Annual Report 2011 Xx Downhill Strand, Londonderry Tourism Annual Report 2011 1

Contents

2 Chairman’s Statement

6 Chief Executive’s Review

10 Tourism Ireland Board

13 Overview of Markets

20 Overview of Central Marketing

24 Overview of Corporate Services

27 Report and Financial Statements Xx Temple Bar, 2 Chairman’s Statement Tourism 2011 IrelandAnnualReport Chairman Brian Ambrose

a strong performance in difficult indifficult a strongperformance in mostofourkeymarkets 2011, data suggeststhatmarketshare grew resilient andencouragingly, provisional the tourismindustryprovedto be anticipated globaleconomicrecovery, Against thebackdropofaslower-than- confidence athomeandoverseas. trade andimpacteduponconsumer to amarkedslowdowninworld the endofyearalsocontributed intheEurozone towards Uncertainty fiscal cutbacksinmanycountries. tightening inEuropeandmajor final quarter, withcreditconditions prospectsweakenedinthe growth to2011start fortheEurozone, of 2012.first quarter Afterastrong inthe the returntonegativegrowth asisevidencedby remains fragile, in 2011. RecoveryinGreatBritain markets States andinkeyemerging were mildlypositiveintheUnited forecasts Overall, economicgrowth years fortheindustry. few following averychallenging numbers totheislandofIreland, inoverseasvisitor to growth 2011 sawawelcomereturn ‘Jump intoIreland’–isdesigned to The tagline forthenewcampaign– differentiates usfromourcompetitors. the destinationinawaythatclearly press, outdoorandonline–presents –forTV,advertising cinema,radio, across theworld.The newsuiteof reaching upto200 millionpeople for rolloutacrossmarketsin2012, unveiled tostakeholdersinlate2011, into Ireland’. The newcampaignwas campaign,‘Jumpglobal advertising included thedevelopmentofanew and actionplanfor2011 which development ofamarketingstrategy return. The reviewinformedthe areas thatwoulddeliverthegreatest concentrated onthemarketsand wouldbe ensure thatourefforts to review ofitsmarketingstrategy acomprehensive Ireland undertook In planningfor2011, Tourism Strategic Priorities inoverseastourismnumbers. growth firmly onbuildingthereturnto optimism, withthefocusfor2012 2011 closedonanoteofcautious the continuingeconomicturmoil, economic circumstances.Despite

Tourism Ireland Annual Report 2011 3

convey a sense of fun and enjoyment. promotional campaigns with air and It was developed in consultation with sea carriers and case-making with An important element of Tourism a wide range of stakeholders at home airports and airlines to support the Ireland’s mandate is to support and overseas and tested strongly restoration of services. Northern Ireland to realise its tourism among consumers. Focus on the Diaspora was increased potential. Tourism Ireland promotes The top four markets which deliver significantly in 2011. Over 70 million Northern Ireland as part of our global three-quarters of our visitors – Great people worldwide claim with destination marketing programmes Britain, the United States, the island of Ireland. Tourism Ireland and also undertakes specific, and France – were identified as the worked to exploit this interest in 2011 additional marketing activity, in priority for Tourism Ireland in 2011. in major markets – including Great partnership with the Northern Ireland Restoring the Great Britain market Britain, the United States and Tourist Board and Northern Ireland to growth was a critically important – to capitalise on the recent availability industry partners. objective for Tourism Ireland in of online census records. Genealogy We were delighted, during 2011, to 2011. Marketing spend in Britain was selected as a key theme of the achieve a significant increase in the was increased by +30% to deliver marketing push in the United States, number of Northern Ireland industry on this objective. The historic visit building on the visit of President partners who participated in our of Queen Elizabeth II to Ireland in Obama in May. Tourism Ireland also overseas promotional programmes May gave Tourism Ireland a superb continued to target the Ulster Scots or across a range of markets. This was platform for its marketing campaigns Scots Irish communities, particularly essential in helping us to bring the in Great Britain. I am confident that in the United States and Canada, with Northern Ireland holiday experience to both historic visits by Queen Elizabeth invitations to visit the home of their life and as we sought to prepare the II and US President Barack Obama, ancestors in Northern Ireland. With way for Northern Ireland’s special year which received widespread and the announcement by the Minister of of ni2012. positive exposure in media across Transport, Tourism and Sport of ‘The the world, have provided a welcome Gathering Ireland 2013’, an invitation Specific Northern Ireland-focused boost for tourism to the island. to the Irish Diaspora around the world initiatives included the roll out of to come and join in Ireland’s renewal, the ‘Home of Champions’ Restoring and enhancing air services Tourism Ireland will further develop its advertising campaign, designed to was also a major strategic focus focus on the Diaspora in the second capitalise on Darren Clarke’s great for Tourism Ireland in 2011. This half of 2012. British Open victory at Royal St included investment in co-operative Xx Strandhill Beach, Sligo 4 and Dublin’s Doorstep, in addition and Dublin’sDoorstep, inaddition Ireland South,the Lakelands,Dublin campaigns showcasingIreland West, Ireland implementedspecific regional Shannon Development,Tourism Fáilte Ireland,DublinTourism and in 2011. Inco-operationwith be akeyfocusforTourism Ireland ofIrelandcontinuedto the regions overseastouriststovisit Encouraging Regions campaign. Ireland’s newglobaladvertising ofTourismtelevision ad,aspart of our‘Jump Ireland’ intoNorthern new marketingplansandtheunveiling 2011 closedwiththelaunchofour consumers inrecentyears. Irelandamongoverseas to Northern which havere-emergedinrelation concerns oversafetyandsecurity helps toaddressandcounterthe Ireland,italso forNorthern strategy element ofouroverallmarketing themselves. While thisisanimportant year, toexperiencethedestinationfor Irelandthroughoutthe visit Northern broadcast mediawerealsoinvitedto Many touroperatorsandprint Ireland. exposure forNorthern and theGCC countriestoincrease new marketsincludingChina,India and lifestylemediainestablished tour operatorsandwithkeytravel closely withtraditionalandonline Tourism Irelandcontinuedtowork Canada, Italy, GermanyandFrance. key marketsincludingGreatBritain, were leveragedbyTourism Irelandin Ireland, event everstagedinNorthern Music Awards, thebiggestmusic highlighted. And,theMTV where motoringholidayswerealso as citybreaksinGreatBritain, and Londonderrywerepromoted Openchampionship.Belfast the US McIlroy andGraemeMcDowellin George’s andpreviouswinsbyRory Tourism 2011 IrelandAnnualReport were deemedto besatisfactory. and Remuneration Committeesand received fromtheRiskManagement were reviewed andapproved.Reports 2013. The Business Planfor 2012 was 2011 andtheCorporatePlan2011- objectives setintheBusiness Plan monitoring wasongoingagainst market wasapproved;performance Obama; thereviewofFrench President andUS Queen ElizabethII thebenefitsofvisitsby maximise considered, aswerepromotionsto around StPatrick’s Daywere approved; globalmarketingcampaigns was new suiteoftourismadvertising and communicationsbriefsthe advertising eMarketing strategies; consumer engagementand airaccess, market togrowth; toreturntheGreatBritain strategy during theyearincluded Matters consideredbytheBoard with localindustryrepresentatives. formemberstoengage opportunities afforded Belfast andWestport, island includingColeraine,Dublin, held atvariouslocationsaroundthe course of2011 andthemeetings, The Boardmetninetimesoverthe Governance vigorously. holidays werealsopromoted tour. Events,citybreaksandtouring of ourgolfersontheinternational capitalised onthecontinuedsuccess campaign Champions’ advertising global audienceandour‘Homeof a golfingexperienceto our great valuable platformtoshowcase Castle inSeptemberprovideda markets. The SolheimCupatKilleen Germany, France andotherkey in GreatBritain,theUnitedStates, campaignswerepromoted Regional programmes. in ourglobaldestinationmarketing prominently to presentingallregions like tothankHugh Friel whoresigned asset totheorganisation. Iwouldalso experience havebeenaninvaluable and since itsinception.Herexpertise role andasamemberoftheBoard her hugecontribution–bothin this outgoing chairperson,AnnRiordan,for tothankour I wouldlikeparticularly levelinbothjurisdictions. regional at and FáilteIreland;ourpartners IrelandTouristthe Northern Board Ministerial Council;ourcolleaguesin and Investment;theNorth/South ofEnterprise,Tradethe Department Transport, Tourism and andSport of –theDepartment departments like tothankthestaffofbothsponsor experienced in2011. Iwouldalso invisitornumbers return togrowth has beencriticaltoachievingthe overseas tourisminbothjurisdictions andprioritisationof whose support Enterprise, Trade andInvestment, Ministerfor Arlene Foster MLA, of StateforTourism and andSport; MichaelRingTD,Minister and Sport; TD, MinisterforTransport, Tourism throughout theyear:LeoVaradkar of individualsandorganisations andcollaborationofanumber support I wouldliketoacknowledgethe tourism totheisland. industry –withtheaimofboosting demonstrated theirconfidenceinour funding intheseinitiatives–and invested matchingprivatesector who and othercommercialpartners also liketothankourmanycarrier in theperiod2011/2012. Iwould initiatives withkeycarrierpartners co-operativemarketing to support the provisionofadditionalfunding Ireland)for Investment inNorthern ofEnterprise,TradeDepartment and intheSouthand and Sport ofTransport,Department Tourism (the our sponsordepartments toboth My Boardisgrateful Acknowledgements Tourism Ireland Annual Report 2011 5

as chairman on 3 May 2011 having prominently on the world stage. I have economies. That said, at time of guided the organisation during some been enormously impressed from writing, there have been signs of of the most difficult days our tourism what I have seen of the team so far modest improvement across a range industry has experienced. Together and I look forward to working with of indicators in our top four markets with my fellow Board members and them in 2012 and beyond. of Great Britain, the United States, colleagues in Tourism Ireland, we Germany and France. wish them both every success for the Future Prospects For our part, we are focused on future. As I look ahead to 2012, I am capitalising upon every single I would also like to acknowledge and cognisant that the global economic opportunity out there in markets thank my fellow Board members for environment and outlook for across the world. 2012 looks set to their support throughout 2011 and international travel remain uncertain; be a busy and important year for over the course of their full term yet we remain cautiously optimistic tourism to the island with a range of office. On 18 December, a new that the return to growth in 2011 of events including the opening of Board took up the reins, under my will be further developed in 2012. Titanic Belfast, as part of the ni2012 chairmanship, and I look forward to Our goal is to build on this growth programme, and the promotion of working with them to build on the consistently so that, in 2015, we ‘The Gathering Ireland 2013’, to help promising early signs of recovery that will welcome over 9 million visitors, us keep the island to the fore for we have seen in 2011. exceeding the record year for tourism potential visitors across the world. Our of 2007. intention is to continue to increase Finally, I would like to acknowledge Tourism Ireland’s market share and and thank the team at Tourism However, prospects for travel and to win as much of that business as Ireland, lead by Niall Gibbons, based tourism growth in Europe in 2012 possible in 2012. at home and in the overseas markets, remain precarious. Consumer for their enormous contribution over spending is set to tighten as austerity the course of 2011. In challenging measures kick in, and there continues Brian Ambrose economic circumstances, they to be considerable uncertainty Chairman continue to do an outstanding job in around the future of some Eurozone ensuring that the destination features 6 Tourism Ireland Annual Report 2011

Chief Executive’s Review

Following some of the most opportunities to showcase the difficult years for travel and island to a huge audience of tourism, 2011 saw a welcome potential holidaymakers, not only in return to growth in overseas Great Britain and the United States, visitors. Provisional results for 2011 indicate that almost 7.3 million people visited from around the world. While here, these visitors spent almost €3.4bn/£2.8bn, helping to support over 200,000 jobs across the Niall Gibbons island. Chief Executive Tourism Ireland’s main focus was on winning market share in our four The historic visit of Queen Elizabeth II provided a major boost to the tourism industry key tourism markets of Great Britain, the United States, Germany and but across the world. They gave France, which together contribute us superb platforms for additional nearly three-quarters of all visitors marketing campaigns, following to the island. In addition, we in the footsteps of the visitors continued to promote in another and highlighting our scenery and 18 markets overseas, including in our welcoming people, as well as emerging markets like China, India unique aspects of our culture and and the GCC, with lower levels of heritage, our literature, our food and investment. Our priority was to product strengths like genealogy ensure that the destination was ‘top and equestrian amenities. of mind’ for potential holidaymakers across the world and to return A large international media overseas tourism to growth. Our message was that there had never

Connemara, Galway been a better time to visit the island of Ireland, with better-than-ever value from industry partners and great things to do and see.

