Michael D Higgins (Galway West, Labour)
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Question 30: To ask the Minister for Arts, Sport and Tourism in view of the decline in visitors from Britain over recent years, his views on whether this represents a significant threat to the tourist industry here in view of the traditional reliance on British visitors; his further views on the reason for this decline; and if he will make a statement on the matter. [28318/05]

John O'Donoghue (Kerry South, Fianna Fail)
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Responsibility for marketing the island of Ireland in all overseas markets, including the British market, rests with Tourism Ireland. While 2004 saw overseas visitor numbers grow to a record 6.4 million, the British market, which accounts for 58% of our visitors, declined by 1%, following more than a decade of sustained growth. The softness of the market can be put down to a combination of factors including competition growing faster than the pool of travellers. Europe as a whole is losing market share to new centres in the Middle East and Asia Pacific. Other factors include eastern European states gaining market share to the detriment of other European destinations. Low cost access to these and other destinations, coupled with low prices in eastern Europe, have proved very attractive to British holidaymakers. Surveys show that British tourists, in common with others, are increasingly price sensitive when making holiday decisions. On a more general note, consumer behaviour is changing, as is the type and duration of holiday-taking. The whole process of reaching potential customers and how they choose and buy their holidays is undergoing dramatic change in the British and in other markets.

In conjunction with industry leaders, Tourism Ireland, has undertaken a root and branch review of the British market. The review identified the reasons for changes in British consumer behaviour and the responses needed by the industry to secure sustainable growth from the market. The review emphasised the urgent need to re-think how the Ireland holiday offer is presented and experienced — whether this means developing new takes on existing products, developing new ways of reaching the target audience or making sure that those who travel here experience a holiday that is simply not available anywhere else in the world.

As a result, a new strategy for Britain was developed and launched last April and is now being implemented. While CSO figures for the first seven months of the year show an increase in the number of British visitors of about 2%, these figures do not necessarily give ground for complacency. In line with Government policy, Tourism Ireland is also seeking to broaden Ireland's source markets and has focused particularly on mainland Europe. Up to July of this year, mainland European visit numbers were up over 19%.

Our new strategy for Britain is certainly a strong platform for growing business from this market which many consider the most competitive in the world. However, this year has seen Britain face some challenges on the economic and security fronts and these may mean a more challenging scenario for the Irish tourism sector in attempting to grow business there.