Dáil Éireann díospóireacht -
Wednesday, 20 Nov 2002

Vol. 557 No. 5

Written Answers. - Budget Submissions.

Brian O'Shea

Ceist:

61 Mr. O'Shea asked the Minister for Arts, Sport and Tourism if he has received the pre-budget submission of the Irish Hotels Federation; his views on proposals therein; if he has had discussions with the Minister for Finance on this submission; and if he will make a statement on the matter. [22482/02]

Joe Costello

Ceist:

64 Mr. Costello asked the Minister for Arts, Sport and Tourism his views on the call from the Irish Hotels Federation to cut VAT rates as part of a bid to stimulate tourism growth; and if he will make a statement on the matter. [22487/02]

John Deasy

Ceist:

66 Mr. Deasy asked the Minister for Arts, Sport and Tourism if he will make special representations to the Minister for Finance to reduce the VAT rate for hotels and restaurants to put them in line with competitors such as Spain, France and Portugal; and if he will make a statement on the matter. [22520/02]

Minister for Arts, Sport and Tourism (Mr. O'Donoghue)

I propose to take Questions Nos. 61, 64 and 66 together.

In its pre-budget submission, the Irish Hotels Federation put forward a number of proposals. Its concerns can be summarised under two themes – how to maximise the return from marketing funds and the need to address cost competitiveness issues facing the industry. As regards marketing, this year has seen the largest ever marketing budget provided for Tourism Ireland and Bord Fáilte for international marketing of the island of Ireland and product-regional marketing, respectively. Shortly after my appointment as Minister for Arts, Sport and Tourism, I decided to make a further €3 million available for front-line marketing activity. With this additional funding, Tourism Ireland was able to extend its marketing activities in those markets with the best prospects for generating visitors and revenue in the short-term targeting, in particular, Great Britain, Europe and North America.

I am pleased that, as confirmed in the Abridged Book of Estimates for 2003, the Government has agreed to provide a total of €106 million in Exchequer support for tourism, including an increase of 20% in the tourism marketing subhead of my Department's Vote, bringing the total to €30.4 million. Tourism Ireland and Bord Fáilte will administer this funding and I will launch their detailed marketing programmes and plans for 2003 in early December.

I welcome the emphasis the tourism industry is placing on maintaining competitiveness. I know that many share my view that prospects for continued growth remain good, provided we can deliver in terms of competitiveness, value for money and quality. I have been in touch with my colleague, the Minister for Finance, to highlight the need for macro-economic policies to improve our international competitiveness and to tackle inflation. I have endorsed the industry's call for moderation in VAT and excise duty rates on tourism-related services.