2011 proved to be a year of opportunity for the tourism industry and Tourism Ireland and industry partners worked hard to make the President Obama greets locals in Moneygall, Co Offaly most of each and every one of them. contingent covered the visits, State Visits generating positive publicity worth an estimated €300m/£246m The historic visits of Queen through 38,000 articles and Elizabeth II and US President Barack broadcast features in 110 countries Obama in May offered the tourism across the world. Tourism Ireland industry a major boost in two of has worked hard to build on the our most important markets. The positive legacy from these historic visits provided unprecedented visits. Tourism Ireland Annual Report 2011 7

Northern Ireland for overseas travel trade, media and of the future like China, India and consumers during 2011. Overseas the GCC which are experiencing Northern Ireland also enjoyed its visitor numbers to Northern Ireland economic growth and an increase share of the limelight in 2011 and grew by +4% in 2011 and revenue in outbound travel. Our priority is received a significant boost from a by +20% and this augurs well to build awareness of the island number of high profile events. Rory for 2012, 2013 and the future, as a premier holiday and business McIlroy’s historic US Open win at when our promotions will reach tourism destination in these markets Congressional, followed by Darren hundreds of millions of potential which are expected to be among Clarke’s victory at the British Open holidaymakers around the world. the fastest-growing for outbound at Royal St George’s, brought a new travel over the next decade. Our focus on golf in Northern Ireland efforts were greatly enhanced and across the island as a whole. New ‘Jump into Ireland’ Global by the introduction of the Irish As our great golfing experience Advertising Campaign Government’s visa waiver scheme basked in the global publicity A key priority for Tourism Ireland in July which made it considerably spotlight, Tourism Ireland rolled out in 2011 was the development of a easier for tourists from emerging a new ‘Home of Champions’ golf new global advertising campaign markets to visit Ireland without campaign to capitalise on the huge which will roll out across markets the cost or bother of applying for international interest, adding to the in 2012 reaching an estimated a separate visa. We were glad to extensive campaigns for Northern 200 million people a year. The work with colleagues in various Ireland which were already under new, three-year campaign was departments, including the way in top markets across the world. developed in consultation with a Department of Justice and Equality, November saw Belfast play host to wide range of island of Ireland and and embassies in relevant markets the MTV European Music Awards market-based industry partners to publicise and promote this which broadcast each year to an and researched strongly among advance. And, while further work estimated 632 million homes consumers in key markets. ‘Jump remains to be done in this complex in over 150 countries. This was into Ireland’ captures the essence area, the recent announcement an unprecedented opportunity to of a holiday here and plays to our by the Irish Government of the highlight the new, welcoming and product strengths – portraying iconic scheme’s extension for a further four vibrant Belfast and again to capture holiday experiences, warm, friendly years has been widely welcomed extensive international media people, and our unique culture and overseas where there is evidence attention. This massive exposure heritage. It differentiates us from our that, at time of writing, 24 new tour provided Tourism Ireland with a competitors and conveys the fun of operators are programming Ireland further opportunity to highlight a holiday here and has also been for the first time in 2012 on the back Belfast and Northern Ireland in top developed to be flexible so that it of the new visa arrangements. markets across the world and to can reflect and promote upcoming events like ‘The Gathering Ireland build on the city breaks and Belfast St Patrick’s Day – City of Music campaigns which 2013’ and Derry~Londonderry City had run in Great Britain and other of Culture 2013. Over 70 million people around the world claim ancestral links markets during the year. The new campaign launched in with the island of Ireland and January 2012 across our markets This global exposure provided an St Patrick’s Day is a truly unique and will be seen on TV, radio, in unprecedented lead-in to Northern opportunity to reconnect them with press and in cinemas, outdoor and Ireland’s special year of ni2012. their heritage and to showcase online. Tourism Ireland played its part in the our wonderful tourism product to build-up to the opening of Titanic a huge worldwide audience. Our Belfast and other eagerly anticipated Visa Waiver Scheme global ‘greening’ initiative continued developments such the new Giant’s Although we continued to focus on in 2011, attracting additional Causeway Visitor Centre by helping traditional markets in 2011, Tourism iconic landmarks such as Table to keep Northern Ireland to the fore Ireland was also active in markets Mountain in South Africa and Burj Royal Portrush , Antrim 8 promoted widely tooverseasgolf Killeen CastlewhichTourism Ireland Killarney andtheSolheimCup at was trainedontheIrishOpen in enthusiasts aroundtheworld the attentionofmillionsgolf ofthesetopgolfers, performances others. Inadditiontothehistoric Graeme McDowelland Harrington, Rory McIlroy, DarrenClarke,Pádraig golfing ambassadorsin wonderful golf productandour for ourgreat excellent yearforpositivepublicity main marketsand2011 wasan focus forTourism Irelandacross Golf continuestobeamajor St Patrick’s Day Moulin RougebecomesVert on for ‘The GatheringIreland2013’. in 2012, asweprepare particularly capitalise onthisuniqueopportunity for holidays.We willcontinueto decision-makingperiod important tourism marketingdriveduringthe This isproven toboostouroverall positive publicityfortheisland. of estimated €5m/£4.1mworth six continents–generatingan public andmediaattentionacross the day. captures The ‘greening’ becoming the‘MoulinVert’ for even theMoulinRougeinParis – list ofhighprofileparticipants al ArabinDubaitoalengthening Golf Tourism 2011 IrelandAnnualReport

MA5727_TI_Solheim_Golf_Ad_GolfWorld.indd 1 valued atover$12 million. households, generatingpublicity the UnitedStatesto83million the island.The seriesairedacross 2011, visitingtopcoursesaround to shoothereduringsummer hugely populargolfseriesBigBreak securedthe Channel intheUS Golf withNBC’s partnership again intheautumn.Ourongoing And golfwasinthespotlight enthusiasts, traveltradeandmedia. Our StPatrick’s DayRiverdance as wellpickingupsomeawards. captured widespreadpublicattention introduced duringtheyearand A numberofonlineinitiatives were after Australia,formostoftheyear. board onthesocialnetworkingsite, us thesecondmostpopulartourist 640,000 fansonFacebook, making major break-throughaswereached about holidayshere.2011 sawa to stimulatepositivewordofmouth conversations abouttheislandand world haveworkedhardtofoster Tourism Irelandteamsacrossthe their choicetocomeIreland. recommendations influenced in twovisitorssayingthatpersonal comes totraveldecisions,withone influentialwhenit is particularly Word ofmouth activity programmes. and overall eMarketingstrategy toour Social mediaisnowintegral eMarketing andSocialMedia enthusiasts, traveltradeandmedia Promoting theSolheimCuptooverseasgolf Tickets: discoverireland.com/golf IT’S SHOWTIME. 1 SOLHEIMCUP. 2 CONTINENTS. 3 DAYS. KILLEEN CASTLE IRELAND 2011 Killeen Castle,Ireland,September23rd-25th. The 2011SolheimCup, 17/05/2011 16:22 2.3 millionviewsonYouTube. flashmob in Sydney attractedover Ireland tobetween 300,000 and promotable visitorstoNorthern our BrandTracking Survey; togrow source markets,asmeasured by ranking ineachofourtopseven or improveourcompetitiveinterest million visitorsin2011; tosustain share bydelivering6.9millionto7.1 objectives weretomaintainmarket objectives’ isparamount.The on theorganisation’sfive‘smart return oninvestmentandtodeliver ensure valueformoney, increased creating employment.The needto driving economicrecoveryand roleithastoplayin important Tourism Irelandrecognisesthe Return onInvestment more than2.3millionviewersonYouTube Tourism Ireland’sRiverdanceflashmobattracted eMarketing strategy Social Mediaisintegraltoouroverall Tourism Ireland Annual Report 2011 9

310,000 in 2011; and to increase case-making and direction-setting. home and overseas, to project a investment in co-operative positive image of the destination in marketing by at least +10% in our Acknowledgements difficult economic circumstances. I top four markets with the intention remain very proud of their loyalty, of contributing €3.2m/£2.6m from I am very grateful for the continuing commitment, energy and innovation core funds towards co-operative support which Tourism Ireland has in working on behalf of our industry. marketing campaigns with partners. received from the administrations in both jurisdictions on the island and Conclusion These objectives, integral to our from our ministers, Arlene Foster Business Plan 2011, were set in MLA, Minister for Enterprise, Trade 2012 is about competing to win conjunction with our Board and and Investment in Northern Ireland, on the world stage and we are approved by the North/South and from Leo Varadkar TD, Minister optimistic that we will see further Ministerial Council. In 2011, for Transport, Tourism and Sport and growth in visitor numbers and Tourism Ireland delivered on its Michael Ring TD, Minister of State revenue in the year ahead. While ‘smart objectives’ through growth for Tourism and Sport in the South. recent economic turbulence has in visitor numbers, increased Ministers were generous with their brought increased uncertainty industry participation in promotions time in participating in a number of affecting business and consumer and marketing activity, and the productive visits to markets overseas confidence, the overall outlook maintenance of the highest for key promotions and events for travel and tourism remains standards of corporate governance. during the year. I am grateful, too, cautiously positive and optimistic. to the officials of both departments People are continuing to travel but Tourism Recovery Taskforce as well as those of the North/South value for money remains more Ministerial Council whose ongoing important than ever. In 2011, the Tourism Recovery support and counsel we appreciate. Taskforce (TRT) was established to 2012 looks set to be an exciting year help the recovery in tourism to I would also like to acknowledge for tourism, with major events like the island of Ireland. The taskforce the continuing commitment of ni2012 – including the opening of includes representatives of the both Governments to overseas Titanic Belfast and the new Giant’s tourism industry, the Northern tourism promotion and their Causeway Visitor Centre and the Ireland Tourist Board, Fáilte Ireland recognition of tourism as a driver of hosting of the Irish Open at Royal and Tourism Ireland, under the economic recovery. The provision Portrush for the first time in over chairmanship of Vivienne Jupp. of additional funding allowed us 60 years – the grand finale of the The taskforce ensures that the to mount enhanced cooperative Volvo Ocean Race taking place in destination is promoted with marketing campaigns with key air Galway and the Notre Dame v Navy one strong brand message and a and sea carriers, airports and tour American football game coming to coordinated strategy and action plan operators which leveraged matching Dublin. In the second half of the involving wide public and private investment in tourism promotion year, Tourism Ireland will promote sector participation. overseas from the commercial ‘The Gathering Ireland 2013’ to sector. people across the world who have The group, which liaises with a connection with or an affinity for Market Partnership Groups in Great I would also like to thank our the island of Ireland and prepare for Britain, the United States, Germany partners in the tourism industry the great events to come in 2013. and France, monitors and fosters who have worked with us in We look forward to building on the tourism recovery by working to significantly greater numbers positive momentum of 2011. identify potential sources of new during 2011 than ever before to tourism business. It pursues a work bring the island of Ireland holiday programme to assist the recovery experience to life for potential Niall Gibbons of tourism and help secure the holidaymakers at promotions across Chief Executive industry’s long-term sustainability, the markets and who worked so which includes research projects tirelessly to ‘close the sale’ for to assist market and product tourism. The staff of Tourism Ireland development and to inform have worked tirelessly, both at Xx 10 OBE intheNewYearsOBE Honoursin2011. the Titanic Foundation. Hewasawardedan Business intheCommunity;andatrusteeof Ireland;aBoardmemberof Northern 2008-2009. HeisalsochairmanofMencap Ireland Northern was chairmanofCBI Irelandeconomy.the Northern MrAmbrose a significantemployerandcontributorto hasbecome BelfastCityAirport the airport, With over1,600peoplecurrentlyworkingat 120currently averaging flightseachday. throughput inexcessof2.7millionand businesswithanannualpassenger growing andisresponsiblefora of theairport 2004, hewasappointedchiefexecutive InJanuary to-day runningoftheairport. withresponsibilityfortheday- City Airport appointed directorofoperationsatBelfast development. In1997 MrAmbrose was safety. in2011awarded theOBE forservicestoroad andwas paybacks arisingfromadvertising specialises inevaluatingtheeconomic Research Foundation inNewYork. He GoldAward bytheAdvertising David Ogilvy Prix. In2009 hewaspresentedwiththe 248 creativeawards–includingfiveGrand effectiveness casestudiesandrecipientof He isaprincipalauthorof41 award-winning road safetyandpublicserviceawareness. campaignson producing 20 cross-borderTV co-operationincludes in North-South Tourism 2011 IrelandAnnualReport Tourism IrelandBoard and business and business engineering Bombardier in positions within management has heldsenior aviation industry, 35 yearsinthe whose careerspans , OBE Brian Ambrose unique experience unique experience marketing. His destination experience in over 20 years’ Limited andhas International agency LyleBailie of advertising the chiefexecutive David Lyle is OBE Chairman, Africa, theMiddleEastandIndia. World TourismUN OrganisationinEurope, consulting andadvisoryassignmentsforthe Most recently, he hascarriedoutextensive Ireland. Ukraine, BulgariaandNorthern and touristrepresentativebodiesinOman, and/or reorganisedtheprivatesectorhotel board intheUkraine.Healsoestablished Leone, Kenya andoftheCarpathiantourist of thenationaltouristboardsSierra established andwasthefirstchiefexecutive extensive internationaltourismexperience;he to theIrishtourismsector. MrFlanneryhas marketing andotherconsultancyservices Tourism MarketingLtd,whichprovided directorofInternational he wasmanaging the EuropeanUnion.From 1991 to1996 HOTREC, thehotelandrestaurantbodywithin Association andasfoundingvice-presidentof of theInternationalHotelandRestaurant 1988 andalsoservedasacouncilmember of theIrishHotelsFederation from1978 to Control unit.Heservedaschiefexecutive he washeadoftheDevelopmentandQuality later, headofmarketing. planningdirectorand positions ofstrategic the IrishFood Board–whereheheldthe agency. HejoinedCERT fromBordBia– tourism training tourism training the formerstate executive ofCERT, 2002, hewaschief his appointmentin Authority. Prior to Development National Tourism Fáilte Ireland,the chief executiveof Shaun Quinnis Bord Fáilte, where Bord Fáilte,where subsequently joined and Ireland.He Germany, theUK the hotelsectorin and workedin Hotel Management Shannon Collegeof ofthe is agraduate , Vice-Chairman Jim Flannery, management for a leading visitor attraction. management foraleadingvisitorattraction. sector, inadditiontomarketingandevent tothe to Excellencesuiteofprogrammes development, deliveryoftheWelcome community-based tourisminitiatives,product have incorporatedthedevelopmentof within arangeofsectors.Previousroles development, marketingandpublicrelations includesexperienceinbusiness background Dublin’s citycentre. of The GrandSocial andThe Winding Stairin currently owner/directorandgeneral manager Good Food Ireland sinceitsinceptionandis been aqualityassurancerepresentative for Wine andmanytrade magazines.Shehas critic forTime Out,Totally Dublin,Food and is awell-knownfoodandrestaurantwriter/ with FáilteIrelandandTourism Irelandand in mentoringandambassadorprogrammes The Winding Stairin2006. Shehasworked her ownMichelin-bibbedMoesin2000 and Mermaid CaféandIlPrimobeforeopening of award-winningrestaurants101 Talbot, she wentontobecomegeneralmanager Her professional Her professional being needs. health andwell- industry toaddress statutory and with community, and worksclosely improvement field within thehealth is employed Ciara Burke of Music Dublin, of MusicDublin, at theCollege and musicology College Dublin atTrinitysociology history and Having studied event manager. restaurateur and is anexperienced Elaine Murphy

Tourism Ireland Annual Report 2011 11

Denis Cregan is Dr Howard John Healy is a currently serving as Hastings is the director of Abbey chairman of Kerry managing director Tours, the largest Airport. He is a of Hastings Hotels. Irish inbound tour director emeritus He was appointed operator handling of Kerry Group chairman of the close to 90,000 PLC; a graduate Northern Ireland visitors to Ireland of University Tourist Board in each year from College Cork; and January 2009. He over 40 different has previously is also a director overseas markets. worked with the of the Merrion He has extensive Department of Finance, Express Foods, Hotel (which is 50% owned by Hastings knowledge of the tourism industry, having Grand Metropolitan Hotels and Kerry Group Hotels) and a former chairman of the served for over 25 years at a senior level. where he was a member of the founding Board of Governors at Rockport School Ltd. He is currently the chairman of ITIC – the management team and served as an During the 1990s he was chairman of the Irish Tourist Industry Confederation – the executive director until retirement. Institute of Directors in Northern Ireland and key representative body for the tourism founding chairman of the Northern Ireland industry in Ireland. He has previously served Hotels Federation. Howard has also been a as president of the Incoming Tour Operators member of Castlereagh College governing Association-Ireland and was a member of body and a Board member of Business in the the Business Tourism Forum and chairman Community and the Bank of Ireland Advisory of the Business Tourism Working Group. He Board. His former public appointments is a fellow of the Association of Chartered include a previous stint at Tourism Ireland Certified Accountants (FCCA). (2000-2007), the Training & Employment Agency, Investors in People, New Deal Task Force and the Tourism and Hospitality Training Council. Howard is a member of the Institute of Chartered Accountants of and . He holds a law degree from the University of Nottingham and a master’s degree and honorary doctorate from the University of Ulster.

