Vol. 3 No. 2
We are meeting today to discuss the Supplementary Estimate for the Department of Tourism, Sport and Recreation for the year 2000, Vote 35 - Office of the Minister for Tourism, Sport and Recreation. I remind members that at this meeting it is inappropriate to deal with any other issue.
On behalf of the select committee I welcome the Minister for Tourism, Sport and Recreation, Deputy McDaid, and his officials. I invite the Minister to make his opening statement.
I am accompanied by Mr. Con Haugh, Assistant Secretary in the Department; Mr. Richard Kiely and Mr. Paul Bates. Thank you, Chairman and members of the committee, for giving me the opportunity to elaborate on the detail of the Supplementary Estimate for my Department's Vote. I am proposing that an additional sum of £6 million be provided for Bord Fáilte under subhead B1 in 2000. This will be offset against savings of £5,999,900 under subhead B3, the North-South Tourism Marketing Company. In effect, I propose a token Supplementary Estimate of £1,000.
In the revised Estimates for 2000, published earlier this year, £6 million of the total tourism marketing budget was provided under subhead B3 in anticipation of the establishment before the year end of the North-South Tourism Marketing Company, envisaged under the Good Friday Agreement. Given the pace of development of the peace process in Northern Ireland, the effective start-up of the company is not now envisaged until next year. Accordingly, I propose to reallocate the £6 million to Bord Fáilte through subhead B1 by way of a Supplementary Estimate. Bord Fáilte's tourism marketing plans and commitments to cover the entire 2000 marketing season were based on, and require, the total provision for tourism marketing under subhead B3, as well as subhead B1 of the 2000 Estimates.
The committee will be aware that in its statement of 18 December 1998, the First Minister and the Deputy First Minister of the Northern Ireland Assembly, following intensive negotiations and consultations involving the Assembly parties and, as appropriate, the Irish and British Governments, announced that tourism would be an area for co-operation under the North-South Ministerial Council, provided for in the Good Friday Agreement. In that context a publicly owned company was to be established by the Northern Ireland Tourist Board and Bord Fáilte to carry out a range of functions aimed at promoting increased tourism to the island of Ireland.
On 27 October 2000 I met with Ministers, Sir Reg Empey and Mr. Farren, in the first meeting of the North-South Ministerial Council in tourism sectoral format. Good progress was made at the meeting and a number of important decisions were taken. We agreed the text of the Memorandum and Articles of Association for the new company and the necessary start-up arrangement. We also agreed that the board of the new company would have 12 members, including representation from Bord Fáilte, the Northern Ireland Tourist Board and tourism interests in the North and South. Our intention is that the membership of the board will be formally approved at a further North-South Ministerial Council meeting before the end of the year.
At the inaugural plenary meeting of the NSMC on 13 December 1999, the council agreed that the headquarters of the tourism company would be in Dublin with a regional office in Coleraine. On 27 October we decided that the office in Coleraine would have responsibility for printing, publishing and distribution. We have agreed the arrangements for funding for the new company, including a South-North funding ratio of 2:1 for programme costs.
We have approved the schedule for the establishment of a company that will see it up and running in 2001. A project team of senior officials drawn from Bord Fáilte and the Northern Ireland Tourist Board has been established to take forward the initial set up arrangements with a view to a progress report being submitted to the next meeting of the council in tourism sectoral format. Finally, we agreed arrangements for recruiting the chief executive officer.
I am pleased to report to the committee that our conclusion was that the work of the NSMC in tourism sectoral format had got off to a satisfactory start and both sides look forward to working closely together and overseeing the development of the new company. Our next meeting is scheduled to take place in January or February 2001, but work will be advanced in the interim.
With regard to our tourism performance generally, the committee will be aware of the good results we have achieved in recent years. It is worth recalling, however, that international visitor numbers for 1999 were six million, while foreign earnings rose to a record £2.5 billion. Tourism is now one of our biggest industries providing jobs for 138,000 people in the economy. This represents an increase of more than 50,000 in employment since 1990.
The latest CSO figures for the first half of 2000 show that the number of overseas visitors grew by 5.6% over the same period in 1999. The strong performance of the North American market is continuing, with numbers increasing by an impressive 12%, to reach 454,000 for the first half of 2000. This growth is fuelled by significant improvements in air access in recent years, the strong dollar and intensified marketing and promotion efforts by Bord Fáilte. Visitor numbers from mainland Europe grew by 10% in the same period, with a particularly strong performance from the Nordic countries. While growth has been more modest from Britain - an increase of 2% - I am glad to report that more recent unpublished figures from Bord Fáilte suggest that the number of holiday visitors has been more buoyant than expected in recent months.
