© Tourism Intelligence International The Irish 8 Outbound Travel Market 8.1 Introduction The island of Ireland comprises the independent Republic of Ireland (capital: Dublin) and Northern Ireland (which remains part of the United Kingdom of Great Britain and Northern Ireland). Unless otherwise stated, use of the terms ‘Ireland’ or ‘Irish’ refer to the Republic only. Albeit relatively small, the Irish outbound travel One of the strongest market is one of the strongest in Europe. Rising outbound markets in standards of living and increased purchasing Europe power have resulted in a sharp increase in travel abroad and the growth in tourist expenditure. In 2003, visits abroad by Irish residents totalled 4.9 million - up 6.4% compared with 2002, whilst net international tourism and travel expenditure by Irish visitors abroad rose to €4,163 million (up 5.3 percent), capping a decade of almost continuous growth. While the prevailing perception of Ireland is that of a destination rather than a source market, the continuing growth in visits abroad resulted for the first time in 2003 in a negative balance of €58 million on the tourism and travel account. Geographical proximity and strong ethnic ties UK – the traditional prime have made the United Kingdom the traditional destination for Irish prime destination for Irish travellers, but travel to travellers Europe is gradually eroding Britain’s position, with holiday travel (notably to the Spanish islands and the southern Mediterranean) acting as the main engine of growth. How the British Will Travel 2010 251 © Tourism Intelligence International 8: The Irish Outbound Travel Market 8.2 Population In July 2004, the total population is estimated at One of the youngest just under 4 million. In recent years, there has populations in Europe been a steady growth in population (1.16 percent in 2004), fuelled by a relatively high birth rate and a net influx of migrants and returning nationals (see Figure 8.1). With 21 percent aged under 14 years, the Irish population is also one of the youngest in Europe. Figure 8.1 Estimated Population, 1998-2004 * * Census figure Source: Central Statistics Office, 2004 In 2002, over half (54%) of the total population resided in the eastern province of Leinster. Some 1.1 million people resided in Dublin City and County (by far the largest urban area) and a further 288,000 in the next four largest cities (Cork, Galway, Limerick and Waterford). Of these, Galway has experienced the fastest growth in recent years (see Table 8.2). How the British Will Travel 2010 252 8: The Irish Outbound Travel Market © Tourism Intelligence International Table 8.2 Population of Main Provinces and Cities, 2002 Population Main Cities Leinster 2,105,579 Dublin - Dublin City & County 1,122,821 Munster 1,100,614 Cork, Limerick, Waterford - Cork City 123,652 - Limerick City 54,023 - Waterford City 44,594 Connacht 464,296 Galway - Galway City 65,832 Ulster (part of) 246,714 No large city Total 3,917,203 Source: Census of Population 8.3 Economy The Irish economy has been one of the success stories of the past decade. Economic growth averaged a remarkable 8% per year over the period 1995-2002. The global slowdown, especially in the information technology sector, reduced the growth rate to 2.1% in 2003. The economy has grown at a superior rate to Strong economy with low almost all other European countries, whilst inflation and maintaining a relatively low inflation rate (3.7% unemployment rates in 2003) and unemployment rate (5% in 2003). This growth has been based upon the development of the high-tech and services sectors. Agriculture, once the most important sector, is now dwarfed by industry and services. The economy has also benefited in recent years from a rise in consumer spending, construction, and business investment. Per capita GDP is amongst the highest in Europe. In 2003, total Total GDP in 2003 GDP amounted to an estimated €135 billion and amounted to €135 billion GDP per capita to an estimated €33,874 (see Table 8.3). How the British Will Travel 2010 253 © Tourism Intelligence International 8: The Irish Outbound Travel Market Table 8.3 Gross Domestic Product (at current market prices), 1999-2002 1999 2000 2001 2002 2003 % change 2002- 2003 GDP value 89,614 102,845 114,743 129,344 134,786 4.2 (€ million) GDP per capita 23,929 27,157 29,889 33,021 33,874 2.6 (€) Personal 44,372 50,158 55,202 60,118 62,935 4.7 consumption of goods & services* (€ million) * Expenditure on Gross National Income at current market Prices (€m) Source: Statistical Yearbook – 2004, Central Statistics Office, 2004 8.4 Travel Abroad Ireland's economic boom has been matched by an Almost 5 million