Oireachtas Joint and Select Committees
Wednesday, 14 May 2014
Joint Oireachtas Committee on Transport and Communications
Fáilte Ireland: Chairperson Designate
11:00 am
Mr. Michael Cawley:
The first thing I should say is that in my previous position, I dealt with tourist organisations in over 30 countries and I would rate both Tourism Ireland and Fáilte Ireland as being among the best. That is not a new story for me. It has been a constant theme. That is not to say they cannot improve. One of the most important things I stated is that we need to be very cognisant of what the consumer wants, because the consumer has never had so much choice and is literally being bombarded with information.
Tourism has great potential to grow. This is not just a truism but is borne out by the experience of other countries, many of which do not have the wide variety of attractions that we have. While we think typically of southern European countries, many others which do not have the weather or beach tourism of those countries have also done extremely well. I point to the importance of knowing what the consumer wants. Research recently undertaken by Fáilte Ireland with Tourism Ireland will feed into this. While we are each very proud of our parish or county and think it is the most attractive place in the world to visit, the message must meet expectations, and the delivery must meet and, hopefully, exceed customers' expectations, because they have a wide choice.
The Gathering was a national initiative, and the Wild Atlantic Way could be called a half-national initiative in that it covers half the country. This seems to be the way to target foreign consumers, because while local places may be known to the Irish tourist staying at home, they are not well known abroad. With budget constraints we are seeking value for money, and it does not make sense to advertise small areas abroad. Hopefully, where foreign tourists choose to go along the Wild Atlantic Way will be random and everybody will get their share of it, but the consumer will choose. The Gathering has taught us that we must have a global message, and we will help and guide individual areas to make the most of their attributes. Fáilte Ireland is working on a similar concept for the east of the country, apart from Dublin. A general concept must be communicated abroad so that regions such as Kilkenny and Waterford can benefit from a more global type of marketing in which they can participate as regions.
I share the Chairman's concerns about competitiveness. There is a certain cycle in hotel prices, although it is not as bad as the property market. There have been very substantial increases in Dublin hotel room rates, and not just around special events. There is general under-supply in the Dublin market. Hopefully this can be alleviated by development over time. It is healthy in that it reflects good demand, but unhealthy if it chokes demand and gives people a bad experience. We must be conscious of international comparisons. In my personal experience, the kind of competitiveness we have seen, particularly in restaurants, in Dublin has not necessarily filtered all the way down the country. While the market will take care of these matters, the very special deals one gets in restaurants in Dublin, the greater Dublin area and the bigger cities are not found in some rural areas. While they may have a short season of which they must take advantage, they must be more competitive. Being competitive does not necessarily mean cutting one's price but can mean enhancing one's offering. There are many ways of being innovative about giving value for money without necessarily cutting one's price. We must all be conscious of the wide choice consumers have and the fact that we need to be competitive in the broad sense from the point of view of both price and value.
I share the Chairman's concern about the Dublin hotel market. Hopefully the rise in prices is temporary. For special events such as the Garth Brooks concerts it will be very exaggerated. There is a structural issue that must be addressed apart from that over the next year or two. It is well known that there is a shortage of bedrooms in Dublin relative to the demand emerging. This must be addressed, or else we will regain a reputation for being expensive.
No comments