Following the commissioning of a major consultancy review of the British market, a combined industry and Bord Fáilte response is expected to emerge through the tourism marketing partnership, which will outline future strategy for the British market. Overall I can report that Bord Fáilte is still confident that its target of 6% growth in total visitor numbers in 2000 will be achieved.
I have just returned from a visit to Japan, where I led Ireland's first ever tourism trade mission to that country. I was accompanied by 21 members of the Irish tourism and hospitality trade who participated in two very successful trade workshops in Osaka and Tokyo. More than 400 Japanese travel representatives attended the workshops and the Irish trade was very pleased with the business contacts made. At present, we attract between 30,000 and 40,000 Japanese visitors annually and our target is to increase that figure to 100,000 by the middle of the decade through a series of more intensive promotion and marketing initiatives. This is possible because there are 2.5 million Japanese visitors to Europe every year.
The committee is aware that the national development plan includes an allocation of £150 million for a tourism marketing sub-programme over the period 2000-06, consisting of two measures, a destination marketing measure and a niche marketing measure. At present decisions as to the allocation of funding under this sub-programme are a matter for Bord Fáilte in consultation with the new tourism marketing partnership which is a special group I established earlier this year composed of Bord Fáilte executives and tourism industry representatives. I am satisfied the recently published Estimates for 2001 provide a significant level of funding for tourism marketing which will help us achieve our average annual growth target of 5% of foreign earnings from tourism over the life of the national development plan.
The report the Minister has presented is positive. When in 2001 does he expect the company to be established? Will it be early, mid or late 2001? Will he give a breakdown of the membership of the new company? He said it will have 12 members, including representatives from Bord Fáilte, the NITB and tourism interests, North and South. Will he give a breakdown of how many from each group will be appointed?
I welcome his initiative concerning the Japanese. If anyone travels to Europe, he or she will see many Japanese tourists. It is worthwhile trying to attract as many of them here because we have a great deal to offer them and they have the resources to enjoy themselves while here.
The Minister's presentation concerned marketing Ireland abroad. I understand Bord Fáilte used to have responsibility for marketing Ireland to Irish people. Where does that responsibility lie now? Who looks after that at present? Has Bord Fáilte or any section of the Minister's Department or any other State agency any responsibility for encouraging Irish people to holiday in Ireland rather than going abroad?
I hope the new company will be set up by the middle of the year. We have agreed on many areas and a project team has been set up between Bord Fáilte and the Northern Ireland Tourist Board which is working to set up what has been agreed to date. It must be remembered that this concerns staff in both Bord Fáilte and the NITB and they must be taken into consideration. The initial start-up will be done by a project team. After it completes its task, it will proceed to deal with staff and related issues. I expect the company to be set up and working by the middle of the year.
The committee comprises 12 members and, as with all North-South committees, it is divided into six each for North and South. In the division of our six, because I set up the tourism marketing partnership between the tourism industry and ourselves, I agreed that there would be three from the industry and three from Bord Fáilte or ministerial appointments. Sir Reg Empey and I agreed that the chairmen and chief executives of Bord Fáilte and the Northern Ireland Tourist Board would be two of the three of each six. In effect, that leaves me having to find the third person and the industry will provide the others.
Japan offers huge potential. Our timing in going there was very important in that the Japanese appeared to be seeking further places to go, especially in Europe. One aspect which came through in discussions was that, while 2.3 million Japanese visit Europe, only 30,000 to 40,000 make their way to Ireland. One of the reasons given was that there is trouble on the island. We had a great opportunity to point out that we had now set up this company and that there was peace on the island. We were surprised by the number of delegates who turned up. Previously there might have been 100 to 120 whereas more than 400 delegates turned up to the two workshops and they were more than satisfied with the response they received from the Japanese market. Potential exists in that area.
As regards the marketing of Ireland, there will certainly be a new role for Bord Fáilte. The company will take over Bord Fáilte's role as a marketing tool for the island of Ireland. Bord Fáilte was previously involved in destination marketing. It will initially be in charge until the company is formed. However, it will still have a huge role in and responsibility for marketing the island. Several Governments since 1989 have had a great deal of success in obtaining funds from Europe for tourism which have been used exceptionally well in the type of product produced. Now there is an opportunity to market that product within the country and a major focus will be on that and on the regions. Every area is experiencing an increase, but some areas are increasing more rapidly than others. We are trying to achieve that regional dispersal. Therefore, more marketing will be needed and Bord Fáilte's role will be to market existing products within the country.