Christoph Derek Reaney is David Rodway Mueller joined Aer from Plumbridge, is a retired marine Lingus as its chief Co Tyrone and consultant. During executive officer in is employed as his career, mostly in September 2009. a development sales and marketing He previously held officer with the (including eight the position of Ulster-Scots years in Saudi executive aviation Agency. He has Arabia), he was also director at TUI previously worked managing director Travel plc, a FTSE as a manager of a of an aquaculture 100 company. In cross-border peace company based January 2006, Christoph joined the executive and reconciliation project, working with rural in Carlingford Lough from 1990 until 1999 committee of TUI AG, a DAX 30 company communities in the North West. He has and following his retirement, he continued with responsibility for its flight division. He worked for over 15 years in the community as a part-time technical consultant. From served as the chief financial officer of DHL sector and has been particularly involved 2005 to 2011, David served on Belfast City Worldwide from 2002 to 2004 and became in a development capacity for marginalised Council and a number of public bodies; and a member of the executive committee communities and in supporting cultural was a Board member of Belfast Visitor & of Deutsche Post AG in 2004 after the projects. He is a member of the Strabane Convention Bureau from 2008 until 2011. acquisition of DHL by Deutsche Post AG. Local Strategy Partnership and previously He continues to serve on the Board of Christoph has extensive experience within served on the Board of the North West the Belfast Metropolitan College and as a the aviation industry, having held senior Investing for Health Partnership and ARC member of the Nomadic Trust (a body tasked positions in Daimler Benz Aerospace, having North West Local Action Group. with completely refurbishing a passenger ferry been executive vice president at Lufthansa which served the Titanic off Cherbourg). AG and chief executive officer of the Sabena Group. In December 2011, Christoph was appointed to the Board of Tourism Ireland. He has an MBA from the University of Cologne and subsequently completed an advanced management programme at Harvard Business School. 12 Tourism Ireland Annual Report 2011

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go Two, S.L. Supplied by: Ten Barcelona, 52 081 624 Tel: 011 [34] 6 DIMENSIONS gotwo.com .75” X 14" eMail: info@ten Page Trim: 9 ” X 14.25" TOURISM IRELAND Bleed: 10 ” X 13" Diaspora Campaign 2011 Live Area: 8.75 Publication: Publish Date: Materials Date: Print and online partnership campaign ran with Guardian media,

TOURISM IRELAND promoting the regions Specific promotions targetedCampaign: Scots Irish 2011 the Diaspora Publication: Charlotte Observer Publish Date: March 2011 DIMENSIONS Materials Date: Page Trim: 5.54” x 10.5” Bleed: 5.79" x 10.75" Live Area: 4.54” x 9.5” Supplied by: Tengo Two, S.L.

Barcelona, Spain Tel: 011 [34] 652 081 624 eMail: [email protected] Tourism Ireland Annual Report 2011 13

Overview of Markets

The Markets Division develops well as a print and online partnership Golf was a major focus during 2011 and implements overseas with Guardian media promoting the and events like the marketing plans in Great Britain, regions. An innovative social media and the Irish Open in Killarney were North America, Mainland Europe initiative, called ‘Nick and Sam’s Road highlighted. The historic wins by Rory and in Australia and Developing Trip’, saw a British couple asking McIlroy at the US Open and Darren Markets. Tourism Ireland people to help design their holiday Clarke at teams in 13 market offices and via Twitter and Facebook, in a bid to raised awareness of our world-class representatives in a further highlight the same trip to potential golf among discerning British golfers nine market areas carry out holidaymakers and to raise awareness and a ‘major’ golf tourism campaign comprehensive programmes of of car touring and longer-stay holidays was rolled out which included activity designed to inspire and here. City breaks campaigns promoted advertorials and press ads in leading motivate overseas consumers to good value breaks to Dublin – City national and regional newspapers. In choose the island of Ireland for a of Words and Belfast – City of Music, addition, iconic golf commentator and holiday. The division also includes through advertising, direct marketing TV presenter Peter Alliss conducted a the co-operative marketing and publicity. series of radio interviews for BBC and team, which is responsible for numerous commercial radio stations, A nationwide, action-packed managing Tourism Ireland’s reaching over 12 million listeners programme of activities was interaction and co-operative in almost every part of Great Britain undertaken around St Patrick’s Day investment with industry with messages about golf in Northern which included the ‘greening’ of partners, and for overseas Ireland. Co-operative activity during various sites including the London publicity. the year was undertaken with leading Eye, a week-long promotion on ITV’s online golf booking agencies including breakfast show Daybreak, a live Great Britain Golfbreaks.com, YourGolfTravel.com broadcast with Gráinne Seoige from and Going for Golf. 2011 was another challenging year the Guinness Storehouse, media trips, for travel from Great Britain. Though social media activity and sponsorship North America the Great Britain outbound market of the St Patrick’s Day ball and London continued to be soft, provisional parade. The publicity programme was 2011 was a year of recovery and data suggests a return to modest stepped up considerably and included growth for North America, with growth in 2011. One of the highlights radiotorials (radio interviews) featuring provisional data suggesting a +6% of the year was the historic state high profile personalities such as increase in visitors. Tourism Ireland’s visit of Queen Elizabeth II which Monty Hall, Patrick Kielty, Terry Wogan advertising and direct marketing generated positive coverage worth and Ranulph Fiennes. was seen by millions of potential about €80m/£65.6m in equivalent holidaymakers in 15 key centres Tourism Ireland’s activity to enthuse the advertising value. Year-on-year visits to across the United States, reminding travel trade about packaging, promoting the Great Britain discoverireland.com Americans about the many unique and selling the destination included website grew by +8% to almost 2.3 and distinct experiences on offer a series of campaigns with online million and the number of fans and around the island and emphasising operators like Expedia, lastminute.com followers on Great Britain social media the ease of getting here and the and Hotels.com. Successful workshops channels grew by +178% to 90,000. availability of great value packages. and familiarisation visits for influential Advertising ran in a number of high Tourism Ireland’s strategy in 2011 coach and group tour operators took profile publications, such asBudget focused on differentiating a holiday place; and the Shamrock Agents Travel, National Geographic Traveler, on the island of Ireland from one training programme, for about 1,500 Travel & Leisure, Harpers and Food in England, or Wales (our key British travel agents, continued & Wine; online, on popular news competitive set in Great Britain), in 2011. Three trade and consumer and lifestyle websites; and on radio underpinned by messages of great promotions for Northern Ireland took in New York, Boston, Chicago, Atlanta, value. Regional touring and longer-stay place in Manchester, Glasgow and Philadelphia and Los Angeles, as well as holidays were a focus; activity included . in Dallas and Houston for the first time. TV, radio and online advertising as 14 Tourism Ireland Annual Report 2011

Specific promotions targeted the Tourism Ireland promoted the Notre partners, was distributed with The Diaspora, including a campaign which Dame v Navy American football game Toronto Star and The Globe & Mail, reached over 8 million consumers which will take place in Dublin in reaching approximately 500,000 through print, radio and online September 2012; promotions on NBC consumers. Tourism Ireland had advertising in New York, Boston Sports were undertaken around Notre a strong presence at the Toronto and Chicago, with the headline ‘In Dame games in New York, Boston and Star Golf & Travel Show, Canada’s Ireland, You’re more than welcome Chicago. largest golf exhibition, and at Canada … You’re home’. An Ulster Scots Blooms, Canada’s largest flower and Extensive co-operative marketing campaign included a media sales blitz garden festival. A film crew from activity was undertaken with air to promote Titanic and ni2012 in the Citytv Toronto’s popular morning carriers serving Dublin, Belfast and southern US states. show, Breakfast Television, visited Shannon, as well as with US-based Belfast and Dublin where the host, Golf promotions were stepped up tour operators. Jennifer Valentyne, researched her and a high profile ‘Ireland Home of Over 200 American journalists family history. In addition to the live Champions’ campaign ran in July, visited the island of Ireland in broadcasts to almost one million to capitalise on the successes of 2011, generating a record level of viewers, pre-tapes featured on the Rory McIlroy, Graeme McDowell, coverage valued at an estimated Citytv website and Jennifer also Darren Clarke and Pádraig Harrington. €86m/£70.5m in equivalent tweeted and blogged about her visit Highlights included advertising on advertising value (EAV). Extensive during her time here. MTV Canada the popular , as well as activity around St Patrick’s Day broadcast live from Belfast during the sponsorship of its famous reality golf and the visit of President Obama MTV European Music Awards; and TV show Big Break Ireland, a ten- were two highlights of the publicity a 30-minute episode about Belfast week series which reached over 180 programme; the St Patrick’s week Music Week aired nationally to an million viewers and was worth more publicity effort alone reached an audience of over six million on MTV than $12m in media exposure. audience of more than 200 million. Canada. Assistance was provided to NBC’s family history show Who Do You Think You Are? to broadcast an episode with Rosie O’Donnell in search of her Irish ancestry; and over Wexford Town, Wexford Town, Wexford 50 million households across the 3 5 days of music United States tuned into My Land on all in 1 brilliant city. Belfast.

if you’re into great music, you’re certain to love Belfast. We’ve so many fantastic venues, you’ll be spoiled for choice. from tiny backroom bars to huge concert halls, you’ll find our music is everywhere! and in 2011, we’re throwing a year-long party to celebrate this fact. Naturally, you’re invited. so, this year, bring yourself over for a few of those 365 days. once you’re here, you’ll find so much to explore… the PBS network with singer/harpist Plus we’ve got 6 iPod Touch’s to give away in our fabulous music competition.

Be a part of it at www.discoverireland.com/belfast

Órla Fallon. More than 40 assigning 06/01/2011 14:29

1 TOU0358 Poster 2_CD.indd Congratulations editors and journalists visited Ireland Rory! as part of the Annual Travel Classics 9 “I love being from Northern lreland. Conference. BuzzinG I tell everyo venues ne how great it is. For me, it's the best place on earth." Fifty tourism organisations participated Rory McIlroy

2011 U.S. Open Champion in Tourism Ireland’s series of ‘Flavors 365 days of music. 1 city. Belfast.

Come to Belfast and you can throw y every day of the year. ourself into an incredible line-up of li of Ireland’ events, promoting With glorious rock gigs, spellbinding cl bass-driven beats at a host of venu ve music assical concerts, foot-tapping folk and es, you’ll find thrills aplenty. directly to more than 1,000 travel

Lough Erne Resort

Photo: Matthew Harris agents and media contacts. Other Royal County Down

activity with partners included sales And you’ll find much more besides. G a soul-enriching tour of the Antri ourmet dining. Designer shopping. Or For more information and great value golf m coastline? vacation offers visit discoverireland.com Click here to be part of it missions, workshops, webinars and how about

TOURISM IRELAND Rory McIlroy Cam Publication: Irish familiarisation trips. paign Publish Date: We Voice Materials Date: Juneek of June 27, 2011 DIMENSIONS 27th Page Trim: 9.75” X 1 Bleed: 10” X 1 4" Live Area: 8.75” X 1 4.25" 3" Supplied by: Tengo Two, S.L.

