Vol. 537 No. 4
7 Mr. Higgins (Mayo) asked the Minister for Tourism, Sport and Recreation the number of visitors from North America who to date have cancelled their holiday arrangements here due to the foot and mouth disease scare; the number of bed nights lost; the estimated loss of revenue to the economy; the cost to date of the marketing campaign to counter negative publicity; and if he will make a statement on the matter. [16132/01]
8 Mr. Farrelly asked the Minister for Tourism, Sport and Recreation the number of British visitors who, to date, have cancelled their holiday arrangements here due to the foot and mouth situation; the number of bed nights lost; the estimated loss to the economy; the cost to date of the marketing campaign to counter the negative effects; and if he will make a statement on the matter. [16099/01]
9 Mr. Ring asked the Minister for Tourism, Sport and Recreation if he has met with his counterpart in Northern Ireland since the outbreak of the foot and mouth disease in order to agree an all-island approach; and if he will make a statement on the matter. [16064/01]
13 Ms Clune asked the Minister for Tourism, Sport and Recreation the impact of foot and mouth restrictions and the negative impact of adverse publicity on employment has had in the tourist sector; and if he will make a statement on the matter. [16112/01]
14 Mr. Stagg asked the Minister for Tourism, Sport and Recreation if his attention has been drawn to the package of measures introduced by the Northern Ireland Executive under the help for businesses scheme to assist tourism and other sectors which lost out financially as a result of the foot and mouth scare; if he has any plans for a similar programme of support here; and if he will make a statement on the matter. [16210/01]
17 Mr. McGrath asked the Minister for Tourism, Sport and Recreation if he has met with representatives of ferry companies in relation to numbers of tourists; and if he will make a statement on the matter. [16085/01]
22 Mr. Bradford asked the Minister for Tourism, Sport and Recreation the package of measures and reliefs which he has put in place to ease the financial difficulties being experienced by the different sectors in the tourism industry arising from the negative effects of the foot and mouth situation; and if he will make a statement on the matter. [16107/01]
51 Mrs. B. Moynihan-Cronin asked the Minister for Tourism, Sport and Recreation his estimate of the total revenue lost to date in 2001 to the tourism sector arising from the foot and mouth disease scare at the latest date for which figures are available; the specific measures which have been put in place to assist the tourism sector to recover from these losses; and if he will make a statement on the matter. [16204/01]
54 Mr. Wall asked the Minister for Tourism, Sport and Recreation the latest information available to his Department on the estimated visitor numbers for 2001; his views on Bord Fáilte's estimates that the numbers are likely to be down in 2001 for the first time in ten years; and if he will make a statement on the matter. [16208/01]
148 Mr. Higgins (Mayo) asked the Minister for Tourism, Sport and Recreation the number of visitors from North America who have cancelled their holiday arrangements here due to the foot and mouth disease scare; the number of bed nights lost; the estimated loss of revenue to the economy; the cost to date of the marketing campaign to counter negative publicity; and if he will make a statement on the matter. [16150/01]
156 Mr. Durkan asked the Minister for Tourism, Sport and Recreation if he has given any instructions with the objective of assisting the tourism industry in the wake of the foot and mouth epidemic; and if he will make a statement on the matter. [16435/01]
164 Mr. Durkan asked the Minister for Tourism, Sport and Recreation the extent to which he is assisting on an international promotional exercise and or recovery programme regarding the revival of the tourism industry in the aftermath of the incidence of the foot and mouth disease; and if he will make a statement on the matter. [16443/01]
I propose to take Questions Nos. 7 to 9, inclusive, 13, 14, 17, 22, 51, 54, 148, 156 and 164 together.