Am I right in saying that Bord Fáilte does not operate in the area of marketing Ireland in Ireland? We had a meeting with representatives of the agency recently and that is something which came across. A void seems to exist in that no State agency markets Ireland within Ireland. Does that mean Bord Fáilte will be given a new or expanded role in this area? If so, when will that happen and will it mean additional funding will be required from the Minister's Department?
If the Deputy examines the figures, he will see that Bord Fáilte had a section, the domestic tourism marketing initiative, DTMI, which had a budget of £500,000 to market within the country. When I came into office, I introduced for the first time a marketing fund for each of the regions to help their marketing drive. I was very pleased to see the regions being marketed very responsibly. For example, there was one person in Japan representative of all the regions rather than their all having representatives there. They also had all their brochures in Japan. That was responsible.
We will have to do something about the regions which are lagging behind to try to increase the number of people going there. This would be an advantage for the regions that are doing well. The congestion in Dublin and along the east coast is not conducive to helping the tourism industry and there is also congestion in certain other areas. Congestion does not help and we are trying to disperse it. To do that, more money will have to be given to the regions.
I do not want to labour the point but the Minister and I may be at cross-purposes. The Minister mentioned the DTMI. Is that up and running at present?
Yes. That has always been there.
That is fine.
I compliment the Minister and his staff and the Department of Tourism, Sport and Recreation generally. The figures are encouraging. The Minister has made a wise decision in putting money into marketing because, as we all know, every pound spent on marketing pays dividends in the longer term.
He has partially answered my main question about the relationship between Bord Fáilte and the new company and what their relationship would be with the regional bodies. The Minister mentioned that there is some disparity in the way the regions are faring out, and he is right in saying that. While the figures are encouraging, two aspects of them concern me. While the situation in Northern Ireland devastated tourism here for years, the UK market should be buoyant because of the peace process.
The west, and in particular the mid-west which Deputy Kenny and I represent, is concerned that it is not keeping pace with the expansion in the business. We run a risk of losing out substantially if there is a realignment in terms of the open skies policy which is being planned in Europe. This would have a devastating effect on the regions, especially Shannon Airport.
Will the Minister ensure the imbalance which is beginning to develop in relation to visitor numbers to the west is addressed? Can this be done through Shannon Development which has responsibility for the mid-west? I would like to be satisfied that there will be no duplication between Bord Fáilte, the new company, the tourism marketing partnership, SFADCo and the various agencies and organisations involved in the area. The Minister has a great opportunity to bring these together and to forge one overall scheme which will avoid duplication and waste of valuable human and financial resources. Overall it is very worthwhile to invest money in marketing, and I think the Minister is wise in so doing.
The mid-west is one of the regions lagging behind, although County Clare is not doing so badly, with 50% of all accommodation in the BMW region being in Galway city and County Clare because of demand. I accept the Deputy's point about the mid-west.
It is important that there is no overlapping, and the new company will take on the destination marketing of the entire island. The role of Bord Fáilte will be enhanced as it will continue to market the entire country. To avoid overlapping, the regional tourism authorities must sign a contract with Bord Fáilte before receiving their budgets each year. The contract outlines the details as to how the money should be spent, while allowing them flexibility. I have been more than satisfied with the way in which the money has been spent to date. It must also be noted that the money for marketing, which was given only to regional tourism authorities over the past two years, takes a number of years to take effect. I am delighted the regional authorities, which seem well prepared, are putting their case in the marketplace.
I compliment the north western region as it had a magnificent brochure available in Japan, To the Waters and the Wild, written in Japanese. When it gets money it uses it, and I take on board the Deputy’s views.
While we had a blip, thankfully the more recent figures show the UK market is improving. The peace process and the strength of sterling should be paying a dividend. Between 50,000 and 60,000 people emigrated to the UK each year for a number of years, with those returning forming part of the tourism figures. This trend has been turned around, with 44,000 people returning to live in Ireland as a result of the performance of the economy over recent years. This change could account in part for the trend identified.
Access is another issue and we must pay attention to low fare airlines which have been so successful in bringing people to Ireland. Ryanair has been very successful in recent years. They have now begun flying to new destinations in Italy, the Nordic countries and Germany, thereby opening other European destinations. People in the UK now have a facility provided by low cost airlines such as Ryanair to go to those other places, thereby creating competition for the Irish market. Access, therefore, is very important and we should examine what is happening at Dublin Airport. We must remember that people coming to the country are vital to the economy, the business being worth between £2.5 billion and £2.7 billion. When the domestic market is added to this, the figure is £3 billion. Therefore, the industry is a net contributor to the economy to the tune of £3 billion or 4.2% of GNP, in the context of a budgetary figure of £18 billion.
