Timmy Dooley
Ceist:9. Deputy Timmy Dooley asked the Minister for Transport, Tourism and Sport the way he can help the hotel industry; and if he will make a statement on the matter. [15241/13]
Amharc ar fhreagraWednesday, 27 March 2013
Ceisteanna (9, 36, 55, 75, 78, 81, 319, 320)
Martin Heydon
Ceist:36. Deputy Martin Heydon asked the Minister for Transport, Tourism and Sport the measures introduced to improve the tourism industry since March 2011; if these measures have had a positive impact on the industry; and if he will make a statement on the matter. [15044/13]
Amharc ar fhreagra
Damien English
Ceist:55. Deputy Damien English asked the Minister for Transport, Tourism and Sport further to the measures introduced for the tourism industry since March 2011; his views on whether these measures have had a positive impact on the industry; and if he will make a statement on the matter. [15031/13]
Amharc ar fhreagra
Michael Colreavy
Ceist:75. Deputy Michael Colreavy asked the Minister for Transport, Tourism and Sport if he will provide details of his plans to encourage new investment in the tourist accommodation sector to pay for renovations and refurbishment; and if he will make a statement on the matter. [15316/13]
Amharc ar fhreagra
Jonathan O'Brien
Ceist:78. Deputy Jonathan O'Brien asked the Minister for Transport, Tourism and Sport if he will provide specific details of the way he expects the recent extension of the employment and investment incentive scheme to encourage investment in tourism accommodation; and if he will make a statement on the matter. [15310/13]
Amharc ar fhreagra
Peadar Tóibín
Ceist:81. Deputy Peadar Tóibín asked the Minister for Transport, Tourism and Sport if he will provide specific details of the way he envisages the real estate investment trusts assisting in the growth of the tourism product and in the provision of employment; and if he will make a statement on the matter. [15314/13]
Amharc ar fhreagra
Bernard Durkan
Ceist:319. Deputy Bernard J. Durkan asked the Minister for Transport, Tourism and Sport the extent to which he has had discussions with the hotel sector with a view to ensuring its sustainability arising from the economic downturn with particular reference to ensuring that adequate funding is available from lending institutions to meet the ongoing requirements of the sector; and if he will make a statement on the matter. [15545/13]
Amharc ar fhreagraBernard Durkan
Ceist:320. Deputy Bernard J. Durkan asked the Minister for Transport, Tourism and Sport the extent to which his Department continues to monitor developments in the hotel sector with a view to ensuring the availability of adequate accommodation to meet the current and future requirements of an expanding tourism industry; and if he will make a statement on the matter. [15546/13]
Amharc ar fhreagraFreagraí ó Béal (18 píosaí cainte)
I propose to take Questions Nos. 9, 36, 55, 75, 78, 81, 319 and 320 together.
These questions all concern supports provided by the Government for the tourism industry. Since March 2011 the Government has implemented a range of measures to support hotels and the wider tourism industry. VAT has been reduced to 9% on accommodation, restaurant and other services and this lower rate continues in 2013. The visa waiver scheme is encouraging visitors from emerging markets to add Ireland to their trip when they are visiting the United Kingdom. The halving of employers’ PRSI for those on modest wages has reduced the cost of employing people.
More recently, the Government has confirmed that the extended employment and investment incentive scheme, EIIS, and the new real estate investment trust, REIT, initiatives will apply to tourism accommodation.
Subject to the requirements of the legislation, the EIIS should encourage investment in the renovation of existing accommodation by allowing investors in such projects to avail of tax relief, whereas REITS will facilitate investment vehicles in tourism accommodation. Tourism and coach operators in particular will also benefit from the fuel rebate, while small tourism businesses will benefit from the higher VAT threshold of €1.25 million.
During 2013, the Government will provide almost €140 million to tourism agencies to support the industry, to market tourism at home and abroad and to fund product development. Fáilte Ireland is also providing a range of business and training supports to tourism enterprises, including assistance to tourism businesses to engage constructively with their banks. The measures put in place to support tourism helped to contribute to growth of almost 8% in visitor numbers in 2011. While visitor numbers increased only marginally in 2012, figures released last week by the CSO showed that spending by visitors to Ireland increased by 4.5% last year to €3.68 billion. In addition, Fáilte Ireland reports that the number of people employed in the tourism and hospitality sectors in Ireland is now 185,000, which represents an increase of 5,000 on the previous estimate. That is good news.