Official CSO figures are not yet available for overseas visitor numbers and revenue earnings in 2001, nor are there any reliable figures available on the number of cancellations or bed nights lost due to the foot and mouth crisis. Bord Fáilte originally estimated a potential loss this year of 14% in the number of overseas visitors on the basis of initial assessments of the possible impact of foot and mouth restrictions on tourism, when compared to the 2000 outcome of 6.4 million, equivalent to a reduction in revenue of 13%. It will be some time before the board will be in a position to confirm those estimates and the impact on them of Ireland being able to announce that it was fully open for business well in advance of the peak season.
More recent reports from the industry and through a survey commissioned by CERT suggest that while there has been an improvement in business and forward bookings in recent weeks after the lifting of the internal foot and mouth disease control measures, business could still be down this year on 2000. The CERT survey showed that the majority of establishments indicated no change in numbers employed, with operators preferring to reduce the number of hours worked by staff rather than letting them go. Bord Fáilte's projections of industry losses may well prove to be pessimistic as they do not take into account the impact of the incremental marketing activities being undertaken and the extent to which business may rebound later this year.
Since the onset of the foot and mouth emergency I have taken a range of measures together with my Department and Bord Fáilte to help offset the adverse impact on the tourism industry. In the interests of time I will not go through the measures which I have stated previously. The measures proved successful and the country has now returned to normality in terms of its attraction to visitors. All the State's cultural and heritage sites have reopened and there is an open welcome to visitors from home and overseas, subject to appropriate precautionary measures being taken to prevent the spread of foot and mouth disease.
A major tourism marketing reassurance campaign, with a total budget of £10 million, has been designed by Bord Fáilte in consultation with the industry and is under way in key markets. The campaign consists of special media advertising, trade reassurance measures and special promotional visits, including my own recent visit to the United State. Details of the campaign and the actions envisaged in key source markets are available directly from Bord Fáilte.
The reassurance campaign has been put together with the assistance of an additional special Exchequer contribution of £7 million. These actions are incremental to the 2001 budget previously approved for Bord Fáilte which represented the largest ever level of State funding for tourism marketing and brings the total 2001 Exchequer provision for tourism marketing and promotion to £67 million. When the reassurance campaign is taken into account the tourism marketing budget in 2001 represents an increase of approximately £17 million on last years' budget.
At the last North-South Ministerial Council in tourism sectoral format held in Letterkenny on 30 March, I and my northern counterpart, Sir Reg Empey, Minister for Enterprise, Trade and Investment, had a discussion on the implications of the FMD emergency for the tourism industry, North and South. We agreed to keep the situation under review and to consider the possibility of joint marketing promotions in the future.
I am aware of the measures announced in Northern Ireland on 21 May, from which certain tourism operators adversely affected by the foot and mouth disease crisis, could benefit. While there have been some calls for similar relief measures here, the main focus of industry attention has been to secure extra Exchequer marketing funds and the removal of the more damaging foot and mouth disease advice-control measures. My appeal to the banks drew a welcome response from the Irish Bankers' Federation on 30 March indicating their commitment to give careful and sympathetic consideration to requests for support from those business customers who encounter financial difficulties. The Department of Finance has also confirmed that in so far as particular cash flow problems arise for individual businesses, the Revenue Commissioners, as part of normal arrangements, will look sympathetically at payment arrangements on a case by case basis.
I will keep the overall market under close review with the objective of ensuring that no unnecessary medium to long-term damage is done to the tourism industry, which is now so important in economic terms. The tourism industry has dealt successfully with crises in the past and is a resilient industry. With the help of the actions I have taken and through the industry's efforts, we can overcome this temporary setback and return to a growth pattern again next year.
(Mayo): Is the Minister living in the real world? I ask him to walk down Nassau Street when he leaves here. The left half side of that street as one walks towards Merrion Square would be normally chock-a-block at this time of the year with buses carrying Americans who would go into Kilkenny Design and the other shops that sell ethnic goods along that street. There are no buses there except the odd one that has brought people up from rural Ireland.
Is the Minister disputing the figure given by Bord Fáilte reported this week in The Irish Times? Bord Fáilte estimates that at this stage about £250 million has been lost to the economy by way of tourism revenue.
