Vol. 435 No. 2
2 Mr. Deenihan asked the Minister for Tourism and Trade if he has satisfied himself that the level of funding allocated for marketing in the National Development Plan 1994-1999 is sufficient to increase foreign tourism revenue by 50 per cent by 1999 resulting in 35,000 jobs; and if he will make a statement on the matter.
I am satisfied that the Government's targets of achieving a 50 per cent increase in foreign tourism revenue and the creation of 35,000 jobs can be achieved by the implementation of the integrated package of investment measures for the tourism sector outlined in the National Development Plan.
The plan provides for a large increase in investment in product and marketing over the 1994-99 period. The level of EC investment will rise by nearly £200 million, from about £171 million in the current operational programme for tourism to £369 million in the plan.
Between 1988 and 1992 the Irish tourism industry earned on average almost £100 million per annum extra in overseas revenue and it also generated an annual average of about 5,000 additional jobs. By the end of 1999 we are seeking to earn a further £1,000 million in overseas tourism revenue and to generate an additional 35,000 jobs.
I am satisfied therefore that the targets, while ambitious, are achievable having regard both to the historical performance of the industry since 1988 and the large increase in planned investment in the sector.
Will the Minister agree that his targets are not over-ambitious? In view of the fact that world tourism is expected to increase by just 4 per cent in the period in question and because only £55 million was committed to marketing from EC Structural Funds compared with £17 million during the period of the previous plan — despite the fact that Bord Fáilte sought more than £100 million — is it not a major challenge for the Irish tourist industry to increase trade by approximately 8 per cent to 10 per cent? Is the Minister aware that at present we secure only 4 per cent of the British market? We are losing our share of the American market and we have only 1 per cent of the German market. Surely that amount of funding is not adequate to take on our competitors who are spending much more money in the marketplace than we are.
The Deputy raised a number of questions. In reply to his first question, it will be a challenge for the Irish tourist industry to increase trade to the figures we proposed in the Programme for Government and set out in the national plan; that target will not be achieved easily. The Deputy asked a question in regard to penetrative growth in the major markets and I accept that there is a great deal of potential to be tapped. World tourism is expected to account for 10 per cent of total world trade by the end of this decade and we want our slice of the action.
EC funding is sufficient and represents a doubling of what is proposed in the existing plan. Our intention is to lever a great deal of money from the private sector. I am not, per se, a great believer in throwing State money at a problem, I believe in giving a small amount as an incentive and allowing the tourism industry to develop by itself. As I stated to those in the tourism sector on a number of occasions in the past few months, when this tranche of funds and gravy train from Europe passes I want our tourism industry to be able to stand on its own feet because this gravy train will not pass by our shores again. Sufficient flexibility to allow the tourism industry and those involved in the business to raise their own money with the assistance of a small amount of EC funding will be provided for in the operational programmes. The Deputy raised a question about the US, the UK and other markets. The purpose of this programme is to secure our fair share of the tourist potential in those markets.
