Vol. 646 No. 4
113 Deputy Bernard J. Durkan asked the Minister for Arts, Sport and Tourism his projections for the development of the tourism industry in the course of the next 12 months with particular reference to the need for competitiveness in view of increased choices at home and abroad; and if he will make a statement on the matter. [4836/08]
351 Deputy Bernard J. Durkan asked the Minister for Arts, Sport and Tourism the extent to which his Department have evaluated the impact on the tourism industry of currency and economic fluctuations; the measures proposed to counter such issues; and if he will make a statement on the matter. [5291/08]
352 Deputy Bernard J. Durkan asked the Minister for Arts, Sport and Tourism if he is satisfied that the tourism industry here is in a position to compete effectively with the increased competition and variety worldwide; and if he will make a statement on the matter. [5292/08]
353 Deputy Bernard J. Durkan asked the Minister for Arts, Sport and Tourism his proposals to improve the tourism industry with particular reference to the need to compete on international markets; and if he will make a statement on the matter. [5293/08]
I propose to take Questions Nos. 113 and 351 to 353, inclusive, together.
We have been fortunate in recent years to enjoy record growth in numbers of overseas visitors and associated revenue. While final Central Statistics Office, CSO, figures are not yet available, the estimates are that in 2007 alone we welcomed almost 8 million overseas visitors to the Republic of Ireland, with associated foreign revenue earnings of almost €5 billion. While the international tourism market is becoming increasingly competitive, Ireland has consistently outperformed its key competitors in terms of growing the number of overseas visitors to our shores.
With regard to 2008, I am pleased that the tourism agencies are forecasting that the Irish tourism industry will show further growth. At a tourism sectoral meeting of the North-South Ministerial Council last November, Minister Nigel Dodds and I approved Tourism Ireland's corporate plan for 2008-10. This plan contains ambitious and challenging targets for tourism for the island of Ireland over the next three years. It aims to increase overseas visitor growth by between 4.2% and 5.1%, which, if achieved, would mean total overseas visitor numbers to the island of Ireland of over 10.5 million in 2010.
The plan also sets tourism revenue growth targets of between 6.6% and 7.1%, which, if achieved, would mean that overseas tourism would generate up to €16 billion in tourism revenues for the island of Ireland in the three-year period.
While the targets are ambitious, there is little doubt that global economic factors such as currency and oil prices are likely to impact on the number of outward travellers from some of our most important markets such as North America and Great Britain. Whereas we have little influence in relation to such global economic factors, our agencies monitor market performance during the year and adjust their marketing campaigns as appropriate.
Among Tourism Ireland's priorities for this year are an even greater focus on e-marketing, continued attention to the car touring market in Great Britain and targeted marketing activity around key access hubs in mainland Europe and North America.
In terms of domestic tourism, Fáilte Ireland will continue to focus on key issues relating to product development, enterprise development, regional development, environment, education and training, and advocacy. In terms of targets, Fáilte Ireland has a target of achieving annual average growth of 3.7% in domestic holidays for the period to 2012.
Maintaining and enhancing competitiveness is a major issue for Irish tourism as it is for the economy as a whole. In addressing that issue, it is important to bear in mind that competitiveness is about more than price and costs. It is generally agreed that Ireland cannot and, indeed, should not attempt to compete on the basis of costs with mass tourism destinations.
The tourism agencies continue to monitor Ireland's competitiveness as a tourism destination and I am encouraging them to assist the industry in responding to changing conditions through a variety of programmes in marketing, human resource development, quality enhancement, product development and productivity. By doing this I am confident that the ambitious targets I outlined for the island of Ireland can be met.
I am not sure what Deputy Durkan had in mind when he tabled these questions but I think they are interesting as tourism has changed dramatically in recent months, given rising fuel prices, market fluctuations, currency fluctuations and changes in interest rates. Projections for this year have changed, as have marketing plans. At times of economic uncertainty discretionary money, such as that spent on holidays, is the first to be hit and as an island country, fuel surcharges and so on make us vulnerable.
Is a review planned, given how the market has changed completely? There is no doubt world tourism will shrink this year and we will have to work hard to maintain market share. I agree with the Minister that Ireland does not compete only on price but we must be aware of this factor. Prices in Dublin, such as that for a cup of coffee, are off the scale and this gives a bad impression to visitors, particularly if Dublin is the gateway to a person's holiday in Ireland. They will be left with a bad taste in their mouths if a cup of coffee there costs three times that in any other European capital.
