The Minister for Arts, Sports and Tourism has urged the tourism industry to help tackle high prices in Ireland, which he warned could deter foreign visitors.
Speaking today at the Irish Hotels' Federation annual conference in Killarney, Mr O'Donoghue said recent visitor attitude surveys showed that competitiveness was a problem for the Irish tourism sector. The current strong euro and weak US dollar were also badly affecting the industry.
"The message has not been lost on Government, as was clear from the recent Budget which involved minimal increases in indirect taxation and excise duties of importance in tourism pricing," he said.
"The annual rate of inflation fell to 1.8 per cent in January 2004 and is now much more in line with average EU rates, although I accept that overall price and cost levels in Ireland remain high."
Mr O'Donoghue told delegates said he had established an implementation group, which will report to him every six months on the industry's progress on meeting the 70 recommendations contained in last September's report of the Tourism Policy Review Group. The implementation body's first report is due in July.
This report forecast tourism income would rise to €6 billion over the ten year period to 2012, with visitor numbers increasing from six to ten million annually.
There was an increase of about four per cent in visitor numbers and revenue earnings in 2003 over the previous year, with similar growth in visitor numbers expected this year.
The Department of Arts, Sport and Tourism of has a tourism budget of €115 million for 2004, with €31.5 million earmarked for marketing. Tourism Ireland Limited has a €50 million budget, while Failte has €80 million to spend.