Written answers

Wednesday, 28 September 2005

Department of Arts, Sport and Tourism

Tourism Industry

9:00 pm

Photo of Denis NaughtenDenis Naughten (Longford-Roscommon, Fine Gael)
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Question 633: To ask the Minister for Arts, Sport and Tourism the steps he is taking to address the increase in regional imbalance within the tourism sector; the specific steps he intends to take to support tourism in the BMW region; and if he will make a statement on the matter. [25126/05]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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As the House will be aware, I have no direct responsibility concerning individual actions or measures on tourism promotion or development insofar as specific areas of the country are concerned. These are, of course, a day-to-day function of the State tourism agencies.

As I have already advised the House, Fáilte Ireland, in response to a recommendation in the tourism action plan set out in the report of the tourism policy review group, towards the end of last year commissioned PriceWaterhouseCoopers, PWC, to conduct a major consultancy study of regional tourism structures, as it sought to determine how best to carry out its new development mandate countrywide. This work was supplemented by a short engagement — facilitated by a small independent group, chaired by Mr. John Travers — with the relevant parties in order to satisfy interests in the Dublin region that the mechanisms of consultation were complete.

The PWC report highlighted the need for a much wider brief for regional tourism, playing a strategic rather than administrative role and inputting more directly into national policy. It recommended a greatly increased emphasis on targeted marketing, product development and enterprise support. It suggested establishing an integrated linkage between regional tourism strategy and national policy and exploiting avenues to leverage increased resources.

At the end of July, I indicated to Fáilte Ireland that I was satisfied that it should proceed with the proposed revision of the regional tourism structures on the basis of the PWC and Travers reports. An implementation group is being established to assist Fáilte Ireland in implementing the recommendations. Mr. Finbarr Flood has agreed to chair this group and has already begun his work.

At a time of overall national tourism growth, I remain concerned that the issue of regional spread should be proactively and energetically addressed. In that context, I am pleased that the programmes and initiatives being operated by the State tourism agencies and the action plan set out in the report of the tourism policy review group fully reflect this objective.

Such programmes and initiatives include: the strategic investment in the sustainable development of tourism capital infrastructure in underperforming areas through the tourism product development scheme, which aims to match the quality of the product available on the ground with ever greater consumer expectations; the differential levels of support offered to regional tourism authorities for marketing purposes; expanded domestic tourism marketing campaigns; the use of predominantly rural imagery in the advertising and promotion of Ireland, both at home and abroad; the regional coverage with respect to visiting media; and the specific focus on achieving a wide spread of visitors in relation to access transport policies.

In total this year, Fáilte Ireland is investing in the order of €27 million on developing regional tourism, from supporting local festivals to building capability and strengthening the tourism product itself. In relation to the promotion and development of tourism by the regions themselves, Fáilte Ireland is channelling in the region of €7.4 million directly into the regional tourism companies to strengthen and enhance their operational and marketing capabilities this year. This investment is designed to ensure both a high quality visitor servicing experience at key tourist information offices and also a strong overseas promotional effort.

In their plans for 2005, both Tourism Ireland and Fáilte Ireland will roll out a number of very innovative approaches which should heighten the regional impact of Ireland's marketing activities both nationally and overseas. All regions will feature prominently in the full range of marketing activities. A dedicated marketing fund for tactical co-operative initiatives with the regional tourism authorities and their members was established for 2005. A region to region approach is being adopted in Britain which is capitalising on direct access links to the regions. Specific campaigns promoting the western seaboard have been mounted in North America. A sponsor-a-region approach has been adopted in Europe whereby each market office is focussing attention alternately on a particular Irish region in order to enhance the awareness of the local trade of what that region has to offer. An enhanced consumer website with increased functionality and a strong regional input is providing for more dynamic and up-to-the minute packages to entice the domestic traveller. A strong focus on event-based holidays is being complemented by a more streamlined and targeted festivals and cultural events fund which will continue to favour the lesser-developed regions.

A special €1 million tourism marketing campaign to attract overseas visitors to Ireland's western regions, initiated by Ireland North West, Ireland West, and Shannon Region, in conjunction with Shannon, Knock, Galway, Donegal, and Derry airports, Fáilte Ireland and Tourism Ireland, is an example of what can be done when all the key agencies, and the airports, invest together to win more business for their region as a whole.

There are now well over 200 flights with more than 30,000 inbound seats available weekly on flights to Shannon, Knock, Galway, Donegal and Derry from 14 different UK airports alone. That is a huge market with significant growth potential and required a targeted initiative. Accordingly, while the campaign, which I was pleased to launch during the summer, touches on all of Ireland's major overseas markets, in 2005 it focuses particularly on the UK market.

Photo of Denis NaughtenDenis Naughten (Longford-Roscommon, Fine Gael)
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Question 634: To ask the Minister for Arts, Sport and Tourism the steps he is taking to address the impact of inflation on the tourism sector; and if he will make a statement on the matter. [25127/05]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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In the September 2003 report of the tourism policy review group, New Horizons for Irish Tourism: an Agenda for Action, we have an integrated strategy designed to realise the group's vision for the tourism sector — a dynamic, innovative sustainable and highly-regarded sector offering overseas and domestic visitors a positive and memorable experience beyond their expectations. This strategy is not just for the tourism agencies and Government generally; it is also a strategy for the tourism industry itself to embrace as it tackles the many challenges it meets from increased competition, both in Europe and globally.

I believe that, since the publication of that report, the public sector has developed a greater appreciation of the inter-dependency of many of the activities in which the tourism industry is engaged, and of the policies that must be followed if the sector is to realise its full potential. For my part, I will continue to work with my colleagues in Government in contributing to the continued strong performance of the economy making Ireland an attractive place in which to live and work.

The latest CSO release on consumer prices, as measured by the CPI, shows that the annual rate of inflation fell to 2.3% in August. This compares to an inflation rate of 4.6% for 2002, 3.5% for 2003 and 2.2% last year — the lowest rate of increase since 1999.

However, it is worth noting that inflation in the restaurant and hotels category for the first eight months of 2005, at 3.2%, is about 29% lower than the same period last year, when it was running at 4.5%. It is also worth noting that inflation in the restaurant and hotels category was slighter lower than the rate of inflation in the services sector in general.

The wider reality of our economy is that Ireland continues to enjoy low unemployment, unprecedented rates of job creation, rising incomes, budgetary stability, low inflation and a level of stable economic growth which is the envy of western Europe. These welcome features have been the hallmarks of our economy since 1997 and are secured by the policies and management of this Government.

As the Taoiseach has said, in his foreword to the annual competitiveness report 2005, "Ireland is no longer a low cost economy. In order to maintain and enhance competitiveness in a higher cost economy, a greater focus on productivity across all sectors of the economy is essential... Competitiveness is a key focus of Government policy. The Government is determined that the conditions for enterprises operating in Ireland should be as favourable as possible."

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