employment, and exchequer benefits and exchequer employment, for Growth to 2025 earnings, export tourism’s Growing An Industry Strategy Tourism Spring 2018 Spring
TOURISM: AN INDUSTRY STRATEGY FOR GROWTH TO 2025 +353 (0) 1 2934950 (0) +353 1 2934991 (0) +353 [email protected] www.itic.ie
CONTACT Industry Tourism Irish Confederation 5, Unit Floor, Ground Park, Office Sandyford Ireland Dublin 18, D18 N7V7, T: F: E: RichardsDee Front cover image: Melmore Head, Donegal Head, image: Melmore cover Front Pool Content Ireland’s of Images courtesy Designed by Overseas earnings from Overseas earnings from be worth tourism can Irish by €8.1 billion annually 2025 with 310,000 employed in the sector. Tourism: An industry strategy for growth to 2025 Exchequer capital Improving access and Increasing capacity to investment in Irish tourism; Managing the challenge delivering opportunities meet growth aspirations Investing in new tourism of Brexit products and experiences
Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Prioritize and expedite terminal Continued zero-rating of Airport A clear, prioritised and actionable An ongoing review of key enablers A published spatial plan outlining A €600 million public capital The preservation of the Common Ensuring that value for money is enhancementsContents and new runway Departure Tax, competitiveness of strategy designed to ensure and barriers to new accommodation public investment in new tourism investment programme in new Travel Area between the UK and delivered consistently to the British development at Dublin Airport. landing charges, and expansion of visitors are dispersed and stay including strategic development products of scale and international tourism product over a 10 year Ireland and a soft border on the consumer and no additional tax or US pre-clearance facilities. throughout the country is put zones, streamlined & fast-tracked appeal. period. island of Ireland. regulatory burdens are placed on in place. planning to enable new builds. the Irish tourism industry. Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Government / daa Government / Commission of Fáilte Ireland Fáilte Ireland and Fáilte Ireland Government Government Industry and IntroductionAviation and Executive Regulation Summary Local2 Authorities Government ABOUT ITIC
Recommendation Tourism in 2025Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Increased co-operative marketing Formation of an airport task-force A review be undertaken of historic That a €600 million capital investment Prioritise and fast-track tourism-enabling Development of a new events/ The harmonisation of regulatory The retention of liberalised funds with industry partnersTargets: in line Revenue, to drive Employment, demand on sustainable Visitor Numbers and Taxstate Receipts owned buildings that could programme,8 channeled through Fáilte infrastructure such as airport development, convention centre outside Dublin. standards across the island aviation and sea access regime The Irish Tourism Industry Confederation (ITIC) with agency budget increases. tourism routes to support be used for tourism purposes. Ireland, is allocated to tourism over rail link to Dublin Airport, national of Ireland. between the UK and the EU. Key Enablersregional of Success access. the coming11 decade to help create new broadband plan, improved motorway represents the leading tourism interests and attractors of scale and international appeal. access, and coach parking facilities. Source Markets 12 Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Tourism Ireland GovernmentFáilte Tourism Ireland Policies with on Tax and ExpenditureFáilte Ireland Government14 Government Fáilte Ireland Government Government businesses throughout the Republic of Ireland. Tourism Ireland Tourism’s Share of National Development Plan 15 Through independent research, analysis and Recommendation Recommendation Recommendation Recommendation A liberalised access regimeGrowth Scenarios 16 Maximising public investment The support of an all-island A resourced Brexit action plan for is secured as part of any new and operational efficacy in approach to tourism marketing. tourism sector. EU / UK deal. state-owned tourism assets. interpretation ITIC aims to help the tourism sector A National Tourism Day 17 realise its full potential. National and International Advocates for Tourism 18 Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Government Irish Tourism’s Commitment to Environmental Sustainability 20 Fáilte Ireland Government Fáilte Ireland / Industry
