Annual Report 2014

Contents

Brief history and statutory background of the company 1 2014 Highlights 3 Chairman and CEO Statement 5 Tourism Board 9 Report and Financial Statements 14

Skellig Islands, Co Kerry 1 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 2

Brief History and Statutory Background of the Company

Tourism Ireland Limited was formed by the Government of Ireland and the Executive, under the auspices of the North South Ministerial Council (NSMC), to be the overseas marketing arm of tourism for the island of Ireland and was incorporated on 11 December 2000 as a Company Limited by Guarantee not having a Share Capital. It takes policy direction from the NSMC and maintains a close working relationship with its founders, Fáilte Ireland and Tourism NI. The principal objectives of the company are to increase tourism to the island of Ireland and to support Northern Ireland in achieving its tourism potential. It is governed by its Memorandum and Articles of Association 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 receives its funding from both jurisdictions. A board of directors is appointed by the NSMC for a period of four years. Co Sligo 36 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 47

Overseas visitors to the island of Ireland 8.4 m Unique visitors to Ireland.com 14.25 m in 2014 % Increase in overseas + Holiday visitors to Ranking of Tourism Ireland’s Social Presence visitors over 6 the island of Ireland against other National Tourism Boards PASSPORT m Facebook No. 3 Twitter No. 2 YouTube No. 2 2013 4.6 at June 2015 2014 Highlights

Tourism Ireland markets overseas Ireland No. 5 Lonely Planet’s ‘Best in Travel 2015’ Increase in Spend by overseas visitors € spend over Overseas4.1bn/£3.4bn visitors to +6% 21 the island of Ireland2013 8.4 m Unique visitors to Ireland.com m in 2014 United States 14.25 Increase in IRELAND access% from + 9 % Increase in overseas + U.S.A. Holiday visitors to Ranking of Tourism Ireland’s Social Presence 6 the island of Ireland against other National Tourism Boards Markets for visitors overGermany France inbound Tourism Overseas Publicity worth Increase in PASSPORT + % access from 70 €320m/£275m eav Facebook No. 3 Twitter No. 2 YouTube No. 2 Canada m 2013 4.6 at June 2015

Tourism Ireland markets overseas Ireland No. 5 Lonely Planet’s ‘Best in Travel 2015’ Increase in Spend by overseas visitors €4.1bn/£3.4bn spend over + 23 2013 6% Devenish Island, Co Fermanagh Devenish Great Britain United States Increase in air access from + % IRELAND U.S.A. 9

Markets for Germany France inbound Tourism Overseas Publicity worth Increase in air + % access from €320m/£275m eav 70 Canada Ha’penny Bridge, Dublin 5 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 6

Chairman AND CEO Statement

relations, e-marketing, social media, as well as consumer and trade promotions. St Patrick’s Day Global Greening British-Irish Visa Scheme

2014 was the fifth year of Tourism The British-Irish Visa Scheme, which launched later in 2014; this market has Ireland’s annual Global Greening was launched in the autumn, was a performed strongly for tourism to the initiative for St Patrick’s Day and it was significant step – as it means that visitors island of Ireland in recent years and bigger and better than ever before – from relevant markets can, for the first Canadian visitors are highly prized, as with more than 120 landmark buildings time, travel freely between Ireland and they tend to stay longer, spend more and iconic sites taking part, generating the UK on a single visa of either country. and visit Northern Ireland and the significant positive publicity for the island The Scheme has been initially rolled out regions more than the average visitor. of Ireland across the world. In 2014, two in India and China, two of the fastest- Wild Atlantic Way and UNESCO World Heritage sites joined our growing, tourist-generating countries in Causeway Coastal Route Global Greening for the first time: the the world. Great Wall of China and the Treasury in Brian Ambrose Niall Gibbons Game of Thrones Chairman Chief Executive The Wild Atlantic Way and the Causeway the ancient city of Petra. 2014 was also Coastal Route were a major focus for the first time we aligned with an iconic In the spring, all eyes were on Northern Tourism Ireland throughout 2014. Both consumer brand, with Sleeping Beauty’s Ireland when Tourism Ireland joined 2014 was another strong year for Strategic Priorities places), ‘social energisers’ (a younger, routes were promoted across a range of Castle at Disneyland® Paris also going forces with HBO to leverage the overseas tourism to the island of Ireland. fun-loving audience looking for an platforms including TV, print and online green on 17 March. incredible success of the smash hit TV In planning for 2014, Tourism Ireland We welcomed approximately 8.4 million exciting time in a vibrant destination) advertising; on Ireland.com and our social series Game of Thrones and to promote set out a number of key strategic Grande Partenza of the visitors, +6% growth over 2013, who and ‘great escapers’(an audience media channels; at major international Northern Ireland around the world in a E priorities to maximise the impact of our Giro d’Italia contributed about 4.1bn/£3.4bn interested in rural holidays, wishing consumer and trade fairs such as ITB brand new way. Timed to coincide with in revenue to the economies on the promotional activity, to build on recent to take time out). Niche segments in Berlin; through familiarisation visits The Grande Partenza (or ‘Big Start’) the return of the long-awaited fourth island. Growth was recorded from successes and to sustain growth into were also targeted – including golfers, for influential travel agents and tour of the Giro d’Italia arrived in Belfast in season of the series, we rolled out a all our market areas, with the United the future. and Mainland business and incentive visitors. operators, as well as travel and lifestyle May – presenting an unprecedented brand new advertising and social media States, Canada, Germany, France, , the two markets offering the journalists and bloggers from around opportunity to promote the island of campaign through ads on Facebook best return on investment – in terms Digital and social media were especially Spain and all turning in record the world; and through Tourism Ireland’s and Twitter in Great Britain, the United important in further developing new Ireland to millions of cycling enthusiasts, performances. The performance from of holiday visitors and revenue – were promotional material. people who enjoy the great outdoors, States, Canada, France, Germany, Spain, our top priority. In these markets, we ways of reaching, and connecting more the United States was particularly Italy, the Netherlands and Scandinavia. frequently, with our target audiences. Overseas Publicity as well as general holidaymakers encouraging; in 2014, we welcomed targeted our ‘best prospect’ visitors everywhere. It showcased the iconic The campaign ran for 11 weeks and more than one million US visitors to the more closely with distinctive holiday A significant and ambitious three-year Working with overseas travel, lifestyle Titanic Belfast and the vibrance of the was hugely successful – generating one island of Ireland, who spent about experiences, events and special offers, strategy to drive accelerated growth and special interest media is an city before continuing to the Causeway million clicks, comments and shares and US$1 billion during their time here. tailored to their interests and designed from the German and French markets important element of our overseas Coast and Armagh, and then made its reaching about 100 million fans across to trigger their ‘must go now’ impulses. was launched in the spring. ‘Germany promotional programme. In 2014, way to Dublin, over three exciting days. the world. While the global economy was showing We also undertook a busy programme and France – a strategy for growth’ sets thousands of opportunities were created signs of stabilising and recovery, overall of promotions in Great Britain, which out challenging and ambitious targets for potential visitors around the world to Tourism Ireland rolled out an extensive growth worldwide in 2014 was lower remains our largest market in terms of which will see the number of German read, hear or watch positive messages programme of international promotions, than initially expected. Nonetheless, overall visitor numbers; and new and and French visitors to the island of about the island of Ireland. Tourism to capitalise on the tourism potential we saw the fourth consecutive year emerging markets of high potential were Ireland grow to 1.1 million by 2016, Ireland estimates that this exposure was of this event. ‘Giro’ promotions were of growth in overseas tourism to both also targeted. delivering revenue of E602m/£517m worth an estimated E320m/£275m, in a major focus for Tourism Ireland in jurisdictions, indicating that the sector for the economies here. ‘Canada: Land equivalent advertising value. nine markets – including in Italy, the is truly on the path to a record year We continued to focus on three key of Opportunity – a strategy for growth home of the famous race, as well as in in 2015. audiences, which represent the highest Great Britain, Germany, France, Spain, potential for the island of Ireland. 2014 – 2016’ was also the Netherlands, the Nordic region and Game of Thrones campaign reached These are ‘culturally curious’ (an older

Giant’s Causeway, Co Antrim Giant’s Causeway, Australia. Activity included advertising 100 million. audience, wishing to explore new (on and offline), publicity and public 7 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 8

Chairman & CEO Statement (continued)

