Oireachtas Joint and Select Committees
Wednesday, 2 May 2018
Joint Oireachtas Committee on Transport, Tourism and Sport
Tourism - An Industry Strategy for Growth to 2025: Discussion
9:30 am
Mr. Maurice Pratt:
Deputy Troy is correct that the VAT reduction was set out as a temporary measure. We are very conscious of that. We did some research, which we are happy to share with the Deputy on the return to the Exchequer and its benefits. This strategy highlights the importance of competitiveness in tourism. VAT is part of that. The Deputy is correct that hotel rates are also part of the mix within the tourist experience. Tourists look for good value for money. If one does not provide it, they can go elsewhere. In that context, there is the reality of Brexit. Although it has not happened yet, the currency decline has made Britain more competitive for European tourists to visit because it is better value for money. They are factors that must be taken on board by the industry.
The question of hotel bedrooms is one of supply and demand. There is a significant amount of supply coming on stream. It has not come as fast as we would like to rebalance competitiveness but it is happening. The report refers to the need for 11,000 new hotel rooms nationwide between now and 2025. Knowing how long hotel developments can take in the planning process, it is possible that all those extra rooms will not come on board in that time. Hopefully they will but there is a seven year timeframe, and if we start planning now there is a better chance of delivering those numbers.
The OPW has fantastic assets which are very well deployed for tourists but we think that there is an opportunity for more collaboration with the OPW in areas such as the extension of trading hours for those sites. A tourist to Ireland might come for a week, and for example, Sunday will be one seventh of their total time here. Opening hours - and this also applies to some areas of the private sector - are not always what a tourist would want and expect. These are the types of things where we believe we can and should do better.
I think the Hidden Heartlands is a good start and a good brand. As always the case with new brands, there will be some growing pains. Crucially, it will come down to two things, namely Fáilte Ireland having sufficient investment to put behind the brand and private industry having sufficient confidence in the development of that brand to invest in new tourist product. We have seen quite a lot of this already with ambitious plans for greenways across the country, for example, and the use of the natural resource of the Shannon on both sides.
I think everything else has been picked up. There was a question on whether we had any specific proposals to make on the UK market and so forth. That largely revolves around the need for more marketing investment. We look at where we sit in respect of the share of voice versus key competitive markets like Scotland. We are competing with it for tourists from England. When we add in the competitive issue and the fact that Scotland has increased its investment in marketing, we are simply not getting the same share of mind with potential holidaymakers. That is the key point in the short term.
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