As Deputies are aware, 2013 is the year of The Gathering which initiative will provide further support for the industry this year as well as a legacy effect for future years.
With all the questions that have been grouped together, it appears no one is here to facilitate a response, with the exception of my colleagues in Sinn Féin, who are always here. I will be happy to make a couple of points.
The Minister of State will be aware that representations have been made by the Irish Hotels Federation to complain about a lack of appropriate information to help it to develop niche markets and to engage in more efficient planning and marketing. The federation believes the Central Statistics Office should be encouraged to conduct frequent and more detailed surveys of visitors and their requirements. Surely, we must engage in that activity. In particular, good and frequent intelligence is required about where foreign visitors go, their requirements and how their holidays could be improved. The president of the Irish Hotels Federation, Mr. Michael Vaughan, says a lack of detailed information has reduced the effectiveness of his organisation's international marketing campaigns. He said there must be a greater emphasis on attracting business conferences and the promotion of the regions. Unfortunately, the back-up data required are not available. I ask the Minister of State to impress on the Taoiseach, under the aegis of whose Department the agency operates, the necessity for the CSO to put in place additional modules in its ongoing investigative work to address the deficit in information which would be of use to the Irish Hotels Federation to do what it does best.
My officials have met the CSO because, as Deputy Dooley is correct to say, we need up-to-date information. If there is a problem in the market, we must know on time, whether that is at the beginning, middle or end of a year. If we must carry out a marketing campaign in a particular quarter in which there is a problem, we need the information. My officials have met representatives of the CSO who have told us their agency will try to provide us with more accurate figures more quickly. I hope that will happen.
I met a number of hoteliers last week from all over the west. I had meetings with the representatives of Irish hoteliers in Dublin. They were complimentary and expressed their delight that we held the marketing budget this year. They were also delighted that we were able to maintain this year the lower VAT rate of 9% down from 13.5%. The VAT reduction has provided hotels and restaurants with a great return. Hoteliers are pleased that The Gathering initiative is in place and will help to fill beds this year. Hoteliers are approaching and talking to us. Of course, there are problems, but we are trying to work through those with them. Overall, sentiment is good this year and we are confident that, with The Gathering and last year's spending increase, we will have a good tourist season.
I thank the Minister of State for his reply. Certainly, some of the initiatives which have been introduced, including the change to VAT, have done wonders. I have received good reports. Are we satisfied that in all cases the VAT reduction has been passed on by the industry? Are there instances in which people have abused the reduction by failing to pass on the cut? I do not know. I have not heard of anyone being brought to task.
I want to ask the Minister of State about the Moore Street site, which is very important leading up to 2016. If we were to work on the initiative to preserve buildings and to get the battlefield site up and running, it would be a major boost to tourism. We should also not forget that 2014 is the anniversary of the Battle of Clontarf, which was one of the few victories we won on an all-island basis and is one of the few we can celebrate. It is a big anniversary for us.
We want to support any event that takes place if it will bring people into the country. This year, we have The Gathering, which I hope the Deputy will encourage. The Gathering is not being led by the Government or Fáilte Ireland, it is community led. The people of the country have come in behind the initiative. Between 7,000 and 8,000 people turned up at public meetings on the initiative which took place nationally last year. Almost 3,500 events are planned for 2013. Those events will create a legacy for next year and the year after.
Deputy Ellis asked about VAT. We reduced the rate from 13.5% to 9% and there was a positive reaction. Customers will always give their reaction. They were happy to see that prices, particularly in Dublin, fell. Of course, there always will be people who do not pass on the benefit but hotelier and restaurant representative bodies encouraged their members to do so. The Deputy will have seen from my earlier reply that 180,000 were employed in the industry last year and that this number has increased now to 185,000. That is 5,000 jobs we did not have last year. It must be welcomed. Hotel and restaurant bodies encouraged their members and the public, as always, reacted. The public saw the menus and saw the reduction in prices. It was good. The cut was passed on. Businesses know this is only a temporary relief and we told them clearly that if it was not passed on, we would quickly put the rate back up. The reduction is in place until the end of 2013 and it has worked very well.
Could the Minister of State say something about Moore Street?
Deputy McLoughlin wants to ask a question.
I welcome the VAT reduction and acknowledge that The Gathering has been a fantastic success to date. It is a community-based initiative across the length and breadth of the country. I have received a number of complaints about the Irish Hotels Federation. We must put down a marker that people must not be fleeced by hotels on peak occasions, including St. Patrick's weekend. It is a particular problem in Dublin when people come to major events. This has been brought to my attention and I ask that the Minister of State maintain contacts with the Irish Hotels Federation and the Restaurants Association of Ireland to ensure prices are maintained and that inflated prices are not charged at certain times of the year during major events.
