Written answers

Thursday, 26 October 2006

Department of Arts, Sport and Tourism

Tourism Promotion

5:00 pm

Photo of Denis NaughtenDenis Naughten (Longford-Roscommon, Fine Gael)
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Question 15: To ask the Minister for Arts, Sport and Tourism the steps he is taking to support regional tourism; and if he will make a statement on the matter. [34698/06]

Photo of Olivia MitchellOlivia Mitchell (Dublin South, Fine Gael)
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Question 29: To ask the Minister for Arts, Sport and Tourism his views on whether the growth of visitor numbers to this country is not matched by a growth in revenue, which is affecting rural hotels in particular, as low cost travel is bringing in a lower spending tourist for shorter periods of time; and if he will make a statement on the matter. [34876/06]

Photo of Denis NaughtenDenis Naughten (Longford-Roscommon, Fine Gael)
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Question 45: To ask the Minister for Arts, Sport and Tourism if he has satisfied himself with the regional balance of tourism; and if he will make a statement on the matter. [34697/06]

Photo of Bernard AllenBernard Allen (Cork North Central, Fine Gael)
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Question 49: To ask the Minister for Arts, Sport and Tourism if he has established the boards of the reconstituted RTA's; the role they will play in the future development of tourism here especially in addressing the growing east/west divide as regards tourism spend; and if he will make a statement on the matter. [34706/06]

Photo of John O'DonoghueJohn O'Donoghue (Kerry South, Fianna Fail)
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I propose to take Questions Nos. 15, 29, 45 and 49 together.

As I have advised the House on a number of occasions this year, most recently on 6th July, individual actions and measures relating to tourism promotion or development at regional level are day-to-day functions of the State Tourism Agencies.

CSO statistics for overseas tourism for 2005 are very positive with almost 7 million visitors, and overseas revenue earnings, excluding carrier receipts, up by almost 8% to €3.5 billion. These results represent a very robust performance by the sector in an increasingly competitive industry internationally. Performance to date in 2006, too, is very encouraging with CSO figures for the first six months of the year showing almost 5.3 million visits to Ireland — an increase of 11% over the same period in 2005, well ahead of Tourism Ireland's target of 4.9%. According to the latest CSO data, the comparable increase in total foreign exchange earnings from tourism was 7% for the first six months of the year by comparison with the same period last year.

Growth in earnings is not matching the growth in numbers primarily because a 22% increase in the number of visitors from Mainland Europe for the first six months was associated with an increase of only 4% in expenditure. This reflects the large increase in arrivals from the EU accession countries, and Poland in particular. There is also evidence of a drop in the daily spend from the traditional tourist markets. A similar situation exists with regard to visitors from the rest of the world where a 5% increase in visitor numbers was accompanied by a 3% drop in expenditure. The failure of expenditure from 'rest of world' visitors, despite a 13% increase in spend per day, to match the growth in such visitor numbers, reflects a shortening of the average length of stay. On the other hand, spend by British and North American visitors has kept pace with the increase in their numbers.

While overall the relative strength of the British and North American spend augurs well for the industry, there is concern regarding expenditure levels from the main European markets — although there may be an improvement in the performance ex Mainland Europe during the peak holiday months of July and August. Both Tourism Ireland and Fáilte Ireland are continuing their efforts to help the industry to address the issues behind this trend that is very much a global phenomenon and by its nature impacts on the holiday business at a regional level.

The home holiday market is an increasingly important component of the tourism business in Ireland particularly in terms of seasonal and regional spread. In 2005, 86% of holiday trips and 89% of holiday nights by domestic tourists were spent outside the Dublin area. This offsets, to some extent, the relative strength of Dublin in the overseas visitors market. In 2005, expenditure on domestic tourism was up across all regions — albeit at different rates and while CSO figures for expenditure on domestic tourism to date in 2006 are not yet available, industry reports to Fáilte Ireland up to September of this year are encouraging.

I believe that the new regional tourism structures will help to optimise the benefits of our tourism success across the regions. As Deputies may be aware, on 29th August last I announced the appointment of the Chairs of the five new Regional Tourism Development Boards. I understand from Fáilte Ireland that four of the Boards are now in place, and that they expect the fifth to be finalised shortly. One of the Boards, the North West Regional Tourism Development Board, held its inaugural meeting on 13 October last, to be followed by the South East Regional Tourism Development Board on 27 October. The other Boards are expected to hold their inaugural meetings early in November. The key priority for the new Boards is to ensure a greater focus on the individual needs of each region at a national level and direct involvement for the regions in the development of national policy and tourism strategy.

With the new regional tourism arrangements facilitating enhanced tourism performance in the regions, various region specific initiatives introduced this year by Fáilte Ireland and Tourism Ireland Ltd will further help to address this situation.

In 2006, Fáilte Ireland is investing in excess of €60 million on developing regional tourism, from supporting local festivals to building capability and strengthening the tourism product itself. Of this amount Fáilte Ireland is channelling €10 million directly to the regions 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.

The "Super-Regions" initiative launched by Fáilte Ireland and Tourism Ireland earlier this year is based on new strategic marketing alliances between adjoining Tourism Regions, positioning them to more fully exploit international market opportunities. The initiative, which presents a better, more tangible concept of Ireland's regions to potential consumers abroad, has been well received by the industry.

Other Fáilte Ireland key initiatives include:

The new Local Area Marketing Fund to support the industry in generating additional business in 2006 and 2007.

An investment of €4m by Fáilte Ireland to sustain the recent remarkable growth in the home market.

Activities and attractions — things to do and see — are central to increasing visitor spend and it is especially important for rural areas to configure their accommodation and activity offering to appeal to Irish and overseas tourists. Over the past three years, Fáilte Ireland, under its ERDF co-funded Tourism Product Development Scheme, has allocated over €45 million to support 70 capital projects across the country. It will continue to assist in product development including, for example, looped walks, angling, festivals, cycling routes, equestrian, golfing and water based activities, and to support, through its €1million innovation fund, industry groups seeking to develop and market new tourism initiatives.

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