I welcome the report and the Minister. Regarding carriers, it would be fantastic if Ryanair flew into the west. All the cheap economy flights are to and from Dublin. They could fly into Knock Airport, for example, which has a huge terminal. Some months ago Ryanair was seeking a second terminal at Dublin Airport, but if it was interested in developing cheap flights it could fly to Shannon Airport or Knock Airport in the west, which would help balance the market. Even though people fly to Dublin on cheap flights, the difficulty is getting from there to Donegal or Clare. While the tourism figures are fantastic we should investigate, in association with private carriers, the possibility of flying people to the western seaboard.
We should seriously examine the development of the North-South body and it is imperative that it is commissioned as quickly as possible.
While the "Céad Míle Fáilte" slogan has been identified with Ireland's marketing policy in the past, we must address the staff difficulties in the trade and ensure the perception of Ireland as a friendly tourism destination does not evaporate or diminish. There is a major difficulty in attracting employees to work in the trade, be it in restaurants, hotels, etc., which will have long-term implications for the trade. In the educational structure business is not perceived as a real career, and neither is a job in tourism. The emphasis is on a nine-to-five job while tourism is a seven day week, around the clock job. There is also a difficulty in recruiting skilled people, such as highly qualified chefs, to the trade.
Reference was made to developing new attractions in the west. Repeat tourism is important and it is imperative that we develop new destinations, which is part of the Minister's plan. There is no point in constantly marketing the same old destinations. People who visit a place a second time want to see something different. There is the question of the Border counties. The Minister spoke about the North-South dimension. The area of most deprivation in the past 30 years was the six southern Border counties. It is important to have a nominee from the Border counties on the body which is being set up. What has been invested in the southern six Border counties by the Government does not compare with what has been invested in the northern six counties by the British Government. We have all heard about the BMW plan. It is very important to focus on the southern six counties adjoining the Border where tourism has been completely devastated.
I was present at a seminar during the week which was attended by the western commission. Deputy Daly is correct in saying that we should not have five people doing the same job. I agree with the Minister it is important to market the country abroad but we must also market it internally. The role of the RTAs is also important. Mr. Dully indicated that they have drawn up a contract of employment with Bord Fáilte, which is welcome. There should be a mission statement of what their job entails. There should be guidelines in relation to what is being done for rural tourism and smaller towns. We all hear about the major destinations. If the island of Ireland is to be marketed as a tourism destination we should consider certain niche areas which have been ignored to date.
I feel strongly about tourism in the Border counties. There should be a growth in bed and breakfast accommodation, including accredi-tation. Will there be North-South accreditation of B&Bs in the 32 counties? Will the new logo play a part in marketing Ireland as a 32 county destination?
There is the issue of INTERREG and Programme for National Recovery funding. The international fund for Ireland has been very successful. A very good job has been done in relation to initiatives North and South. There is 75% funding in Northern Ireland and just 25% funding in the Border counties. This issue must be reconsidered. There is huge emphasis on the North but the southern six Border counties are the poor relation when it comes to funding. The role of the International Fund, Programme for National Recovery , the Peace and Reconciliation Fund and Co-operation Ireland is very important. The additional allocation of money is important but how it is spent is even more important. A budget of approximately £4 billion will soon be announced, therefore money is not a problem at the moment. We must ensure that the money is spent wisely and that we are getting real value for money. We must ensure that this money is not paid over to consultants.
Will the Minister allocate money to private enterprise? I heard no comment about the involvement of people in the tourism trade. The Minister is talking about marketing Ireland as a tourism destination. Approved operators who have invested millions in the tourism trade, whether hoteliers, B&Bs or whatever, should receive funding to market hotels, restaurants and B&Bs.
Many tourism initiatives in Sligo have been led by communities working in partnership with State agencies to provide an attraction in their area. These include a centre in Ballinafad and the Coleman centre in Gurteen. The voluntary sector has played a huge role in developing tourism. In the area of marketing, it is important for the Minister to allocate a budget in recognition of the huge effort made by communities which are fighting to survive. I welcome the £6 million. However, it must be well spent and must embrace everyone in the trade.
The Deputy has covered a lot and I agree with much of what he said. He is a very successful businessman and such a person will understand, when talking about a company like Ryanair, that it works on a commercial mandate and must try to break even like everyone else. However, it is very important from the point of view of bringing people to this country and to the regions.
There is a lot of expectation in relation to the next national development plan and how the money will be spent. This is totally different because we have been talking about the very same major attractions, or clusters of major attractions, in the regions as opposed to what the last two operational programmes have been about. In other words, one would need something to ensure people go to these areas. I am not talking about a Disneyworld or anything like that. People from this country take their families to Paris to visit Eurodisney. We need a major attraction in the regions. I would prefer to see £5 million or £10 million being spent on one or two major attractions, rather than scattering it around loosely and, perhaps, not receiving the benefit.
