I thank Senators for tabling this motion and allowing me the chance to speak in the House. Many points have been raised and it will be impossible to deal with them all, but I assure the House that many of them have been brought to my attention already and I have commented on them. While the points Senator Cregan and others have made may not be too popular in certain circles, they are relevant nonetheless. Such points of view should be aired in the House because it helps in tackling the problems which exist.
I compliment the county tourism committees on the role they play in the development of tourism in Ireland. Senator McGowan is right that they have been underfunded in the past. I have ideas to advance on how they should be funded. We take tourism very seriously and we have every right to do so. It has enjoyed phenomenal success over the past decade, with new records being achieved each year in visitor numbers and in the yield in overseas revenue. Tourism is now our second biggest industry and I have no doubt that it will soon become our largest industry. It supports over 108,000 jobs, or one in 12 of the workforce, and it generates £1.9 billion pounds annually. With such economic indicators it is easy to see that tourism is fast becoming a vital force in the Irish economy. The tourism industry is one of the Celtic tiger's most vivacious cubs and it must be looked after.
The benefits of a vibrant and expanding tourism sector have led to a continuing and increased emphasis on the sector as an engine for growth in successive national economic programmes. The results of this have become evident to anyone who has travelled around the country in recent years. The scale of private investment which has flowed into tourism since the late 1980s is evident in the development of Ireland's canals and waterways; in conference and leisure facilities at our hotels; in the upgrading of accommodation generally to meet and even exceed international standards; in the provision of all-weather facilities; in increased marketing and training and in the development of other new and different tourism infrastructures. I compliment those who in the successive national development plan periods from 1983 to the present have used EU Structural Funds to create an obviously successful tourism product. We will have seven million visitors by the turn of the century.
As we face the remainder of the decade the challenge to create further economic growth and employment has not been greater. The targets the Government has set for the tourism industry are ambitious, but I have no doubt that further growth in the Irish economy is achievable. Recently, I asked Bord Fáilte in London to aim for a further 10 per cent growth on top of the 10 per cent growth projected this year. Often, if we look to the past we can identify where resources should be targeted in the future, a point made by Senator McGowan.
The available Bord Fáilte estimates on tourism revenue show that over the past number of years growth rates have been achieved in all regions of Ireland which are better than international and European annual averages and this should be seen for the unqualified success story that it is. There has been growth in all regions, but it has been at a rate of 85 per cent on the east coast, 41 per cent in the west and 20 per cent in the north-west. There is unquestionably a problem which must be addressed, although there has been growth in all areas. I am conscious that the increase in tourism growth is not equitably distributed throughout all the regions and is not being experienced by all sections of the industry. I assure the House that my Department along with Bord Fáilte and the regional tourism bodies, including the county tourism committees, will try to ensure in so far as we can that the benefits of the continuing record growth in tourism are spread throughout the island.
Promoting greater regional spread and extending the tourism season are vital elements in our tourism policy and I can assure the House that they are at the top of my list of priorities. Having said that, we cannot direct tourists to areas where they do not wish to go. It is up to the industry practitioners to put in place the sound business strategies to successfully market their own facilities and areas. The evidence would suggest that those operators who apply professional marketing practices are winning market share over those who sit on their laurels.
Ongoing investment in marketing is vitally necessary to maintain the growth of tourism in the face of increased competition and that is why I have taken steps to ensure that a more intensive marketing campaign is carried out in 1998, my first full year as Minister. Earlier this month I announced that Bord Fáilte would be in a position to increase significantly its level of promotional activity in the coming year. I would caution, however, that the Celtic tiger and her cubs also have a propensity to devour unless they are catered for. For the 1998 season, Bord Fáilte will have sufficient scope within their grant-in-aid to pump up to £5 million extra in Exchequer funds into the marketplace for direct marketing activities over and above this year's spend and it has been given a directive to direct it at the regions. This will represent an increase of 50 per cent in Exchequer expenditure on direct marketing activity and I am grateful to my colleague, the Minister of Finance, for this. Because I am particularly anxious that all the regions should get the maximum benefit possible from our growing tourism performance, I asked Bord Fáilte to design and bring to me a series of additional new initiatives for its 1998 campaign targeted not only at maintaining tourism growth, but most particularly at improving that regional spread. I await its proposals which I expect to receive shortly.
Selling Ireland abroad as a holiday destination is one of the most important investments we can make for the future of our economy. To this end my colleague, the Minister for Finance, Deputy McCreevy, in his capacity as Minister for Tourism and Trade, had the foresight to commission a review of the role of Bord Fáilte. Following the implementation of the recommendations of this review, undertaken by Arthur D. Little and Company, Consultants, the role of the board was clearly focused on marketing Ireland overseas as a tourist destination. Unquestionably, this strategy has worked in the US. Over the past three years Ireland has increased its take of US visitors by up to 71 per cent while other European countries combined have only been able to add approximately 70 per cent. Overseas marketing is working and we are getting visitors to come here but we want to achieve a more even spread. This strategy dovetails effectively with the operations of the regional tourism structures which were put in place in 1993, following a review of the co-ordination of tourism at regional level as recommended by the tourism task force and confirmed in the programme for Government.
It was also the Minister, Deputy McCreevy, who agreed with the representatives of the regional tourism authorities the existing institutional structures for Irish tourism at regional and county level. Resulting from that agreement a new structure based upon county divisions was established to replace the regional councils of the regional tourism authorities. Consequently, each county was to be represented by a county tourism committee comprising representatives of the various membership categories within each regional tourism authority, including members of voluntary groups and organisations. In this way, it could be said that they were truly representative of the industry in their specific regions. In addition, new slimmed down boards of management were established to replace the regional tourism authority management committees.