Tourism Ireland Business Plan 2015, Marketing Partnership Groups, who have Important factors working in our which was subsequently approved by given so freely of their time in working favour for 2015 include new access the North South Ministerial Council. with us throughout 2014. developments; as well as consumer Throughout 2014, reports were confidence, which is returning in our key The co-operation of our colleagues in received from the Risk Management source markets. The island of Ireland Fáilte Ireland and Tourism NI continues relations, business tourism promotions, and Remuneration Committees on ‘brand’ or image abroad is strong; and to be an invaluable support in all aspects e-marketing and social media. various matters including a review of continued product investment enhances of our work, as does the co-operation of senior management performance and our offering overseas – particularly And in December, President Higgins the Irish Tourist Industry Confederation. satisfactory results arising from the investment in experiences like the Digital Marketing and addressed leading Chinese travel trade, The staff of Tourism Ireland have worked internal audit programme. Wild Atlantic Way and others such as Social Media media and airline representatives in tirelessly, both at home and overseas, The Gobbins cliff path in Co Antrim. Shanghai, at an event organised by Acknowledgements to project a positive image of the island Tourism Ireland continued to grow its Exchange rates for sterling and the dollar Access Tourism Ireland as part of the week-long of Ireland. We remain very proud of online presence, reaching some 2.65 We are very grateful for the continuing are favourable; and the lower price of State Visit to China. their loyalty, commitment, energy and million fans on Facebook by year end. oil is helping to make air and sea routes Access is a critical factor, not just for support which Tourism Ireland has innovation in working on behalf of our At the time of writing, the organisation is more sustainable. Ireland was named delivering visitor numbers and tourism Limerick City of Culture was marked received from the administrations in industry. revenue, but also for the continued the third most popular tourism board in by a wonderful, year-long programme both jurisdictions on the island and the fifth best country in the world to visit development of overseas tourism to the the world on Facebook, number two on of events which provided new and from our ministers, Arlene Foster MLA, Looking Forward in 2015 by Lonely Planet and Tourism regions and to Northern Ireland. 2014 Twitter and number two on YouTube. compelling reasons for overseas visitors Minister for Enterprise, Trade and Ireland is taking every opportunity to Building on the success of 2014 and was another significant year in terms to come to the city. Throughout the year, Investment in Northern Ireland; from maximise this latest accolade, using it as Our website, Ireland.com, attracted sustaining growth well into the future is of access, with a number of positive Leo Varadkar TD (until July 2014) another ‘hook’ to continue to promote about 14.25 million unique visitors Tourism Ireland took every opportunity at the heart of Tourism Ireland’s 2015 developments. Summer 2014 saw a and Paschal Donohoe TD, Ministers the island of Ireland around the world in 2014 (including 39% from mobile to keep Limerick in the spotlight – strategy. Following four consecutive +9% increase in the number of airline for Transport, Tourism and Sport; and as a ‘must visit’ destination. Everyone at devices). The site took three awards at leveraging the tourism benefits of this years of growth in overseas tourism, seats between the US and Ireland for from Michael Ring TD, Minister of State Tourism Ireland looks forward to working the prestigious W3 Awards in New York, year-long celebration of culture and our aim is to ensure that 2015 is the the peak season (June-August), making for Tourism and Sport. Ministers were with our industry partners, at home in October, which recognise creative showcasing Limerick as an exciting and best year ever, surpassing the previous it easier and more affordable than generous with their time in participating in and overseas, to build on the many excellence on the web. historic destination. record year for overseas tourism of ever before for Americans to get to the a significant number of productive visits to opportunities that this exciting year has 2007. We aim to grow visitor numbers in island of Ireland. The significant (+70%) Other Highlights Governance markets overseas for key promotions and in store. 2015 by a further +6%, welcoming 9.1 increase in airline seats between Canada events during the year. We are grateful, 2014 got off to a great start, when The Board met eight times in 2014 too, to the officials of both departments, million visitors to the island of Ireland Brian Ambrose Niall Gibbons and Ireland also presented a new and E and the meetings, which took place and delivering 4.6bn/£3.9bn to the exciting opportunity to position the island Tourism Ireland enlisted the help of as well as to those of the North South Chairman Chief Executive at various locations around the economies here. of Ireland as a year-round destination for famous Canadian astronaut Chris Ministerial Council, whose ongoing support Hadfield, to showcase some of our top island including Limerick, Waterford, Canadians. and counsel we appreciate. We will continue to prioritise those visitor attractions and experiences. He Belfast, Dublin and Downpatrick, markets that offer the best return Announcements of new services for spent several days here as a ‘tourist’, with offered the opportunity for Board We would also like to thank our partners on investment, in terms of holiday 2015 augur well for the continued Tourism Ireland filming him along the members to engage with local industry in the tourism industry across the island, visitors and revenue i.e. North America, success of overseas tourism. These way and then producing a series of four representatives. who have worked with us to bring the Mainland Europe and Britain. Emerging include a new Aer Lingus flight from short films called ‘An Astronaut’s Guide island of Ireland holiday experience Matters considered by the Board markets of high potential will also be Washington DC to Dublin, a new United to the island of Ireland’. These films were to life for potential holidaymakers during the year included Limerick City targeted, particularly China and India, Airlines flight from Chicago, a new promoted on Ireland.com and shared at promotions around the world in of Culture, a review of The Gathering where Tourism Ireland will highlight the Transavia service from Paris, as well as with our Facebook fans, Twitter followers unprecedented numbers. We pay tribute Ireland 2013, a post-implementation new British-Irish Visa Scheme. other new air routes like Finnair from and on our YouTube channel. to the members of the Central Marketing review of Ireland.com, the Wild Atlantic Helsinki, SAS from Gothenburg, new Partnership under chairman Maurice Pratt, Way and Giro d’Italia promotions, as well services from Reykjavik to Belfast and In April, the first ever State Visit by a and to the members of the overseas as market updates on North America Dublin and new VLM Airlines flights from President of Ireland to Great Britain and Australia and developing markets. Luton and Birmingham to Waterford. presented an excellent opportunity to Reviews of business performance Three other new routes have also shine a spotlight on the island of Ireland were ongoing, including the analysis been announced for Belfast: KLM from to a huge audience of prospective holidaymakers in Great Britain, and indeed of the return on Tourism Ireland’s

Amsterdam, Vueling from Barcelona and Kilkenny City marketing investment. Presentations Jet2 from Verona. elsewhere around the world. Tourism Ireland took every opportunity to leverage were made on access developments, the tourism potential of the historic visit, as well as on the staff training and rolling out a programme of activity which development programme. The Board Titanic Belfast included advertising, publicity and public oversaw the development of the Clew Bay, Co Mayo 9 OBE intheNewYearsOBE Honoursin2011. of PhoenixNaturalGas.Hewasawardedan the Titanic Foundation andaBoardMember Business intheCommunity;andatrusteeof Ireland;aboardmemberof Mencap Northern Ireland 2008-2009. Heisalsochairmanof Northern Mr AmbrosewaschairmanofCBI Irelandeconomy.contributor totheNorthern has becomeasignificantemployerand BelfastCityAirport working attheairport, each day. With over1,600peoplecurrently 120million andcurrentlyaveraging flights annual passengerthroughputinexcessof2.9 businesswithan is responsibleforagrowing and appointed chiefexecutiveoftheairport InJanuary2004, hewas of theairport. responsibility fortheday-to-dayrunning with of operationsatBelfastCityAirport, 1997, MrAmbrosewasappointeddirector andbusinessdevelopment.In engineering TOU Tourism 2014 IrelandAnnualReport R m I IS Bombardier in positions within senior management industry, hasheld in theaviation spans 39 years OB Brian Ambrose CHAI R E , whosecareer R EL MAN BO AND 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 was headoftheDevelopmentandQuality subsequently joinedBordFáilte,wherehe AR D and Ireland.He Germany, theUK the hotelsectorin and workedin Hotel Management Shannon Collegeof ofthe a graduate Jim Flanneryis I VICE-CHA R MAN management foraleadingvisitorattraction. sector, inadditiontomarketingandevent tothe to Excellencesuiteofprogrammes development, deliveryoftheWelcome community-based tourisminitiatives,product roles haveincorporateddevelopmentof relations withinarangeofsectors.Previous development, marketingandpublic includesexperienceinbusiness background Her professional well-being needs. to addresshealthand statutory andindustry with community, field andworksclosely health improvement employed withinthe Ciara Burkeis retirement. and servedasanexecutivedirectoruntil member ofthefoundingmanagementteam Hotels andKerry Groupwherehewasa Finance, ExpressFoods, GrandMetropolitan of previously workedwiththeDepartment Denis Cregan College Cork;andhas ofUniversity graduate Kerry GroupPLC; a retired directorof One51 plc.Heisa andof Kerry Airport as chairmanof currently serving

is honorary doctoratefromUlsterUniversity. and of Nottinghamandamaster’sdegree fromtheUniversity He holdsalawdegree AccountantsofEnglandandWales. Chartered HowardisamemberoftheInstitute (UK). Employment AgencyandInvestorsinPeople Tourism Ireland(2000-2007), theTraining & appointments includeanearliertermat Hotels Federation. Howard’spreviouspublic Ireland founding chairmanoftheNorthern Irelandand Institute ofDirectorsinNorthern During the1990s hewaschairmanofthe SchoolLtd. Board ofGovernorsatRockport Hotels) andaformerchairmanofthe Hotel (whichis50% ownedbyHastings director oftheMerrion Heisalsoa NI. chairman ofTourism a six-yeartermas recently completed Hotels. Hehas director ofHastings OB Dr HowardHastings is the managing E isthemanaging Tourism 2014 IrelandAnnualReport Accountants (FCCA). Certified of theAssociationChartered the BusinessTourism Forum. Heisafellow Association-Ireland andwasamemberof as presidentoftheIncomingTour Operators industry inIreland.Hehaspreviouslyserved the keyrepresentativebodyfortourism – theIrishTourist IndustryConfederation– a seniorlevel.HeispastchairmanofITIC industry, havingservedforover25 yearsat He hasextensiveknowledgeofthetourism year fromover40differentoverseasmarkets. operator, handlingvisitorstoIrelandeach biggest inboundtour Tours isIreland’s of AbbeyTours. Abbey luxury traveldivision & Kelly Travel, the director ofMoloney Tours andmanaging director ofAbbey John Healy

is a 10 11 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 12

TOURISm IRELAND BOARD (continued)

