Vol. 532 No. 1
44 Mr. Connaughton asked the Minister for Tourism, Sport and Recreation if a scheme of grant assistance will be introduced for the development of facilities and improvement of accommodation at small family owned hotels; and if he will make a statement on the matter. [6676/01]
61 Mr. Sheehan asked the Minister for Tourism, Sport and Recreation if funding is available from his Department towards the upgrading of and extensions to hotels in coastal resorts in the interest of promoting the tourism industry. [6482/01]
I propose to take Questions Nos. 44 and 61 together.
My Department does not provide direct grant aid for tourism product development. Bord Fáilte was the implementing body for such schemes under the Tourism Operational Programme, 1994-1999, with decisions on grant approval being made by an independent product management board. A similar arrangement will be in place under the National Development Plan 2000-2006 under which I was able to obtain a commitment of £100 million for a tourism product development.
The new tourism product investment scheme will be administered via the tourism measures of the regional operational programmes. The overall objective of the scheme is to develop the tourism product in a sustainable way that widens the spatial spread of tourism, diverts pressure from highly developed areas and increases the under-performing regions' share of overseas tourism revenue.
There is a general consensus that the focus of public investment in tourism projects must be to enhance the potential of less developed tourism areas by supporting the development of significant attractions or clusters of attractions in such areas. Once a good attractions base starts to be built, it is my view that accommodation developments – whether refurbishment or new build – will follow. In and around areas where new attractions are to be developed under the regional operational programmes, accommodation projects are likely to become even more bankable propositions.
There is quite a long response and in view of the time element and the Deputy's concern about this matter if he wishes I can—
(Mayo): Will the Minister accept that the family owned hotel is an unique and traditional feature of the Irish tourism sector. Those hotels are small, intimate and have a personality all their own, an old world charm, but many will go to the wall. They are caught between the mega all purpose complexes and the B & Bs. Something is needed to underpin that segment of the market which has a potential and a future all its own. Many of these will go to the wall in the next five or six years unless a refurbishment/modernisation programme is put in place to enable them survive and compete.
The reason I did not continue to read the reply was to allow the Deputy in. I share the Deputy's concerns for the small family run business hotels which we have to try to help. However, I am running up against a number of difficulties. For example, the IHF recommendations last week called for the abolition of grants schemes for accommodation. The different sectors are at variance with one another. I would be happy to try to provide a scheme with a view to helping this sector but the question is whether State aids would be approved. That is the problem with providing this sector with grant aid which both the Deputy and I agree is required. It will probably be another six weeks before we receive a response on the operational programme for tourism. We will not know until then. I am anxious and I share the Deputy's concerns.
Does the Minister agree a compensation package will be required? There have been a substantial number of cancellations in the national interest because of the foot and mouth disease crisis. If that continues the tourism industry will be in crisis.
While we are concentrating on the agriculture sector and all that entails, we sometimes forget that 184,000 people are employed in the tourism sector which has taken its share of the brunt of the foot and mouth disease crisis. The industry is worth £3 billion to the economy. Jobs will be lost soon but we must ensure that we prioritise. It is vitally important that the agriculture sector remains disease-free and safe because of its value to the economy. I am glad the Deputy raised the issue because the tourism sector is suffering and will suffer even more in the weeks ahead with the cancellation of matches and so on. I admire the sporting organisations for the stand they have taken. The Ireland-England rugby international is estimated to have cost Dublin between £20 million and £25 million.
I do not envisage any programme of compensation. The Taoiseach and the leaders of the Opposition have described the foot and mouth disease outbreak as a national crisis. We all must play our part and wear the green jersey. I hope the crisis is alleviated as quickly as possible. I hope the situation will be looked on in a positive light in the coming weeks, particularly given what will happen over the next week.
Will the Minister confirm that there is a visitors threshold of 70,000 people under the next tourism operational programme for products to qualify for grant-aid? Will he also confirm that clusters of projects in certain areas will be allowed if they reach the 70,000 threshold? Is there a foundation to the reports that products will not be grant-aided unless they attract 70,000 visitors?
The Minister mentioned the national development plan which was announced in November 1999. He also stated the Department would receive a response from Brussels in six weeks on the operational programme. Is it not the case that £150 million which has been set aside for the marketing and promotion of Ireland is gathering dust because of the delays in approving the programme? When will the marketing and promotion take place?
Will the Minister meet tourism industry representatives from Kerry because there were numerous cancellations in the county over the weekend, people were out of work and there is hardship in the area?
On the latter question I have informed ITIC that I am prepared to meet its representatives. I have also indicated to the organisation that it would be appropriate if its representatives met officials of the Departments of Agriculture, Food and Rural Development and Arts, Heritage, Gaeltacht and the Islands.
Figures have been mentioned about the number of visitors products should attract before they receive grant-aid, including 70,000 and 100,000. I will confirm to the Deputy whether a figure has been agreed. However, it is again a case of waiting for the response from Brussels on the operational programme in six weeks.
It would be unfair to many areas.
We are discussing the funding of such clusters.
A marketing budget of £150 million was approved under the NDP. What is the position regarding that budget?
The budget is £150 million over the next seven years, which is approximately £20 million per year. The industry sought that amount and an extra £12.5 million was provided this year. The budget is being spent by Bord Fáilte but marketing will become a function of Tourism Ireland Limited and it has been agreed that it will be given a budget of £22 million this year.
Written Answers follow Adjournment Debate.
