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Tourism Industry.

Dáil Éireann Debate, Thursday - 1 July 2004

Thursday, 1 July 2004

Ceisteanna (4)

John Gormley

Ceist:

3 Mr. Gormley asked the Minister for Arts, Sport and Tourism his views on whether the April 2004 overseas travel figures from the Central Statistics Office suggest that a gap is widening between persons who are leaving here to go abroad when compared with the relatively smaller increase in visitors to Ireland; the remedy he will put in place to address the issue; and if he will make a statement on the matter. [19926/04]

Amharc ar fhreagra

Freagraí ó Béal (5 píosaí cainte)

Internationally, more people are taking holidays and doing so more often. Over the past ten years or so, there has been extraordinary growth in the short urban break market as an international phenomenon. Irish people are not immune from these trends.

Owing to the phenomenal increase in Irish prosperity in recent years, the increased availability of competitive access to foreign markets and the increasing number of those who own foreign holiday homes, Irish people are travelling abroad in greater numbers and with greater frequency. I do not necessarily regard this as a negative phenomenon because, looked at globally, we find that the reverse side of the coin is that an increasing number of overseas visitors are visiting Ireland.

The latest CSO visitor figures for 2004 show Ireland continuing to perform strongly in a highly competitive international market. The number of overseas visitors to Ireland in the first four months of this year increased by more than 7% compared with last year. The latest Revenue figures for 2004 are also positive, with overseas visitor earnings increasing by more than 5% in the first quarter of this year compared with 2003. These early results are in line with the growth targets set by Tourism Ireland and Fáilte Ireland for the year as a whole and, in relative terms, compare favourably to the performance of some of our competitor destinations.

The overall number of inbound visitors continues to exceed that of outbound visitors. That said, it is apparent from CSO figures in the recent past that Irish visitors abroad spend, in total, marginally more than overseas visitors spend here. That increase in outward spend is because more Irish people go abroad more often.

To get a more accurate picture of trends across tourism, the tourism and travel survey to which the Deputy refers needs to be considered in conjunction with the CSO's household travel survey. The agency's tourism and travel survey does not, for instance, include domestic tourism. The latest available figures from the household travel survey, covering 2003, show expenditure by Irish people on domestic trips growing by 14% to €971 million, compared with 4% growth in expenditure by Irish people on international trips. Even making allowances for inflation, this represents a significant increase in expenditure. While Irish people may now spend more on international trips, the CSO survey clearly indicates that domestic tourism is benefiting disproportionately from the increased spending power of the Irish population.

Taking the two CSO surveys together, it would appear that our tourism sector is winning market share, both at home and internationally, in the face of the stiffest competition ever in this sector. In that context, we need to maintain our focus, get the product right, get the message out, give real value for money and ensure we continue to deliver on the promise. It is important for the Irish industry to realise that the more frequently Irish people travel abroad, especially within the eurozone, the more conscious they will be of relative value for money. It is essential our industry continues to focus on increasing its competitiveness.

Looking at 2004, the two tourism agencies, Tourism Ireland and Fáilte Ireland, are rolling out a comprehensive range of programmes and activities in conjunction with the industry and overseas trade to build on the momentum generated to date and achieve their ambitious targets of more than 4% visitor growth. Their programmes are supported by an unprecedented level of Exchequer investment in tourism services through my Department, especially for marketing purposes, totalling well over €110 million this year.

As for the medium to long-term future of the sector, significant progress is being made in advancing the recommendations of the report of the tourism policy review group through the tourism policy implementation group chaired by Mr. John Travers. The ultimate goal is to ensure that Ireland's competitive position is optimised to take full advantage of the expected upturn in international tourism over the next decade.

I thank the Minister for his interesting reply. Does the Minister agree that many Irish people, some of whom may have foreign holiday homes — perhaps the Minister will let us know how many, if he has the figures — choose to holiday abroad because they feel they get better value for money? It is the same old story of this being "rip-off Ireland", as it is sometimes called. People feel that public transport, eating out, car hire, etc. do not provide value for money. Is that a factor and is the tourism policy review group examining the issue? The issue arises both anecdotally and in actual responses from those who holiday here.

Has the Minister information as to why Irish people who go abroad spend more when abroad? With regard to the 14% increase in expenditure on domestic trips, has he qualitative data on what domestic tourists find attractive about staying at home? What is it they like about Ireland as a holiday destination?

It is encouraging that the domestic market has increased so significantly. The 14% increase is remarkable given the current level of competition on the international market. We have stressed the issue of value for money over the past two years and this has paid dividends. For example, the Irish restaurant association introduced a very successful value for money menu for visitors. The Irish car rental market is as competitive as one will find anywhere and value for money offers are provided by almost all our major outlets and many of our medium and smaller outlets. All this is extremely encouraging. This is reflected in the figures. The fact that the domestic market increased by 14.3% is a tribute to the response of the industry, and I hope this response continues — it is important that it does.

With regard to people who travel abroad on holiday, the Irish economy has improved in leaps and bounds in recent years, people have more disposable income and, as a consequence, more people take holidays abroad. The figures in this regard were up 4%, but we must take that figure against the 14% plus increase in the domestic tourism market, which is, to say the least, most encouraging.

The implementation group, which is overseeing the implementation of the policy review group, is progressing with its work. It is due to report to me in August of this year. That report should be interesting and should give us further indicators. If there is further information on data or statistics Deputy Gormley requires, I will be only too pleased to communicate them to him.

The Minister touched on two areas, eating out and car hire, and said services in those areas are improving. However, there is one area where there has not been an improvement, namely, that of public transport. Anyone who has travelled by train to Cork or elsewhere will have seen tourists on the train and, more likely than not, it will have been packed. The standard of our public transport is appalling and it gives a poor image of this country. Is this an issue about which the Minister is concerned?

In regard to public transport, in recent days in Dublin in particular the availability of public transport has increased beyond recognition, something everyone will greatly welcome. There is further room for improvement in our public transport system, of that there is no question. When I spoke about 14% growth, I was referring to expenditure.

Question No. 4 answered with QuestionNo. 2.

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