This year will be challenging for the Irish tourism industry, particularly given the situation regarding currency markets and oil prices. I do not think we should hide behind this, however, as to do so would be unfair to the fine Irish tourism industry. The new Northern Ireland Executive together with Tourism Ireland, which is more determined than ever and has an increased budget, will provide a fine opportunity to develop tourism on an all-island basis. What is good for the northern part of the island will also be good for the southern part. I met representatives of Tourism Ireland and expressed the wish that a fresh approach be taken to expanding the industry with an all-island view. I suggested we should not simply sit back because prices have risen, though I agree with Deputy Mitchell that the country must be wary of prices or market share will suffer. We learned that lesson previously and we should not learn it the hard way again.
I understand the number of British tourists visiting Ireland has declined in the past year. As this market is literally next door to us, are special efforts being made to attract people from the UK? I know the matter of signposting has been addressed previously but a constituent raised it with me today. My constituent referred to puzzling signposting and places where there is no signposting in Dublin. This might sound trivial and may not have a serious impact but it could discourage people from returning to Ireland.
In study after study the issue of signposting has repeatedly been mentioned as an irritant when it is not done properly. I will raise this issue again with the agencies involved.
The UK market slipped but I understand it has bounced back and Fáilte Ireland and Tourism Ireland are taking account of the fact that it should be our easiest target due to its proximity. Money invested in the UK yields quick results and I believe the tourism agencies are responding to this.
Central Dublin is lacking a big hotel with enough beds to meet demand and this matter has been raised before in the context of the conference centre, which, hopefully, will be ready in the next couple of years.
My daughter lives in London and she recently told me that her boyfriend's firm brought 300 young lawyers to Dublin for a bonding exercise, which is something big firms do nowadays. The only location they could get in all of Dublin was Citywest. They were taken there by bus from the airport, with lots of money in their pockets, but they never left Citywest while they were here. They never got to see Dublin. I congratulate Citywest on capturing the available market, but it seems it is the only place large visiting groups can go in Dublin. The Burlington Hotel and Jury's Hotel were huge losses. Has there been any liaison with the industry on responding to the lack of a large, central hotel in Dublin? There is huge potential in this area of the business but we are missing a big opportunity if large visiting groups must stay in a location where nothing else is accessible.
A restructuring has occurred due to very high property prices and this has affected not only hotels but service stations and such sites. All over the country hotels are becoming apartment blocks and residential sites but, given changes in the property market, I think this will be short-lived and will slow substantially. The conference centre will meet one of the requirements the Deputy mentioned and 85 or 86 hotels have opened in Ireland in the past two years. There are now almost 1,000 hotels and most of these have invested substantially in convention centres. There is significant capacity for conference facilities — I have not heard of a shortage of such facilities as described by the Deputy. Perhaps visitors stay in Citywest for other reasons.
There are enough rooms to cater for large groups but the only single hotel that can do so is Citywest Hotel and it, effectively, is not in Dublin.
I do not wish to name them but there are many large hotels with hundreds of bedrooms and planning applications are in the pipeline for similar sized hotels in different locations such as the financial services centre. I will consider it but I am not aware of a shortage of conference centre facilities with associated bedroom space, which is the point made by the Deputy. The agencies are not signalling any such shortage but rather they are signalling the significant investment in hotel bedrooms and in conference centre facilities——
They are all small hotels.
114 Deputy James Bannon asked the Minister for Arts, Sport and Tourism if he will develop multi-annual funding for the Arts Council; and if he will make a statement on the matter. [4858/08]
121 Deputy Emmet Stagg asked the Minister for Arts, Sport and Tourism his views on the way the failure of budget 2008 to provide the Arts Council with multi-annual funding or an increase in funding above the rate of inflation equates with his Department’s stated goal of creating an environment which enables arts and culture to flourish; and if he will make a statement on the matter. [4769/08]
I propose to take Questions Nos. 114 and 121 together.
Funding of the Arts Council, as with all Departments and State agencies, is a matter for consideration under the annual budget and Estimates process. In doing so, the Government must balance competing demands from every part of our economy and society.
I am aware of the Arts Council's desire to have multi-annual budgets, having met with the council on a number of occasions. I appreciate the need for stability in budgeting that such a measure would provide, but my Department, like other Departments, must work within the annual current expenditure budgets provided through the Estimates process. However, I will continue to pursue this issue with my colleague, the Minister for Finance.
By any standards the Arts Council has seen dramatic increases in its funding allocation in recent years, increasing by over 72% from €47.67 million in 2002 to €82.102 million this year. These are significant amounts of taxpayers' money in any context which have effectively transformed the arts by facilitating increased access and participation in the full spectrum of art forms throughout the country.