Barcelona, Spain Tel: 011 [34] 652 081 624 Golf promotions included a higheMail: [email protected] profile In Canada, a 20-page booklet, ‘Home of Champions’ campaign ‘Belfast – City of Music’ campaigns ran during the promoting offers from key industry year in Great Britain and other markets Tourism Ireland Annual Report 2011 15

Mainland Europe when the Moulin Rouge became coverage worth an estimated the ‘Moulin Vert’ for St Patrick’s Day. €500,000/£410,000 in equivalent Extensive advertising in Germany ran St Patrick’s Day 2011 activity also advertising value (EAV). This coverage, on television for the second year in a included a joint online campaign with combined with programmes on row, as well as on radio, online and Bord Bia. Tourism Ireland won ‘Best top TV stations Antena 3 and in cinemas. These campaigns led to Tourist Board Website’ at the French TVE 1, helped generate a record an increase of +11% in visits to the hospitality industry’s ‘Les Travel D’Or’ €9.5m/£7.8m in EAV. Innovative German discoverireland.com website, awards; and the French Facebook social media campaigns resulted in as well as a +36% increase in referrals fanbase grew from 11,000 to 36,000 50,000 Facebook fans by year end; to third-party partner websites. Co- during the year. and a Spanish Twitter account was operative campaigns with key carriers set up. Other digital activity included Aer Lingus, Germanwings, Lufthansa, Advertising campaigns in Italy ran a campaign on MTV in Spain to Ryanair and Irish Ferries included in six cities with direct flights. Online capitalise on the MTV Europe Music print, radio and online advertising. activity included video banners on Awards in Belfast and the launch of Direct marketing campaigns and other YouTube and electronic direct mail to an eLearning programme for travel promotions took place with German over 10 million new contacts during agents. and island of Ireland partners such the year. Co-operative advertising as DERTOUR, TUI Wolters, Manor was undertaken with Ryanair and Visitor numbers from the House Hotels and Celtic Campervans. Aer Lingus; campaigns were also increased by strong Publicity initiatives generated coverage undertaken with eDreams, Expedia double digit growth to 140,000 worth over €15m/£12m in equivalent and lastminute.com. Sixty-seven in 2011. Publicity was a key advertising value. Innovative Facebook influential Italian journalists visited focus, with 42 journalists visiting, campaigns saw the German fanbase the island of Ireland, producing 311 helping to generate coverage grow to over 55,000 by year end. articles with an equivalent advertising worth about €2.3m/£1.9m. Co- Industry engagement continued to be value of almost €11m/£9m. Over operative advertising campaigns a focus, with 384 island of Ireland- 600 travel agents took part in Tourism were undertaken with key tour based industry partners availing of Ireland’s eLearning programme operators and carriers, such as Aer promotional platforms in the market. and 336 industry partners availed Lingus, bmibaby, easyJet and Irish of promotional opportunities in the Ferries. Twenty-one island of Ireland In France, a nationwide TV campaign market. Tourism Ireland’s Italian partners joined Tourism Ireland at ran in March and May, supported by fanbase on Facebook grew to over Vakantiebeurs, the annual holiday fair online video ads, as well as online 19,000 fans by year end. in Utrecht. And social media activity tactical ads featuring offers from helped grow the Dutch Facebook partners. Campaigns highlighting city 2011 was a busy year for the fanbase by +177% to 15,800 breaks, car touring, and Northern Spanish market, culminating in fans by year end. Eight partners Ireland were undertaken with leading double digit growth in visitor numbers. joined Tourism Ireland at the annual online travel agents Go Voyage, Radio, print and online advertising Brussels Holiday Fair in Belgium; Expedia and Opodo. Co-operative campaigns ran in Madrid and and co-operative promotions were activity also took place with Aer Lingus, Barcelona, driving over 800,000 visits undertaken with leading Belgian tour Irish Ferries, Brittany Ferries and to the Spanish discoverireland.com operator Gallia. In the Nordic region, Ryanair. Other campaigns highlighted website. Co-operative campaigns 16 tourism operators from across Ireland West and Ireland East, online were undertaken with new partners the island joined Tourism Ireland and on radio. Approximately 140 Catai and Tourist Forum, as well as for a three-city trade mission in the French journalists visited the island with Ryanair, Aer Lingus and leading cities of Copenhagen, and in 2011, generating coverage valued online travel agencies Rumbo and . Fifty-three Nordic journalists at over €7.5m/£6m; and Tourism eDreams. A highlight of the year was visited the destination during the year, Ireland generated front-page coverage the ‘greening’ of Madrid’s Puerta de helping to generate coverage worth in Le Figaro (daily newspaper) Alcalá monument, which generated about €4.7m/£3.9m. This coverage Mount Errigal, Donegal 16 Tourism 2011 IrelandAnnualReport St Patrick’s Daywasoneofthe in Sydney’s CentralStationon on 2010. Tourism Ireland’sflashmob visitors, anestimatedincrease of+7% in 2011, deliveringabout126,000 well fortourismtotheislandof Ireland The Australia &DevelopingMarkets Ambassador toDenmark. to preparealunchhostedbytheIrish from Copenhagen’sNomarestaurant Clarke joinedforceswithIrishchefs and BordBia,MichelinstarchefDerry June; organisedbyTourism Ireland of Ireland’eventinCopenhagen lifestyle andtravelmediaata‘Taste enjoy washighlightedtokeyfood, food experiencewhichvisitorscan stationSVT.Swedish TV The excellent (meaning ‘The Travel Agent’)on on SwedishtravelshowResebyrån well asfootageofDublinandWicklow as aired inMarchonNorway’sTV3, Top ModelrecordedinDublinwhich included anepisodeofNorway’sNext market performed Australian marketperformed

as well as directly to consumers. as welldirectly toconsumers. key traveltrade andmediacontacts, Ireland highlightedthescheme to applying foraseparatevisa.Tourism Ireland withoutthecostorhassle of markets tovisit tourists fromemerging July, makingitconsiderablyeasierfor introduced bytheIrishGovernmentin A newvisawaiverschemewas Insight Vacations andEtihadAirways. Harvey World Travel, CreativeHolidays, with activity wasalsoundertaken as instorepromotions.Co-operative TV, aswell printandonlineadvertising included retail travelagencygroup, with FlightCentre,Australasia’slargest Australia. Aco-operativecampaign Ireland topotentialholidaymakersin comedian JimeoinpromotedNorthern online campaignfeaturingPortstewart people. Intheautumn,ahumorous has beenviewedbyover2million was postedonYouTube whereit across theworld.The performance positive publicityinAustraliaand highlights oftheyear, generatinghuge Ireland for a week of live broadcasts Ireland foraweek oflivebroadcasts television channel,sentacrew to apan-Arab Arab inDubai.MBC1, –oftheiconic Burjal in theregion event Day withthefirst‘greening’ The 2011. inNovemberandDecember partners with arangeofairlineandtraveltrade co-operativepromotions undertook in sellingIreland.Tourism Ireland the traveltradeinthosemarkets helped toenhanceconfidenceamong UAE andwiderGCC markets,and India, SouthAfricaand,ofcourse,the boost foraccessfromAustralia,China, service fromDubaitoDublinwasa The announcementofanewEmirates to reachnewconsumermarkets. scheme alsohelpedTourism Ireland Ireland forthefirsttimeand and travelagentitinerariesfeatured about thescheme,newtouroperator € about Media coverageworth 600,000/£492,000 was generated 600,000/£492,000 wasgenerated UAE celebratedStPatrick’s Tourism Ireland Annual Report 2011 17

and filming for its breakfast show took place in Ireland in May, with Co-operative Marketing which aired to millions of viewers. 180 leading travel representatives The co-operative marketing For St Patrick’s Day in India, Tourism travelling here from South Africa. department is responsible for Ireland promoted the destination With the Derry-Londonderry yacht as managing Tourism Ireland’s during the 2011 Cricket , a backdrop, Tourism Ireland hosted interaction, and co-operative at which the Irish team had some an event in Cape Town when the investment, with industry partners. outstanding performances. Tourism Clipper Round the World Yacht Race These include the Northern Ireland Ireland was actively involved in the arrived there at the end of the third Tourist Board, Fáilte Ireland, Dublin facilitation of the five-week shoot of stage of the 2011/2012 event. And in Tourism, Shannon Development, air a new Bollywood film Ek Tha Tiger December, Galway and Ireland were and sea carriers, airports, the Irish (meaning ‘Once there was a Tiger’) highlighted during the Cape Town Tour Operators Association, marketing in Dublin, which is due for release in stopover of the Volvo Ocean Race. groups and other industry members August 2012. In China, a “Celebrate across the island. Chinese New Year in Ireland” print campaign ran in Beijing, Shanghai The industry opportunities website and Guangzhou, in conjunction with is the main tool for industry partners 11 Chinese travel agents and with to access information on how they support from island of Ireland industry can work with Tourism Ireland to partners; and a Groupon online promote and grow their business campaign attracted over 400,000 from overseas. In excess of 2,000 visits to the campaign website. The opportunities, ranging from no cost ‘greening’ of Table Mountain on St to low cost to very good value, are on Patrick’s Day was one of the highlights offer. of the year in South Africa. The In October, we mounted a €9m 2011 conference of the Association of co-operative marketing campaign South African Travel Agents (ASATA) in major markets involving key Burj al Arab goes green for St. Patrricks Day Newgrange, Meath 18 Tourism 2011 IrelandAnnualReport Galway and Kilkenny arts festivals, festivals, Galway andKilkennyarts and culturalflagshipfestivalslike the European MusicAwards inBelfast such astheStPatrick’s Festival, MTV festivalsandevents playground; West –Ireland’soutdooradventure City ofLiterature;Galwayandthe Titanic BuiltinBelfast;DublinUnesco which in2011 includedafocuson on aselectionofspecificthemes, message, publicityalsofocuses fromreinforcingthekeybrand Apart audience reachofover900million. of morethan€ value with anequivalentadvertising 12,200 andbroadcasts, majorarticles 2011, whichhelpedtogenerateover approximately 1,500 mediavisitsin tool beingmediavisits.There were IrelandTouristNorthern Board,thekey conjunction withFáilteIrelandandthe runin an extensiveprogramme key targetmediaoverseasthrough of Irelandasaholidaydestinationin Publicity raisestheprofileofisland Overseas Publicity sector. investment fromthecommercial anditleveragedmatching travel tax, Government funding,derivedfromthe withadditionalIrish supported tour operators.The campaignwas and air andseacarriers,airports 300m/£246m andan audience reach of over 6 million; and audience reach ofover6million;and French national television,withan TFI, on ourculture,musicanddance on a motorbike;1.5-hourprogramme on travelling fromBelfasttoPortrush Rolf Bauerrealisinghisdream of channelN-TVTV featuredcelebrity of about€ August toSeptemberandhadanEAV the westofIrelandwhichranfrom seriesfilmedin asix-part BBC2, Monty Halls’GreatIrishEscapeon Other highlightsof2011 included equestrian Irelandandgenealogy. our cultureandheritage,gastronomy, capitalised onthevisitstoshowcase andTourismopportunities Ireland strongPR offered particularly PresidentBarackObama andUS II The historicvisitsofQueenElizabeth Cliffs ofMoher. such astheGiant’sCausewayand Culture 2013 andprofilingouricons Cityof of Derry~LondonderryasUK internationally), theannouncement the successofourgolfchampions the SolheimCup,IrishOpenand highlighting cycling, golf(inparticular food andgastronomy, culture,walking, Other keythemesincludedcitybreaks, Opera, CorkJazzandmanymore. at Queens,theWexford Festival Dublin Festival Season,BelfastFestival 12.2m/£10m; German , filmed on location in of Thrones,filmedonlocationin following thehugesuccessofGame around theisland.For example, filmedonlocation programmes TV make useofpopularfilmand Tourism Irelandcontinuedto Tipperary toover1millionviewers. Dublin, theCausewayCoastandCo show, Australia’s popularbreakfasttelevision access, the great facilities and good facilitiesandgood access, thegreat blitzes tookplace,highlighting ease of profile events,promotionsand sales of high Board. Abusyprogramme IrelandTouristand theNorthern year, inconjunctionwithFáilteIreland business tourismoverseasduringthe Tourism Irelandcontinuedtopromote Business Tourism Brendan Gleeson. film setinConnemarastarring the launchofTheGuard,comedy campaigns inseveralmarketsaround scenes’ peek.Tourism Irelandalsoran Irelandfora‘behind-the- Northern mediato international entertainment Ireland Tourist Boardtobring andtheNorthern worked withHBO Ireland,TourismNorthern Ireland Today , broadcastlivefrom Tourism Ireland Annual Report 2011 19

value rates available for meetings activity, familiarisation visits, direct Graeme McDowell and Pádraig and conferences here and getting marketing, advertorials and networking Harrington. the destination known for excellence events, as well as attendance at Highlights of our activity included, in business support. Dublin City of business tourism promotions like in the United States, advertising on Science and ni2012 were other hooks the PCMA (Professional Convention the popular Golf Channel, as well used in business tourism promotions. Management Association) annual as sponsorship of its famous reality Corporate clients, association meeting and IMEX America. In golf TV show Big Break Ireland, a conferences, corporate meetings and Europe, business tourism promotions ten-week series which reached over incentive travel were the main focus. were undertaken in the key markets 180 million viewers and was worth of Germany, France and Belgium. In Great Britain, the programme in more than $12m in media exposure. Increased emphasis was placed 2011 included advertising in specialist In Britain and other markets, a ‘major’ on providing valuable platforms for corporate publications, email and golf tourism campaign was rolled industry partners to do business with out which included advertising and European decision-makers, supported features in leading national and regional newspapers, online, on radio and in specialist publications.

direct marketing activity, as well as by a series of familiarisation trips for participation at events like Confex conference organisers to sample the in March and Venues & Events product. An innovative project to win in September. A successful lead- a ‘dream conference’ to Ireland ran in generation programme resulted in 79 and Denmark in conjunction international associations, 28 national with Norwegian Airlines, resulting in associations and 45 corporate/ tangible business from both markets. incentive leads being passed to Fáilte Ireland, the Northern Ireland Tourist Golf Board and Belfast Visitor & Convention Golf continued to be a major focus Bureau during the year. In November, for Tourism Ireland across markets, to a workshop event called ‘Ireland capitalise on recent major successes Meets the West End’ took place in and events like the Solheim Cup at London, bringing together over 40 Killeen Castle in Co Meath, and the leading Great Britain corporate and Irish Open in Killarney. Promotions incentive buyers with 38 island of were stepped up with the roll-out of Ireland partners. our ‘Home of Champions’ advertising In the United States, the business campaign, building on the successes tourism programme included online of Rory McIlroy, Darren Clarke, 20 Tourism Ireland Annual Report 2011

