I move:
That Seanad Éireann notes the potential for developing Tourism on an all-Ireland basis.
I welcome the Minister. I would inform the House that by the year 2000 tourism will be the world's biggest industry. As Europe will attract the greatest number of visitors, Ireland must have overcome impediments and be ready to achieve its proper share of the market. In this context it is salutary to remind the House that while tourism has grown substantially in the 1980s, some 21.3 per cent of growth is recorded particularly in Europe — in real terms Ireland's share of the market has declined by minus 5 per cent. Compare this against some of our European neighbours such as Turkey where tourism has increased by 123 per cent in less time, in four years, and Iceland is up 70 per cent. We are heavily dependent on the friends and relatives market, with 31.8 per cent of the total coming into Ireland. So it is obvious that we need an overall strategy to increase our share of the tourism market which worldwide is worth a staggering $100 billion.
The Government in 1987 decided to give tourism a higher emphasis than ever before by appointing a tourism Minister with full Cabinet rank charged with getting our tourism industry on a proper footing going into the nineties. That decision has already begun to pay dividends, as the operational programme for tourism in the National Development Plan indicates.
The subject matter of this motion is that we should be encouraging the promotion and marketing of Ireland on an all-Ireland basis. I am sure all sides of the House will agree with the sentiments expressed there. In the context of a wider Europe it is imperative that Ireland does have a joint approach to attracting overseas visitors.
The tourism industry in this part of Ireland has been set the target of doubling tourism in the five years 1988-93. The implications are that we must operate it at an entirely different level. It will be and is a highly challenging aspiration. Bord Fáilte, who are the main outlet for developing, promoting and marketing tourism in this country, have adopted stragegies — four in particular — which are interdependent. The first is product strategy. They are introducing and selling a range of tourist products that will open new markets for us. I am thinking here of the specialised holidays, such as golfing holidays, walking trails, equestrian, angling. They will also continue, of course, to sell the existing product based on scenery, people and relaxed atmosphere.
The second strategy is competitiveness. They are currently developing a number of approaches designed to either reduce price, improve quality or add value and a decision has been taken, which I am sure will be welcomed, to promote only the best as far as Ireland is concerned.
The third part of their strategy is market penetration and promotion. Bord Fáilte's approach is designed to take business from the competition by providing more and better reasons for visiting Ireland, securing a greater customer loyalty, thereby obtaining repeat business and entering new geographic market areas. Bord Fáilte have, of course, stepped up their promotion and reorganised themselves for greater effectiveness and efficiency in this area.
The fourth part of their strategy is distribution. Central to securing the growth that we require in Ireland is the need to ensure that our product is available at a point of purchase in the form that the consumer requires and Bord Fáilte have put in place the trade network required and also have introduced an international computerised reservation system.
Looking at it in specific terms and at the question of how one can attract some people to the island of Ireland, transport capacity from Europe is a concern, with the ferry services in particular not expanding in line with the anticipated growth in demand. On that point I hope the Government will take note of a recent report which indicated that the Dublin-Holyhead gateway to Europe was not receiving the investment and attention that perhaps it should in the context of the opening of the Channel tunnel and the wider implications of Europe post-1992. It is imperative that we as a nation and the island of Ireland should quickly accommodate ourselves to the new situation that we will find ourselves in after 1992. There is no doubt that there will be an immediate and significant increase in traffic, both commercial and tourist, into Great Britain post-1992. It would be tragic in a tourist context if Ireland were not to gear itself now for the changes that will take place from that period onwards.
Obviously, the economic significance of tourism is something that most of us are aware of, but for the record it is important to note that the contribution that tourism makes to the national economy includes, for example, earning foreign exchange and this is particularly important in a small open economy like Ireland's. It is all the more important when one considers the extremely low import content of the tourism product. Tourism by its nature is based on indigenous resources, both natural and manmade. Earnings from foreign tourism on average represent 6 to 6.5 per cent of total export earnings. In the last 12 months tourism was the second most important foreign revenue earning sector after the computer industry. Tourism also yields substantial income to the Government through indirect taxation. It is estimated that in 1988 the Exchequer earnings were just over £410 million in tax revenue exclusively from tourism activity within Ireland.