In terms of where we go from here, does the Minister accept that irretrievable damage has been done? I welcome marketing in the sector, but at this stage people have made up their minds whether they will come here, go to other parts of Europe or stay at home. Will the Minister accept that what we are involved in at this stage is a salvage mission and that what is required is long-term rather than short-term investment? Will he also accept the figures for this year will not be far more optimistic than the pessimistic ones given by Bord Fáilte, that they could well be catastrophic and many enterprises will go to the wall because the Minister and the Government did not put in place any salvage measures in terms of supports to assist people in the industry who have borrowed to keep their businesses up and running?
I accept certain sectors, such as the coach sector, have been damaged by the foot and mouth disease crisis, but I cannot imagine what the Deputy is suggesting. Is he suggesting I take a fleet of ships to the United States and fill them with buses full of Americans? Could he possibly have done anything more than I have done already? I went on a reassurance campaign to the United States, from where most of the coach business would normally come. Is the Deputy suggesting I should go over there and drag people by the scruff of the neck over here to line the streets of Dublin?
I am not as pessimistic as the Deputy. If I were to say to him there is nothing happening in Letterkenny or elsewhere in County Donegal having heard that elsewhere, I would not be inclined to go there. I cannot understand where being pessimistic about all this can possibly lead us. As a matter of fact, Donegal is alive. The night life in Letterkenny, Donegal town and Buncrana has been fantastic in recent weeks. There has been perfect sunshine there—
Is the Minister taking credit for that?
—and it has been a marvellous place to be. If the Deputy spread that type of message about Donegal, people would be more inclined to say, "yes, I think we should go there."
I note from a recent programme on the West that more than 1,000 boats were out on the Corrib for the mayfly.
The minute allocated for the Minister's reply has concluded.
I know of a large group of people, 70 or more, who want to stay in west Cork in September, but we cannot get a booking in a hotel for them. I consider the indicators are much more positive than Bord Fáilte figures, which are pessimistic.
Will the Minister conclude.
I remind the Deputy that the figures produced by Bord Fáilte were a worst case scenario and do not take into consideration the considerable effort made by the industry in the meantime.
I appeal to Ministers and Deputies to adhere to the one minute allocated for supplementary questions and replies to enable as many Members as possible to ask a supplementary question. The Chair has very little control over the Standing Order. The committee on Dáil reform should be approached if Members on either side of the House are not happy with the arrangements. I also ask Opposition members to ask questions rather than make statements.
It is not only Opposition members who are pessimistic about the figures, Bord Fáilte deals with people involved in the tourism industry and has heard from those in the industry that they are pessimistic about the numbers coming.
As the Minister is aware, a helpful business scheme has been set up in the North. Areas of this country, such as the Cooley Peninsula, have been devastated by this crisis. There is no proof in the books of the people involved in the tourism industry to whom I have spoken that the position will be good in the autumn. We all hope it will be. I ask the Minister not to close the door on providing assistance for people involved in the industry. I ask him to reconsider the position in September, because if the bookings are not in by September, they will not be there before the end of the year. Many businesses will need assistance, if the figures for the autumn are not as good as we hope they will be.
I have spoken in the past regarding compensation, but I do not think that is what the Deputy was speaking about. Measures regarding rates review, VAT returns, etc., have been implemented in the UK, but the uptake of them has been unusually low. They do not seem to have worked.
With regard to the Cooley Peninsula, £250,000 has been put into that area alone and the people there were grateful for that extra cash from the Government. I am not saying figures will not be down, but Bord Fáilte's figures are a worst case scenario and have not taken into consideration the advertising campaign hotels and others in the industry have been running in local newspapers. Terrific value for accommodation is being advertised for June, July and August. No one knows what the summer will be like. There were many cancellations for the summer, particularly coach tours. Some Americans told me they wanted to be sure about the position and put off their visit until the autumn or next year. I expect figures for the autumn to be much higher than they were for last year and that figures for next year will make up for much of what we will have lost this year. The figures will be down for this year, but if we could only recover close to the last year's figures, I would be satisfied.