overseas increase in outbound travel. The number of visits in 2003 overseas visits by Irish residents in 2003 was 4,929,000 compared with 4,634,000 in 2002, an increase of 6.4%. Between 1995 and 2003, the number of overseas visits by Irish residents almost doubled (up 93.5%) while, in the same period, net international tourism and travel expenditure by Irish visitors abroad increased by a remarkable 175% to reach €4.2 billion in 2003. Table 8.4 Overseas Visits and Expenditure, 1995-2003 Visits Abroad Expenditure on Visits Abroad* (’000) (€ 000) 1995 2,547 1,516 2000 3,783 2,465 2001 4,216 2,804 2002 4,634 3,224 2003 4,929 4,163 * Net international tourism and travel expenditure by Irish visitors abroad Source: Central Statistics Office How the British Will Travel 2010 254 8: The Irish Outbound Travel Market © Tourism Intelligence International Route of Travel Whereas in the past Cross-Channel traffic to Britain dominated the Irish outbound market (with combined sea and air routes to Britain accounting for 53% of visits outside the country in 2000), in recent years there has been expansion on the Continental European route, apparently at the expense of mainland UK destinations. In 2003, only 45% of all overseas visits were first made on Cross-Channel routes to Britain (of which four-fifths were by air). A further 49% of all visits were on Continental European air and sea routes and the remainder on Transatlantic air routes. It should be noted that there is no breakdown by final destination e.g. what proportion of visits to Continental Europe are made via Britain. Visits on Continental routes increased by 11.3% in 2003 and those made on Transatlantic routes grew by 25.7%. The number on Cross-Channel routes showed little change compared with the previous year (see Table 8.5). Reason for Journey Holiday/Leisure/Recreation is the main reason for Holiday/Leisure/Recreation Irish residents travelling abroad. The VFR sector is the main reason for is also significant (due to the large number of travel persons of Irish origin living in Britain) and exceeds by a wide margin business travel as the second most important generator of outbound trips. In 2003, some 58% of all overseas visits were made for the purpose of Holiday/Leisure/Recreation. A further 12% were made for Business reasons and 24% for the purpose of Visits to Friends/Relatives. Holiday/Leisure/Recreation visits increased by 6.3% in 2003 compared with 6.8% for Business visits and 6.5%for visits to Friends/Relatives (Table 8.5). How the British Will Travel 2010 255 © Tourism Intelligence International 8: The Irish Outbound Travel Market Table 8.5 Estimated Number of Overseas Visits by Irish Residents Classified by Route of Travel and Reason for Journey, 1999-2003 (’000) 1999 2000 2001 2002 2003* Total Overseas Visits 3,576 3,783 4,216 4,634 4,929 Route of Travel Air Cross-Channel 1,618 1,577 1,670 1,825 1,825 Sea Cross-Channel 454 414 439 413 408 Continental European 1,276 1,550 1,864 2,190 2,438 Transatlantic 227 242 243 206 259 Reason for Journey Business 594 631 542 559 597 Holiday/Leisure/Recreation 1,752 1,963 2,402 2,706 2,876 Visit to Friends/Relatives 958 946 1,048 1,099 1,170 Other 261 243 224 270 287 * Provisional Source: Central Statistics Office Same-Day Visits In 2003, there were some 176,000 same-day overseas visits by Irish residents compared with some 243,000 same-day overseas visits in 2002. Length of Stay The average length of stay for Irish residents going abroad during 2003 was 9.3 nights. In contrast to the prevailing trends in Europe towards shorter holidays, this is little changed since 1999. In 2003, the average length of stay was highest for those travelling on Transatlantic routes (16.9 nights) and lowest for Business visits (7.3 nights) (see Table 8.6). How the British Will Travel 2010 256 8: The Irish Outbound Travel Market © Tourism Intelligence International Table 8.6 Overseas Visits by Irish Residents - Estimated Average Length of Stay (nights) Classified by Route of Travel and Reason for Journey, 1999-2003 (‘000) 1999 2000 2001 2002 2003* All Overseas Visits 9.4 9.6 9.8 9.6 9.3 Route of Travel Air Cross-Channel 8.9 9.4 9.4 9.6 8.9 Sea Cross-Channel 6.4 6.8 7.4 8.0 8.2 Continental European 9.7 9.5 9.8 9.3 9.0 Transatlantic 17.2 16.0 15.6 16.6 16.9 Reason for Journey Business 6.6 7.1 7.2 7.6 7.3 Holiday/Leisure/Recreation 10.0 10.3 10.4 10.0 9.6 Visit to Friends/Relatives 9.2 9.3 8.9 9.2 8.8 Other 12.6 11.9 13.7 11.3 12.9 * Provisional Source: Central Statistics Office Expenditure Details of expenditure by Irish residents on visits abroad, classified by route of travel and reason for journey are given in Tables 8.7 and 8.8, respectively.