Mr. Niall Gibbons:

I thank the committee for this opportunity to address it today. I am the CEO of Tourism Ireland which, as members know, is the organisation responsible for marketing the island of Ireland overseas. It was established as one of the six areas of co-operation under the framework of the Belfast Agreement of Good Friday 1998. The principal objectives of the company are to increase tourism to the island of Ireland and to support Northern Ireland to realise its tourism potential.

Tourism Ireland operates in 23 markets overseas and, in delivering its marketing campaigns, the organisation works closely with Fáilte Ireland and Tourism Northern Ireland to ensure our promotional themes overseas align with the development priorities of the industry at home. It is an integrated collaborative approach. I acknowledge the presence of my colleagues from Fáilte Ireland, the Irish Hotels Federation and Irish Tourist Industry Confederation. I propose to give a brief overview on overseas tourism to Ireland and speak about some of the factors that have arisen as a result of the recent Brexit referendum.

The island of Ireland has seen five consecutive years of growth in overseas tourism, and 2015 was a record-breaking year when we welcomed 9.5 million overseas visitors to the island of Ireland, delivering revenue of almost €5 billion. Growth has continued in 2016. The latest CSO figures for the Republic of Ireland indicate we have had the best ever January to September period, with figures growing by 12% when compared with the first nine months of 2015. Visitor numbers to Northern Ireland grew by 8% in the first quarter of 2016, the first period for which official figures are available, and industry feedback points to a record summer season. We have seen exceptional results from North America, Britain, and mainland Europe this year, with important markets such as Italy, Spain, France and Benelux all recording really strong growth. Britain is the largest single market for tourism to Ireland, delivering 42% of total overseas visitors and 24% of total revenue. Other priority markets in terms of visitor numbers and revenue are North America, Germany and France.

In marketing the island of Ireland overseas, a number of important factors are at work. Policy interventions by the Government, such as the zero rating of the air travel tax and the reduction in VAT on tourism services from 13.5% to 9%, have undoubtedly facilitated the introduction of new air routes, enhanced competitiveness and helped to facilitate the kind of growth we see in overseas tourism today. Continued investment by the Irish Government and Northern Ireland Executive in tourism experiences such as the Wild Atlantic Way, Ireland’s Ancient East, Dublin, Titanic Belfast and the National Trust's Giant’s Causeway visitor centre helps to capture the imagination of overseas visitors from throughout the world and keep Ireland in the international spotlight.

Tourism Ireland has also invested in developing a significant digital footprint in recent years and, increasingly, leverages its strength in digital and social media in all markets. This has yielded considerable marketing efficiencies and created opportunities with new audiences worldwide. Our global campaigns reach an audience of up to 700 million prospective visitors through traditional and digital marketing.

Interest in visiting the island of Ireland has remained high among potential visitors in our top source markets. Perceptions of Northern Ireland as a place to visit for holidays have improved over time. While interest in Ireland is currently strong, this cannot be taken for granted in a highly competitive global marketplace in which more than 200 destinations compete for business.

The recent Brexit referendum has undoubtedly posed challenges in the short to medium term and Tourism Ireland has been actively monitoring the implications for the tourism industry on the island of Ireland. In terms of the British market, the main factors that arise relate to consumer confidence and competitiveness. General economic uncertainty impacts on consumer confidence which, in turn, has consequences on demand for travel. According to Oxford Economics, the number of British people travelling abroad to all destinations is forecast to decline by 2.4% in 2017. This will undoubtedly have consequences for the island of Ireland.

Since the referendum, sterling has depreciated by approximately 18% against the euro, which has made the eurozone as a whole more uncompetitive. Given our dependence on Britain as a source market, Ireland is likely to be more impacted than other European countries. Also, in the context of the depreciation of sterling against the dollar, the UK has become a very competitive destination for potential visitors from the United States in 2017. This makes our industry’s value for money message more important than ever in our promotions overseas.

The common travel area between Ireland and the UK is a key priority for tourism. To give just one example, Northern Ireland has seen strong growth in overseas tourism in the recent years, with 950 international tour operators now programming Northern Ireland as part of the island of Ireland. A total of 75% of visitors from North America to Northern Ireland and 68% of visitors from mainland Europe to Northern Ireland arrive via the Republic of Ireland. The future of the common travel area is, therefore, vital for our business.

The British-Irish visa scheme and the short-stay visa waiver programme have provided a significant boost to our marketing efforts in China, India and the United Arab Emirates. Tourism Ireland and VisitBritain signed a memorandum of understanding in April 2014 with the aim of working more closely together to promote the island of Ireland and Great Britain as destinations to be visited as part of a single holiday. In the past two years, the two organisations have worked together to highlight the British-Irish visa scheme in China and India. China is a key example of a country from which the island of Ireland has seen significant growth in visitor numbers since the advent of the British-Irish visa scheme. This year, we expect to welcome approximately 50,000 Chinese visitors in 2016, thereby reaching the growth target we set for 2017. We welcome the announcement last month that the short-stay visa waiver programme is to be extended for a further five years to October 2021. The ongoing status of the British-Irish visa scheme will require clarification.

Looking ahead to 2017, Oxford Economics has revised its tourism growth forecasts for the island of Ireland downwards for the fourth time since the Brexit referendum. It has identified Ireland and Northern Ireland as the destinations most exposed to and impacted by Brexit. This is a matter that Tourism Ireland, Fáilte Ireland and our industry partners will continue to keep under review.

While Britain will continue to be an important market, Tourism Ireland has in recent years shifted its focus towards mainland Europe and North America as our most important sources of holiday visitors and revenue. This diversification approach will continue as a strategic priority in our corporate plan for the period from 2017 to 2019. Looking at growing our share of visitors from further afield, a review of new and developing markets is under way, led by Tourism Ireland and working closely with the Departments of Transport, Tourism and Sport and Foreign Affairs and Trade, Fáilte Ireland and representatives of the tourism industry. The strategy will focus on marketing and on the training and upskilling that is required for the tourism industry to meet the needs of visitors from these markets.

I returned this morning from World Travel Market in London, the world’s largest travel fair, at which Tourism Ireland and 70 tourism businesses from across the island promoted. World Travel Market attracts more than 50,000 international travel professionals, with 180 destinations all vying for business. The environment there points to a very competitive marketplace. I assure the joint committee that Tourism Ireland and the Irish tourism industry is out there fighting for business for 2017, which will be a challenging year for all of us. I thank members for the opportunity to present today. I will be pleased to discuss these matters in greater detail presently.