Overview of Central Marketing

The Central Marketing Division market teams overseas and with Key achievements during 2011 consists of the following departments: industry suppliers to engage included: Northern Ireland and Product directly with consumers who wish Liaison - works to achieve additional to know more about the island as Northern Ireland & Product growth for Northern Ireland, and a holiday destination; Marketing Liaison to assist it in realising its tourism Communications - manages the Increased exposure for Northern potential; it also works to identify development, implementation and Ireland through television and film was and pursue opportunities through evaluation of the island of Ireland a goal for the year and the foundation the promotion of specific island of tourism brand marketing programme, for many 2012 successes was laid in Ireland product groups; Strategy including Tourism Ireland’s global 2011. Tourism Ireland worked with Development & Insights - helps advertising campaigns; and the Northern Ireland Screen to ensure shape Tourism Ireland’s strategic Content Department - manages the BBC network commitment to Titanic- direction and carries out research sourcing and generation of consumer themed programmes and series – and analysis on market trends and content. including the Titanic commemoration consumer behaviours in markets from Belfast’s Waterfront Hall and across the world; Customer the Titanic with Len Goodman Engagement and eMarketing - series. Titanic programmes were also works with both Tourism Ireland commissioned for PBS (an American

Devenish Island, Fermanagh Tourism Ireland Annual Report 2011 21

public broadcasting TV service with vibrant Belfast to a global audience. centenary of Titanic’s launch in the about 350 member TV stations across Tourism Ireland identified music as shipyards of Harland & Wolff. By the the United States). an image-changing theme for the end of the year, our multi-lingual, city in its promotions back in 2008, dedicated Titanic website The short filmThe Shore, directed supporting Belfast City Council in the www.the-titanic.com and YouTube and produced by Terry and Oorlagh development of products like the site were ranking in Google page George, was co-funded by Tourism Belfast Music Tour and the Oh Yeah one results for Titanic-related search Ireland and received positive reviews Music Centre and in its support of phrases; and there were nearly at the Belfast Film Festival. In the festivals and emerging performers. 100,000 fans on the related Titanic autumn, a successful bid was put in Stories Facebook page. place to establish the Circuit of Ireland Following the successful ‘Experience on the IRC (Intercontinental Rally Northern Ireland, Titanic & More’ During 2011, Tourism Ireland Challenge) 2012 calendar, ensuring showcase event at Grand Central deepened its relationships with European-wide coverage on Eurosport. Terminal in New York in 2010, Tourism Northern Ireland media personalities Ireland fronted many of its 2011 and sports stars, leveraging their A highlight of the year was the staging promotions with Titanic-themed goodwill as ambassadors for the place of the MTV European Music Awards imagery. About 50 journalists from they call home, particularly in the in Belfast in November; the awards around the world were invited by Great Britain market. captured the attention of international Tourism Ireland to come to Northern media, highlighting the new and Ireland at the end of May, for the 22 Tourism Ireland Annual Report 2011

Strategy Development & Insights Customer Engagement & increased its emphasis on social eMarketing media customer service which now The Strategy Development & Insights represents over 15% of contact centre team provides strategic direction to During 2011, Tourism Ireland continued activity. the organisation and the industry its investment in the area of eMarketing through the provision of consumer and the discoverireland.com suite of In May, Tourism Ireland won the All research and tourism insights. 42 websites in 14 languages attracted Ireland Marketing (AIM) award for approximately 11.5 million visits. eMarketing, recognising the expansion In 2011, the changing image of and quality of the organisation’s work, Skellig Islands, Kerry the island of Ireland as a tourist Social media marketing was an particularly in the area of social media. destination was assessed in our top area of continued expansion for seven markets and the development Tourism Ireland in 2011, with the There was an increased focus on of the new ‘Jump into Ireland’ organisation’s Facebook audience email marketing, with the deployment advertising campaign was supported growing from 200,000 at the of new tools in this area, and Tourism with a number of phases of research. beginning of January to 640,000 Ireland sent approximately 58 million A pilot research project confirmed by year end. Activity on Twitter and emails to consumers around the world that Tourism Ireland delivers a return YouTube also increased with a notable in 2011. Over 770,000 new contacts on marketing investment on a success from the Australia office were added to the organisation’s with competitor destinations. The resulting in 2.3 million views of a St overseas consumer databases during Tourism Ireland marketing plan Patrick’s Day flashmob video. The the year, bringing them to over five Competing to Win was published and Discover Ireland blog was expanded million by year end. the Tourism Ireland business plan to four languages and received more was approved by the North/South than 250,000 visits. On St Patrick’s Ministerial Council. The department Day, Tourism Ireland launched the first also provided ongoing support to the social game ever created by a tourist Tourism Recovery Taskforce for its board called ‘Ireland Town’, it attracted research agenda. over 215,000 players. Tourism Ireland Tourism Ireland Annual Report 2011 23

Marketing Communications with iconic experiences and warm, Content Department friendly people. Tourism Ireland’s global advertising The Content Department manages and media account was the subject Three 30-second television ads the sourcing and generation of a of an EU-wide tender process were shot on location by the range of consumer content which which culminated in June with the award-winning commercial and includes publication of destination and appointment of Publicis to handle music video director Daniel Wolfe product guides, in both offline and global advertising development and and Irish cinematographer Robbie online formats, for use by consumers Carat to handle global media buying Ryan. The soundtrack is courtesy in our markets. Global distribution for a four-year period, with an option of Co Down group Snow Patrol. is also carried out by the team. Key to extend the contract by a further The new ads will appear on TV in achievements during 2011 included three years. In December, following Great Britain, Germany and France. the production of 1.1 million Tourism an extensive period of development In addition, 60-second versions will Ireland market books in ten languages and three stages of consumer appear on cinema in Great Britain, the for 20 countries; distribution overseas research in our top four markets, a United States, Germany and Italy. An of Tourism Ireland literature and new global advertising campaign – extensive print campaign will run in almost 2 million brochures from the ‘Jump into Ireland’ – was launched. the United States, as well as outdoor tourism industry on the island; the The campaign has been designed advertising in Great Britain. Online tender process for a new content to be flexible and adaptable and to advertising will run in all markets in commissioning agency; and the evolve over its three-year lifespan which Tourism Ireland has a presence. production of new B-roll footage for to reflect the range of locations and In total, the campaign will reach an publicity purposes. iconic experiences on offer across estimated audience of 200 million the island. The tagline ‘Jump into potential visitors worldwide. Over a Ireland’ is designed to convey a sense three-year period, the total investment, of playfulness and to reflect the including production and media costs, immersive nature of a holiday here will be approximately €50m/£41m. 24 Tourism Ireland Annual Report 2011

Overview of Corporate Services

In 2011, the Corporate Services understanding of Tourism Ireland’s May of Queen Elizabeth II and US Division continued to support role in, and contribution to, tourism on President Barack Obama. the implementation of corporate the island. An extensive industry communications and operating plans across Progress reports and operational and events programme included a the organisation by carrying updates were provided for ministers marketing roadshow early in the year

Achill Island, Mayo out a range of functions which from both jurisdictions at a meeting and launches in Dublin and Belfast include Corporate and Industry of the North/South Ministerial Council for Tourism Ireland’s 2012 marketing Communications, Finance, Human Tourism Sectoral Format in Armagh. plans. A series of briefings was also Resources and Information Day-to-day liaison with departments, provided for industry groups and Communications Technology including the Department of representatives around the island (ICT). Enterprise, Trade and Investment in during the year. A new Tourism Key achievements during 2011 Northern Ireland and the Department Recovery Taskforce was established included: of Transport, Tourism and Sport in the in conjunction with ITIC, Fáilte Ireland, South, also covered arrangements the Northern Ireland Tourist Board Corporate & Industry and briefings in relation to visits to and representatives of key industry Communications the markets by both ministers with sectors, to ensure that the destination responsibility for tourism on the is promoted at home and abroad An extensive programme of island, ministers attending St Patrick’s with one strong brand message and stakeholder, industry and media Day celebrations overseas, visits by a co-ordinated strategy and action communications was implemented the then President of Ireland, Mary plan involving wide public and private across the island of Ireland during McAleese, to the Netherlands and sector participation. Sub-groups, called 2011 by the Corporate & Industry Spain, as well as other events at home Market Partnership Groups, were also Communications team to enhance and overseas, including the visits in established in top markets, Great Tourism Ireland Annual Report 2011 25

Britain, the United States, Germany Tourism Ireland was named on the administration of cross-border bodies is and France. SME ‘Great Place to Work’ list in complex due to the different operating Ireland, with good staff survey results environments in both jurisdictions. Media relations were also intensified reflecting continuing high levels of This includes different fiscal year-ends, during the year and significant engagement, satisfaction and pride legislation, currencies, operating and advances in coverage were recorded amongst Tourism Ireland employees. accounting procedures; it involves with a communications programme considerable collaboration across a reflecting the work of Tourism Ireland. The online HR System was further number of Government departments, A series of media briefings across the developed, providing employee to ensure that accountability island helped to clarify understanding ownership of a central database. The requirements are fulfilled in both of Tourism Ireland’s role. Irish media worldwide employee handbook was jurisdictions. Tourism Ireland meets had opportunities to witness Tourism substantially revised, reflecting current on a regular basis with both sponsor Ireland’s marketing activity overseas needs, legislation and best practice. departments, the Department of at first hand through participation at Worldwide internal communications Transport, Tourism and Sport and the World Travel Market in London and remain vital – with live, interactive Department of Enterprise, Trade and the Best of Britain and Ireland in virtual staff communications events Investment; with officials of the North/ Birmingham. held. Key appointments were made South Ministerial Council; with officials A number of Freedom of Information and leadership coaching to implement from the Department of Finance and requests were received and change initiatives continued. Personnel in Northern Ireland and the responded to under the Freedom Department of Finance in the South; of Information Code of Practice as Finance and with colleagues from Fáilte Ireland agreed by the North/South Ministerial and the Northern Ireland Tourist Board The provision of a smooth, flexible Council. in pursuit of this goal. and efficient back-office service to assist market offices, other head office Human Resources Information Communications departments and the management Technology (ICT) Resourcing continued to be a priority team in their own operations and a critical challenge for Tourism continued during 2011. The ICT Department manages the Ireland in 2011; resources were ICT systems and infrastructure for the The ongoing programme to identify redeployed and re-orientated as organisation, which include over 20 cost savings continued during the required, to meet business needs with corporate systems, ICT infrastructure year, helping to ensure that services flexible cross-function, cross-area and for all offices and telecommunications were provided on a value-for-money hub working strategies implemented. services for the organisation. Key basis and that costs were reduced achievements for 2011 include Tourism Ireland continued to invest wherever practicable. The programme the tendering and implementation in the training and development of upgrading and reviewing computer of a new corporate Wide Area of all employees during 2011. and management information systems Network, which ensured a tripling of Particular focus was placed on also continued. network speed and a 15% financial the adoption and effective use of The rolling internal audit programme annual saving; the tendering and technology in marketing, as well as on continued during the year and, as in implementation of a new hosting marketing strategy and management the previous six years, no significant site contract, leading to an improved development. The results of a career issues were reported. Copies of these service and 20% financial annual development survey led to the reports are made available to the saving; and the implementation of creation of a succession planning Comptroller and Auditor General. several new internal systems including and talent management strategy. TAMS (trade account management All employees had two formal The total public sector income systems) and PowWowNow. performance reviews during the received by Tourism Ireland amounted year, at mid-year and year end. And to €74.7m/£64.8m. The ongoing 26 Tourism Ireland Annual Report 2011 Hook Head, Wexford Tourism Ireland Annual Report 2011 27

Tourism Ireland Limited

(A company Limited by Guarantee not having a Share Capital)

Report and Financial Statements for the year ended 31 December 2011

Contents

Company Information 28

Report of the Directors 29

Statement of Directors’ Responsibilities 33

Statement of Internal Financial Control 34

Report of the Comptroller and Auditor General 35

Statement of Accounting Policies 37

Income & Expenditure Account 39

Statement of Total Recognised Gains and Losses 39

Balance Sheet 40

Cash Flow Statement 41

Notes to the Financial Statements 42 28 Tourism Ireland Annual Report 2011

Company Information

Directors Registered Office Auditors

Brian Ambrose OBE (Chairman) 5th Floor Comptroller and Auditor General Bishop’s Square () Jim Flannery (Vice-Chairman) Redmond’s Hill (Appointed 25 July 2011) Dublin 2 Ciara Burke (Boyle) Bankers Denis Cregan (Appointed 18 Dec 2011) Allied Irish Banks plc Business Addresses Howard Hastings 37/38 Upper O’Connell Street 5th Floor Dublin 1 John Healy (Appointed 18 Dec 2011) Bishop’s Square David Lyle Redmond’s Hill Dublin 2 Christoph Mueller Solicitors (Appointed 18 Dec 2011) Beresford House Mason Hayes & Curran 2 Beresford Road Elaine Murphy Barrow Street Coleraine (Appointed 18 Dec 2011) Dublin 4 BT52 1GE Shaun Quinn Tughans

Derek Reaney Marlborough House (Appointed 18 Dec 2011) 30 Victoria Street Belfast David Rodway BT1 3GS (Appointed 18 Dec 2011)

Hugh Friel (Resigned 3 May 2011)

Robert Manson (Resigned 18 Dec 2011)

Mandy Patrick (Martin) MBE (Resigned 18 Dec 2011)

Bill McGinnis CBE (Resigned 18 Dec 2011)

John Power (Resigned 18 Dec 2011)

Maurice Pratt (Appointed 3 February 2011and resigned 18 Dec 2011)

Ann Riordan (Resigned 18 Dec 2011)

Secretary

Shane Clarke Tourism Ireland Annual Report 2011 29

Report of the Directors for the year ended 31 December 2011

Brief History and Statutory Principal Activities Background of the Company The company’s principal activities are the design and Tourism Ireland Limited was formed by the Government implementation of marketing programmes in its key of Ireland and the Northern Ireland Executive, under the overseas markets for the purpose of promoting the tourism auspices of the North/South Ministerial Council (NSMC), to industry of the island of Ireland, in line with its objectives be the overseas marketing arm of tourism for the island of set out above. Ireland and was incorporated on 11 December 2000 as a Company Limited by Guarantee not having a Share Capital. External Auditors It takes policy direction from the NSMC and maintains The financial statements are audited by the Comptroller a close working relationship with its founder members, and Auditor General in the Republic of Ireland. The Fáilte Ireland (FI) and the Northern Ireland Tourist Board Comptroller and Auditor General for Northern Ireland has (NITB). The principal objectives of the company are to full access to the working papers of the Comptroller and increase tourism to the island of Ireland and to support Auditor General in the Republic of Ireland, based on which Northern Ireland in achieving its tourism potential. It is a report may be laid before the House of Commons and governed by its Memorandum and Articles of Association the Northern Ireland Assembly. and by the Financial Memorandum approved by the NSMC and prepares detailed three-year Corporate and one year Operating Plans to guide its activities. The company Results receives grants of money from both jurisdictions and The deficit of income over expenditure for the year was these grants are disbursed through FI and NITB. A Board €1,202,638 (STG£1,043,866). of Directors is appointed by the NSMC for a period of four years. Corporate Governance