One of the most important contributions, of course, which tourism makes to the economy is in the area of employment. Approximately 69,000 jobs were created in 1988. Of these just over 44,000 were supported by out of State expenditure, the remainder by the domestic market. This represents 7.5 per cent of non-agricultural employment and 11 per cent of service sector employment. In 1988 over 69,000 jobs were supported by tourism activity. I repeat that figure because it is significant. On average, it takes about £18,000 of export tourism revenue to support one job in this country. The comparable figure for domestic tourism revenue is £20,000. To put this in context for the House, it means that on average we need about 40 US tourists, 85 French tourists or 65 German tourists to support just one job.
There are many difficulties facing the development of tourism. In the context of the motion, unfortunately, not least among those problems are the ongoing difficulties in Northern Ireland. The continuing political and military confrontations in that part of our country have seriously impeded Ireland's image as an island and have hampered the efforts of those in tourism to condition people to consider Ireland as a holiday destination. Bord Fáilte over the past 12 months have launched new television campaigns in certain key markets, such as the United States and Britain, to try to overcome his problem.
But, the Northern Ireland problem is but one of many that need to be addressed. The abuse of our environment is a serious difficulty and I am glad to say that in the context of Ireland's Presidency of the European Community the Green Presidency of Ireland will go some considerable way to reducing and eventually eliminating many of the environmental problems that have come with our relative affluence in the last two decades.
Also, for many years tourism lobbies have been making representations to successive Governments about the rate of VAT and excise duties, particularly applying to car hire and coach hire. I am particularly pleased that in the recent budget a start has at last been made in reducing punitive taxes particularly in VAT and excise rates. This is bound to have a spin-off advantage in the tourism sector.
Problems relating to crimes against tourists, particularly in the Dublin area, have given this country a bad image in recent years. It is a problem that all emerging or highly developed countries have had to face and I do not think that Ireland is any different from many of the countries in the developed world in having to combat this type of urban violence which is so indiscriminate in its execution. It is unfortunate for Ireland, which has a huge dependence on tourism. But these are isolated incidents. Taking Dublin out of the picture, on a national basis incidents of muggings of tourists are isolated. It is unfortunate, because it has not been our tradition to abuse tourists in this way, that the media, obviously, will highlight these cases, more in a strange, wondering way rather than in attempting to damage the image of Ireland.
Another issue in recent years which obviously hampered our development, particularly in the angling area, was the ongoing rod licence dispute. While as I speak there are yet to be important meetings held in the west to make a decision on the recent initiatives of the Minister for the Marine, it is heartening to note that as of this time a number of the associations representing fishing interests have already met and have welcomed the Minister's initiative. I would like to go on the record of the House in congratulating the Minister for the Marine in what has been a difficult and protracted dispute. I admire him for his negotiating and diplomatic skills in bringing this problem to a speedy and happy conclusion, as now seems to be the case.
The cost of access transport from some of our overseas markets has also been a problem in inhibiting tourism development here, especially from countries such as Italy, Scandinavia and Spain. The recent decision of the European Community to resolve finally the difficulties that Aer Lingus had faced with fifth freedom rights operating on their Dublin/Manchester/Milan route is to be welcomed as it obviously will mean that there will be better opportunities for growth in the Italian tourist sector and more Italians visiting this country. In regard to Ireland's participation in the forthcoming World Cup in Italy many Irish people will be visiting Italy. Considering the tremendous positive contribution that Irish football fans made to the image of Ireland when we participated in the European championships, if the same level of behaviour is repeated in Italy, and I have absolutely no reason to doubt it, it is bound to have spin-off benefits and advantages for Ireland as a country.
Prices across the board cause difficulties for us as a tourist nation but there is one other problem. I touched on this in a previous debate but I feel it bears repeating in the context of this motion. It is the ongoing problem of unapproved accommodation which is not subject to meeting the requirements of any statutory authority and does not have to satisfy fire, health, VAT or rates obligations. This is something which needs to be addressed by the Government. Under the Tourist Traffic Acts, Bord Fáilte have statutory responsibility for the registration and approval of tourist accommodation. The registration and approval system is however voluntary in that proprietors of accommodation may or may not choose to have their premises registered with and approved by Bord Fáilte. For many years, indeed going back to 1975, Bord Fáilte have been seeking legislation to license all tourist accommodation. Many detailed submissions have been made to successive Governments and these have had the full support and backing of the tourist industry. I believe it is essential that the visitor to this country is accorded statutory protection, particularly in the area of basic needs such as accommodation and food. While the unapproved sector is precluded from all Bord Fáilte marketing, promotional and development activities, it inevitably benefits from the spin-off effect of Bord Fáilte's national advertising. Yet it does not contribute in any way to the cost of this, unlike the approved sector.