David Lyle OBE is Christoph Mueller Elaine Murphy is Shaun Quinn is chief Derek Reaney is from David Rodway is the chief executive joined Aer Lingus as an experienced executive of Fáilte Plumbridge, Co Tyrone a retired marine of advertising its chief executive restaurateur and event Ireland, the National and is employed as a consultant. During agency LyleBailie officer in September manager. Having Tourism Development development officer his career, mostly in International Limited 2009 and resigned studied history and Authority. Prior to his with the Ulster-Scots sales and marketing and has over 20 on 29 April 2015. He sociology at Trinity appointment in 2003, Agency. He has (including eight years years’ experience in previously held the College Dublin and he was chief executive previously worked in Saudi Arabia), he destination marketing. position of executive musicology at the of CERT, the former as a manager of a was also managing His unique experience aviation director College of Music state tourism training cross-border peace director of an in North-South co-operation includes at TUI Travel plc, a FTSE 100 company. In Dublin, she went on to become general agency. He joined CERT from Bord Bia – and reconciliation project, working with rural aquaculture company based in Carlingford producing 20 cross-border TV campaigns on January 2006, Christoph joined the executive manager of award-winning restaurants 101 the Irish Food Board – where he held the communities in the North West. He has Lough from 1990 until 1999 and following road safety and public service awareness. committee of TUI AG, a DAX 30 company Talbot, Mermaid Café and Il Primo before positions of strategic planning director and worked for over 15 years in the community his retirement, he continued as a part-time He is a principal author of 44 award-winning with responsibility for its flight division. He opening her own Michelin-bibbed Moes in later head of marketing. sector and has been particularly involved technical consultant. From 2005 to 2011, effectiveness case studies and recipient of served as the chief financial officer of DHL 2000 and The Winding Stair in 2006. She in a development capacity for marginalised David served on Belfast City Council and a 260 creative awards – including five Grand Worldwide from 2002 to 2004 and became has worked in mentoring and ambassador communities and in supporting cultural number of public bodies, including the board Prix. In 2009 he was presented with the a member of the executive committee programmes with Fáilte Ireland and Tourism projects. He has previously been a member of the Belfast Metropolitan College. He has David Ogilvy Gold Award by the Advertising of Deutsche Post AG in 2004 after the Ireland and is a well-known food and of the Strabane Local Strategy Partnership also served on the board of Belfast Visitor & Research Foundation in New York. He acquisition of DHL by Deutsche Post AG. restaurant writer/critic for Time Out, Totally and has served on the board of the North Convention Bureau and was, until recently, a specialises in evaluating the economic Christoph has extensive experience within the Dublin, Food and Wine and many trade West Investing for Health Partnership and member of the board of the Nomadic Trust paybacks arising from advertising and was aviation industry, having held senior positions magazines. She has been a quality assurance ARC North West Local Action Group. He is a (a body tasked with completely refurbishing awarded the OBE in 2011 for services to road in Daimler Benz Aerospace, having been representative for Good Food Ireland since its director of the Mourne Valley Credit Union in a passenger ferry which served the Titanic safety. executive vice president at Lufthansa AG and inception and is currently owner/director and Newtownstewart, Co Tyrone. off Cherbourg); this Trust has now been chief executive officer of the Sabena Group. general manager of The Grand Social and The subsumed within Titanic Foundation Ltd. In December 2011, Christoph was appointed Winding Stair in Dublin’s city centre. to the board of Tourism Ireland; and in 2013, he was appointed chairman of An Post. He has an MBA from the University of Cologne and subsequently completed an advanced management programme at Harvard Business School. ewgrange, Co M eath N ewgrange, 13 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 14

Report and Financial Statements for the year ended 31 December 2014

Contents

Company Information 15

Report of the Directors 16

Statement of Directors’ Responsibilities 20

Statement on Internal Financial Control 21

Derryclare Connemara Lough, Report of the Comptroller and Auditor General 22

Statement of Accounting Policies 23

Income & Expenditure Account 25

Statement of Total Recognised Gains and Losses 25

Balance Sheet 26

Cash Flow Statement 27

Notes to the Financial Statements 28 15 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 16

Company Information Report of the Directors for the year ended 31 December 2014

Directors Registered Office Auditors Brief History and Statutory Background of the External Auditors Company Brian Ambrose OBE (Chairperson) 5th Floor Comptroller and Auditor General The financial statements are audited by the Comptroller and Bishop’s Square () Tourism Ireland Limited was formed by the Government Auditor General in the Republic of Ireland. The Comptroller Jim Flannery (Vice-Chairperson) Redmond’s Hill of Ireland and the Northern Ireland Executive, under the and Auditor General for Northern Ireland has full access to auspices of the North/South Ministerial Council (NSMC), to Ciara Burke Dublin 2 Principal Bankers the working papers of the Comptroller and Auditor General in be the overseas marketing arm of tourism for the island of the Republic of Ireland, based on which a report may be laid Allied Irish Banks plc Ireland and was incorporated on 11 December 2000 as a Denis Cregan Business Addresses before the Northern Ireland Assembly. 37/38 Upper O’Connell Street Company Limited by Guarantee not having a Share Capital. It Howard Hastings 5th Floor Dublin 1 takes policy direction from the NSMC and maintains a close Results Bishop’s Square working relationship with its founder and current members, The surplus of income over expenditure for the year was John Healy Redmond’s Hill Solicitors Fáilte Ireland (FI) and (formerly E831,886 (STG £670,697). Dublin 2 the Northern Ireland Tourist Board (NITB)). The principal David Lyle Corporate Governance Byrne Wallace objectives of the Company are to increase tourism to the Beresford House Christoph Mueller 88 Harcourt Street island of Ireland and to support Northern Ireland in achieving The Company is governed by its Memorandum and Articles of 2 Beresford Road (resigned 29 April 2015) Dublin 2 its tourism potential. It is governed by its Memorandum and Association and by the Financial Memorandum approved by Coleraine Articles of Association and by the Financial Memorandum the NSMC. It has a non-executive Board of Directors appointed Elaine Murphy BT52 1GE Tughans approved by the NSMC and prepares detailed three-year by the NSMC and includes representatives of the Northern Marlborough House Corporate and one year Operating Plans to guide its activities. Ireland tourism industry, the tourism industry in the South, Shaun Quinn 30 Victoria Street The Company receives grants of money from both jurisdictions Tourism Northern Ireland and FI. Directors are appointed for a Belfast Derek Reaney and these grants are disbursed through FI and Tourism four-year term and the current term expires in December 2015. BT1 3GS Northern Ireland. A Board of Directors is appointed by the David Rodway The Board agrees a schedule of meetings to be held in each NSMC for a period of four years. calendar year. The Board Members receive full Board papers Chief Executive Format of Financial Statements a week before each meeting; these papers include a finance report and reports from the Chief Executive and each of the The accounts have been prepared in a format determined by Niall Gibbons Company’s Divisional Directors. The Board members can, the Companies Acts 1963 to 2013 (Republic of Ireland). The in furtherance of their duties, take independent professional base currency of the financial statements is Euro (E). The advice as required, at the expense of the Company. All Board Secretary Euro results have been translated into Sterling (STG£) at the members have access to the advice and services of the Shane Clarke closing rate of STG£1 equals E1.28783 (2013: STG£1 equals Company Secretary. E1.20294) for the Balance Sheet and at the yearly average rate of E1.24033 (2013: STG£1 equals E1.17769) for the Income & Expenditure Account. Books of Account To ensure that proper books and accounting records are kept in accordance with Section 202 of the Companies Act 1990, the Directors have employed appropriately qualified accounting personnel and have maintained appropriate computerised accounting systems. The books of account are located at the Company’s office at Bishop’s Square, Dublin. Principal Activities The Company’s principal activities are the design and implementation of marketing programmes in its key overseas markets for the purpose of promoting the tourism industry of the island of Ireland, in line with its objectives set out above. 17 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 18

Report of the Directors (continued) Report of the Directors (continued) for the year ended 31 December 2014 for the year ended 31 December 2014