Yesterday I saw an excellent project in the south-east region which cost approximately £10 million. This would be a major attraction not just for people in this country, but for people from Europe also. If we invest in major attractions which people will want to visit, the demand will be there and companies such as Ryanair which works on a commercial mandate will respond to that demand. We cannot waste this national development plan in either of the two regions, particularly along the Border counties which have had 30 years of political instability. This is make or break time for tourism in the BMW region and there are a lot of expectations. This work will have to be done. If we create major attractions costing millions of pounds which will bring people to the region, I believe Ryanair will get involved.
There is a problem in relation to the labour shortage. I mentioned already that the "céad míle fáilte" concept has been under pressure. We have encouraged Deputies to emphasise this. The pace of the economy is such at the moment that people do not have time to say "hello" or point a visitor in the right direction. We must try to avoid this attitude because tourism is worth £3 billion to this economy.
Recently, at an excellent seminar organised by CERT, we asked other sectors how they are coping with labour shortages. Companies such as Ericsson and Marriott told how they dealt with the problem. We tend to promise our employees the sun, moon and stars, but the image of our industry, while it is improving, is not good. We are marketing to attract customers and we do everything we can to serve them. An equal effort must be made by the industry to attract employees. At the seminar, a joke was told about an employee who died and was asked by St. Peter whether he wanted to go to Heaven or hell. Of course, he said he wanted to go to Heaven, but St. Peter suggested that he first look at the other place. Old Nick showed him around down there. He showed him golf courses, swimming pools and wonderful facilities. The man went back to St. Peter who showed him around Heaven, which seemed quite a dull place compared to hell. He decided to go back to hell but he found the place completely changed. Old Nick explained that on his first visit he had been a prospective employee but now he was on the staff. We must market the industry to our employees as effectively as to our customers. I compliment the industry on making efforts in this regard and I realise there are huge labour shortages.
Bed and breakfast establishments have been the backbone of the tourism industry and we have been inclined to forget them in the past ten years. I want to correct that neglect and give the sector increased funding. The bed and breakfast providers were also represented in Japan and I was delighted to see the amount of business they were able to do.
We have formed the tourism marketing partnership, a marketing initiative between the Government and the industry. The Government had been providing funding of approximately £40 million for marketing through Bord Fáilte. Aer Lingus, Irish Ferries and other carriers have also been marketing their products. As they were also marketing Ireland indirectly, they claimed they were putting another £40 million into marketing Irish tourism. The TMP has brought the Exchequer and the industry together to iron out their various marketing efforts and avoid overlap. Aer Lingus has done a tremendous marketing job in the United States. This year, for the first time, more than one million American visitors will come to Ireland. Aer Lingus is concentrating on attracting high yield visitors and there is also plenty of room for the lower spending Ryanair passenger. The two airlines are no longer in competition. We should give more consideration to the Ryanair suggestion. We are proud of our national carrier, but Ryanair and other smaller airlines will be the lifeline of the west.
I agree with what was said about voluntary groups. When I took office I found 22 different groups dealing with tourism throughout the country. They were funded by the Peace and Reconciliation Programme, Leader, the International Fund for Ireland and other programmes. Funding from these programmes amounted to approximately £110 million, over which I had no control. The voluntary sector is now more inclined to co-operate with local authorities and I hope this problem will be overcome.
How accountable will the new body be to the Minister and to the Dáil for its spending programme or will the Minister agree a policy with Bord Fáilte and leave the body to implement it?
It will be an independent company.
I agree that access is of paramount importance to the regions. Some hotels have been very successful in working with regional airports in attracting business during the winter but there is a cost involved. We must ask why 4.4 million people visit Dublin. It is because they get there quickly and cheaply and there is no shortage of hotels, restaurants and other attractions. They return again and again because they enjoy their visits. Although I believe the Minister is doing the right thing, I foresee problems with regard to the idea of attractions for the regions. Every parish will want to have a major attraction. I wish the people who will have to evaluate these projects well. It is important that attractions are appropriate to their regions.