This strategy, devised and developed by Ireland’s Methodology of Report 24 tourism industry, sets ambitious goals and objectives 10 Pillars for Tourism Success Competitiveness – The Key Ingredient for Sustainable Tourism Growth 26 for Irish inbound tourism to 2025 that can lead Improving Access and Delivering Opportunities 36 Delivering a better Increasing Capacity to Meet Growth Aspirations Getting marketing right – 46 An Educated Skilled and A Balanced Portfolio to higher revenues, more jobs and greater regional and seasonal Exchequer Capital Investment in Irish Tourism selling Ireland to the world 54 Motivated Workforce of Tourism Markets spread of tourism exchequer receipts. Industry Insights 64 Managing the Challenge of Brexit 66 State Support Framework to Facilitate Tourism Growth 76 Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Development of a GreenwaysDelivering a ABetter published Regional spatial andplan outliningSeasonal Spread ofInvest Tourism in rejuvenation of tourism An 88increase of €25 million in A strategically managed Single accountable state agency, and Increasing Ireland’s global Emphasis and focus on North strategy and new stand-outGetting Marketingexchequer Right investment – Selling in new Ireland to the Worldbrand Ireland to increase levels of overseas98 tourism marketing funds. and funded communications appointment of Director of Function footprint and destination America and Mainland Europe for tourism experiences in the tourism products of scale and interest, share of voice and drive programme to promote careers within, to assume management and marketing funds. accelerated growth. North West and MidlandsAn Educated,international Skilled & Motivated appeal with Tourism Workforcebrand reassessment. 108 within tourism sector. co-ordination of tourism education, regions of Ireland. A Balanced Portfolioregional targets of Tourism of growth. Markets 118 training, and skills needs. Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Fáilte Ireland Summary of FáilteRecommendations Ireland Tourism Ireland Government128 Fáilte Ireland and Industry Fáilte Ireland Government Industry and Tourism Ireland
Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation MEMBERS Industry support of regional Roll out of Midlands brand Growing Ireland’s digital Brand Ireland’s communication Attracting talent from overseas Development of pilot programme Investment in emerging new A strategic review of British brand experiences in experience and cap number leadership in tourism marketing message be developed to to fill employment gaps. to incentivise seasonal businesses source markets to unlock market to consolidate share and Aer Lingus Dublin Institute of Technology Irish Caravan & Camping Council interpretation and promotion. thereafter of regional brand and e-commerce capabilities. incorporate the quality and to operate as training centres in growth opportunities and target new segments. AIPCO Dublin Port Company Irish Ferries experiences: Wild Atlantic Way, depth of Ireland’s food offering. off-season and roll-out of national industry engagement in overseas (Association of Irish Professional Emirates Irish Heritage Trust Ireland’s Ancient East and Midlands. apprenticeship schemes. sales missions. Conference Organisers) Fáilte Ireland (Associate Member) Irish Hotels Federation Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility AVEA Industry Fáilte Ireland Tourism Ireland Tourism Ireland, Fáilte Ireland and Department of Fáilte Ireland Tourism Ireland and Industry Tourism Ireland (Association of Visitor Guinness Storehouse Jameson Visitor Centres and Industry Bord Bia Business, Enterprise & Innovation. Experiences & Attractions) Heritage Island Office of Public Works House of Waterford Crystal Restaurants Association of Ireland B&B Ireland Recommendation Recommendation Recommendation Recommendation Car Rental Council of Ireland Incoming Tour Operators Shannon Group plc Prioritise enabling infrastructure to An Industry Talent Retention Industry development programme Expansion of British-Irish Visa Association-Ireland CIE Tours International Stena Line ensure ease of access to Ireland’s Strategy and Emerging Leaders to enhance capability to meet new Schemes to other emerging Inland Fisheries Ireland regions, establishment of an airport Programme. market opportunities. markets to ensure competitive Coach Tourism & Transport Council Tourism Ireland (Associate Member) access task-force and enhanced and efficient visa regimes Ireland’s Blue Book Convention Centre Dublin Vintners’ Federation of Ireland co-operative marketing funds. for long-haul markets. Irish Boat Rental Association Dublin Airport Authority Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Fáilte Ireland, Tourism Ireland 1 ITIC and Sectorial Bodies Fáilte Ireland Department of Justice and Equality Tourism: An industry strategy for growth to 2025 Tourism: An industry strategy for growth to 2025
Introduction and Executive Summary
Tourism is Ireland’s largest indigenous industry employing 230,000 people nationally, one in every ten of the labour-force. It is twice the size of agriculture and far bigger in employment than the construction industry, the IT industry, or the financial services sector. It crucially cannot be out-sourced or off-shored and its economic benefits are felt both in our cities but also critically throughout rural Ireland.
2 3 Tourism: An industry strategy for growth to 2025 Tourism: An industry strategy for growth to 2025
This strategy makes the case that inbound tourism to Ireland by 2025 can grow to €8.1 billion annually employing a further 80,000 people nationally.