There were 8 Board meetings during 2014 and the following Remuneration Committee has been targeted to deliver to the island of Ireland. An event Freedom of Information table sets out the attendance: such as a major terrorist attack or outbreak of disease, which This sub-committee consists of 4 Directors and meets to The British-Irish Agreement Act 1999 provides that a Code of reduces international travel, would increase the effects of review the appropriateness of the Company’s remuneration Practice on Freedom of Information be drawn up by the Irish Number of Number of the current economic downturn on the Company’s ability to levels and other terms and conditions of employment of key and Northern Ireland Ministers with responsibility for freedom meetings meetings deliver on its targets. In addition, any loss or disruption of air or executives. of information for the North/South Bodies and the approval potentially able actually sea access and unfavourable foreign exchange movements will to attend attended by the NSMC. The Code, which was approved on 1 January have an impact on travel to the island of Ireland. The Board The following table sets out the composition and attendance 2006, is non-statutory and was drafted with regard to the Brian Ambrose regularly monitors the above risks and appropriate actions are 8 8 at Remuneration Committee meetings during 2014: Freedom of Information Acts, 1997 and 2003 in Ireland and (Chairperson) taken to mitigate those risks or address their potential adverse the Freedom of Information Act, 2000 in the United Kingdom. Jim Flannery Number of Number of 8 8 consequences to the extent reasonably practicable. (Vice-Chairperson) meetings meetings The Code facilitates public access to information held by the Ciara Burke 8 8 potentially able actually Equality Legislation six North/South Implementation Bodies and Tourism Ireland to attend attended Denis Cregan 8 8 The Board’s policy is to comply fully with Equality Legislation Ltd in a number of ways. It provides that each body should Denis Cregan in both jurisdictions. Recruitment is based on the ability of Howard Hastings 8 8 1 1 publish certain types of information relating to its functions, (Chairperson) a candidate to perform the job. Full and fair consideration is structures, organisation and services, together with a general John Healy 8 6 Brian Ambrose 1 1 given to applications for employment from all minority groups, description of the type of information held by that body. It David Lyle 8 6 Jim Flannery 1 1 including the disabled, where they have the appropriate skills sets out the process under which a member of the public Christoph Mueller 8 7 David Rodway 1 1 and abilities to perform the job. can request information held by a body, the steps that a body Elaine Murphy 8 6 must take in handling such a request and the time period The Board accepts its responsibility for the Company’s If disablement occurs during employment, the Board’s Shaun Quinn 8 7 within which a body should normally respond to a request. internal control and sets out its position in more detail in the policy is to make every effort to ensure the availability of Derek Reaney 8 7 The Code also contains the facility for members of the public Statement of Directors’ Responsibilities and the Statement of adequate retraining, or if applicable, to help source alternative to obtain a statement of the reasons for an act of a body David Rodway 8 8 Internal Financial Control. employment. affecting the person. The Board also operates through a number of sub-committees Safety, Health and Welfare at Work Post Balance Sheet Events The Annex to the Code sets out the categories of exempt as follows: There have been no events subsequent to 31 December The policy of the Board is to ensure the continued safety, information. If the information requested falls into a category Risk Management Committee 2014 which necessitated amendment of the financial health and welfare of the employees at work by maintaining listed in Part 1 of the Annex, the body is not obliged to statements or separate disclosure therein. a safe and healthy work environment based on the provisions release the information. If the information requested falls This sub-committee comprises 4 Directors, who meet of Safety, Health and Welfare at Work Legislation in the into a category listed in Part 2, the body must carry out a on a quarterly basis to review and discuss the internal Research and Development jurisdictions in which it operates. public interest test in deciding whether or not to release control environment of the Company. They are informed The Company did not engage in research and development the information. The Code provides for an internal review by the Company’s Risk Register which is used to set out a activities during the period. Charitable Donations mechanism of decisions taken by the body under the Code. programme of work for the Internal Audit function, reporting Tourism Ireland Limited made no charitable donations during directly to this committee. The internal and external auditors Future Developments the period. Corporate Social Responsibility have full and unrestricted access to the committee. The Directors expect that the development of the Company’s Leading companies are those that not only deliver superior activities will continue in accordance with plans. Payment of Suppliers performance and excellent customer service, but also consider The following table sets out the composition and attendance Tourism Ireland Ltd’s policy is to pay all suppliers as promptly ethical, social and environmental issues for all stakeholders. at the Risk Management Committee meetings during 2014: Principal Risks and Uncertainties as is practicable and not to take any extra time in paying Tourism Ireland Ltd recognises its wider obligations to its The principal risks and uncertainties faced by the Company suppliers, other than that required to properly check and Number of Number of employees, society and the community it serves and believes are the continued funding of its activities by the Government process the invoice. In 2014, the average time from receipt of meetings meetings there is a strong link between Corporate Social Responsibility of the United Kingdom of Great Britain and Northern Ireland a supplier invoice to payment was 19 days. During the year potentially able actually and long-term success. Tourism Ireland Ltd aspires to a set and the Government of Ireland. While there is a reasonable Tourism Ireland Ltd did not pay any interest in respect of late to attend attended of values which recognises the interests of all stakeholders expectation that the respective Governments will continue to payments. Further information on Tourism Ireland’s payments John Healy and the contributions they make. To this end, we adopt 5 3 fund the activities of the Company, the level of this funding is to suppliers is available on Tourism Ireland’s corporate website, (Chairperson) very high standards of integrity, corporate governance and under constant review. There are no formal long-term funding www.tourismireland.com. Christoph Mueller environmental awareness. We recognise that being a good 5 4 agreements in place. (Vice-Chairperson) Employee Involvement corporate citizen not only involves achieving our business aims Due to its widespread operations, the level of economic Ciara Burke 5 5 Tourism Ireland Limited implements its business strategy but embraces a wider contribution to the interests of all our activity in the Company’s key markets, of Great Britain, the David Lyle 5 3 through its staff. In achieving business objectives, the stakeholders. USA, France, Germany and the rest of the world generally, involvement of staff in the planning and decision making Our stakeholders, both in the tourist industry and tourists affects the propensity to travel. Any growth or contraction in process is key. Staff involvement is maximised through the themselves, are fundamental to the growth of the tourist these markets affects the whole tourism and travel industry combined use of appropriate access to expert advice and business on the island of Ireland. International tourism is and specifically, the Company’s ability to deliver the growth, training opportunities in order to enable them to exercise their an intensely competitive market and if we do not offer the both in tourist numbers and tourist spend, which the Company responsibilities effectively. most attractive propositions, tourists will take their business 19 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 20

Report of the Directors (continued) Statement of Directors’ Responsibilities for the year ended 31 December 2014 for the year ended 31 December 2014

elsewhere. Tourism Ireland Ltd does not adopt a ‘one size fits Company law requires the Board of Directors to prepare all’ approach to the service we provide, but aims to provide a financial statements for each financial period which give a true comprehensive and flexible suite of marketing options to the and fair view of the state of the affairs of the Company and of tourist industry. the surplus or deficit of the Company for that financial period. In preparing those financial statements, the Board of Directors At a corporate level, we adopt the highest standards of is required to: compliance with regulatory requirements operating within the letter and the spirit of the regulations of both jurisdictions. • select suitable accounting policies and apply them We aim to treat our suppliers with the same courtesy with consistently; which we treat our stakeholders. • make judgements and estimates which are reasonable Without a talented, dedicated and motivated staff, Tourism and prudent; Ireland Ltd cannot aspire to provide the excellent level of service our stakeholders deserve. For this reason, staff • disclose and explain any material departures from recruitment, training and development are given the highest applicable accounting standards; and priority. Our people and agents, based in 22 locations in 19 • prepare the financial statements on the going concern countries, are the key to Tourism Ireland’s success over the basis unless it is inappropriate to presume that the past 14 years. Company will continue in business. Tourism Ireland Ltd is fully committed to equal opportunities recruitment and employment. Our strategy is to recruit the The Board of Directors is responsible for keeping proper best and provide them with comprehensive training and books of account which disclose with reasonable accuracy support to allow them to maximise their long-term potential. at any time the financial position of the Company and to enable them to ensure that the financial statements comply Directors’ Register of Interests with the Companies Acts 1963 to 2013, as applicable to The Directors’ Register of Interests is maintained at the companies limited by guarantee and not having a share registered office of the Company. It is available to the public capital. It is responsible for ensuring that the business of the and may be accessed by contacting the Company Secretary. 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 On behalf of the Board other irregularities.

