For the first time in many years there has been a reduction in the number of tourists coming here from Britain. That is a very worrying development. Britain is the largest source of overseas visitors to Ireland and it accounts for more than half of all our tourist traffic. While many such visitors have links of blood and family with this State, we cannot presume on their custom if we do not provide them with a quality experience and good value for money.
Ireland cannot compete on price with low- cost destinations that have opened up in eastern Europe. Traditional sun-holiday countries, such as Spain and Greece, have already lost market share there. But once tourists decide to visit Ireland by using no-frills airlines or fast ferries, we must provide them with better value and friendlier service. For a number of years, the warning signs have been there for anyone who cared to look. Surveys found that half of all visitors were dissatisfied with restaurant charges, pub prices and the cost of goods and services. They also objected to rudeness. It was an unsustainable situation.
Since then, price resistance among Irish people has led to a fall in pub business. While vintners blamed this development on the "no smoking" legislation, the decline in drink sales preceded the Government ban. Some pubs recently reduced their prices and improved their facilities in order to attract customers. That is the way to go. The sooner the practice is embraced by the hospitality sector as a whole, the better.
Tourism is one of our major industries, providing an estimated 140,000 jobs and generating €4 billion annually in foreign earnings. About €30 million a year is spent by the Government in promoting and marketing various holiday experiences. Because of that investment, recent comments by the Minister for Arts, Sport and Tourism, Mr O'Donoghue, were understandable. In criticising "the myth of rip-off Ireland", he said no tourism industry in the world ran itself down. That may be so. But somebody has to recognise our loss of competitiveness if long-term damage is not to be sustained.
Ireland, as the Minister said, is not a low-cost destination. In fact, it is very expensive. This development has been reflected by a changing tourist pattern. Visitor numbers have gradually risen, but the visitors stay for shorter periods and Dublin has become the resort of choice, gaining a considerable advantage on other parts of the State. In order to develop a more balanced industry, costs must be controlled and the attractions of rural Ireland promoted.