Being Ambitious for Irish Tourism 2025 Goals In 2018 the Irish state will spend €128 featured on page 11 and include 11,000 million to the sector across capital and new hotel bedrooms, construction of €2.5 billion This strategy devised by the Irish The significant majority of Irish current needs – this represents a 23% a new runway and additional terminal Tourism Industry Confederation (ITIC) – the tourism’s value relates to overseas earnings, Has been committed by reduction on what was committed to facilities at Dublin Airport, the maintenance the industry up to 2021 in umbrella group representing Irish tourism generated from international visitors to tourism by the exchequer 10 years ago. of a competitive tourism Vat rate, 40% new hotels, aircraft, ferries business interests – sets out a roadmap for our shores, thus firmly placing tourism as and attractions amongst Government taxation policies including additional air and ferry seats into Ireland, the sector’s growth up to 2025 and beyond, an export sector and of great importance others. aligning the tourism Vat rate with EU and an industry that continues to provide delivered by a competitive and committed to Ireland’s national economy. It is within competing destinations and suspending the value for money and exceeds the holiday industry, and enabled by pro-tourism this prism – the value of overseas tourism airport departure tax have proved judicious expectations of the international visitor. Government and agency policies with earnings to Ireland – that this strategy is and the tourism industry has delivered in Should one or other of these enabling appropriate investment strategies. constructed and it includes 10 pillar areas return in terms of earnings, employment factors not come to pass then Irish tourism’s Already as of March 2018 tourism each of vital importance to Irish tourism. and taxation receipts. Irish tourism’s success will be stymied. is Ireland’s largest indigenous industry Looking forward to 2025, and as featured potential is significant and the Government employing 230,000 people according on pages 8-9, this strategy makes the case now needs to up its commitment to to most recent figures from the Central that inbound tourism to Ireland in 2025 Travel and tourism; a global growth sector investment of the sector if the industry, Statistics Office and Fáilte Ireland. The can grow from €4.9 billion to €8.1 billion Global tourism continues to enjoy country and exchequer are to see the full sector is one of the few industries that annually employing a further 80,000 people uninterrupted growth as one of the benefit. provides long term sustainable balance nationally. This can result in 13.7 million world’s fastest growing economic sectors. Government commitment to tourism, in and supports livelihoods, businesses international visitors and exchequer tax take International tourist arrivals grew by 7% in terms of current and capital funding, is one and communities in urban as well as from direct tourism-related activities can 2017 to reach a total of 1.3 billion travellers, of the key enabling factors that will deliver 80,000 rural Ireland. grow by 65% per annum. spending an estimated US$1.4 trillion, tourism’s success into the future. Within The tourism sector – when taking The current national policy for tourism according to the latest UNWTO World More jobs by 2025 this strategy it is argued that the current the domestic market, carrier receipts, and – People, Place and Policy – published in Tourism Barometer. International tourist budget for overseas marketing and industry expenditure by overseas tourists when in March 2015 is already dated and has been arrivals in Europe reached 671 million in supports needs to increase by €50 million Ireland – is valued annually at €8.7 billion, overtaken by tourism’s success and events 2017, with visits to Northern Europe up per annum and the annual investment of which €2 billion is returned to the such as Brexit. It is ITIC’s contention that the 5%. This strong momentum is expected to in developing new tourism products and exchequer in direct tourism-related taxes. Its national tourism policy targets are largely continue into 2018 and beyond. experiences of scale and international economic value is indisputable. redundant and instead this industry strategy Forecasters point to growing numbers appeal needs to be in the region of €60 Such a seriously important sector sets out a clear, updated and constructive of international travellers, driven by million per annum, a notable increase on deserves a serious strategy and Tourism: An roadmap with ambition and well-defined continued economic growth and consumer capital investment in tourism as outlined Industry Strategy for Growth to 2025 charts recommendations for success. prosperity, including a fast expanding in the 10-year National Development Plan an ambitious future for the sector should new middle class in many emerging published in February 2018. These levels +65% the right decisions, policies and investment Enabling Factors and developing economies, growth in of commitment from the Government Exchequer return from strategies be pursued. international air services, and liberalisation The Irish tourism industry invests are required to complement the sizeable direct-tourism related It is the Irish tourism industry of travel regulations. taxes by 2025. heavily in its own future; €2.5 billion has investment of the private tourism sector that creates the experiences for every It is in this context, a growing global been committed by the industry up to 2021 and ensure that the industry can realise international tourist visiting Ireland and growth market, that Ireland and its tourism alone in new hotels, aircraft, ferries and its full potential into the future as an it is incumbent on Government and sector can look confidently to its future. attractions while the industry’s overseas economic engine for growth both state agencies to deliver the appropriate Europe continues to attract the largest marketing is estimated by ITIC at €92 million nationally and regionally. The return of environment to allow tourism businesses to annually. It is evident that the engine behind proposed state investment in tourism is succeed and thrive; that way employment Irish tourism’s success and development has significant and estimated at 34:1. is generated, earnings are increased, and Government commitment to been the private sector, however the state Other key enabling factors required sustainable exchequer benefits are secured. tourism is one of the key enabling must set tourism policy and one cannot if the value and volume targets of this work without the other. strategy are to achieved by 2025 are factors that will deliver success into the future.