On behalf of the Board

Brian Ambrose John Healy Chairperson Director

Date: 26 May 2015 Brian Ambrose John Healy Chairperson Director

Date: 26 May 2015 21 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 22

Statement on Internal Financial Control REPORT OF THE COMPTROLLER AND AUDITOR GENERAL for the year ended 31 December 2014 Report for presentation to the Houses of the Oireachtas for the year ended 31 December 2014 The Board acknowledges its responsibility for ensuring that an The effectiveness of the system of internal financial control Tourism Ireland Limited In addition, I read the company’s annual report to identify material effective system of internal financial control is maintained and is assessed by the Board on the basis of work carried out inconsistencies with the audited financial statements and to I have audited the financial statements of Tourism Ireland operated by the Company. by the executive managers within the Company who have identify any information that is apparently materially incorrect Limited for the year ended 31 December 2013 as provided responsibility for the development and maintenance of the based on, or materially inconsistent with, the knowledge acquired for in Section 5 of the Comptroller and Auditor General The system can only provide reasonable and not absolute financial control framework. In conducting their review, the by me in the course of performing the audit. If I become aware (Amendment) Act 1993. The financial statements, which have assurance that assets are safeguarded, transactions authorised Board takes account of the management letter and other of any apparent material misstatements or inconsistencies, I been prepared under the accounting policies set out therein, and properly recorded, and that material errors or irregularities reports of the external auditor. consider the implications for my report. are either prevented or would be detected within a timely comprise the statement of accounting policies, the income period. In February 2015, the effectiveness of the system of internal and expenditure account, the statement of total recognised Opinion on the Financial Statements gains and losses, the balance sheet, the cash flow statement financial controls was reviewed by the Board and the Board In my opinion, the financial statements: The system of internal financial control is based on a concluded that these controls were operating effectively and and the related notes. The financial statements have been • give a true and fair view, in accordance with generally framework of regular management information, administrative satisfactorily. prepared in the form prescribed under the Companies Acts procedures including the segregation of duties, and a system 1963 to 2013, and in accordance with generally accepted accepted accounting practice in Ireland, of the state of the of delegation and accountability. In particular, it includes: On behalf of the Board accounting practice in Ireland. company’s affairs at 31 December 2014 and of its income and expenditure for 2014; and Responsibilities of the Directors • Comprehensive budgeting systems with an annual budget • have been properly prepared in accordance with the The directors are responsible for the preparation of the which is reviewed and agreed by the Board; Companies Acts 1963 to 2013. financial statements, for ensuring that they give a true and • Regular reviews by the Board of periodic and annual fair view of the state of the company’s affairs and of its Matters on which I am required to report by the financial reports which indicate financial performance Brian Ambrose Niall Gibbons income and expenditure, and for ensuring the regularity of Companies Acts 1963 to 2013 against forecasts; Chairperson CEO transactions. I have obtained all the information and explanations that I Responsibilities of the Comptroller and Auditor consider necessary for the purpose of my audit. In my opinion, • Setting targets to measure financial and other performance; Date: 26 May 2015 General proper books of account have been kept by the company. The financial statements are in agreement with the books of account. • Clearly defined capital investment control guidelines; My responsibility is to audit the financial statements and report on them in accordance with applicable law. In my opinion, the information given in the directors’ report is • Clearly defined rules to ensure that public procurement consistent with the financial statements. procedures have been followed; My audit is conducted by reference to the special considerations which attach to State bodies in relation to their management Matters on which I report by exception • As appropriate, formal project management disciplines. and operation. I report by exception if

My audit is carried out in accordance with the International • my audit noted any material instance where money has The above framework incorporates the terms of the Financial Standards on Auditing (UK and Ireland) and in compliance not been applied for the purposes intended or where the Memorandum by which Tourism Ireland is governed to ensure with the Auditing Practices Board’s Ethical Standards for transactions did not conform to the authorities governing compliance therewith. Auditors. them, or Tourism Ireland Limited has an internal audit function in Scope of Audit of the Financial Statements • the information given in the company’s annual report is not place, whose programme of work is influenced by analysis consistent with the related financial statements, or of the risk to which the Company is exposed. An internal An audit involves obtaining evidence about the amounts audit plan has been prepared based on this analysis. This and disclosures in the financial statements, sufficient to give • the statement on internal financial control does not reflect analysis of risk is reviewed during the year and is endorsed reasonable assurance that the financial statements are free the company’s compliance with the Code of Practice for the by the Company’s Risk Management Committee. The internal from material misstatement, whether caused by fraud or error. Governance of State Bodies, or This includes an assessment of audit programme of works includes performance of detailed • the statutory disclosures of directors’ remuneration and of audit work, provision of a report on the internal audit activity • whether the accounting policies are appropriate to the transactions with directors are not made, or in the Company on a regular basis to the Risk Management company’s circumstances, and have been consistently • I find there are other material matters relating to the manner Committee and an independent opinion on the adequacy and applied and adequately disclosed in which public business has been conducted. effectiveness of the Company’s system of internal financial control. Areas covered by internal audit in their 2014 work • the reasonableness of significant accounting estimates I have nothing to report in regard to those matters upon which programme included reviews of Senior Manager Salaries, made by the directors in the preparation of the financial reporting is by exception. HR Policies, Risk Management Processes, IT Vulnerability, statements, and the Frankfurt Market Office, Corporate Governance – Board Effectiveness, and Internal Financial Controls. • the overall presentation of the financial statements.

I also seek to obtain evidence about the regularity of financial Seamus McCarthy transactions in the course of audit. Comptroller and Auditor General Date: 29 May 2015 23 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 24

Statement of Accounting Policies Statement of Accounting Policies (continued) for the year ended 31 December 2014 for the year ended 31 December 2014 The significant accounting policies adopted by the Company are as follows: Basis of Preparation Translated amounts have been disclosed in the Income and Pension Costs (continued) Expenditure Account, Cash Flow Statement, Balance Sheet The financial statements have been prepared under the for UK Non-Departmental Bodies, where, due to the absence and related notes in Euro (E) with summary amounts given in historical cost convention and in accordance with financial of a formal guarantee, a funding liability is not recognised until Sterling (STG£). reporting standards generally accepted in Ireland and the the commitment falls due. United Kingdom. Pension Costs Contributions are made to a number of personal pension Income The North/South Pension Scheme was established by the schemes operated by staff who are not members of a defined North/South Implementation Bodies and Tourism Ireland benefit scheme. Payments made under each scheme are Income is accounted for on a receivable basis. All grant Limited with effect from 29 April 2005. It is a defined benefit included in the Income and Expenditure Account in the year to income is credited to the Income and Expenditure Account in pension scheme which is funded annually on a pay as which they relate. the accounting period in which it is claimed from the funding you go basis. The scheme is administered by an external bodies. Leased Assets administrator. Funding from the Irish Government is provided Expenditure by the Department of Transport, Tourism and Sport and Assets acquired under finance leases are capitalised as funding from the Northern Ireland Executive is provided by the tangible fixed assets and depreciated in accordance with VAT and local sales taxes are absorbed by the Company with a Department of Enterprise, Trade and Investment to Tourism normal Company policy. The corresponding liability is recorded limited recovery system agreed with the Revenue Authorities. Ireland, which then funds the administrator. as a creditor and the interest element of the finance lease All advertising and promotional expenditure, including costs payment is charged to the Income and Expenditure Account incurred on the production of publications items for which no Pension costs reflect pension benefits earned by employees on an annuity basis. Operating lease rentals are charged to the revenue is obtained, is charged to the Income and Expenditure during the period. An amount corresponding to the pension Income and Expenditure Account on a straight-line basis over account in the financial period in which it is incurred. charge is recognised as income to the extent, that in the the lease term. future either by way of grant income or other funding to Debtors the administrator, it is recoverable, and offset by pension Government Grant Reserve Debtors are stated after providing for specific bad and doubtful payments made in the year. The Government Grant Reserve represents the unamortised debts. Actuarial gains or losses arising from changes to actuarial value of grant income used for capital purposes. Intangible Fixed Assets assumptions and from experience surpluses and deficits are Finite life intangible assets are amortised over the period reflected in the Statement of Total Recognised Gains and of their expected useful lives by charging equal annual Losses and a corresponding adjustment is recognised in the instalments to the Income and Expenditure Account. The amount recoverable from the Northern Ireland Executive and useful life used to amortise finite intangible assets relates the Irish Government. to the future performance of the assets acquired and Pension liabilities represent the present value of future management’s judgement of the period over which the pension payments earned by staff to date. Deferred pension economic benefit will be derived from the asset. funding represents a corresponding asset, being resources to Tangible Fixed Assets be made available in future periods from the Northern Ireland Executive and the Irish Government, in the manner described Tangible fixed assets are stated at cost less accumulated above. depreciation. Depreciation is provided at rates calculated to write off the cost less residual value of each asset over The Balance Sheet recognises the cumulative liability for its expected useful life, on the straight line basis. Computer pensions earned by employees as at the year end, together software that is either purchased or developed in-house is with a corresponding asset. normally written off in the year of purchase unless it can be In accordance with accounting practice for non-commercial proven to have a re-sale value. State bodies in the Republic of Ireland, Tourism Ireland Foreign Currencies recognises an asset representing resources to be made available by the UK and Irish Exchequers for the unfunded Monetary assets and liabilities denominated in foreign deferred liability for pensions on the basis of a number of currencies are translated into Euro at the rates of exchange past events. These events include the statutory backing for prevailing at the balance sheet date. Transactions in foreign the superannuation schemes, and the policy and practice in currencies are recorded at standard rates fixed for the year for relation to funding public service pensions in both jurisdictions each currency with gains and losses realised at the time of including the annual estimates process. While there is no payment. Realised gains and losses are taken to the Income formal agreement and therefore no guarantee regarding these and Expenditure Account. specific amounts with the funding bodies, Tourism Ireland has no evidence that this funding policy will not continue in the future. This treatment is inconsistent with accounting practice 25 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 26