Does the Minister accept that many entrepreneurs are in trouble? Why will the Government not put in place a package similar to that which was put in place in the North and in Wales? Has he had any discussions recently with the ferry companies to ascertain the level of their bookings? Will he make funding available to those companies to enable them to carry out marketing, given that the marketing they carried out earlier this year has been nullified by the foot and mouth disease epidemic?
I expect some businesses will be in a bother, but I saw media coverage of farmhouses that were empty and women in tears and more recent coverage showed those places were bustling again. I am optimistic they can recover. Certain businesses will be affected. The measures that have been in place on a piecemeal basis in the UK and, more recently, in Northern Ireland have not been a success. They were not a success in the UK because it handled the matter completely different from how we handled it. We adopted a damage limiting approach and won that battle. Many people throughout the world admire the way the Department of Agriculture, Food and Rural Development handled the foot and mouth disease threat and the tourism industry in general.
The ferry companies have been badly hit. I spoke to representatives of those companies recently and they estimate that their figures could be down 30%, which is not good news. I do not intend to give special funding to each of the ferry companies.
The ferry companies have indicated that it would be much better if I channelled more funding towards the UK market. This would also benefit rural Ireland because the car ferries transport people who travel throughout the country. I will be targeting the UK from now on.
When the Minister met with Sir Reg Empey in Letterkenny, did he discuss the background to the assistance being provided by the Northern Ireland Executive? Does he feel the tour operators and tourism sector in this country had to first deal with the foot and mouth crisis and then with the challenge from competitors who are receiving assistance in Northern Ireland? Both Bord Fáilte and tourism operators throughout the country are extremely pessimistic at this time and there needs to be some positive development from the Minister in regard to assistance and ensuring the numbers of tourists coming to the country increase.
Does the Minister think that the best way to market tourism is to give companies such as Aer Lingus, Irish Ferries and so on a specific budget so that they can target specific elements of the market and encourage people to come to this country? These companies have a good record in that regard and they are the people with the expertise and experience.
In regard to Aer Lingus and the other companies, last year we set up the tourism marketing partnership to bring the industry and State agencies together so that there would not be an overlap of marketing and there would be clearly defined areas of funding. There was a meeting recently with the tourism marketing partnership on which Aer Lingus and the ferry companies are represented. That aspect has not been asked for, nor do I believe it would work. I am optimistic that we can recover from this setback – Deputy Higgins used the word "salvage". I have always said this is a salvage operation. We are trying to get back to the £6.4 million figure of last year. I am not saying we will achieve this but we will make every effort to do so. This is just the end of May and we have already spent £17 million extra on marketing this year. In regard to our competitors in Northern Ireland, the whole area of rates and so on is different in the UK, and this has not worked.
In view of the fact that we were very unlucky to be so geographically placed in regard to the serious foot and mouth outbreak in the UK and suffered the type of damage raised in the questions, does the Minister think that between now and the end of the year he will be able to take sufficient initiatives abroad – I am mindful of the points he already raised – so that they will percolate down through the various services here?
We can take initiatives and the industry has taken many initiatives in terms of the value being given in local advertising campaigns. I am currently in the process of trying to work out a date for a visit to the UK, following which I will travel to Europe. Undoubtedly, we have taken a loss here. As the Deputies opposite have pointed out, people have made up their minds. We must decide whether throwing money at the problem at this stage is correct if people have made up their minds about this country or if it would be better to concentrate on next year. I am more inclined to go for the latter. We will continue with this initiative to which we are contributing £17 million. The Minister for Finance is aware that the tourism industry represents 5% of GDP while the agricultural industry represents 4% of GDP.