Format of Financial Statements The company is governed by its Memorandum and Articles of Association and by the Financial Memorandum approved The accounts have been prepared in a format determined by the NSMC. It has a non-executive Board of Directors by the Companies Acts 1963 to 2009 (Republic of Ireland). appointed by the NSMC and includes representatives of the € The base currency of the financial statements is Euro ( ). Northern Ireland tourism industry, the tourism industry in The Euro results have been translated into Sterling (STG£) the South and the NITB and FI. Directors are appointed for € at the closing rate of STG£1 equals 1.19659 (2010: a four-year term. STG£1 equals €1.16636) for the Balance Sheet and at the yearly average rate of €1.15210 (2010: STG£1 equals €1. The Board agrees a schedule of meetings to be held 16534) for the Income and Expenditure Account. in each calendar year. The Board Members receive full Board papers a week before each meeting; these papers include a finance report and reports from the Chief Books of Account Executive and each of the company’s Divisional Directors. To ensure that proper books and accounting records are The Board members can, in furtherance of their duties, kept in accordance with Section 202 of the Companies Act take independent professional advice as required, at the 1990, the Directors have employed appropriately qualified expense of the company. All Board members have access accounting personnel and have maintained appropriate to the advice and services of the Company Secretary. computerised accounting systems. The books of account are located at the company’s office at Bishop’s Square, Dublin. 30 Tourism Ireland Annual Report 2011

Report of the Directors for the year ended 31 December 2011

There were 9 Board meetings during 2011 and the The following table sets out the composition and following table sets out the attendance: attendance at the Risk Management Committee meetings during 2011: Number of Number of meetings meetings Number of Number of potentially actually meetings meetings able to attended potentially able actually attended attend to attend

Hugh Friel (Chairman 2 2 Robert Manson 4 4 until 3 May 2011) (Chairman) Ciara Burke 9 8 (Vice-Chairperson) Ciara Burke 4 3

Brian Ambrose 9 6 David Lyle 4 4 Jim Flannery 4 3 Maurice Pratt 3 3 Howard Hastings 9 9 David Lyle 9 8 Remuneration Committee This sub-committee consists of five Directors and meets to review the appropriateness Robert Manson 9 9 of the company’s remuneration levels and other terms and Mandy Patrick 9 8 conditions of employment of key executives.

Bill McGinnis 9 7 The following table sets out the composition and John Power 9 8 attendance at Remuneration Committee meetings during 2011: Maurice Pratt 8 8

Shaun Quinn 9 8 Number of Number of Ann Riordan (Chairperson 9 9 meetings meetings from July 2011) potentially able actually attended to attend The Board also operates through a number of sub- committees as follows: Bill McGinnis 2 1 (Chairman) Risk Management Committee This sub-committee is comprised of four Directors who meet on a quarterly basis Brian Ambrose 2 2 to review and discuss the internal control environment of the company. They are informed by the company’s Risk Hugh Friel 1 1 Register which is used to set out a programme of work Mandy Patrick 2 2 for the Internal Audit function, reporting directly to this committee. The internal and external auditors have full and Ann Riordan 2 2 unrestricted access to the committee.

The Board accepts its responsibility for the Company’s internal control and sets out its position in more detail in the Statement of Directors’ Responsibilities and the Statement of Internal Financial Control. Tourism Ireland Annual Report 2011 31

Report of the Directors for the year ended 31 December 2011

Post Balance Sheet Events all minority groups, including the disabled, where they have the appropriate skills and abilities to perform the job. There have been no events subsequent to 31 December 2011 which necessitated amendment of the financial If disablement occurs during employment, the Board’s statements or separate disclosure therein. policy is to make every effort to ensure the availability of adequate retraining, or if applicable, to help source Research and Development alternative employment.

The company did not engage in research and development Safety, Health and Welfare at Work activities during the period. The policy of the Board is to ensure the continued Future Developments safety, health and welfare of the employees at work by maintaining a safe and healthy work environment based The Directors expect that the development of the on the provisions of Safety, Health and Welfare at Work Company’s activities will continue in accordance with plans. Legislation in the jurisdictions in which it operates.

Principal Risks and Uncertainties Charitable Donations The principal risks and uncertainties faced by the Tourism Ireland Limited made no charitable donations company are the continued funding of its activities by the during the period. Government of the of Great Britain and Northern Ireland and the Government of Ireland. While Payment of Suppliers there is a reasonable expectation that the respective Governments will continue to fund the activities of the Tourism Ireland Limited’s policy is to pay all suppliers as Company, the level of this funding is under constant review. promptly as is practicable and not to take any extra time in There are no formal long-term funding agreements in place. paying suppliers, other than that required to properly check and process the invoice. In 2011, the average time from Due to its worldwide operations, the ongoing downturn receipt of a supplier invoice to payment was 20 days. During in the economies of the Company’s key markets, Great the year Tourism Ireland Limited did not pay any interest in Britain, the USA, France, Germany and the rest of the world respect of late payments. Further information on Tourism generally, is having an adverse effect on the whole tourism Ireland’s payments to suppliers is available on Tourism and travel industry and specifically, on the Company’s ability Ireland’s corporate website, www.tourismireland.com. to deliver the growth, both in tourist numbers and tourist spend, which the company has been targeted to deliver Employee Involvement to the island of Ireland. An event such as a major terrorist attack or outbreak of disease, which reduces international Tourism Ireland Limited implements its business strategy travel, would increase the effects of the current economic through its staff. In achieving business objectives, the downturn on the Company’s ability to deliver on its targets. involvement of staff in the planning and decision-making In addition, any further loss or disruption of air or sea process is key. Staff involvement is maximised through the access and unfavourable foreign exchange movements will combined use of appropriate access to expert advice and have an impact on travel to the island of Ireland. The Board training opportunities in order to enable them to exercise regularly monitors the above risks and appropriate actions their responsibilities effectively. are taken to mitigate those risks or address their potential adverse consequences to the extent reasonably practicable. Freedom of Information

The British-Irish Agreement Act 1999 provides that a Code Equality Legislation of Practice on Freedom of Information be drawn up by the The Board’s policy is to comply fully with Equality Irish and Northern Ireland Ministers with responsibility for Legislation in both jurisdictions. Recruitment is based on freedom of information for the North/South Bodies and the ability of a candidate to perform the job. Full and fair the approval by the NSMC. The Code, which was approved consideration is given to applications for employment from on 1 January 2006, is non-statutory and was drafted with 32 Tourism Ireland Annual Report 2011

Report of the Directors for the year ended 31 December 2011

regard to the Freedom of Information Acts, 1997 and 2003 elsewhere. Tourism Ireland does not adopt a ‘one size fits in Ireland and the Freedom of Information Act, 2000 in the all’ approach to the service we provide, but aims to provide United Kingdom. a comprehensive and flexible suite of marketing options to the tourist industry. The Code facilitates public access to information held by the six North/South Implementation Bodies and Tourism At a corporate level, we adopt the highest standards of Ireland Limited in a number of ways. It provides that each compliance with regulatory requirements and aim to body should publish certain types of information relating to operate to the spirit and not just the letter of the regulations its functions, structures, organisation and services, together of both jurisdictions. with a general description of the type of information held We aim to treat our suppliers with the same courtesy with by that body. It sets out the process under which a member which we treat our stakeholders. of the public can request information held by a body, the steps that a body must take in handling such a request Without a talented, dedicated and motivated staff, Tourism and the time period within which a body should normally Ireland tt aspire to provide the excellent level of service respond to a request. The Code also contains the facility for our stakeholders deserve. For this reason, staff recruitment, members of the public to obtain a statement of the reasons training and development are given the highest priority. Our for an act of a body affecting the person. people and agents, based in 24 locations in 21 countries, are the key to Tourism Ireland’s success over the past 11 The Annex to the Code sets out the categories of exempt years. information. If the information requested falls into a category listed in Part 1 of the Annex, the body is not Tourism Ireland is fully committed to equal opportunities obliged to release the information. If the information recruitment and employment. Our strategy is to recruit the requested falls into a category listed in Part 2, the body best and provide them with comprehensive training and must carry out a public interest test in deciding whether or support to allow them maximise their long-term potential. not to release the information. The Code provides for an internal review mechanism of decisions taken by the body Directors’ Register of Interests under the Code. The Directors’ Register of Interests is maintained at the registered office of the company. It is available to the Corporate Social Responsibility public and may be accessed by contacting the Company Leading companies are those that not only deliver Secretary. superior performance and excellent customer service, but also consider ethical, social and environmental issues for all stakeholders. Tourism Ireland recognises its wider On behalf of the Board obligations to its employees, society and the community it serves and believes there is a strong link between Corporate Social Responsibility and long-term success. Tourism Ireland aspires to a set of values which recognises the interests of all stakeholders and the contributions they make. To this end, we adopt very high standards of integrity, corporate governance and environmental awareness. We Brian Ambrose Jim Flannery recognise that being a good corporate citizen not only Chairman Director involves achieving our business aims but embraces a wider Date: 10 May 2012 contribution to the interests of all our stakeholders.

Our stakeholders, both in the tourist industry and tourists themselves, are fundamental to the growth of the tourist business on the island of Ireland. International tourism is an intensely competitive market and if we do not offer the most attractive propositions, tourists will take their business Tourism Ireland Annual Report 2011 33

Statement of Directors’ Responsibilities for the year ended 31 December 2011

Company law requires the Board of Directors to prepare financial statements for each financial period which give a true and fair view of the state of the affairs of the company and of the profit or loss of the company for that financial period. In preparing those financial statements, the Board of Directors are required to:

■■ select suitable accounting policies and apply them consistently;

■■ make judgements and estimates which are reasonable and prudent;

■■ disclose and explain any material departures from applicable accounting standards, and

■■ prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The Board of Directors is responsible for keeping proper books of account which disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Acts 1963 to 2009, as applicable to companies limited by guarantee and not having a share capital. It is responsible for ensuring that the business of the entity is conducted in a proper and regular manner and for safeguarding the assets of the company and hence, for taking reasonable steps for the prevention and detection of fraud and other irregularities.

On behalf of the Board

Brian Ambrose Jim Flannery Chairman Director

Date: 10 May 2012 34 Tourism Ireland Annual Report 2011

Statement of Internal Financial Control for the year ended 31 December 2011

The Board acknowledges its responsibility for ensuring The effectiveness of the system of internal financial control that an effective system of internal financial control is is assessed by the Board on the basis of work carried out maintained and operated by the company. by the executive managers within the company who have responsibility for the development and maintenance of the The system can only provide reasonable and not absolute financial control framework. In conducting their review, the assurance that assets are safeguarded, transactions Board takes account of the management letter and other authorised and properly recorded, and that material errors reports of the external auditor. or irregularities are either prevented or would be detected within a timely period. In February 2012, the effectiveness of the system of internal financial controls was reviewed by the Board and The system of internal financial control is based on the Board concluded that these controls were operating a framework of regular management information, effectively and satisfactorily. administrative procedures including the segregation of duties, and a system of delegation and accountability. In particular, it includes: On behalf of the Board ■■ Comprehensive budgeting systems with an annual budget which is reviewed and agreed by the Board;

■■ Regular reviews by the Board of periodic and annual financial reports which indicate financial performance against forecasts;

■■ Setting targets to measure financial and other Brian Ambrose Niall Gibbons performance; Chairman CEO

■■ Clearly defined capital investment control guidelines; Date: 10 May 2012 ■■ As appropriate, formal project management disciplines.

Tourism Ireland Limited has an internal audit function in place, whose programme of work is influenced by analysis of the risk to which the company is exposed. An internal audit plan has been prepared based on this analysis. This analysis of risk is reviewed during the year and is endorsed by the company’s Risk Management Committee. The internal audit programme of works includes performance of detailed audit work, provision of a report on the internal audit activity in the company on a regular basis to the Risk Management Committee and an independent opinion on the adequacy and effectiveness of the company’s system of internal financial control. Areas covered by internal audit in their 2011 work programme included visits to Market Offices, reviews of IT Security, Human Resource Strategy & Management, Fraud/Corruption Prevention & Detection, Contract Management, Business Continuity Management, and Internal Financial Controls. Tourism Ireland Annual Report 2011 35

Report of the Comptroller and Auditor General (Republic of Ireland) for the year ended 31 December 2011

Tourism Ireland Limited ■■ the reasonableness of significant accounting estimates made in the preparation of the financial statements, I have audited the financial statements of Tourism Ireland and Limited for the year ended 31 December 2011 under the Comptroller and Auditor General (Amendment) Act ■■ the overall presentation of the financial statements. 1993. The financial statements, which have been prepared I also seek to obtain evidence about the regularity of under the accounting policies set out therein, comprise financial transactions in the course of audit. the Statement of Accounting Policies, the Income and Expenditure Account, the Statement of Total Recognised In addition, I read all the financial and non-financial Gains and Losses, the Balance Sheet, the Cash Flow information in the Annual Report to identify material Statement and the related notes. The financial reporting inconsistencies with the audited financial statements. If I framework that has been applied in their preparation is become aware of any apparent material misstatements or applicable law and Generally Accepted Accounting Practice inconsistencies, I consider the implications for my report. in Ireland. Opinion on the Financial Statements Responsibilities of the Directors In my opinion, the financial statements: The Directors are responsible for the preparation of the ■■ give a true and fair view, in accordance with Generally financial statements, for ensuring that they give a true and Accepted Accounting Practice in Ireland, of the state of fair view of the state of the company’s affairs and of its the company’s affairs at 31 December 2011 and of its income and expenditure, and for ensuring the regularity of income and expenditure for the year then ended; and transactions. ■■ have been properly prepared in accordance with the Responsibilities of the Comptroller Companies Acts 1963 to 2009. and Auditor General I have obtained all the information and explanations that My responsibility is to audit the financial statements and I consider necessary for the purpose of my audit. In my report on them in accordance with applicable law. opinion, proper books of account have been kept by the company. The financial statements are in agreement with My audit is conducted by reference to the special the books of account. considerations which attach to State bodies in relation to their management and operation. In my opinion, the information given in the Directors’ Report is consistent with the financial statements. My audit is carried out in accordance with the International Standards on Auditing (UK and Ireland) and in compliance Matters on Which I Report by Exception with the Auditing Practices Board’s Ethical Standards for Auditors. I report by exception if

■■ my audit noted any material instance where moneys Scope of Audit of the Financial Statements have not been applied for the purposes intended An audit involves obtaining evidence about the amounts by Dáil Éireann and the Northern Ireland Assembly and disclosures in the financial statements, sufficient to give or where the transactions did not conform to the reasonable assurance that the financial statements are free authorities governing them, or from material misstatement, whether caused by fraud or ■■ the information given in the Annual Report for the year error. This includes an assessment of for which the financial statements is prepared is not ■■ whether the accounting policies are appropriate to the consistent with the financial statements, or company’s circumstances, and have been consistently applied and adequately disclosed 36 Tourism Ireland Annual Report 2011

Report of the Comptroller and Auditor General (Republic of Ireland) for the year ended 31 December 2011

■■ the Statement on Internal Financial Control does not reflect the company’s compliance with the Code of Practice for the Governance of State Bodies, or

■■ I find there are other material matters relating to the manner in which public business has been conducted.

