New tourism authority to tackle rising prices

The Minister for Arts, Sport and Tourism, Mr O'Donoghue, said he is committed to implementing measures to tackle the decline in competitiveness in Ireland's tourist industry.

Welcoming the publication of a new report on the current state of the industry and the challenges facing it, Mr O'Donoghue said he would implement the key recommendations relating to his department and the state agencies under his remit.

Mr John O'Donoghue

He was speaking at the inaugural meeting of Fáilte Ireland in Dublin. The State body, established earlier this year, has an annual budget of €70 million and will work with industry groups to promote and support the development of Irish tourism.

The review group's report says the economic and social contribution of the Irish tourism industry is seriously undervalued, both nationally and at Government level.

However, it adds that despite recent external shocks, the prospects for the international travel and tourism sector remain "highly positive" in the medium and longer term.

Initial recommendations by the review group include the provision "at the earliest possible date" of additional, fast turnaround terminal facilities at Dublin airport to help develop additional air services from Europe and the UK.

After a successful decade of growth during the 1990s, there are indications of a deterioration in Ireland's competitiveness in the international tourism market. Interim Report of the Tourism Policy Review Group

It also urges the better exploitation of new e-commerce technologies, such as the internet. On inflation, the report says the government should commit to an inflation target relating to pricing changes within its control, including charges for Government services, excise duties and indirect taxation.

Speaking to the media before the board meeting, Mr O'Donoghue said the government had agreed with the social partners to tackling inflation at every opportunity. However, the tourism body report also made recommendations about how the industry itself might tackle inflation from within.

The new report also recommends a greater role for the Department of Arts, Sport and Tourism in shaping wider policy areas. Mr O'Donoghue said he will now begin a reorganisation of the tourism division and the support structures within the tourism State agencies.