Bord Fáilte estimate, by sample surveying, that the ratio of unapproved accommodation in this country is three to one. This implies that the total number of units of unapproved accommodation available to visitors totals approximately 7,000. I believe, and I repeat, that the only effective way to deal with the problem posed by the unapproved bed and breakfast establishments is to enact comprehensive and effective legislation, imposing severe penalties for breach. We are dealing with an extremely important market in relation to the economy. When one considers that there are upwards of 7,000 bed and breakfast units operating outside the constraints and the registration procedure of Bord Fáilte, the body charged with maintaining standards in our industry, it is past time that legislation was considered in that area.
Tourism, as I said at the outset, is now a priority area for investment. The Government recognise the economic benefits that will arise from the doubling of tourist numbers over the next five years. In order to achieve the targets set by the Government for the industry, Bord Fáilte have formulated an exciting product development strategy which will shape the tourism industry over the next few years so that it will meet the challenge of accommodating an additional two million visitors by 1992. The target set for tourism cannot be achieved by a marketing drive only but must be accompanied by substantial and sustained investment. It is evident that potential for investment exists and currently Bord Fáilte are aware of proposed investments in this country to the scale of over £1 billion. The task of Bord Fáilte is to bring this investment to fruition so that it can impact on the tourism targets and generate economic benefits both in terms of employment generated and export revenue earnings.
Various investment incentives are now available to anyone who wishes to invest in and contribute to the development of Irish tourism. Here again the Minister for Tourism and Transport is to be commended on being among the first of his Government colleagues actually to bring forward a plan to the public based on our recent allocation of Structural Fund money. I am aware, of course, that other Government Departments will be presenting plans in their own areas. The following incentives and interventions are currently available; business expansion schemes, which are already beginning to bear fruit around the country, especially in the area of hotel development, and the International Fund for Ireland. Of course Bord Fáilte, as consultants to the IFI, administer two schemes on behalf of the fund under the tourism programmes — the accommodation amenity scheme and the tourism amenity scheme. The purpose of the schemes is to encourage the provision of recreational and leisure facilities at hotels and other accommodation and to improve the range of tourism facilities in order to attract increased tourism to both parts of Ireland but in particular to the Border area. Grants of up to 50 per cent of the cost are available towards the provision of a wide range of facilities and amenities. The grant schemes under the IFI have achieved major investment in the Border counties. Naturally, coming from a Border county, I welcome this initiative and pray that it continues because for the first time since the foundation of the State, or certainly since tourism became a major factor in our economy, the input of private investment money for the development of tourist amenities and accommodation is very significant and on-going.
In the context of the International Fund for Ireland I would also welcome the recent decision of the Government to include in their operational programme for tourism development to 1993 the decision that work on the Ballinamore-Ballyconnell canal will go ahead. This project which will cost between £15 million and £20 million, made up of Irish, IFI and European Structural Fund money, will be one of the biggest economic inputs into the life of my part of the country since the foundation of the State. I can only recommend to the Minister and to the Government that they initiate the scheme. The ESB, who have the contract for this development, should be given every assistance to get it up and running so that the first boats will start coming through the Leitrim lock within the next couple of years.
In addition, the IFI have also indicated their support in principle for a national reservations and tourism information system and an all-Ireland computerised genealogy system, two matters which, in an all-Ireland context, can only help to improve the tourist numbers into Ireland.
Finally, in the area of incentives Bord Fáilte have opened an investment advice centre at their Baggot Street head office in Dublin. This facility enables the general public to obtain advice and information on all aspects of tourism investment. The centre is open full time and provides information on incentives, tax concessions, services provided by Bord Fáilte, general information on legislation relative to the tourism industry and details of investment opportunities on a broad range of tourism activities.
We are living in exciting times for Irish tourism. With the input of Structural Fund money, the International Fund for Ireland money and private investment coming from various sectors on an on-going basis, it looks like the targets which the Government have set for the tourism industry will not only be met but will be exceeded. In that context it would benefit all of Ireland if all the various component parts of the tourism industry helping to attract the visitor to this island were encouraged to ensure that, when the next set of statistics on tourism growth into the early nineties are published, Ireland will not be showing a net decline but a net increase. I commend the motion to the House.