■■ I have nothing to report in regard to those matters upon which reporting is by exception.

Seamus McCarthy Comptroller and Auditor General

Date: 18 June 2012 Tourism Ireland Annual Report 2011 37

Statement of Accounting Policies The significant accounting policies adopted by the company are as follows:

The significant accounting policies adopted by the Translated amounts have been disclosed in the Income and company are as follows: Expenditure Account, Cash Flow Statement, Balance Sheet and related notes in Euro (€) with summary amounts Basis of Preparation given in Sterling (STG£).

The financial statements have been prepared under the Pension Costs historical cost convention and in accordance with financial reporting standards generally accepted in Ireland and the The North/South Pension Scheme was established by the United Kingdom. North/South Implementation Bodies and Tourism Ireland Limited with effect from 29 April 2005. It is a defined Income benefit pension scheme which is funded annually on a pay as you go basis. The scheme is administered by an Income is accounted for on a receivable basis. All grant external administrator. Funding from the Irish Government income is credited to the Income and Expenditure Account is provided by the Department of Transport, Tourism and in the accounting period in which it is claimed from the Sport and funding from the Northern Ireland Executive funding bodies. is provided by the Department of Enterprise, Trade and Investment to Tourism Ireland, which then funds the Expenditure administrator.

VAT and local sales taxes are absorbed by the company Pension costs reflect pension benefits earned by with a limited recovery system agreed with the Revenue employees during the period. An amount corresponding to Authorities. All advertising and promotional expenditure, the pension charge is recognised as income to the extent, including costs incurred on the production of publications that in the future either by way of grant income or other items for which no revenue is obtained, is charged to the funding to the administrator, it is recoverable, and offset by Income and Expenditure account in the financial period in pension payments made in the year. which it is incurred. Actuarial gains or losses arising from changes to actuarial assumptions and from experience surpluses and deficits are Debtors reflected in the Statement of Total Recognised Gains and Debtors are stated after providing for specific bad and Losses and a corresponding adjustment is recognised in the doubtful debts. amount recoverable from the Northern Ireland Executive and the Irish Government. Tangible Fixed Assets Pension liabilities represent the present value of future Tangible fixed assets are stated at cost less accumulated pension payments earned by staff to date. Deferred depreciation. Depreciation is provided at rates calculated pension funding represents a corresponding asset being to write off the cost less residual value of each asset over resources to be made available in future periods from the its expected useful life, on the straight line basis. Computer Northern Ireland Executive and the Irish Government, in the software that is either purchased or developed in-house is manner described above. normally written off in the year of purchase unless it can be The Balance Sheet recognises the cumulative liability for proven to have a re-sale value. pensions earned by employees as at the year end together with a corresponding asset. Foreign Currencies

Monetary assets and liabilities denominated in foreign currencies are translated into Euro at the rates of exchange prevailing at the balance sheet date. Transactions in foreign currencies are recorded at standard rates fixed for the year for each currency with gains and losses realised at the time of payment. Realised gains and losses are taken to the Income and Expenditure Account. 38 Tourism Ireland Annual Report 2011

Statement of Accounting Policies The significant accounting policies adopted by the company are as follows:

In accordance with accounting practice for non-commercial Leased Assets State bodies in the Republic of Ireland, Tourism Ireland Assets acquired under finance leases are capitalised as recognises an asset representing resources to be made tangible fixed assets and depreciated in accordance with available by the UK and Irish Exchequers for the unfunded normal company policy. The corresponding liability is deferred liability for pensions on the basis of a number of recorded as a creditor and the interest element of the past events. These events include the statutory backing finance lease payment is charged to the Income and for the superannuation schemes, and the policy and Expenditure Account on an annuity basis. Operating lease practice in relation to funding public service pensions in rentals are charged to the Income and Expenditure Account both jurisdictions including the annual estimates process. on a straight-line basis over the lease term. While there is no formal agreement and therefore no guarantee regarding these specific amounts with the Government Grant Reserve funding bodies, Tourism Ireland has no evidence that this funding policy will not continue to progressively meet The Government Grant Reserve represents the unamortised this amount in accordance with current practice. This value of grant income used for capital purposes. treatment is inconsistent with accounting practice for UK Non-Departmental Bodies, where, due to the absence of a formal guarantee, a funding liability is not recognised until the commitment falls due.

Contributions are made to a number of personal pension schemes operated by staff who are not members of a defined benefit scheme. Payments made under each scheme are included in the Income and Expenditure Account in the year to which they relate. Tourism Ireland Annual Report 2011 39

Income & Expenditure Account for the year ended 31 December 2011

2011 2011 2010 2010 Notes € (000’s) STG £ € (000’s) STG £ (000’s) (000’s)

Total Income 2 80,301 69,700 76,530 65,672 Less Expenditure 3 (81,686) (70,902) (77,171) (66,222) Transfer from Government Grant Reserve 11 182 158 422 362 (Deficit)/Excess of Income over expenditure (1,203) (1,044) (219) (188)

Statement of Total Recognised Gains and Losses for the year ended 31 December 2011

2011 2011 2010 2010 Notes € (000’s) STG £ € (000’s) STG £ (000’s) (000’s)

(Deficit)/Excess of Income over expenditure (1,203) (1,044) (219) (188) Actuarial (loss)/gain on pension liabilities 15c (1,209) (1,010) (682) (585) Adjustment to Deferred pension funding 1,209 1,010 682 585 Total Recognised (loss) gain for the year (1,203) (1,044) (219) (188)

All income is in respect of continuing operations.

The accounting policies and notes 1 to 23 form an integral part of these Financial Statements.

On behalf of the Board

Brian Ambrose Jim Flannery Chairman Director

Date: 10 May 2012 40 Tourism Ireland Annual Report 2011

Balance Sheet as at 31 December 2011

2011 2011 2010 2010 Notes € (000’s) STG £ € (000’s) STG £ (000’s) (000’s)

Fixed Assets 7 256 214 438 376

Current Assets Debtors 8 3,773 3,153 3,353 2,875

Bank and cash balances 9,237 7,719 7,823 6,707 13,010 10, 872 11,176 9,582 Current Liabilities Creditors falling due within one year 9 (10,211) (8,533) (7,174) (6,151)

Net Current Assets 2,799 2,339 4,002 3,431

Total Assets Less Current Liabilities before Pensions 3,055 2,553 4,440 3,807

Deferred pension funding 15e 39,423 32,946 36,955 31,684 Pension Liabilities 15c (39,423) (32,946) (36,955) (31,684) - - - - Net Assets 3,055 2,553 4,440 3,807

Represented by Income and expenditure account 12 2,799 2,339 4,002 3,431 Government Grant Reserve 11 256 214 438 376 3,055 2,553 4,440 3,807

The accounting policies and notes 1 to 23 form an integral part of these Financial Statements.

On behalf of the Board

Brian Ambrose Jim Flannery Chairman Director

Date: 10 May 2012 Tourism Ireland Annual Report 2011 41

Cash Flow Statement for year ended 31 December 2011

2011 2011 2010 2010 Notes € (000’s) STG £ € (000’s) STG £ (000’s) (000’s)

Net cash (outflow)/inflow from operating activities 13 1,506 1,092 (684) (840)

Capital expenditure and financial investment Payments to acquire tangible fixed assets (92) (80) (72) (62) Proceeds of disposal of fixed assets - - 16 14

Net cash (outflow)/inflow in the period 14 1,414 1,012 (740) (888) 42 Tourism Ireland Annual Report 2011

Notes to the Financial Statements for year ended 31 December 2011

1. Format of Financial Statements

Euro results have been translated into Sterling at the year end closing rate of €1.19659 (2010: €1.16636) for the Balance Sheet and the average yearly rate of €1.15210 (2010: €1.16534) for the Income and Expenditure Account.

2. Total Income

2011 2011 2010 2010 Notes € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Fáilte Ireland 56,038 48,641 55,025 47,218 Northern Ireland Tourist Board 20,516 17,807 17,749 15,231 Trade Income 1,302 1,130 1,388 1,191 Sundry Income 204 177 193 165 Net deferred funding for pensions 15d 2,241 1,945 2,175 1,867 80,301 69,700 76,530 65,672

Income is receivable from Fáilte Ireland and the Northern Ireland Tourist Board in accordance with funding provisions set out in the Financial Memorandum. The amount actually received in Sterling from NITB was £16.823m (2010: £15.797m).

Income is inclusive of funds for product and regional marketing from Fáilte Ireland of €4.090m: £3.551m (2010 €6.043m: £5.186m) and the Northern Ireland Tourist Board €nil: £nil (2010 €nil: £nil).

3. Expenditure

2011 2011 2010 2010 Notes € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Marketing Programmes 57,053 49,520 51,500 44,194 Overseas General Sales Agents 736 639 731 627 Staff costs 5 15,500 13,454 15,069 12,931 Office and Admin costs 6,746 5,856 8,034 6,893 Travel and subsistence 1,075 933 1,183 1,015 Legal and professional 484 420 552 474 Directors remuneration 6 92 80 102 88 81,686 70,902 77,171 66,222

Marketing programmes are inclusive of funds for product and regional marketing from Fáilte Ireland of €4.090m: £3.551m (2010 €6.043m: £5.186m) and the Northern Ireland Tourist Board €nil: £nil (2010 €nil: £nil).

Company Policy allows in exceptional circumstances for the payment of school fees for the children of management on overseas assignment. Included within €6,746,000 (£5,856,000) is an amount of €68,235 (£59,227) in respect of school fees. Tourism Ireland Annual Report 2011 43

Notes to the Financial Statements for year ended 31 December 2011

3. Expenditure (continued)

2011 Expenditure Analysis

Australia Great & Dev. North Notes Central Britain Europe Markets America Total € (000’s) € (000’s) € (000’s) € (000’s) € (000’s) € (000’s) Marketing Programmes 9,463 21,014 13,398 2,600 10,578 57,053 Overseas General Sales Agents - - 150 586 - 736 Staff costs 5 7,332 1,383 3,517 711 2,557 15,500 Office and Admin costs 4,071 694 884 243 854 6,746 Travel & Subsistence 276 138 293 144 224 1,075 Legal and professional 351 (2) 58 19 58 484 Directors remuneration 6 92 - - - - 92 21,585 23,227 18,300 4,303 14,271 81,686

Central Marketing programmes comprise of Tourism Ireland’s customer contact centre, e-marketing unit, advertising production and the costs of the production and distribution of collateral materials.

Great Australia & North Central Britain Europe Dev.Markets America Total STG £ STG £ STG £ STG £ STG £ STG £ (000’s) (000’s) (000’s) (000’s) (000’s) (000’s) Marketing Programmes 8,214 18,240 11,629 2,256 9,181 49,520 Overseas General Sales Agents - - 130 509 - 639 Staff costs 5 6,365 1,200 3,053 617 2,219 13,454 Office and Admin costs 3,533 602 768 211 742 5,856 Travel & Subsistence 240 120 254 125 194 933 Legal and Professional 305 (2) 50 16 51 420 Directors’ remuneration 6 80 - - - - 80 18,737 20,160 15,884 3,734 12,387 70,902

4. (Deficit)/Excess of Income over Expenditure

This is stated after charging: 2011 2011 2010 2010 Notes € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Depreciation of tangible assets 7 274 238 469 402 Auditors’ remuneration 23 20 24 21 Directors’ remuneration 6 92 80 102 88 Operating lease rentals - Land & Buildings 2,156 1,871 2,111 1,811 Operating lease rentals – Other 24 21 14 12 44 Tourism Ireland Annual Report 2011

Notes to the Financial Statements for year ended 31 December 2011

5. Employees and Remuneration

2011 2011 2010 2010 Notes € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Wages & salaries 10,169 8,827 10,143 8,704 Social welfare costs 1,280 1,111 1,202 1,031 Student placement programmes 658 571 489 420 Company contribution to private pensions 35 30 17 15 Current pension service costs 15d 3,055 2,652 2,919 2,505 Other payroll costs 303 263 299 256 15,500 13,454 15,069 12,931

The average number of people employed during the year was 154 (2010: 156).

During the year, €216,968 (£188,324) of pension levy was deducted and paid over to the Department of Transport, Tourism and Sport.