The Government's sustained commitment to the arts is evidenced by these substantial increases in funding, including supplementary funding of €5 million at the end of 2007. Specifically, this level of funding has enabled the Arts Council to dramatically increase both the number of organisations it supports and the level of funding it provides. In 2006, the Arts Council supported 330 regularly-funded organisations which employ 2,000 people; 170 festivals; 251 artists, through bursaries and the Cnuas provided to members of Aosdána; and 41 artist-in-residence programmes, spread across hospitals, schools, communities and prisons. A number of new initiatives have been introduced by the Arts Council as a result of this additional funding, including touring, small festivals, opera and a community music scheme.
This Government is committed to supporting the arts and will continue to work with the Arts Council as part of this programme.
I have raised this issue before as have many others and I do not wish to labour the point. The Arts Council cannot plan if it does not have multi-annual funding. If the Arts Council cannot make plans then the groups it funds cannot make plans. The Minister and everybody else will know that any business unable to make plans will be inefficient. The money which the Minister gives the Arts Council will be partly wasted as a result and the outcomes will not be optimum because the money is not being expended efficiently. We all know this is the case. The Fianna Fáil manifesto said it and the programme for Government acknowledged the need for annual funding. Did the Minister make any pitch for multi-annual funding to the Minister for Finance? Such funding would be a more sensible approach. The Government acknowledges the need for efficiency in other areas such as in the roads programme where there is multi-annual funding. I am not asking for more money but rather a sensible way of allocating money so the groups funded through the Arts Council can have some ability to make forward plans.
I have informed the Arts Council that I will continue to pursue its interest in multi-annual funding. This should not distract the council from being able to anticipate a fairly strong level of funding and to be accurate in anticipating what that funding will be. If it considers the funding for recent years, it will be in a good position to calculate what the annual figures should be. I accept this does not work because the council needs to be able to make legal commitments. I have sympathy for the case and I will continue to pursue the matter and discuss it with my colleague, the Minister for Finance. However, it should not distract the Arts Council from its work, given that it has a fairly high level of funding which it is well able to calculate.
The Minister has compared the figures for 2002 and 2008 and it gives the impression of a very substantial increase. However, the comparison of figures for 2007 and 2008 shows a modest €2 million. The Arts Council has requests for funding of more than €130 million. It is therefore a long way short of what the council needs in order to deliver on its programme.
The key point is the need for multi-annual funding. The Arts Council must book an orchestra or an international opera star two or three years in advance. It is extremely difficult for the council to do this if it cannot guarantee the funding in advance. This is at the heart of the need for the multi-annual funding, not to mention the layers of bureaucracy that go with having to repeat its application annually.
I can see the need for advance funding in the case of a special event. I have said to the Arts Council and to the other agencies under the aegis of the Department that if such a situation arises, the Department can discuss how the organisation being bid for can be reassured that the amount of payment will not be an issue. My Department could work with the Arts Council if it needs to pursue a particular project and requires that level of assurance from Government. I have undertaken to continue to work on this issue. Every organisation would prefer certainty and a rolling budget as opposed to an annual renewable budget but I do not accept it should hold back the council to any substantial extent. I agree it would be more comforting but I do not believe it will interfere with its day-to-day work.
The Minister seems to be missing the point. It is not that it would be more comfortable but rather it would be efficient. People are questioning why we proceed with building new arts facilities around the country — although everybody wants their own arts facility — when we are unable to provide performances in the existing facilities. Neither can the existing facilities make plans for necessary refurbishment. For instance, a facility will not be able to pay for a new lighting system out of a single year's allocation; it must be able to plan ahead. If it makes sense to plan ahead at Government level then it surely makes sense at this lower level also.
We should not confuse two streams of funds. The annual Arts Council funding is current money——
I am quite aware of what is meant by current money and capital money. When money is not available for the day-to-day running of the existing facilities why then produce new facilities?
I was about to explain that the second stream of money is called ACCESS and this provides capital money. I will make an announcement about those capital funds shortly. A total of €184 million in the national development programme is provided specifically for the kind of bricks and mortar and investment in infrastructure to which the Deputy refers. There would be no need to have facilities which are subject to under-investment, given the current ACCESS programme which is now complete and the future programme which I hope to begin shortly.
I think this is rubbish.
