme to stimulate capital investment in export tourism hotels and guesthouses in order to improve overall standards and to assist the provision of all-weather facilities. This scheme is designed to encourage additional marketing in overseas markets and complements the promotional and marketing strategies outlined in the White Paper.
I suppose it would be out of order for me to ask if the Minister of State believes that his tourism policy announced in September 1985 is a realistic answer to our tourism industry? I suggest it is not. The Minister made reference to a scheme of providing some capital resources for the provision of sporting facilities for certain types of hotels and guesthouses. Is he aware of the way the application forms being sent to would-be applicants are framed? I put it to him that the scope of the scheme as suggested in the application form sent out by Bord Fáilte is that the scheme is available only to hotels and guesthouses in primary tourist areas and to hotels or guesthouses that have realistic plans to engage in marketing and promotional activities for the export market. I ask the Minister in all sincerity if he thinks a small hotel in the west of Ireland is capable of putting together a marketing strategy for export development over a three-year period to enable it to qualify for this 20 per cent capital cost? Is he aware of the kind of forms being sent out to implement that package he announced in September? Further, is he aware it is suggested in the Bord Fáilte application forms that the individuals applying for such assistance must have tax clearance certificates to be submitted with their applications——
That is a long question.
I asked the Minister of State one question and he did not reply. Obviously he does not know the answer.
When the Deputy concludes his observations I will reply.
I am asking the Minister of State three questions. Has he seen the application forms being sent out by Bord Fáilte to people who wish to apply for this aid? Is he aware a tax clearance certificate is necessary before applying? Finally, does he think that confining this scheme to primary tourist areas is a suitable way to act in this matter?
In relation to the nature of the application forms for registered guesthouses and hotels, this scheme is generally applicable where the concern engages in promotional and marketing work. Bord Fáilte and the Department are conscious of the position of the smaller registered hotels and they have offered a grouping and brand selling and brand marketing to ensure that these hotels and guesthouses can come within the scope of this new initiative. It is necessary that hoteliers seeking grant aid and taxpayers' money should have their tax affairs in order. If they ensure that their approach to the tax people with regard to payment of VAT and tax is realistic and correct they will get help. I do not believe taxpayers' money should be used in the disbursement of grants to hoteliers who in some cases have refused to co-operate with the Revenue Commissioners in making adequate and proper returns in regard to their takings.
The condition regarding the submission of tax clearance certificates is necessary in the national interest and it will be in the best interests of hoteliers and guesthouse owners. With regard to the provision of amenities, substantial grant aid will be provided during 1986, including the provision of all-weather amenities. If we wish to realise the full potential of the industry we will have to provide all the necessary amenities. It is with that purpose in mind, as well as for the purpose of job generation, that the grant initiative has been introduced. In this way hotels and guesthouses are being helped in their efforts to improve their amenities and standards.
Obviously the Minister is not aware that more than half the hotels in Ireland lost money last year. I suggest to him that providing 20 per cent of the capital cost of a swimming pool in a small hotel in the west is a load of nonsense when hotels like this are not even in a break-even situation. The Minister of State either should scrap this measure or else build it up into something more useful. Chapters 4 and 8 of his tourism policy document deal with tourism performance and targets for growth. I refer the Minister to page 16 of that document and I ask him if he regards the table in that chapter as being suitable for what should be the third largest export earning industry? I will quote one of the statistics. The document stated that the British market returned £192 million in 1980 and that was reduced in 1984 to £154 million. What does the Minister propose doing in respect of this matter?
The Deputy has directed his attention specifically at the British market. That market is of major importance for us and it has been the foundation of our tourist industry. Since coming into office this Government have taken steps in relation to a reduction in inflation rates and the development of a competitive market so far as tourists are concerned. These factors have been of the utmost importance in the expansion and growth of the British market which had been adversely affected because of our price structures and inflation.
Another factor of major importance is the situation in the North of Ireland. Since 1969 we have had problems due to bombings and attacks on British buses and cars in this part of the country. We hope that the new summit talks in which the two Governments are engaged will have a beneficial effect so far as tourism is concerned and that tourists will be assured of a welcoming holiday here. I look forward to a growth in the British market. We require it, we want it and we are taking the necessary steps so far as inflation and price competitiveness are concerned. I hope that the improved access by sea and air and the improved standards and amenities here will make that growth a real possibility.
That is a load of nonsense. According to the Minister's statistics, in 1969 the figure in constant terms was £221 million from the British market. In 1973 it was £161 million——
That is a separate matter.
In 1980 it was £192 million and now it is £154 million. The truth is we are losing market share in the British market but the Minister is doing nothing about it. I should like to ask him what are his projections for market growth in the tourist industry in the next few years.
That seems to be a separate question.
It is difficult to make any accurate projection in regard to the tourist market over a number of years. We had a record growth in 1985, the greatest ever, and the highest overseas earnings. In spite of what Deputy Flynn said about a drop in the British market, we had the highest revenue from Britain in a number of years despite a drop in the numbers. Our predìction is that we will succeed in having growth from all markets provided we do a number of things. First, we must market and promote everywhere. This means joint marketing and promoting by Bord Fáilte and the different sectors engaged in the industry. Two, we must have adequate access by air and sea to Ireland and we must arrange to have prices as competitive as possible. Three, we must give value for money to the tourists, and good standards. In 1986 two of the most prestigious airlines in America, Pan-Am and Delta, will bring daily flights to Shannon from various parts of the US. It is a major vote of confidence in the growth of the Irish tourist industry when we see two major airlines from the biggest market in the world developing new lines on a daily basis next year.
Obviously, the Minister is not aware of the growth targets outlined in chapter 8 of his own forecast. The forecast is a 3 per cent to 6 per cent growth to the end of the century. The document sets down minimum targets for the tourist industry. It is stated that there will be no further capital investment by the Government in the industry and that the private sector must take up any worthwhile investment in the industry. That means the Minister is reneging——
Would the Deputy ask a question?
Rather than ask the Minister a question which would have him on his feet blathering for the next ten minutes I would prefer if he took the following question.
In relation to the increased American activity, which we would all welcome, can the Minister give us any idea of the potential fall off in American business because of the 20 per cent to 25 per cent drop in the value of the dollar?
Mr. Moynihan
It would be impossible to estimate what the fall off would be. It is our hope that American activity will strengthen because of the facilities we have to offer.