The current Chief Executive was appointed by the North South Ministerial Council on 10 June 2009 and his contract is for a period of 5 years. His salary is €165,972 (£144,060), he is a member of the company’s pension scheme, no bonus is payable and his salary has been amended in accordance with the Financial Emergency Measures in the Public Interest Act 2009.

6. Directors’ Remuneration

2011 2011 2010 2010 € STG £ € STG £ For services as directors 92,303 80,120 102,000 88,000

The breakdown is as follows: Mr Brian Ambrose 8,100 7,031 Ms Ciara Burke 10,350 8,984 Mr Robert Manson 8,100 7,031 Mr Howard Hastings 8,100 7,031 Mr John Power 8,100 7,031 Mr David Lyle 8,100 7,031 Mr Bill McGuinness 8,100 7,031 Ms Ann Riordan 10,062 8,733 Mrs Mandy Martin 8,100 7,031 Mr Hugh Friel 4,297 3,730 Mr Maurice Pratt 7,363 6,391 Mr James Flannery 3,531 3,065

No other Director received any remuneration and the Directors are not entitled to any other emolument, benefit or pension and are not entitled to compensation upon loss of office. None of the Directors received an incentive to take up office. Tourism Ireland Annual Report 2011 45

Notes to the Financial Statements for year ended 31 December 2011

7. Tangible Fixed Assets

Computer Fixtures & Leasehold Equipment Fittings Property Total € (000’s) € (000’s) € (000’s) € (000’s) Cost At 1st January 2011 1,703 960 2,410 5,073 Additions 79 13 - 92 Disposals (152) (12) - (164) At 31st December 2011 1,630 961 2,410 5,001

Depreciation At 1st January 2011 1,579 773 2,283 4,635 Charge for Year 103 69 102 274 Disposals (152) (12) - (164) At 31st December 2011 1,530 830 2,385 4,745

Net Book Value € (000’s) € (000’s) € (000’s) € (000’s) At 31st December 2011 100 131 25 256 At 31st December 2010 124 187 127 438

Computer Fixtures & Leasehold Equipment Fittings Property Total STG£(000’s) STG£(000’s) STG£(000’s) STG£(000’s) Cost At 1st January 2011 1,459 825 2,066 4,350 Exchange Adjustment (35) (21) (52) (108) Additions 69 11 - 80 Disposals (132) (11) - (143) At 31st December 2011 1,361 804 2,014 4,179

Depreciation At 1st January 2011 1,351 662 1,961 3,974 Exchange Adjustment (32) (19) (53) (104) Charge for Year 90 60 88 238 Disposals (132) (11) - (143) At 31st December 2011 1,277 692 1,996 3,965

Net Book Value STG£(000’s) STG£(000’s) STG£(000’s) STG£(000’s) At 31st December 2011 84 112 18 214 At 31st December 2010 108 163 105 376

The estimated useful lives of tangible fixed assets by reference to which depreciation is calculated are as follows:

Computer Equipment 3 years Fixtures & Fittings 8 years Leasehold Property 8 years 46 Tourism Ireland Annual Report 2011

Notes to the Financial Statements for year ended 31 December 2011

8. Debtors

2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Trade debtors 106 89 211 181 Fáilte Ireland 1,824 1,524 1,265 1,085 VAT - - 79 68 Sundry debtors and prepayments 1,843 1,540 1,798 1,541 3,773 3,153 3,353 2,875

9. Creditors

Amounts falling due within one year 2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Trade creditors 9,448 7,896 6,123 5,250 Northern Ireland Tourist Board 36 30 28 24 Trade income received in advance 148 123 252 216 Pay related tax costs and deductions 50 42 49 42 Pension costs 2 2 19 16 VAT 45 37 1 1 Accruals 482 403 702 602 10,211 8,533 7,174 6,151

10. Operating Leases

Land & Other Total Land & Other Total Buildings Operating Buildings Operating Leases Leases Expiring € (000’s) € (000’s) € (000’s) STG £ STG £ STG £ (000’s) (000’s) (000’s) Within 1 year 55 7 62 48 6 54 Between 2 and 5 years 735 6 741 638 5 643 More than 5 years 1,193 - 1,193 1,035 - 1,035 1,983 13 1,996 1,721 11 1,732 Tourism Ireland Annual Report 2011 47

Notes to the Financial Statements for year ended 31 December 2011

10. Operating Leases (continued)

The annual rent payable in respect of leased premises is broken down as follows:

2011 2011 2010 2010 Rent Rent Rent Rent Expiry Break Payable Payable Payable Payable Location Date Clause €(000’s) £(000’s) €(000’s) £(000’s) Head offices Dublin (1) 2022 - 587 510 587 504 Coleraine 2013 - 51 44 49 42 Overseas offices Amsterdam 2016 - 61 53 58 50 Brussels 2015 - 36 31 34 29 Copenhagen 2020 2013 39 34 34 29 Dubai 2012 - 55 48 53 46 Frankfurt 2022 2017 101 88 101 87 Glasgow (2) Rolling - 20 17 19 16 London 2018 2013 323 280 297 255 Madrid (1) (2) Rolling - 51 44 39 34 Milan 2017 - 42 36 40 34 New York (1) 2014 - 502 436 502 431 Paris 2018 - 133 115 128 110 Shanghai (1) 2012 - 46 40 46 40 Sydney 2013 - 42 36 35 30 Toronto 2013 - 42 36 35 30 Total annual costs 2,131 1,848 2,057 1,767

Notes:

(1) Shared accommodation with another state agency or Government body (2) Premises currently occupied on a rolling basis with no fixed term 48 Tourism Ireland Annual Report 2011

Notes to the Financial Statements for year ended 31 December 2011

11. Government Grant Reserve

2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Balance at beginning of the period 438 376 860 763 Revaluation of opening balance - (10) - (25)

Transfers (to)/from Income and Expenditure Account:

Grants used to purchase fixed assets 92 80 72 62 Amortisation in line with asset depreciation (274) (238) (469) (402) Amount released on disposal of fixed assets - - (25) (22) (182) (158) (422) (362) Revaluation to closing balance - 6 - - Balance at 31st December 256 214 438 376

12. Income and Expenditure Account

2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Balance at beginning of the period 4,002 3,431 4,221 3,744 Revaluation of opening balance - (87) - (125) (Deficit)/Excess of income over expenditure (1,203) (1,044) (219) (188) Revaluation to closing balance - 39 - - Balance at 31st December 2,799 2,339 4,002 3,431

13. Reconciliation of the (Deficit)/Excess of Income over Expenditure to Net Cash (Outflow)/Inflow from Operating Activities

2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) (Deficit)/Excess of income over expenditure in period (1,203) (1,044) (219) (188) Depreciation of tangible fixed assets 274 238 469 402 Transfer from Government Grant Reserve (per note 11) (182) (158) (422) (362) Loss/(Profit) on disposal of fixed assets - - 9 8 (Increase)/Decrease in debtors (420) (278) (736) (554) Increase/(Decrease) in creditors 3,037 2,382 215 (21) Revaluation of opening balance - (87) - (125) Revaluation to closing balance - 39 - - Net cash (outflow)/inflow from operating activities 1,506 1,092 (684) (840) Tourism Ireland Annual Report 2011 49

Notes to the Financial Statements for year ended 31 December 2011

14. Reconciliation of net cash (outflow)/inflow to movement in bank and cash balances

2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Bank and Cash Balances at 1 January 7,823 6,707 8,563 7,595 Net Cash (outflow)/inflow 1,414 1,012 (740) (888) Bank and Cash Balances at 31 December 9,237 7,719 7,823 6,707

Net cash (outflow)/inflow from operating activities 1,506 1,092 (684) (840) Net cash (outflow) from non operating activities (92) (80) (56) (48) Net cash (outflow)/inflow 1,414 1,012 (740) (888)

15. Pensions a) Background

The North/South Pension Scheme was established by the North/South Implementation Bodies and Tourism Ireland Limited with effect from 29 April 2005.

There are a number of different categories of membership which are designed for both new members and members who transferred in from Bord Fáilte (now Failte Ireland) and the Northern Ireland Tourist Board. In addition Tourism Ireland makes contributions to a number of personal schemes operated by its employees. b) Accounting Treatment

FRS 17 requires financial statements to reflect, at fair value, the assets and liabilities arising from an employer’s obligations and any related funding and to recognise the costs of providing superannuation benefits in the accounting periods in which they are earned by employees.

The effect of FRS17 is to recognise as expenditure in the year the cost of pensions earned, rather than the payments made to pensioners, and a corresponding funding amount. In addition the Balance Sheet recognises the cumulative liability for pensions earned by employees as at 31 December 2011 together with a corresponding asset.

The valuation used for FRS17 disclosures has been based on an actuarial valuation as at 31 December 2011 by a qualified independent actuary to take account of the requirements of FRS17 in order to assess the scheme liabilities at 31 December 2011. The principal actuarial assumptions used to calculate scheme liabilities under FRS17 are:

2011 2010 Discount rate (South) 4.60% 4.70% Discount rate (North) 4.70% 5.40% Inflation rate (South) 2.50% 2.50% Inflation rate (North) 2.60% 3.40% Rate of increase in salaries 4.00% 4.00% Rate of increase for pensions (South) 2.50% or 4.0% 2.50% or 4.0% Rate of increase for pensions (North) 2.60% 3.40%

Average expected future life at age 65 for Male currently aged 65 21.4 21.3 Female currently aged 65 24.0 23.9 Male currently aged 45 23.3 23.2 Female currently aged 45 25.9 25.8 50 Tourism Ireland Annual Report 2011

Notes to the Financial Statements for year ended 31 December 2011

15. Pensions (continued)

c) Movement in Net Pension Liability during the financial year

2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) (Deficit) in the plan at the beginning of the year (36,955) (31,684) (33,713) (29,900) Exchange differences - 841 - 999 Benefits paid during the year 814 707 744 638 Member Contributions (246) (214) (250) (215) Current service cost (1,265) (1,098) (1,129) (969) Net transfers (in)/out of the scheme 1,228 1,066 (135) (116) Other finance income/(charge) (1,790) (1,554) (1,790) (1,536) Actuarial (loss)/gain (1,209) (1,010) (682) (585) (Deficit) in the plan at the end of the year (39,423) (32,946) (36,955) (31,684)

Analysis of the movement in (deficit) in the Plan during the period is as follows:

2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Experience gain/(loss) (36) (30) 1,636 1,404 (Loss)/gain on change of financial assumptions (1,173) (980) (2,318) (1,989) Actuarial (loss)/gain (1,209) (1,010) (682) (585)

d) Income and Expenditure Account analysis for the financial year

Analysis of the net deferred funding for pensions is as follows:

2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Current service cost 1,265 1,098 1,129 969 Other finance cost 1,790 1,554 1,790 1,536 Benefits paid during the year (814) (707) (744) (638) 2,241 1,945 2,175 1,867

Analysis of the current pension service costs is as follows:

2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Current service cost 1,265 1,098 1,129 969 Other finance cost 1,790 1,554 1,790 1,536 3,055 2,652 2,919 2,505

Tourism Ireland Annual Report 2011 51

Notes to the Financial Statements for year ended 31 December 2011

15. Pensions (continued) e) Deferred Funding Asset for Pensions 2011 2011 2010 2010 € (000’s) STG £ € (000’s) STG £ (000’s) (000’s) Opening Balance at 1 January 36,955 31,684 33,713 29,900 Increase in Deferred Funding of Pension Asset 2,468 1,262 3,242 1,784 Closing balance at 31 December 39,423 32,946 36,955 31,684

f) History of Defined Benefit Liabilities

2011 2010 2009 2008 2007 € (000’s) € (000’s) € (000’s) € (000’s) € (000’s) (Deficit) as at 31 December (39,423) (36,955) (33,713) (24,398) (25,413) Experience gain/(loss) (36) 1,636 (709) (40) (1,275) Percentage of Scheme Liabilities (0.1%) 4.4% (2.1%) (0.2%) (5.0%)

2011 2010 2009 2008 2007 STG £ STG £ STG £ STG £ STG £ (000’s) (000’s) (000’s) (000’s) (000’s) (Deficit) as at 31 December (32,946) (31,684) (29,900) (23,810) (18,759) Experience gain/(loss) (30) 1,404 (632) (32) (941) Percentage of Scheme Liabilities (0.1%) 4.4% (2.1%) (0.1%) (5.0%)

g) Private Pension Schemes

In circumstances where staff are unable to avail of the scheme, they may set up a personal defined contribution scheme, to which the company will make a contribution. There are 35 staff members in such schemes.

16. Capital Commitments

There were no capital commitments at 31 December 2011 (2010 - Nil).

17. Other Commitments

The company had committed to marketing expenditure of €3.6m (£3.0m) at 31 December 2011 (2010 - €1.0m. £0.9m).

18. Grant Payment Commitments

There were no grant payment commitments at 31 December 2011 (2010 - Nil).

19. Contingent Liabilities

There were no contingent liabilities at 31 December 2011 (2010 - Nil). 52 Tourism Ireland Annual Report 2011

Notes to the Financial Statements for year ended 31 December 2011

20. Related Party Transactions

There were no related party transactions during the period.

21. Losses and Special Payments

In 2008 Tourism Ireland incurred expenditure of €21,000 in respect of the development of an HR software system. The cost of this software was fully expensed in the 2008 accounts. The company involved failed to deliver the required product and has subsequently gone into liquidation. The final non-recoverability of this money was confirmed in 2010. The Board and Risk Management Committee were kept appraised of developments over the course of 2008 to 2010.

22. Board Members – Disclosure of Transactions

In the normal course of business, Tourism Ireland may enter into contractual arrangements with undertakings in which Board Members are employed or otherwise interested. Tourism Ireland has adopted procedures in accordance with the guidelines issued in relation to the disclosure of interests by Board Members and these procedures have been adhered to during the year.

23. Approval of Financial Statements

The financial statements were approved by the Board of Directors on 10 May 2012. Tourism Ireland Annual Report 2011 53 Festivals, Galway Festivals, Tourism Ireland

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