The operational programmes are in place and the BMW region is developing its policy. Nevertheless, there is a need to ensure that the Minister and his Department have influence over decisions taken regarding infrastructural development. The Departments of Tourism, Sport and Recreation and the Environment and Local Government and the local authorities should have an ongoing role in the provision of access to the regions. People who holiday in Glencolumbkille, for example, do not go there for the good weather. However, basic services are required and during last summer Glencolumbkille had no water supply. The Minister of State at the Department of Arts, Heritage, Gaeltacht and the Islands provided funding for the road to Glencolumbkille. Without that funding the area would not have a road. Many small villages and even large urban areas experience similar problems. The Department of Tourism, Sport and Recreation should have a role in setting priorities for providing access to the regions. There is little point in spending large sums of money marketing an area which has neither a road nor an air link.
The Department of the Marine and Natural Resources is concerned with water sports and the building of marinas. That Department should co-operate with the Minister's Department. There is a perception of overlap and lack of accountability with regard to work that is taking place. Small towns and villages in counties which rely on tourism should have an input into planning and at least be put on a tourism map. Small centres should be supported and large attractions should be synonymous with the regions. This is the only way we can travel. I know of at least five places which are looking for major attractions. However, we must also be cognisant of the minor attractions and smaller towns and villages. The day when each area published its own brochure is gone.
The normal facilities expected by tourists, particularly families, should be available. This ties in with other Departments. It is madness in this day and age that all large towns do not have a playground. The playground in Letterkenny is a wonderful addition to the town, not only for the local people but also for tourists. Consideration must be given to the provisions of leisure facilities, cinemas etc. The Minister is very involved in the provision of sporting facilities, but it is important that leisure facilities are also provided in smaller towns. The Department and local councils must work together in setting the policy directives and implementing them. The Minister for the Environment and Local Government is involved in the urban and village renewal schemes and he should also have a role to play in providing such attractions.
There are huge opportunities in this area, but the marketing aspect is of paramount importance. Regions should also be able to benefit from the concept of the city break. Many people travel to Dublin on Friday evening and return home on Sunday night. The potential exists to extend this concept to smaller regions which have the necessary facilities.
I wish the Minister well. I have great hopes for the North-South company in terms of development. County Donegal has benefited much from Northern Ireland tourists. I agree there is an accommodation deficit and what we want, particularly in Border regions, is parity and equality. The potential exists to encourage access through Belfast and Larne in attracting tourists to the north-west region.
On North-South development, I see great potential in the company which has been set up. I have an excellent relationship with Sir Reg Empey. He is a businessman who has looked at what has happened in the South, including the blossoming of the tourist market in the past ten years, and he is aware of the deficit that exists. I have discussed with him how the tourism industry can be a large employer, and he sees the potential which exists. In the past people in the tourism industry in the North did not have a devolved government or representatives to go to; they were scattered all over the place. They have seen what has happened in the South and are trying to bring it all together. Minister Empey is clued into this and we work well together.
The North-South company, for which we have responsibility, is already far ahead of any of the other bodies which were set up. Agreement has been reached on the terms of reference, the board numbers and the funding to be provided. I was mildly surprised by the amount of funding Minister Empey offered to allocate. I am very satisfied with the meetings we have had with him and I hope the company will be up and running soon. Deputy Coughlan referred to the potential in the regions. I do not want to be parochial, but I am also from the north-west Border region, where there were political problems for 30 years. We will have to wait for three, four or five years to reap the benefits of what we are doing now.
It is important to remember that Dublin is the capital city, and I am delighted it is doing so well. It is estimated that Dublin is the third most popular city in Europe for tourists. It is a modern, vibrant capital city with many attractions and I am sure it will continue to do well from a tourist point of view. There are many other European capital cities which are as congested as Dublin and many people do not necessarily want to spend their holidays in a city. I am trying to sell the rest of the island as a place where people can get away from it all. People who live in cities do not necessarily want to visit other cities. I keep saying that there are other areas in Ireland where people can get away from it all. In the past I have tried to sell Ireland as a place "where there are laneways made for strolling and pubs over-flowing with conversation". This is the way it can be. Many people in other European and Asian countries suffer from stress and this country can be an antidote for this by helping them to get away from it all.
On the question of accountability, the Governments will be accountable to the Comptroller and Auditor General. In the South the company will be accountable to the Government, while in the North it will be accountable to the Northern Ireland Assembly. Reference was made to members of local authorities. The Department of the Environment and Local Government and the Department of the Marine and Natural Resources have a major role to play in tourism. Members of local authorities should bear this in mind. We made a suggestion to the Department of the Environment and Local Government that part of the funding for roads should be allocated to specific tourism areas, for example, Tramore and small towns which have tourism potential, to ensure that they are made a priority in terms of infrastructure. Reference was made to a proper water supply, which is the minimum that should be demanded by people. We named certain towns which should be made a priority, but the final decision will be made by the Department of the Environment and Local Government. If the proper infrastructure is not provided in these towns, they will not benefit. At meetings with representatives from these towns, reference was made to simple issues such as sign-posting etc. I have asked local authorities to set aside 0.5% of their budget each year for sign-posting. This could be done by a private contractor. This may only be a once-off allocation as signs do not need to be erected every year.