County tourism committees are actively involved in formulating plans for tourism development at local county level while the regional tourism authorities continue to have responsibility for tourism development at regional level agreed without the resources mentioned by Senator McGowan. These developments include the co-ordination of the activities of the county tourism committees, the operation of the tourist information networks and the application of certain accommodation standards. The county tourism committees are responsible for stimulating and co-ordinating projects in the tourism sector by identifying, influencing and bringing forward new products and initiatives in their operational plan and inputting into the county enterprise board action plans and the regional tourism authorities plans. I met a number of people involved in the regional county tourism boards. I agree with Senators on the accommodation situation at which I will look. I am more inclined to look at existing licensed accommodation, which has received no further funding since being set up, with a view to improving it.
There are those who say the county tourism committees can be regarded as talking shops with little real power or influence. I do not agree. The county tourism committees are in an ideal position to demonstrate a capacity for creativity and innovation by encouraging and developing product initiatives in their respective areas. These committees can operate effectively as vehicles for attracting EU funds for marketing under the various tourism programmes. In addition, the close links between each county tourism committee and its respective regional tourism authority help to ensure a consistency in developmental and promotional activity thus maximising scarce resources. If a product is successful in one area, it is often copied elsewhere. As with medicine, if one pill makes a person feel well, how good would they feel after taking ten pills? That is not the way go. We must maximise resources and devise planned activity for the regions. I have always agreed that local people know best.
The county tourism committees are working well and I have no immediate plans to change them other than to try to get them extra resources. Their future role will be considered in the context of the broader review that is taking place with the objective of better integration, effectiveness and delivery of services of a number of committees, boards, partnerships and programmes that operate at local and county level.
One of the key aims of the Department of the Environment's report "Better Local Government — A Programme for Change", published in December 1996, was to devise a framework for the better integration of the systems of local government and local development. I understand a structure was proposed to commence this process of integration at local authority level but there were some delays in getting the process under way and no further action was taken by the previous Government, a matter at which I am looking.
This month the Minister for the Environment and Local Government requested city and county authorities to submit proposals for the establishment of a number of strategic policy committees — SPCs — and of a corporate policy group — CPG — within each authority area. I suggest Members take a comprehensive look at that. In the context of my mandate for local development as well as tourism, my Department will continue to consult with the Department of the Environment and Local Government on the development of integration proposals and the future role of the county tourism committees will, inter alia, be examined in this context.
Clearly, I cannot prejudge the results of this work but I want to make it clear that I am fully aware of the significant role the county tourism committees have played, and are playing, in the successful development of tourism and I commend them in this regard.
If tourism is to continue to be a major success story — a number of Senators gave warnings with which I agree — future promotion and development will have to receive support not only from the Exchequer but in increasing amounts from all involved with the tourism industry. In the past we have been fortunate in being able to rely on our European partners to help finance our development needs through the EU Structural Funds. While I believe that the case for a substantial level of continued EU funding can be made — and the Government is committed to pursuing this aggressively in Brussels — we will have to look to ourselves much more in the future, particularly in the productive sectors of the economy such as tourism.
The Exchequer provided over £27 million this year through Bord Fáilte for the promotion and development of tourism. This is a generous amount by international comparisons. The European countries with which we compete draw on large contributions from the tourism industry. It is only fair that the direct beneficiaries of the Irish tourism boom make a meaningful contribution to future development needs. This concerns not only hotels and providers of accommodation but also retailers, publicans, gift manufacturers and food and drink companies. Many people in different professions and businesses believe they are not benefiting from tourism. As EU funds diminish in future, it is my job to ensure they realise that the economy is benefiting from tourism. This applies across the board, especially in the product development, marketing and training areas.
I agree with Senators in the points they made, especially that if this boom is to continue, we must protect the Celtic tiger and its cubs. I am disappointed that in certain areas of the country we may be cutting our throats on this matter, as pointed out by Senators McGowan and Cregan. I recently paid £4 for a cup of coffee in Dublin; that is an example of the issues which must be examined. The Irish welcome is coming under intense pressure. Once success is achieved in the tourism industry, there is an inclination to become complacent. Those who visit this country want to avail of what we have to offer: the landscape, the wonderful scenery, the golf and other sporting facilities and, above all, the welcome of the people. The céad míle fáilte is not what it was and, unless we realise that, we are making a sorry mistake. The Irish welcome belongs to us all and is something to which we must pay attention.
Bord Fáilte is engaged in discussions with the tourism industry to ensure Government funding is matched by funding from the tourism industry for international marketing programmes. In France, for example, seven francs per night is paid by each beneficiary towards the marketing of the tourism industry. County tourism committees should continue to try to convince local businesses they are benefiting from tourism so that they will invest in the future and provide the necessary resources to make this aspiration a reality. I compliment two committees, Donegal and Galway, on their initiatives. Donegal raised £920,000 from the private sector, and Galway asked industry to invest £1 million. Both realise the potential they have on their doorsteps. That so much has already been achieved is a tribute to the efforts and the commitment of those who operate within the industry. I have no doubt the regional tourism bodies will continue to play a positive role in contributing to the achievement of the Government's objective for the future development of the sector.
I stated recently that the image of the Temple Bar area is not what was intended when the project was first devised. We must examine such areas which were heavily invested in. We should be proud of them but we cannot afford to cut our throats on the matter.
We have wonderful sportsmen. I am delighted to have the sports portfolio because, for example, I was able to host a reception this evening for Pádraig Harrington and my Donegal colleague, Paul McGinley, who brought the World Cup in golf back to Ireland after 39 years. All Senators will join with me in congratulating them on that.
I thank Senators for giving me the opportunity to speak on this issue. One can only learn by listening, something I have been taught to do best as a doctor. I hope to be able to do this for all my colleagues on both sides of the House.