Dáil Éireann Debate, Wednesday - 19 May 2010
36 Deputy Olivia Mitchell asked the Minister for Tourism; Culture and Sport the initiatives that are envisaged to deal with the crisis facing the tourism industry arising from the decline in visitors and the access difficulties posed by the volcanic ash; and if she will make a statement on the matter. [21069/10]
Amharc ar fhreagra37 Deputy Mary Upton asked the Minister for Tourism; Culture and Sport the actions being taken directly by her Department to stem the continued haemorrhage of foreign tourists visiting Ireland; the impact that the removal of the air travel tax would have in promoting Ireland as a potential destination for tourists; the actions her Department and the semi-State bodies under its aegis are taking regarding the impact of the ash cloud which is seriously affecting foreign tourism; and if she will make a statement on the matter. [20854/10]
Amharc ar fhreagraI propose to take Questions Nos. 36 and 37 together.
This year was always going to be a challenging one for tourism, made even more difficult in recent weeks by the travel disruption due to volcanic ash. Based on Central Statistics Office surveys, the number of overseas visits to Ireland fell by 11.6% between 2008 and 2009. However, these figures must be seen in the context of a decline in tourist numbers internationally. Tourism worldwide was deeply affected by global economic difficulties and loss of consumer confidence, with Ireland particularly hit by exchange rate challenges. With exceptional weather conditions in the first two months of this year affecting Ireland and most of our overseas markets, the number of visits to Ireland fell by 25% from 2009 figures. While CSO figures are not yet available for the period since the volcanic ash episode commenced, there is little doubt that there was a considerable impact on overseas visits to Ireland. Initial figures from the Irish Aviation Authority indicate total traffic at Dublin Airport in April 2010 reduced by 26.8% on 2009.
In regard to the air travel tax, Ireland continues to face significant fiscal challenges and this tax is regarded by the Minister for Finance as an important revenue-raising measure.
Turning to the impact of volcanic ash, the Government's overall response is led by the Government task force on emergency planning. The task force, which is meeting on a regular basis, is chaired by the Department of Transport and includes all the key players such as the Irish Aviation Authority, Met Éireann, Departments, including the Department of Tourism, Culture and Sport, consumer and regulatory agencies, and health and environment bodies. In parallel, Tourism Ireland convened the tourism industry response group which is the main tourism forum for the various key players to communicate and co-ordinate their responses to events such as this and this group will continue to meet as and when required.
For my part, last week I met representatives of tourism industry groups, as well as the tourism agencies, to discuss responses to the continuing challenges. Subsequently I announced that Fáilte Ireland would work with the industry to draw up a customer care charter addressing issues such as cancellations, pricing, information and quality of services for all tourists affected by delayed travel plans due to volcanic ash. This charter builds on the positive approach of the industry in recent weeks in dealing with customers facing travel disruption and will help to reassure and improve confidence for both tourism enterprises and potential tourists. At the heart of the latest challenge we face is confidence and the charter will play a key role in that respect.
The charter has now been finalised and was issued by Fáilte Ireland last week to all accommodation providers on its database. Fáilte Ireland's regional offices will be also promoting the charter to local and sectoral contacts in their regions and Tourism Ireland will be promoting it internationally.
Despite these difficulties, it is essential to remember that millions of people across the world will still take holidays this year. I know that the industry and the tourism agencies are fighting hard for every bit of this business. On 6 May, I launched a €20 million summer marketing campaign on behalf of Tourism Ireland. This initiative will build on Tourism Ireland's marketing effort earlier in the year and is designed to win as much business as possible for the peak season. This unprecedented drive in key markets in Great Britain, the United States, Germany and France aims to create the conditions for recovery later this year. The new marketing drive was developed in conjunction with hundreds of tourism industry partners, including hotels, bed and breakfasts, self-catering, cultural institutions, golf courses, visitor attractions as well as air and sea carriers, which have got behind the campaign with a range of value-for-money offers.
The tourism agencies are taking every opportunity to remind potential visitors that Ireland is accessible and open for business — and will continue to be — by air, sea and through Great Britain. Arising from last week's meeting, Tourism Ireland has also committed additional investment in marketing to strengthen its partnership with tour operators overseas.
In addition to our continuing marketing drive in key overseas markets, Fáilte Ireland is working with the industry to engage the Irish holidaymaker with attractive and accessible offers highlighting the value and quality available within Ireland, and I expect Fáilte Ireland will be targeting this in the weeks ahead. Fáilte Ireland is also supporting tourism enterprises through a range of programmes, at a cost of €11 million, addressing such issues as cost control, use of e-platforms and human resource development.
Ireland's tourism sector has proven its resilience and adaptability in the face of adversity in the past. Most recently, whereas operators elsewhere were criticised for appearing to exploit travel delays as a result of the ash plume, Ireland's tourist industry was praised for its rapid and sensitive response to the crisis. I am confident that the co-ordinated approach I have outlined will ensure a positive outcome. I look forward to ongoing engagement with the industry and the tourism agencies to ensure that every support is in place to allow the tourism industry to return to growth in the near term.
I do not blame the Minister for trying to appear upbeat. While I do not blame the Government for all the factors affecting tourism, including exchange rates, weather, recession at home and abroad, and now the ash, those in the industry must wonder if it will ever recover. I did not comment when the Minister announced her initiative. However, it was high in media hype, but low in content. There was only one thing worth saying, which was that there would be no cancellation fee for tourists who could not get here. However, the other items in the code were really things that any hospitality service should be providing. Is a promise not to overcharge the best we can offer people?