I support the latter point made by the Minister. As I said at our previous meeting, people travelling from Rosslare to the west see a sign on one side of the road in Dungarvan for Killarney and Lismore, while the sign on the other side of the road is for Cork. This means that people who want to go to Killarney miss out on Cork as they do not think they have a choice. Another sign should be erected to give them a choice of routes. If the Minister can do anything to rectify this problem I will support him.
The Minister said there were six million visitors last year. He mentioned high and low spend visitors. Is that an issue with regard to the number of visitors? Are we in danger of losing our attributes as a country regarding peace and tranquillity? Could that be damaged by the number of people visiting particular areas? It could be a case of killing the goose that laid the golden egg if too many visitors congregate in one area. Is there a policy of encouraging people to travel from one area to another?
At present we do not have a taxi service at the airport. Will that have an impact if the strike continues? Has word gone out that if you fly into Ireland you cannot get a taxi? We have problems with rail transport and there are other industrial disputes. What will be the impact of these? Will the Minister comment on the potential market for visitors from South Korea, Taiwan and Japan?
I am sure the Minister is aware that many Leader groups depend on FÁS-sponsored workers and staff to promote their areas. With the current staff shortages, FÁS cannot justify sponsoring such staff and, as a result, many Leader tourist companies may collapse. What will the Minister do in that regard? Bord Fáilte has said that, at times, there is a conflict between Leader groups and RTAs. Is the Minister aware of that?
Deputy Perry mentioned the new logo for the North-South body. Will there be a corporate logo? As regards the point made by Deputy Coughlan, we do not have a swimming pool in east Cork. Youghal is a tourist town with much accommodation. It is a fantastic town but there is nothing to do there on a wet day. Deputy Coughlan also made this point.
We do not have one in Killarney either although we have many swimming pools.
Aer Lingus and Ryanair have two different policies. Aer Lingus is geared towards the upper part of the market and other carriers are geared to other areas. Both are equally important. I do not mind which carrier brings in visitors so long as they come here. As regards extending the season, it depends on where they land, how they are dispersed and at what time of the year they arrive. I have been working on a policy of regionalisation since I took up this position. If the Deputy ever holds this portfolio he will know that it is the seeds sown today that will reap benefits in years to come. The Deputy is right to raise issues and I will take on board any points he makes. All areas will benefit if there is a dispersal of people because congestion is a problem.
The taxi service has been a problem in the tourism industry for some time because tourism is a service industry. It is important that issue is dealt with. We have had many complaints from visitors. At this time of year, many Icelandic visitors come to Dublin. Most of them are females and it is estimated they spend, on average, £1,200 over a weekend. The complaints I receive are that they cannot get transport to take them and their purchases back to their hotels. I hope the matter will be cleared up and, as the Tánaiste pointed out this morning, deregulation will lead to an increase in the taxi business. I do not know about other Members but I have given up telephoning for a taxi for the past few months. I use public transport also. If there were more taxis people would use them as opposed to taking public transport.
If the service does not resume in the next few weeks, there will be much hardship.
That is why I hope the matter will be resolved. It impacts on everyone but particularly the tourism industry. We would like to see an excellent taxi service, as there is in other European cities. Taxi drivers will benefit as a result of deregulation because of the increased demand.
As regards Korea, the tourist potential is not there as yet. China is opening up dramatically and it will be a major competitor, but I do not see business coming the other way. I can see business coming from Japan, particularly when we consider that 2.5 million Japanese come to Europe but only 30,000 or so come here. There is huge potential in that area and they are looking for a new market.
I am aware of the problem with Leader, but that is a matter for the Department of Agriculture and Food. I will bring the matter to their attention and will come back to the Deputy on it. The logo will be a matter for the company. I had difficulties with a logo. I thought there was substance to it but the matter was blown out of all proportion. I do not envisage change as we are using the Bord Fáilte logo and the one in the North. However, it is a matter for the new company.
Swimming pools are a matter for the local authorities. I have 51 applications for swimming pools. It is a matter for the local authorities to progress those because I am only involved at stage three. The money is there. It is a good area in which to invest. If there is money in a capital programme it is there to be spent. Swimming is second only to walking as regards the numbers who participate. I have an application from Cobh and Youghal, and I hope one of those will be dealt with very soon.
Members should confine themselves to issues in the Estimate.