Income & Expenditure Account Balance Sheet for the year ended 31 December 2014 as at 31 December 2014

2014 2013 2014 2013 2014 2013 2014 2013 E E STG £ STG £ E E STG £ STG £ Notes (000’s) (000’s) (000’s) (000’s) Notes (000’s) (000’s) (000’s) (000’s) Total Income 2 65,464 69,945 52,780 59,392 Fixed Assets Less Expenditure 3 (64,852) (70,298) (52,286) (59,691) Intangible 7 365 487 284 405 Transfer from/(to) Government Grant Reserve 12 220 204 177 173 Tangible 8 213 311 168 261 Surplus/(Deficit) of income over expenditure 832 (149) 671 (126) 578 798 452 666 Current Assets Debtors 9 1,874 4,272 1,455 3,551 Statement of Total Recognised Gains and Losses Bank and cash balances 8,468 5,061 6,575 4,207 for the year ended 31 December 2014 10,342 9,333 8,030 7,758

2014 2013 2014 2013 Current Liabilities E E STG £ STG £ Creditors falling due within one year 10 (8,612) (8,435) (6,687) (7,012) Notes (000’s) (000’s) (000’s) (000’s) Net Current Assets 1,730 898 1,343 746 Surplus/(Deficit) of income over expenditure 832 (149) 671 (126) Actuarial (loss)/gain on pension liabilities 16c (7,352) 11,488 (5,709) 9,550 Total Assets Less Current Liabilities 2,308 1,696 1,795 1,412 Adjustment to deferred pension funding 7,352 (11,488) 5,709 (9,550) before Pensions Total recognised gain/(loss) for the year 832 (149) 671 (126) Deferred pension funding 16e 58,100 47,746 45,115 39,691 All income is in respect of continuing operations. Pension Liabilities 16c (58,100) (47,746) (45,115) (39,691) - - - - The accounting policies and notes 1 to 23 form an integral part of these Financial Statements. Net Assets 2,308 1,696 1,795 1,412 On behalf of the Board

Represented by Income and expenditure account 13 1,730 898 1,343 746 Government Grant Reserve 12 578 798 452 666 2,308 1,696 1,795 1,412

Brian Ambrose John Healy The accounting policies and notes 1 to 23 form an integral part of these Financial Statements. Chairperson Director On behalf of the Board Date: 26 May 2015

Brian Ambrose John Healy Chairperson Director

Date: 26 May 2015 27 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 28

Cash Flow Statement Notes to the Financial Statements for the year ended 31 December 2014 for the year ended 31 December 2014

2014 2013 2014 2013 1. Format of Financial Statements E E STG £ STG £ Euro results have been translated into Sterling at the year-end closing rate of E1.28783 (2013: E1.20294) for the Balance Notes (000’s) (000’s) (000’s) (000’s) Sheet and the average yearly rate of E1.24033 (2013: E1.17769) for the Income and Expenditure Account. Net cash inflow from operating activities 14 3,474 1,146 2,423 1,034 2. Total Income

2014 2013 2014 2013 Capital expenditure and financial investment E E STG £ STG £ Payments to acquire tangible fixed assets (67) (73) (55) (62) Notes (000’s) (000’s) (000’s) (000’s) Proceeds of disposal of fixed assets - 1 - 1 Fáilte Ireland 44,884 47,640 36,187 40,453 Net cash inflow in the period 15 3,407 1,074 2,368 973 Tourism Northern Ireland 16,302 18,036 13,144 15,315 The accounting policies and notes 1 to 23 form an integral part of these Financial Statements. Trade Income 1,112 866 897 735 Sundry Income 164 210 132 178 On behalf of the Board Net deferred funding for pensions 16d 3,002 3,193 2,420 2,711 65,464 69,945 52,780 59,392

Income is receivable from Fáilte Ireland and Tourism Northern Ireland in accordance with funding provisions set out in the Financial Memorandum. The amount actually received in Sterling from Tourism Northern Ireland was £14.020m (2013: £14.790m).

Brian Ambrose John Healy Income from Fáilte Ireland includes E1.261m: £1.017m (2013 E2.246m: £1.908m) for product marketing. Chairperson Director 3. Expenditure Date: 26 May 2015 2014 2013 2014 2013 E E STG £ STG £ Notes (000’s) (000’s) (000’s) (000’s) Marketing Programmes 40,647 44,698 32,772 37,954 Overseas General Sales Agents 591 648 476 550 Staff costs 5 15,215 16,208 12,267 13,763 Office and Administration costs 6,639 7,080 5,352 6,011 Travel and subsistence 1,214 1,133 979 962 Legal and professional 455 440 367 374 Directors’ remuneration 6 91 91 73 77 64,852 70,298 52,286 59,691

Marketing programmes include E1.260m: £1.016m (2013 E2.243m: £1.904m) spent on product marketing. 29 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 30

Notes to the Financial Statements (continued) Notes to the Financial Statements (continued) for the year ended 31 December 2014 for the year ended 31 December 2014

3. Expenditure (continued) 5. Employees and Remuneration

2014 Geographic Analysis of Expenditure 2014 2013 2014 2013 € € Australia STG £ STG £ Great & Dev. North Notes (000’s) (000’s) (000’s) (000’s) Central Britain Europe Markets America Total Wages and salaries 9,211 9,882 7,426 8,391 € € € € € € Social welfare costs 1,162 1,198 937 1,018 Notes (000’s) (000’s) (000’s) (000’s) (000’s) (000’s) Student placement programmes 710 693 573 588 Marketing Programmes 5,316 10,378 11,234 2,054 11,665 40,647 Company contribution to private pensions 16g 42 21 33 18 Overseas General Sales Agents - - 120 471 - 591 Current pension service costs 16d 3,805 4,143 3,067 3,518 Staff costs 5 7,738 1,130 3,285 675 2,387 15,215 Other payroll costs 285 271 231 230 Office and Admin costs 3,987 747 810 215 880 6,639 15,215 16,208 12,267 13,763 Travel & Subsistence 377 178 251 150 258 1,214 The average number of people employed during the year was 149 (2013: 152). Legal and professional 306 3 64 11 71 455

Directors’ remuneration 6 91 - - - - 91 During the year, E199,177 (£160,585) of pension related deductions, under the Financial Emergency Measures in the Public 17,815 12,436 15,764 3,576 15,261 64,852 Interest Act, 2009, as amended, were deducted and paid over to the Department of Transport, Tourism and Sport.

Australia The current Chief Executive was re-appointed by the North/South Ministerial Council on 10 June 2014 and his contract is for Great & Dev. North a period of 5 years. His salary in 2014 was E152,757 (£123,159), he is a member of the Company’s pension scheme, no bonus is Central Britain Europe Markets America Total payable and his salary has been amended in accordance with the Financial Emergency Measures in the Public Interest Act 2009. STG £ STG £ STG £ STG £ STG £ STG £ (000’s) (000’s) (000’s) (000’s) (000’s) (000’s) 6. Directors’ Remuneration and Expenses Emoluments: Marketing Programmes 4,286 8,368 9,057 1,656 9,405 32,772 2014 2013 2014 2013 Overseas General Sales Agents - - 97 379 - 476 € € STG £ STG £ Staff costs 5 6,239 911 2,649 544 1,924 12,267 For services as Directors 91,055 91,055 73,412 77,317 Office and Admin costs 3,215 602 653 173 709 5,352 Travel & Subsistence 303 144 203 121 208 979 Mr Brian Ambrose 11,970 11,970 9,651 10,164 Legal and Professional 246 3 51 9 58 367 Mr James Flannery 9,830 9,830 7,925 8,347 Directors’ remuneration 6 73 - - - - 73 Ms Ciara Burke 7,695 7,695 6,204 6,534 14,362 10,028 12,710 2,882 12,304 52,286 Mr Denis Cregan 7,695 7,695 6,204 6,534 Central Marketing programmes comprise of Tourism Ireland’s customer contact centre, e-marketing unit, advertising production Mr Howard Hastings 7,695 7,695 6,204 6,534 and the costs of the production and distribution of collateral materials. Mr John Healy 7,695 7,695 6,204 6,534

