Vol. 467 No. 4
13 Mr. O'Malley asked the Minister for Tourism and Trade if his attention has been drawn to the concern expressed by the Irish Hotels' Federation at his statement of 18 June 1996, regarding future investment in promoting Ireland as a tourist destination; and if he will make a statement on the matter. [13523/96]
14 Mr. Killeen asked the Minister for Tourism and Trade the plans, if any, he has to fund product development and marketing of tourism when the current tranche of EU funding expires in 1999. [13560/96]
41 Mr. Moynihan asked the Minister for Tourism and Trade the way in which he plans to reduce the role and the financial commitment of the State to marketing Ireland as a tourist destination. [13332/96]
I propose to take Questions Nos. 13, 14 and 41 together.
Planning for the future needs, financial and otherwise, of the tourism industry is an ongoing process within my Department and inherent in that process is the monitoring of the impact of the main instrument for the development of the tourism sector — the EU supported Operational Programme for Tourism 1994-99.
One of the principal objectives of this programme is to encourage and secure the active participation of the industry in developing and shaping its own future. EU aid under the programme has, for example, been made available to stimulate and increase additional marketing activity such as the Overseas Tourism Marketing Initiative to ensure that Irish tourism develops on a self-sustainable basis in the future.
While tourism promotion is always likely to require some ongoing support to sustain growth in tourist numbers and revenue, a careful review of developments over the period of the current and previous operational programme, their impact on the level and quality of tourism facilities in this country, and on tourism operations, will be necessary before any considered views can be reached on future development needs and priorities. Support for the tourism industry in future will to a large extent be determined by the impact of the existing measures under the Operational Programme for Tourism 1994-99, and the availability of resources.
While it is likely that Government will continue to provide some ongoing support for the promotion of Irish tourism, it will be up to the industry to take increasing responsibility for the future marketing of its product. The growth in industry support for the OTMI in 1996 over 1995 is an encouraging trend and while many business concerns benefit hugely from overseas tourists they make little or no direct contribution to attracting them. Increasing participation and investment by the industry is a logical and natural progression which is most desirable for the development of the industry to ensure its viability in the long-term.
The Government is currently developing its strategy for the next round of Structural Fund negotiations to ensure the best possible outcome for Ireland in the negotiations on the financial perspective for the period 2000-2005. These negotiations are expected to commence in the second half of 1997 when it will be necessary to show that Ireland and the tourism industry, in particular, has put European Union money to good use and made its own contribution to ensure the continued successful development of the sector.
The Minister referred to business concerns that benefit from tourism but make little or no contribution to marketing. Will he specify who they are and the plans in place to ensure they contribute in the future? He also referred to the tranche of European funding for the period 2000-2005 which will be discussed in the latter part of 1997. What are the Government's plans to ensure Ireland in general, or at least some regions, continue to benefit from category one status? Can those in the tourism industry feel secure in the knowledge that they will have ongoing EU funding, even if the Government must lay the groundwork for it during our Presidency?
Deputy Killeen raised a number of questions. The position under the Operational Programme, 1994-99, is that Structural Funds will cease at that time. I have started a debate in the tourism industry so that it understands it will have to shoulder an increasing sense of responsibility for its future development without the benefit of European assistance. This debate is timely, opportune and necessary because there appears to be a perception in some areas that this will continue ad infinitum when in fact there are continued requirements for hard work, commitment and a high level of motivation and investment.
Deputy Killeen will be aware of the huge increase in property values and investment in hotel developments. Allocations of approximately £300 million have made been under the European programme to the product investment area. A large number of firms, including construction and hardware firms — those involved in the provision of capital facilities — benefit from this. It is important to understand that this area of the industry is a direct beneficiary of the investment in the tourism product. The discourse I initiated is in that area.
As regards a Government strategy for the period 2000-05, obviously it has not formed its final view on this because these discussions will not commence until mid-1997. It will be important to be able to show our colleagues in Europe that we have used Union funding which we received over the past two operational programmes judiciously, wisely and prudently and that we have in place a tourism product which is sustainable and of lasting benefit in which quality is the hallmark. I hope to be able to demonstrate that clearly when the time comes.
An important factor in trying to promote and develop Ireland further as a tourist destination is the question of access. While it has improved greatly as far as access from London, in particular, is concerned, from where there are frequent flights at low fares, will the Minister agree the position is not as satisfactory in terms of access to other airports in Ireland and from any other destination outside Ireland, apart from London? In view of the huge upsurge in travel from the London area, will the Minister take steps to ensure an increase in travel to Ireland from the United States, continental Europe in particular, and provincial parts of Britain?