I congratulate the Minister. I am glad to hear he worked well with Sir Reg Empey. Joint accreditation is important and we should consider it. In regard to trade throughout the 32 counties, it is important there is joint accreditation of standards of quality. It is important for our home market that we promote Northern Ireland in a proactive sense. More business is done with the UK than with Northern Ireland. Northern Ireland should be promoted by way of television and other means in the home market. In terms of promoting Ireland as a 32 county destination, a large number of people in the South have never travelled to Northern Ireland. People in the South do not think of Northern Ireland as a place to go on holiday.
Reg Empey's confidence in this body will be strengthened if the figures indicate that many people from southern Ireland go to Northern Ireland for a holiday. While we are talking about promoting Ireland abroad, we must remember that as we have a strong economy, many people from the South will take a week's holiday in a good hotel in Northern Ireland and many people from Northern Ireland will take a holiday in Galway or some other part of the South. There is a major market in tourism in Ireland and we must enforce the message that Northern Ireland is a good holiday destination. In the spirit of this new body, we can promote Northern Ireland on the national airwaves as a good holiday destination for people in Ireland.
The Northern Ireland Golden Pages cannot be got in southern Ireland and the southern Ireland Golden Pages cannot be got in Northern Ireland. When we are talking about promoting business on the basis of the island of Ireland, it is unbelievable that we do not have a 32 counties Golden Pages. We should have one. I am not sure if that situation prevails in tourism. It is regrettable that there is not a single directory that promotes all aspects of business. If there is not a directory promoting all aspects of tourism, it is important that a 32 counties Golden Pages on tourism is published.
There is a new regional manager of tourism in Sligo, Paul McCloone, and his concept of tourism promotion is very good.
Such co-operation is very important. The Deputy is correct in saying that more people travel between the North and the South, as there is such business interests between the two. We are very grateful to the number of people who travel south from Northern Ireland. The domestic market in tourism is worth £0.5 billion. We are exceptionally grateful to the people in the North who visit the South.
Many of them only travel South for petrol.
No. Northern Ireland's largest market in this area is the UK, people from the UK who travel to Northern Ireland, and its second largest market is the Republic of Ireland. That has been the position for some time. This year because of the punt-sterling differential, many people from Northern Ireland travelled South and booked their holidays with southern tour operators because of the value of sterling. We talk about the strength of sterling versus the punt, but there is also the issue of the strength of sterling versus the currencies of France, Italy and Germany. That factor is European wide. Therefore, many people from the North travelled down here and abroad to book holidays abroad because the strength of sterling versus European currencies also prevails.
The matter of a business directory, a Golden Pages, will probably come about as a result of what is happening in the North-South area. We have our own directories and from time to time we encourage as many people as we can from the North to register with the directories. The Irish Hotels Federation has a directory and we encourage hotel proprietors from the North to register with it. I launched the farmhouse bed and breakfast brochure two or three weeks ago. I was delighted to note that 16 proprietors from Northern Ireland are in that brochure and I anticipate that number will increase.
I am sure nobody on this committee or outside it would argue with a Supplementary Estimate to provide for those two issues. I am sure everyone here welcomes it. Marketing in this area is vital. We are all aware that people here and in other countries are taking two or three holidays a year. We want to hit the nail on the head in this area.
The Minister's visit to Japan highlighted that there is still a perception abroad, about which we must be very conscious, that we have troubles here. If his visit there did nothing else but assure the Japanese that is not the case, it was worthwhile. We have a wonderful country and we must be very proud of it. Each of us should be proud to sell this country in whatever way we can. We travel abroad and see nothing like what we have here. It is said we do not have a friendly welcome for visitors anymore, but Irish people are still friendlier than many people we meet when we go abroad. Everybody realises that. Where I come from, we were reared with tourists and taught in school how to help a person looking for directions. That type of assistance is not something Bord Fáilte can provide, it is up to ourselves to provide that.
The question of access is vital. If people fly into Donegal or Kerry, they must be able to hire a car. That area deserves attention. People find it expensive to hire a car here. While the position is improving, the hiring of a car is not as accessible as it is in other countries.
I thank the Minister and his officials for introducing this Supplementary Estimate. He has our full support on it. We wish him well. Does the Minister wish to briefly sum up?
I thank the Chair for the comments and the members of the committee for their co-operation. When we travel abroad - many of us are abroad around St. Patrick's Day - it is vital when making a speech or talking to someone that we emphasise there is peace in this country. We cannot sell that enough. I have been travelling to the North for 30 years and I have not seen an incident of, say, a small bus burning on a street in some small town in Northern Ireland, but once such an incident is picked up by CNN, it damages tourism here. Therefore, we have to sell the fact that this country is at peace.