4. Surplus/(Deficit) of Income over Expenditure Mr David Lyle 7,695 7,695 6,204 6,534 Mr Christoph Mueller 7,695 7,695 6,204 6,534 This is stated after charging: 2014 2013 2014 2013 Ms Elaine Murphy 7,695 7,695 6,204 6,534 € € STG £ STG £ Notes Mr Derek Reaney 7,695 7,695 6,204 6,534 (000’s) (000’s) (000’s) (000’s) Mr David Rodway 7,695 7,695 6,204 6,534 Amortisation of intangible assets 7 122 122 98 103 Depreciation of tangible assets 8 165 155 134 132 No other Director received any remuneration and the Directors are not entitled to any other emolument, benefit or pension Auditors’ remuneration 24 24 19 20 and are not entitled to compensation upon loss of office. None of the Directors received an incentive to take up office. Board Members’ expenses are broken down as follows: Directors’ remuneration 6 91 91 73 77 Operating lease rentals – Land & Buildings 2,087 2,064 1,682 1,716 2014 2013 2014 2013 Operating lease rentals – Other 18 20 15 16 € € STG £ STG £ Mileage 5,325 2,259 4,293 1,918 Accommodation and subsistence 3,962 4,889 3,195 4,152

Other travel expenses 1,329 2,528 1,071 2,146 Total 10,616 9,676 8,559 8,216 31 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 32

Notes to the Financial Statements (continued) Notes to the Financial Statements (continued) for the year ended 31 December 2014 for the year ended 31 December 2014

7. Intangible Fixed Asset 8. Tangible Fixed Assets

Domain Name Computer Fixtures & Leasehold € Equipment Fittings Property Total € € € € (000’s) (000’s) (000’s) (000’s) (000’s) Cost Cost At 1 January 2014 609 At 1 January 2014 1,601 974 2,410 4,985 Additions - Additions 65 2 - 67 Disposals - Disposals (47) - - (47) At 31 December 2014 609 At 31 December 2014 1,619 976 2,410 5,005 Amortisation Depreciation At 1 January 2014 122 At 1st January 2014 1,367 897 2,410 4,674 Charge for Year 122 Charge for Year 142 23 - 165 Disposals - Disposals (47) - - (47) At 31 December 2014 244 At 31 December 2014 1,462 920 2,410 4,792

€ Net Book Value (000’s) € € € € Net Book Value (000’s) (000’s) (000’s) (000’s) At 31 December 2014 365 At 31 December 2014 157 56 - 213 At 31 December 2013 487 At 31 December 2013 234 77 - 311 Domain Name Computer Fixtures & Leasehold STG £ Equipment Fittings Property Total (000’s) STG £ STG £ STG £ STG £ Cost (000’s) (000’s) (000’s) (000’s) At 1 January 2014 506 Cost Exchange Adjustment (33) At 1 January 2014 1,330 811 2,004 4,145 Additions - Exchange Adjustment (89) (53) (132) (274) Disposals - Additions 53 2 - 55 At 31 December 2014 473 Disposals (38) - - (38)

Amortisation At 31 December 2014 1,256 760 1,872 3,888 At 1 January 2014 101 Depreciation Exchange Adjustment (10) At 1 January 2014 1,135 745 2,004 3,884 Charge for Year 98 Exchange Adjustment (78) (50) (132) (260) Disposals - Charge for Year 115 19 - 134 At 31 December 2014 189 Disposals (38) - - (38) STG £ At 31 December 2014 1,134 714 1,872 3,720 Net Book Value (000’s) At 31 December 2014 284 STG £ STG £ STG £ STG £ Net Book Value (000’s) (000’s) (000’s) (000’s) At 31 December 2013 405 At 31 December 2014 122 46 - 168 The estimated useful life of intangible fixed assets, by reference to which amortisation is calculated, is as follows: At 31 December 2013 195 66 - 261 Domain Names 5 years The estimated useful lives of tangible fixed assets, by reference to which depreciation is calculated, are as follows: This asset relates to the purchase of the domain name “Ireland.com” from The Irish Times in late 2012. Computer Equipment 3 years Fixtures & Fittings 8 years Leasehold Property 8 years 33 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 34

Notes to the Financial Statements (continued) Notes to the Financial Statements (continued) for the year ended 31 December 2014 for the year ended 31 December 2014

9. Debtors 11. Operating Leases (continued)

2014 2013 2014 2013 The annual rent payable in respect of leased premises is broken down as follows: € € STG £ STG £ 2014 2013 2014 2013 (000’s) (000’s) (000’s) (000’s) Rent Rent Trade debtors 62 66 48 55 Rent Rent Payable Payable Payable Payable Fáilte Ireland 613 2,146 476 1,784 Break € € STG £ STG £ Sundry debtors and prepayments 1,199 2,060 931 1,712 Location Expiry Date Clause (000’s) (000’s) (000’s) (000’s) 1,874 4,272 1,455 3,551 Head offices 10. Creditors Dublin (1) 2022 - 609 609 491 506 Coleraine 2023 - 43 52 35 43 2014 2013 2014 2013 € € STG £ STG £ Overseas offices Amounts falling due within one year (000’s) (000’s) (000’s) (000’s) Amsterdam 2016 - 63 63 51 53 Trade and sundry creditors 7,390 7,408 5,738 6,158 Brussels 2015 - 35 33 28 27 Tourism Northern Ireland - 3 - 3 Copenhagen 2020 - 50 47 40 39 Trade income received in advance 46 13 36 11 Pay related tax costs and deductions 81 63 63 52 Dubai 2016 - 61 56 49 47 Pension costs 9 10 7 8 Frankfurt 2022 2017 70 70 56 58 VAT 326 235 253 195 Glasgow (2) Rolling - 18 16 15 14 Accruals 760 703 590 585 London 2018 - 318 329 256 274 8,612 8,435 6,687 7,012 Madrid (1) (2) Rolling - 47 51 38 42 Milan 2017 - 46 44 37 36 11. Operating Leases New York (1) 2019 - 502 502 405 417

At 31 December 2014 the Company had annual commitments under operating leases as follows: Paris 2018 - 144 146 116 122 Shanghai (3) 2014 - 11 46 9 38 Other Other Sydney 2017 - 52 53 42 44 Operating Operating Premises Leases Total Premises Leases Total Toronto 2023 - 54 45 44 38 Total annual costs 2,123 2,162 1,712 1,798 € € € STG £ STG £ STG £ Expiring (000’s) (000’s) (000’s) (000’s) (000’s) (000’s) (1) Shared accommodation with another state agency or Government body. Within 1 year 32 2 34 25 2 27 (2) Premises currently occupied on a rolling basis with no fixed term. Between 2 and 5 years 1,229 8 1,237 991 6 997 (3) This office was closed in April 2014. More than 5 years 826 - 826 666 - 666 12. Government Grant Reserve 2,087 10 2,097 1,682 8 1,690 2014 2013 2014 2013 € € STG £ STG £ (000’s) (000’s) (000’s) (000’s) Balance at beginning of the period 798 1,002 666 815 Revaluation of opening balance - - (44) 20

Transfers (to)/from Income and Expenditure Account:

Grants used to purchase fixed assets 67 73 55 62 Amortisation in line with asset depreciation (287) (277) (232) (235) Amount released on disposal of fixed assets - - - - (220) (204) (177) (173) Revaluation to closing balance - - 7 4 Balance at 31 December 578 798 452 666 35 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 36

Notes to the Financial Statements (continued) Notes to the Financial Statements (continued) for the year ended 31 December 2014 for the year ended 31 December 2014