115 Deputy Joe Carey asked the Minister for Arts, Sport and Tourism if he will provide funding under the ACCESS programme for the development of the Irish Museum of Modern Art; and if he will make a statement on the matter. [4870/08]
Capital funding of €45 million is provided in the culture sub-programme of the National Development Plan 2007-2013, for a major development programme at the Irish Museum of Modern Art at the Royal Hospital, Kilmainham. This development programme will enhance the museum's position as a major national and international venue for the exhibition of modern art. In 2008, the museum will receive current and capital funding in excess of €8 million from the Department's Vote. The needs of IMMA are being addressed through this funding and the funding provided in the national development plan.
As ACCESS, arts and culture capital enhancement support scheme, funding is primarily focused on the provision of capital funding for the building and refurbishment of arts facilities throughout the country, it is not intended that IMMA would be eligible for the scheme.
The question is incorrectly worded. However, this does not take away from the major point. Money from the NDP is earmarked for the Irish Museum of Modern Art. My question is when will this come on stream? When will decisions be made on the real need of the Irish Museum of Modern Art for additional facilities? How will the decision be made on how to proceed?
The building in Royal Hospital is beautiful despite the fact that somebody has allowed an appalling building to be built in front of it. However, it is completely unsuitable for the type of installations and large canvases which modern art rather than traditional forms of art tends to have. We need a decision to be made. It is one thing to state money is included in the NDP but when will we see bricks and mortar or a design team appointed? Has any progress been made? Is there a sign of anything happening on the horizon or is it a figure in a budget?
Recently, I paid two visits to IMMA to see it for myself. A total of €45 million is earmarked in the cultural sub-programme of the national development plan. I wish to confirm that it does not and cannot come out of the ACCESS programme.
Yes, I realise that.
I wish to be clear on this because substantial confusion arises on it. IMMA has been offered exhibition space in the Westgate building being erected on St. John's Road near Heuston Station. The provision of this cultural space is a condition of the planning permission the developer received for the Westgate project. The offer to IMMA of this cultural space is being considered by its board at present. It is expected the board will make a decision on the matter at the end of February so we should have more information at that time.
The initial indications are that the board's response could be negative because of cost implications and logistical and other issues relating to IMMA holding exhibitions at a location other than the site at the Royal Hospital, Kilmainham. I expect to hear from them after their deliberations. The €45 million earmarked in the national development plan will go a long way towards resolving the issue.
I welcome the commitment of €45 million. IMMA is located in my constituency and I have a particular interest in it. It had a total of 485,000 visitors in 2007 so clearly it is one of our great cultural attractions. I hope the funding is delivered in a timely fashion.
It is one of our cultural institutions and a major visitor attraction and the approach to it is in an appalling condition and the builder or someone was allowed to destroy the street approach. It has no public lighting or footpath. Any visitor getting off a train or the Luas to visit it will be appalled. It should not be allowed.
I thank the Deputy and pay tribute to the staff of IMMA who put in a great deal of hard work. I will take up the issues she raised as soon as possible.
116 Deputy Denis Naughten asked the Minister for Arts, Sport and Tourism the plans he has to improve regional balance of inbound tourists; and if he will make a statement on the matter. [4017/08]
Under the National Tourism Development Authority Act 2003, the individual actions and measures relating to tourism promotion and development at regional level are day-to-day functions of State agencies. The Government is taking a number of steps to support the agencies in pursuing the objective of ensuring as wide as possible a spread of tourism business throughout the country.
During 2008 the Government is providing a 7% increase in the tourism budget, compared to 2007, bringing the allocation to approximately €170 million, the largest ever Exchequer budget for Irish tourism.
The National Development Plan 2007-2013, Transforming Ireland, includes the largest Government investment programme for the development of Irish tourism. This programme, which provides for an €800 million Exchequer investment in tourism over the life of the plan, has as one of its fundamental objectives the stimulation of regional development.
While tourism numbers have increased year on year, the fact is that a fall-off has occurred in regional tourism and its capacity because of the reduction in footfall.
With regard to the promotion of the self-catering tourism sector, an investment of €14.15 million has been made through EU and State funding and through investment by the owner-occupiers of self-catering accommodation. However, Fáilte Ireland decided not to promote this end of the sector in 2008. This will have a detrimental impact on the development of tourism in regional areas.
It is not that Fáilte Ireland decided not to promote it. It will continue to be promoted. However, Fáilte Ireland will not administer it and will let the self-catering industry develop its own strategies.
With regard to regional tourism, in 2006 70% of total tourism revenue was spent in regions outside of Dublin, which is a significant figure.
Written Answers follow Adjournment Debate.
