Brendan Howlin (Wexford, Labour)
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Question 71: To ask the Minister for Arts, Sport and Tourism the efforts that are being made to promote the Punchestown festival as an Irish Cheltenham; the amount of money that the festival generates for the economy; and if he will make a statement on the matter. [15151/06]

John O'Donoghue (Kerry South, Fianna Fail)
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Last month I launched an economic impact report on the 2005 Punchestown festival, carried out by NUI, Maynooth. The report estimated that the economic contribution of the Punchestown festival is in the region of €43 million. The report calculates the direct economic effect of the Punchestown festival to be almost €33 million. During the four days of the festival on-course spending totalled €7.6 million, off-course expenditure including accommodation, food and entertainment was €17.8 million while a further €7.5 million was spent on travel and subsistence. To this estimate of direct expenditure, the report added an additional €10 million in a multiplier of indirect economic effects. When added together these figures bring the total estimated economic contribution of the Punchestown festival to almost €43 million.

The report also reveals that almost one fifth of attendees at the festival were from overseas, mainly the UK, demonstrating the attractiveness of the Punchestown festival as a key leisure and tourism event in Ireland. The report underlines the significance of horse racing economically and as a tourist attraction in Ireland, it also reinforces the fact that the Irish racing industry contributes to the social and economic fabric of Irish life.

I am aware that the HRI specifically targets overseas visitors to Irish race meetings particularly racegoers in the UK. For 2006, it has earmarked approximately €200,000 for overseas promotion of horseracing. The UK racegoer in particular presents an outstanding opportunity for inward tourism based on the Irish racing product. It is estimated that in the region of 60,000 UK visitors come racing here each year and the three agencies, Horse Racing Ireland, Fáilte Ireland and Tourism Ireland consider that there is substantial potential for growth from this market given the fact that in excess of 6 million attendances are recorded annually at race meetings in the UK.

This is a highly affluent target sector with a propensity to spend on hotels, restaurant, car hire and other forms of entertainment. UK racegoers are used to paying as much as double the Irish rate for reserved enclosure access, which, combined with the favourable sterling-euro exchange rate, give us an unprecedented opportunity to offer a high quality racing experience at relatively better value than is available in the UK.

In addition to its own initiatives, HRI has a long-standing relationship with Fáilte Ireland and Tourism Ireland in jointly promoting Ireland as a destination for Racing Tourism. At the behest of my Department, the three agencies are actively exploring possible synergies and in that context, HRI specifically identified the Punchestown festival as an attractive event to grow inbound racing tourism and committed to a significant marketing campaign in the UK in 2006 as part of a joint campaign with both tourism agencies.

The Government has ensured the success of the horseracing industry by putting in place the long-term financial structures, the funding and the conditions in which Irish horse racing now flourishes. The recent report demonstrates how that investment and commitment is paying back in economic terms. I am confident that the combined expertise of the HRI, Fáilte Ireland and Tourism Ireland will produce the right result for horseracing and for tourism particularly in the promotion of the Punchestown festival as an Irish Cheltenham.