Deputy McLoughlin makes a good point. Everybody has his or her part to play in the recovery of the tourism industry. I send the message loudly and clearly to hoteliers, restaurateurs and anyone else involved in the tourism business that this is the year we bring people to Ireland, in particular for The Gathering. They will be our ambassadors when they go home. If they get ripped off here, we will not be able to do anything about what they say. There has never been better value in Ireland.
The hoteliers are playing their part and the restaurants are playing their part, and I hope they will continue to do so. There are sometimes complaints about hotels, but most hotels have 95% of their hotel rooms filled when an event is coming up. They may have a small capacity remaining and when they come to the end of their capacity they may increase prices. If there is a major event in Rome, Spain or any place, one will pay if one comes in looking for a bed at the last minute. To be fair to the restaurants and hotels, they are giving good value for money and doing a good job. There is plenty of competition and spare capacity, which is why everyone must compete.
While the industry has indicated a belief that the reduction in VAT to 9% has been helpful, I am not so sure that is proven. There has been increased activity but that was in line with an upturn that was already taking place in the tourism sector. It is worth remembering that it was not a gift of the Government to the tourism sector; it was a gift of the private pension funds of the State that has provided the funding. It was done on a three-year basis, so it was not willy-nilly that the Government managed to provide funding again this year. Some €400 million was taken from private pension funds. Funding was extracted to abolish the travel tax, or a portion of it, but it did not materialise. I supported the Minister of State on this point because the airlines did not buy into the kind of increased activity that was suggested. The saving to the State was not returned to the private pension funds, but that is another day's work. I am guarded about the impact of the reduction. It was a stimulus, but on a meal costing €50, the saving buys a cup of tea at the end. I am not sure that is an incentive for increased spending. It created a good story and increased talk about reduced costs, but the jury is out on its effectiveness.
With regard to The Gathering, I encourage the Minister of State in his effort to increase the number of international sporting events held here. The American football match was a huge event for the country and tourism got a major bounce out of it. We should get further events like that, and work needs to be put in now to achieve this. I refer in particular to the bid to host the Rugby World Cup in 2023. It could be incredibly significant for tourism, the economy and brand Ireland, which we are promoting so well this year.
We have had three extraordinarily successful all-Ireland Fleadh Cheoil events in a row in Cavan. The great success was that there was no inflated pricing. Can the Minister of State introduce a system of checks and controls-----
Checks and controls to ensure Cavan does not get it again.
-----or statutory instruments to ensure we have proper pricing so that we do not ruin the country's image?
I disagree with Deputy Dooley, as someone who, like him, comes from a tourist town. It is all about perception. If people think they are not getting value for money, it creates a problem. People saw the effect of the VAT reduction from 13% to 9% when it was passed on. In addition, the trade started to introduce deals and realised it had to do something with its cost base and provide value for money. It was a good move. We had to negotiate with the troika. Hoteliers are hoping it will continue, and we must examine that point.
Deputy Eoghan Murphy is correct in respect of sporting events. The Navy-Notre Dame game was probably the most successful event that took place in this country. When those people went back to America, they sold a positive message about the country. It did not just happen in Dublin; when these people arrived they spread to every corner of the country. They came back to Dublin for the event and the message sent home was that there was value for money in Ireland. The figures for December, January and February show that the number of trips to Ireland increased by 2.6%. From mainland Europe they increased by 5.7%, although tourism from Britain is weak again. Trips from North America have increased by almost 10%, while other long-haul markets are up by 15.3%. People realise they are getting value for money.
Tomorrow the Minister and I are meeting the IRFU, which will make a proposal and talk to us about hosting the World Cup. I compliment the GAA on its decision last weekend to open up its facilities. It was a credit to the organisation and I was delighted to see it making its wonderful facilities available.
Hear, hear.
I hope we can attract the World Cup in 2020 or 2024. We are meeting the IRFU tomorrow and we hope we can attract many other sporting events similar to the World Cup. Next week, the Sports Council, the Minister and I will announce a number of sporting events for The Gathering. Sporting events bring people into the country, fill beds and bring in badly wanted revenue.
Perhaps the Minister of State can do something about Mr. Trapattoni.
Written Answers follow Adjournment.