The Minister has said that the purpose of the initiative is to create confidence. In my view it did not create confidence; it did the exact opposite. It highlighted that we are the only island country in Europe and there was quite a strong possibility that tourists who got here could end up being left here. That was the danger of having a code such as this and marketing it in every one of our possible markets.
What is happening now to deal with the fluctuating situation? It would be within the Government's remit to eliminate the departure tax. The airlines are haemorrhaging money and Aer Lingus in particular must be in extremis and yet it is being asked to pay money to the Government in this tax.
The Dublin Airport Authority must be in extreme difficulty with the fall in passengers. While the Minister indicated that the number of overseas visits to Ireland fell by 11.6% between 2008 and 2009, the throughput through the airport must have reduced by more than that.
Regarding the redirecting of marketing as a result of exchange rates changing and the fact that it is so difficult to get from, for example, Germany with any certainty because of the volcanic ash, should we consider targeting countries, whose tourists can come by ferry, and America, which is not as affected by the ash?
I believe it is valuable to have the charter. It addresses more than just cancellation fees. In other countries people who found themselves stranded, especially in the lead-up to a weekend, found that the prices for a hotel room for a weekend were far in excess of what they had been paying, whereas here they will not be charged over and above what they had been paying.
Another factor that came through to us very strongly was the lack of personal contact with people who could give real information on where they were going.
While I understand that, the Minister is highlighting our island disadvantage.
When this was offered to people the response was very positive. Deputy Mitchell says that is basic customer care. While I agree it is, it has not always been the case in the past that people did not capitalise on unforeseen events such as volcanic ash. However, this charter is based on how the hospitality industry reacted and responded to people in the past month. We argued as to whether it should be marketed abroad. Unfortunately because Ireland was the first land mass that was affected by the volcanic ash, we were the ones to get the negative publicity on international radio and television, including on CNN and CBS news. We needed to try to counteract that. We certainly will keep it under review. The response from the tour operators has been very positive and I believe it will help us.
The Deputy asked about the departure tax. It is a budgetary and fiscal matter. While it might not be the case in these particular times, Department of Finance estimated it would bring in €125 million.
Has it done so?
We shall have to see how that pans out over the year because of the decreasing numbers and the impact on the airport in recent months but it is not possible to do anything about it in the mid-year because it is a budgetary matter. We continue our marketing campaign, targeting and working in a co-operative and new way with the ferries. People who never used ferries in the past have discovered them. We are working with the United Kingdom, in particular, to try to bring up that market because that was one area where figures actually dropped.
The volcano is outside everybody's control and I appreciate the short-term planning that was put in place and some of the short-term actions which were taken but now there is an urgent need for longer term planning because this situation will not go away. Other events will happen over which we have no control. Are any policy reviews being undertaken in the Minister's Department? If so, what is their status and when will we see new policies that will take account of what has happened and is likely to happen in the future?
I am aware of what an agency such as Fáilte Ireland does. However, when we ask questions in the House about that organisation or other quangos the Minister tells us she cannot answer them and we should write directly to Fáilte Ireland. This happens all the time with quangos. What is the Minister's Department doing? How many people are working in the tourism area?
On a practical issue, I have seen people literally trapped at Dublin Airport, for example, and they do not give out a happy message. As they probably are stuck there for two days what services are in place at the airport that might tell them the names of hotels, how they might get to them and what is available? Does Fáilte Ireland have a service facility at the airport to advise and help people? The picture that comes across to us from the airport is not a happy one. People look very tired, cranky and fed up with the whole business. There seems to be a communications gap around that.
Tourism and booking by tourists have changed in recent years. In the past people tended to book their annual holiday months in advance but increasingly they are booking much closer to departure dates and we have had to adapt our marketing strategies to look after them. The fact that the marketing budget for this year, which was increased, is now spent on a more seasonal basis means we are able to respond to different issues. I mentioned the summer marketing campaign of €20 million which started only in May because 60% of our tourists come between May and September. We will launch an autumn marketing campaign but will be able to review what happens in the few months before it starts and can see how best to target that money.
There will be long-term policy initiatives and full discussions with Fáilte Ireland and Tourism Ireland on new drives. Only last week, for example, we unveiled Padraig Harrington as our golf ambassador. The potential for golf tourism to this country is enormous and Mr. Harrington is giving very generously of his time in that regard. The same applies to Gabriel Byrne, our cultural ambassador, and whereas culture is valuable in itself there is huge potential for linking culture and tourism, especially with the United States, and Mr. Byrne is throwing himself fully into that.
There are new initiatives such as the "silver surfer" and "golden trekker" whereby people from all over the world, irrespective of the country they come from, can get free rail travel when they come here if they are over 66 years of age. These are significant initiatives that are very attractive to people when they come here, especially for the market from Great Britain. People may come across on the ferry and then get on the train. These are the new and constantly changing initiatives coming up all the time.
The Deputy also asked me——
I asked about Fáilte Ireland.
Any answers I might give in regard to Fáilte Ireland and Tourism Ireland obviously reflect all my interaction and work with Fáilte Ireland because it is directly funded by the Department.
Are there any specific facilities at Dublin Airport? Has Fáilte Ireland set up an information stand accessible to everybody?
I am not aware there is a specific Fáilte Ireland stand there dealing with issues but, as part of this charter, all the accommodation bases have made themselves available to give personal information to assist their guests in arranging return journeys and are liaising with local tourist offices to facilitate individual requirements. It is being done very much on a localised basis.
