Thank you for the opportunity, before the House goes into recess, of raising this very important issue of the problems associated with the shortage of cars for hire during the peak periods of July and August. This crucial component of our tourism strategy has failed us again this year. I would like to ask the Minister how it is possible not to have successfully tackled this problem, which has recurred over the last three years.
The Minister will have to agree that it is not good enough, when all the other sectors of the industry are working all out to attract visitors to our country, that this effort should be jeopardised because tourists, having had Ireland sold to them successfully as a destination and having confirmed their intention of coming, cannot be guaranteed a car for hire. The problem is affecting French and Italian tourists very badly.
This is a disgraceful situation which cannot be allowed to continue. I ask the Minister to explain how he can attract the number of tourists required to fill our hotels and guesthouses, in which millions of pounds have been invested, if tourists cannot find a car in which to travel the country.
I raised this matter with the Minister before and I was assured that the problem would be under control this year, that £1 million was being set aside in the budget to address the car hire shortage during the peak tourist months of July and August this year. It clearly has not worked in so far as it has not solved the problem. Every year that this problem is allowed to continue and be highlighted in Europe the more difficult it will be in the future to interest tourists in even considering Ireland as a holiday destination. For every disappointed tourist, thousands of potential tourists, because of word of mouth, are being turned off Ireland as a holiday destination. It is now clear that the Irish tourist industry faces substantial losses this summer due to the serious shortage of cars for hire. It seems that the only way these losses can be avoided is for the Government to agree to allow the temporary importation of cars for the peak periods when the problem is at its worst.
The fly-drive holiday has become an increasingly important element of our tourist industry. The truckers' blocade in France and the frequent disruption of ferry services means the fly-drive holiday which gives people a guarantee that they can collect a car when they arrive at an aiport here has proven to be a very attractive option for continental tourists. It is also a very important element in attracting Italian tourists here — the number of Italians coming to Ireland increased from approximately 39,000 in 1989 to approximately 97,000 last year. These tourists usually spend a lot of money when they are on holiday and if they are able to hire cars they can spend it in different areas. A substantial part of this market is now under threat because of the shortage in the number of cars for hire. It is possible that long term damage will be caused to our tourist industry as the word of this shortage spreads. The fact of the matter is that no cars will be available for many tourists who booked fly-drive holidays, paid their deposits and are due to arrive in a few weeks. Unless urgent action is taken many of these tourists will cancel their holidays and go elsewhere. Casual tourists who do not book fly-drive holidays will also be affected. Thousands of such tourists arrive in the country on the expectation that they can rent a car. These cars are not available.
I agree that many factors have given rise to this shortage in the car hire sector — it is not possible to go into them all in the time available. I should point out that while this is not a totally new problem it has never been as severe as it is this summer. The Government introduced a special grant in the budget to encourage car hire firms to acquire more vehicles. Unfortunately, this scheme has not worked for whatever reason. There is now a shortfall of approximately 900 cars in the car hire fleet. This will affect 5,000 to 6,000 tourists during the peak holiday season. The loss in revenue will amount to millions of pounds. The industry cannot afford this loss. The only possible solution to the problem is for the Department of Tourism, Transport and Communications to introduce a scheme for the temporary importation of cars by car hire firms. I understand vehicles are available in Britain and Northern Ireland and can be acquired fairly quickly. The Minister has already turned down a request for the introduction of such a scheme based largely on objection by the Department of Finance. I urge the Minister to review this decision so as to ensure that valuable tourist business and revenue are not lost to the State.
