Vol. 509 No. 2
41 Mr. Perry asked the Minister for Tourism, Sport and Recreation the plans, if any, to radically improve performance of tourism in rural areas, particularly the north-west and the Border region; and the reason for the poor performance of the United Kingdom market in July and August 1999. [20060/99]
While growth in tourism over the past ten years has been unprecedented – visitor numbers to Ireland have doubled to 5.7 million and foreign exchange earnings have tripled to £2.3 billion – there is still scope for further expansion in tourism revenue and employment in all regions, including the Border region.
On a point of order, there are guidelines. We got a set of rules for Question Time which set out the time allocations for questions and responses. I asked a simple, straightforward, short supplementary question and the Minister used up the rest of the time waffling—
It was a filibuster.
It was a page and a half.
—and filibustering. He even drew down the memories of the dead. As a result, I could ask no further supplementary.
That is not a point of order.
I deserve the protection of the Chair or extra time.
We will play four minutes extra time.
The Deputy does not need any protection from the Chair. The Chair applies the rules as laid down by the House.
I gave the Deputy the proper answer. That is why he is trying to—
The Minister filibustered. I asked if it was a threat or a bribe.
The Minister must continue to reply to Question No. 41. The Deputy should not be disorderly.
The Deputy finds it difficult because I answered the question.
We are on Question No. 41. Will the Minister continue?
The Border region has received tourism support over the past five years from a range of programmes, including the tourism operational programme 1994-99, the Northern Ireland-Ireland INTERREG II Programme, the special support programme for peace and reconciliation and, of course, the International Fund for Ireland. It is estimated that well over £130 million in grant assistance has gone into tourism development in the region from those sources since 1994.
My strategy for tourism development under the national development plan will be based on the needs of areas, having regard to whether an area is a developed, developing or undeveloped tourism area. The key national objective for tourism product development will be to provide an appropriate product base capable of supporting sustainable tourism development through enhancing or building up an interesting mix of tourism products, especially in developing and still underdeveloped tourist areas such as the Border region.
As more detail emerges regarding future Community initiatives for the Border region, I look forward to continuing EU support for tourism development. Meanwhile, I received the report of the Donegal Task Force in July and, as I stated recently, I will be having the priorities identified in the report considered by my Department in the context of the drafting of its input into the operational programme for the Border, midland and western regions in the next national development plan.
According to the latest official figures issued by the CSO, there was strong growth in visitor numbers from Britain in the first six months of the year, with an increase of over 10 per cent to 1.6 million. As yet, the CSO has not provided any indication of the performance of the British market in July and August. However, I understand from Bord Fáilte that information from the carrier companies and Aer Rianta for the months referred to by the Deputy indicate a decrease in cross-channel arrivals of 3.2 per cent in July and 3.4 per cent in August, when compared to the same periods in 1998. In both cases, modest increases in air traffic – 3.3 per cent and 2.9 per cent respectively – were offset by decreases in arrivals by sea of 10.7 per cent and 11.1 per cent.
It is too early to identify with any degree of confidence the reasons for the decline in visitor numbers in the months in question or whether it represents a departure from the general growth pattern of recent years. However, I understand that Bord Fáilte is of the view that it may be linked to increases in fares and strikes or mal functions of ferries. Bord Fáilte is monitoring the situation carefully and I expect to have a clearer picture by the end of the year. In the meantime, however, Bord Fáilte is confident that the forecast growth of 8 per cent in overall visitor numbers from Britain this year will be achieved. Access capacity between Britain and Ireland has never been better and, by offering a high quality, competitively priced product, we can ensure that Ireland remains an attractive destination for British visitors.
I am still somewhat in the dark after that reply. Does the Minister have any plans to address the serious downturn of 12 per cent in cross-channel sea arrivals in July and August? There have been indications that the increase in ferry charges to compensate for the loss of duty free sales could be one of the main reasons for the huge downturn in traffic. Has the Minister any plans to seek EU funds as compensation for the loss of tourism revenue if there is evidence that such loss was directly linked to the termination of duty free sales? What plans has the Minister to address the serious concerns expressed by hoteliers, particularly in the Sligo and Border county regions, about the huge investment in that area by private investors to generate business? The Minister mentioned the downturn was as a result of strikes and the non-functioning of ferries. Perhaps he could explain that further. It is a worrying sign that there is a 12 per cent reduction in the number of ferry passengers coming into Ireland. Many people who arrive by ferry travel on to the west and spend considerable amounts of money in the region. If they arrive in Dublin by air, they may not travel to the west.
I agree that we must monitor the situation given that there was a dip in July and August, but I hope this is due to the fact there were strikes and malfunctions on a particular ferry which caused disruption. We will monitor the situation. It could be a trend. This is a business in which trends develop. We will monitor that over the coming months.
I will not provide funds to make up for any shortfall. This is a competitive business. I understand hoteliers in the Border and Sligo regions may have had a leaner season than usual. That is acceptable. However, the Deputy must understand the situation which prevails at the moment. Border counties, especially the Deputy's and my own, would have for many years benefited from tourists from Northern Ireland. With the current exchange rate between the pound sterling and the punt, people from the North have told me they can, with £800, get a very good holiday abroad here because £800 sterling is worth about IR£1,000. People must understand the situation with the exchange rate. People from the North are taking the opportunity of coming to the Republic to book a holiday abroad. Some of them have also told me that, when they come back, they can also fill up with petrol here. All these factors must be taken into account.
That does not get away from the fact that hotels and people involved in tourism in the Border and western areas must be competitive. One can see at the back of The Irish Times or the Irish Independent weekends being offered in Dublin for £29 or £39 per head. That is competitive. There is competition not only from abroad but also from within, and the people in the Border and Western areas will have to be equally as competitive if they are to gain a share of that market.
Will the Minister comment on the Tánaiste's announcement last week that she advocates the promotion of Shannon as a stopover and that she hopes numbers coming into the airport will reach 750,000? That would be of huge benefit for tourism in the western region.
The Government is committed to developing the country to spread economic growth. We are all committed to that. Even the Deputy, if he were in Government, would be committed to that. The Tánaiste is focusing, through IDA Ireland, on developing other regions besides the east coast, and I applaud her for that.