13. Income and Expenditure Account 16. Pensions

2014 2013 2014 2013 a) Background The North/South Pension Scheme was established by the North/South Implementation Bodies and Tourism Ireland Limited with € € STG £ STG £ (000’s) (000’s) (000’s) (000’s) effect from 29 April 2005. Balance at beginning of the period 898 1,047 746 850 There are a number of different categories of membership which are designed for both new members and members who Revaluation of opening balance - - (49) 20 transferred in from Bord Fáilte (now Fáilte Ireland) and Tourism Northern Ireland. In addition Tourism Ireland makes contributions Surplus/(Deficit) of income over expenditure 832 (149) 671 (126) to a number of personal schemes operated by its employees. Revaluation to closing balance - - (25) 2 Balance at 31 December 1,730 898 1,343 746 b) Accounting Treatment FRS17 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 14. Reconciliation of the Surplus of income over expenditure to net cash inflow from operating activities earned by employees. 2014 2013 2014 2013 The effect of FRS17 is to recognise as expenditure in the year the cost of pensions earned, rather than the payments made to € € STG £ STG £ (000’s) (000’s) (000’s) (000’s) pensioners, and a corresponding funding amount. In addition the Balance Sheet recognises the cumulative liability for pensions earned by employees as at 31 December 2014 together with a corresponding asset. Surplus/(Deficit) of income over expenditure 832 (149) 671 (126) Amortisation of intangible fixed assets 122 122 98 103 The valuation used for FRS17 (Revised) disclosures at 31 December 2014 was carried out by a qualified independent actuary. Depreciation of tangible fixed assets 165 155 134 132 The results this year are based on the results of a full valuation on 31 December 2012. These results have been adjusted to Transfer (to)/from Government Grant Reserve (per note 12) (220) (204) (177) (173) reflect actuarial assumptions at 31 December 2014, actual benefit payments and contributions received, salary and pension Transfer of Bord Failte finance lease liabilities increase experience during the year and transfers into and out of the Scheme. The principal actuarial assumptions used to (Profit) on disposal of fixed assets - (1) - (1) calculate scheme liabilities under FRS17 are: Decrease/(Increase) in debtors 2,398 1,341 2,096 1,002 (Decrease)/Increase in creditors 177 (118) (325) 75 2014 2013 Revaluation of opening reserves Discount rate (South) 2.10% 3.50% Revaluation of opening balance - - (49) 20 Discount rate (North) 3.60% 4.50% Revaluation to closing balance - - (25) 2 Inflation rate (South) 2.00% 2.00% Net cash inflow from operating activities 3,474 1,146 2,423 1,034 Inflation rate (North) 2.00% 2.50% Rate of increase in salaries 3.00% 4.00% 15. Reconciliation of net cash inflow/(outflow) to movement in Bank and Cash Balances Rate of increase for pensions (South) 2.00% or 3.00% 2.00% or 4.00% 2014 2013 2014 2013 Rate of increase for pensions (North) 2.00% 2.50% € € STG £ STG £ (000’s) (000’s) (000’s) (000’s) Average expected future life at age 65 for Bank and Cash Balances at 1 January 3,987 3,234 5,061 4,207 Male currently aged 65 22.1 21.6 Net Cash inflow/(outflow) 1,074 973 3,407 2,368 Female currently aged 65 24.3 24.2 Bank and Cash Balances at 31 December 5,061 4,207 8,468 6,575 Male currently aged 45 23.5 23.5 Female currently aged 45 25.8 26.0 Net cash inflow from operating activities 3,474 1,146 2,423 1,034 Net cash (outflow) from non-operating activities (67) (72) (55) (61) Net cash inflow 3,407 1,074 2,368 973 37 Tourism Ireland Annual Report 2014 Tourism Ireland Annual Report 2014 38

Notes to the Financial Statements (continued) Notes to the Financial Statements (continued) for the year ended 31 December 2014 for the year ended 31 December 2014

16. Pensions (continued) 16. Pensions (continued) c) Movement in Net Pension Liability during the financial year f) History of Defined Benefit Liabilities

2014 2013 2014 2013 2014 2013 2012 2011 2010 € € STG £ STG £ € € € € € (000’s) (000’s) (000’s) (000’s) (000’s) (000’s) (000’s) (000’s) (000’s) (Deficit) in the plan at the beginning of the year (47,746) (56,021) (39,691) (45,439) (Deficit) as at 31 December (58,100) (47,746) (56,021) (39,423) (36,955) Exchange differences - - 2,705 (1,074) Experience gain/(loss) 372 3,119 692 (36) 1,636 Benefits paid during the year 803 950 647 807 Percentage of Scheme Liabilities 0.6% 6.5% 1.2% (0.1%) 4.4% Current service cost (1,979) (2,421) (1,595) (2,056) Net transfers (in)/out of the scheme - (20) - (17) 2014 2013 2012 2011 2010 Other finance income/(charge) (1,826) (1,722) (1,472) (1,462) STG £ STG £ STG £ STG £ STG £ Actuarial gain/(loss) (7,352) 11,488 (5,709) 9,550 (000’s) (000’s) (000’s) (000’s) (000’s) (Deficit) in the plan at the end of the year (58,100) (47,746) (45,115) (39,691) (Deficit) as at 31 December (45,115) (39,691) (45,439) (32,946) (31,684) Experience gain/(loss) 289 2,593 561 (30) 1,404 Analysis of the Actuarial gain/(loss) in the Plan during the period is as follows: Percentage of Scheme Liabilities 0.6% 6.5% 1.2% (0.1%) 4.4% 2014 2013 2014 2013 € € STG £ STG £ g) Private Pension Schemes (000’s) (000’s) (000’s) (000’s) In circumstances where staff are unable to avail of the scheme, they may set up a personal defined contribution scheme, to Experience gain 372 3,119 289 2,593 which the Company will make a contribution. There are 34 staff members in such schemes. Gain/(loss) on change of financial assumptions (7,724) 8,369 (5,998) 6,957 Actuarial gain/(loss) (7,352) 11,488 (5,709) 9,550 17. Capital Commitments There were no capital commitments at 31 December 2014 (2013 - Nil). d) Income and Expenditure Account analysis for the financial year 18. Other Commitments Analysis of the net deferred funding for pensions is as follows: The Company had committed to marketing expenditure of E1.8m (£1.5m) at 31 December 2014 (2013 - E1.8m : £1.4m). 2014 2013 2014 2013 € € STG £ STG £ 19. Grant Payment Commitments (000’s) (000’s) (000’s) (000’s) There were no grant payment commitments at 31 December 2014 (2013 - Nil). Current service cost 1,979 2,421 1,595 2,056 Other finance cost 1,826 1,722 1,472 1,462 20. Contingent Liabilities Benefits paid during the year (803) (950) (647) (807) There were no contingent liabilities at 31 December 2014 (2013 - Nil). 3,002 3,193 2,420 2,711 21. Related Party Transactions Tourism Ireland Ltd is a Company limited by guarantee with two members, Fáilte Ireland and Tourism Northern Ireland, and Analysis of the current pension service costs is as follows: sponsored by two government departments, the Department of Transport, Tourism and Sport in Ireland and the Department 2014 2013 2014 2013 of Enterprise, Trade and Investment in Northern Ireland. These agencies and departments are regarded as related parties and € € STG £ STG £ during the year Tourism Ireland Ltd was principally funded and had various transactions with them. These transactions are (000’s) (000’s) (000’s) (000’s) disclosed in notes 2, 9 and 10. Aer Lingus is regarded as a related party, as it is 25.11% owned by the Government of Ireland Current service cost 1,979 2,421 1,595 2,056 and, as set out in note 22, Mr. Christoph Mueller was a director of both Tourism Ireland Ltd and Aer Lingus. Other finance cost 1,826 1,722 1,472 1,462 3,805 4,143 3,067 3,518 In common with many other entities, Tourism Ireland Ltd deals in the normal course of business with other bodies which are wholly or partially owned or controlled by either the Government of Ireland or the Government of the United Kingdom of Great Britain and Northern Ireland. e) Deferred Funding Asset for Pensions

2014 2013 2014 2013 22. Board Members – Disclosure of Transactions € € STG £ STG £ In the normal course of business, Tourism Ireland Ltd may enter into contractual arrangements with undertakings in which Board (000’s) (000’s) (000’s) (000’s) Members are employed or otherwise interested. Tourism Ireland Ltd has adopted procedures in accordance with the guidelines Opening Balance at 1 January 47,746 56,021 39,691 45,439 issued in relation to the disclosure of interests by Board Members and these procedures have been adhered to during the year. (Decrease)/Increase in Deferred Funding of Pension Asset 10,354 (8,275) 5,424 (5,748) Closing Balance at 31 December 58,100 47,746 45,115 39,691 The Cloughmore Stone, Mourne Mountains, Co. Down

(continued) tements a t ransactions (continued) ransactions incial S an e F 23. Approval of Financial Statements 23. 2015. May 7 of Directors on financial statements were approved by the Board The 37k (£30k)}, was paid to Hastings Hotels, of which Howard Hastings is a director, predominantly in is a director, was paid to Hastings Hotels, of which Howard Hastings (£30k)}, E37k {2013: (£16k) E21k respect of hotel accommodation and facilities. 101k (£88k)}, was paid to Abbey Tours, of which John Healy is a director, predominantly in respect of of which John Healy is a director, (£88k)}, was paid to Abbey Tours, E101k (£43k) {2013: E55k and new initiatives. sales calls, familiarisation trips matched funding activities including overseas 0.53m totalling E0.53m was a director, to Aer Lingus, of which Christoph Mueller Ireland Ltd made payments Tourism During the year, (£0.24m) which of E0.28m (£0.97m) E1.17m outstanding at the year-end {2013: 0.08m (£0.06m) was of which E (£0.41m) marketing programmes, in respect of joint overseas above). was outstanding at the year-end}, predominantly (see note 21 isclosure of Disclosure ofT Board Members – 22. programmes Ltd engages in joint overseas marketing Ireland any and widely promoted and open to (which are actively Tourism at home and abroad as part and enterprises operators a large range of air and sea carriers, tour suitable applicant), with of its operating plan. for the year ended 31 December 2014 ended 31 for the year Ireland Ltd on the transactions nor did the Tourism did not receive any documentation from Board members concerned The member participate relating to the transactions. in any decision otes to th to Notes Annual Report Annual Ireland 2014 Tourism 39 Tourism Ireland

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