I would also like to see a stronger operation to the regional airports in Ireland than at present. The Dublin-London route is one of the busiest air routes in the world, so access has become very cheap on it. This is really a matter for the Minister for Transport, Energy and Communications with whom I have had a number of discussions, particularly in relation to further access from continental Europe and from North America. I can give the Deputy details of what is involved if he tables a question. Of the 170,000 charter seats from continental Europe this year, 130,000 are destined for the regional airports.
Deputy O'Malley is aware that Aer Lingus opened up Chicago as a third gateway from North America, which will prove successful. The Deputy served in this Department and is well aware that these are commercial decisions for the airlines, we are doing everything we can to make it as commercially attractive as possible for them. We are in constant discussion with our colleagues in the Department of Transport, Energy and Communications and the airlines as regards presenting Ireland as an attractive location for holidays. The Deputy will be aware that an airline has made projections of being able to bring in several hundred thousand extra people from continental Europe if certain changes are made in landing charges and fees. These are matters for the Minister for Transport, Energy and Communications with whom I am in discussion.
I was glad to hear what the Minister said but it is not enough for a Minister for Tourism and Trade to say these are matters for the Minister for Transport, Energy and Communications. Great pressure should be put on the Minister for Transport, Energy and Communications and his Department to ensure these requirements are met, so we can see an increase in access transport. Is the Minister aware that the 170,000 charter seats from continental Europe — which sounds great — to which he referred is the equivalent of two to three weeks in one year on the Dublin-London route? That puts the figure in perspective.
The figure we should be talking about in terms of flights from continental Europe to airports like Shannon, Cork and Knock should be in the region of one million or more each year because there is a market to which people should have access, bearing in mind that it costs more than twice as much to travel to Ireland than to a corresponding distance to Spain from a location in continental Europe.
I am not sure if this is relevant given that the two questions refer to the promotion of tourism.
I would be happy to answer a detailed question on access from Deputy O'Malley if he tables one on the next occasion. The question refers to future investment in promoting Ireland as a tourism destination. In that context I dealt with the operational programme and the Government's future strategy. As I said, I can give the Deputy up-to-date details. I am in constant contact with my colleague, the Minister for Transport, Energy and Communications, on this issue and I realise its significance. However, the Government cannot dictate the final sequence in that commercial decisions are made by airline carriers. If the Deputy wishes to table a question, I will answer it in detail.
During his initial response, the Minister mentioned some ongoing support from the Exchequer for tourism in the event of Euro-support ending. Will he agree that a better approach by Government would be to say that given the importance and growth of the industry, it should receive substantial ongoing State investment to enable it to continue to bring the type of necessary investment into this country? As regards Deputy O'Malley's question, I put down in excess of 60 questions today of which about 19 referred to access and the ITIC report on regional distribution in tourism, all of which were ruled out of order. It would be far more constructive and the tourism industry would be better served if such questions were answered in the House rather than being told they are matters for Bord Fáilte and the regional tourism organisations.
We should stick to the subject matter of the questions before us.
Deputy Killeen will be aware the Ceann Comhairle's office determines which questions are ruled in or out. Deputies have an opportunity to raise these matters and to receive replies during discussions on the Estimates, on motions or at a committee. I have no difficulty responding to any details. The Department, through its own resources, and Bord Fáilte, through its marketing resources, fund the ongoing promotion of Ireland, which we intend to continue. Following the Arthur D. Little report on the proposed new structures for Bord Fáilte, it has now become a top class international marketing agency. Its job is to market Ireland, North and South, internationally.
It is doing that both through its own resources and by its involvement in the overseas tourism marketing initiative, which is proving very successful.
The Minister tells me I should put down detailed questions about these matters but I would be wasting my time. I have done it so many times and the questions have been disallowed — that is why he is inviting me to put them down. Will the Minister send me the information on access transport without my having to put down questions? That would solve that problem. Will he agree that in promoting Ireland as a tourist destination, the greatest harm is done by events such as those in Canary Wharf, Manchester and Adare and that the people who act as the greatest disincentive to economic growth are those who carry out acts such as those in Canary Wharf, Manchester and Adare and those who support them?
The Deputy is perfectly right. I witnessed the consequences of the Canary Wharf bomb — in two milliseconds £100 million worth of damage was done to the buildings, but potentially five times that much damage could have been done to the international reputation and perception of Ireland. These were acts of lunacy which were not done in the name of this House or of the people of Ireland. We must continue to work through the democratic process to ensure that these events are ended forever. I agree with the Deputy whole-heartedly in that regard. The Deputy has been in this House for a very long time and knows how to phrase a question about air access, but I will endeavour to send him as much detail as possible relevant to his questions.