4 5 Tourism: An industry strategy for growth to 2025 Tourism: An industry strategy for growth to 2025
The ongoing development of Ireland’s tourism sector must reflect both the highest standards of environmental as well as economic sustainability. with the friendliness and hospitality of • Delivering Better Regional and Seasonal could assume that the upward trajectory our people – are the primary reasons that Spread of Tourism. will continue unchecked into the future. visitors come to our shores. It is thus vital to Such an assumption would be foolhardy. number of international visitors with Europe • Getting Marketing Right – Selling state that the goals and aspirations of this Anyone who has worked in the tourism expected to grow by an average annual the Destination. strategy are only achievable in the context sector can quickly point to an event, well 3.5%-4.5% up to 2030 (UNWTO: Tourism of maintaining and supporting the quality • An Educated, Skilled and Motivated outside tourism’s control or sphere of Towards 2030). Ireland can expect to of our natural environment. A commitment Workforce. influence, that has knocked the sector achieve this, all things being equal, although Maurice Pratt by the Irish tourism industry to sustainability back: think 9/11, an Icelandic volcanic ash the ambitions of this strategy should result • A Balanced Portfolio of Tourism Markets. Chair of ITIC and the environment is stated on page 20. cloud, SARS, or “foot and mouth” as clear in a growth rate above this in the region of The ongoing development of Each pillar theme has specific policy examples of where growth momentum 6.5% per annum – see page 16. Ireland’s tourism sector must reflect both recommendations with clear responsibility came to a shuddering halt, and none of A key characteristic of future tourism the highest standards of environmental against which an accountable body, those events economic shocks which most growth is predicted to be the diversification as well as economic sustainability. The whether that be industry, agency or influence tourism flows. Brexit, the UK’s of source markets as international travel recommendations within the 10 pillars Government, shall be measured. The Irish decision to exit the EU, is the most recent becomes economically feasible for many of this strategy in terms of delivering an Tourism Industry Confederation (ITIC), external shock that the Irish tourism industry more millions, and the continued adoption improved regional spread of tourism, working with Fáilte Ireland and Tourism must manage through. Saying that there is of new technologies by the consumer as creating new tourism products of scale Ireland, will review and monitor progress much that a country’s tourism industry, state part of their booking process and of their Ruth Andrews and international appeal, increasing against each of the 40 recommendations agencies, local authorities, and national holiday experience itself. The most buoyant Deputy Chair of ITIC accommodation and attraction capacity each year. Government can control and adopting pro- growth market is forecast to be the Asia- measures, improving competitiveness, This strategy also makes the case (as tourism and pro-enterprise policies is the Pacific region – predicted to the source and dynamic use of visitor statistics are all per page 17) for an annual National Tourism best way to mitigate against external shocks of more than half of the world’s growth formulated with this intention. Day to raise the profile of the industry and and chart a future where potential growth in airline travel, with China expected to celebrate the value and quality of tourism in can be looked forward to confidently. displace the United States as the world’s 10 key pillars for Irish tourism’s success Ireland. Other countries – the USA, England, This is the roadmap that this strategy largest aviation market around 2022. IATA in India, and Canada to name a few as well the sets out and the size of the prize in terms its latest 20 year forecast identifies the five This industry strategy, and the EU and UNWTO – mark a national tourism of employment, regional spread, fastest-growing markets in terms of annual recommendations within, are based around day. Ireland should follow this lead and exchequer returns, and sectoral growth additional passengers in 2036 compared to 10 pillar themes which affect Irish tourism, Eoghan O’Mara Walsh highlight the importance of the sector to the are significant. 2016, namely China, USA, India, Indonesia, both demand and supply focused. The pillar CEO of ITIC national economy and address challenges Tourism’s future in Ireland is too and Turkey. themes – running from p26 on – include: and opportunities that the industry faces. important to take for granted or leave to The challenge for established • Competitiveness – the key ingredient for The industry is awash with entrepreneurs chance. This tourism strategy aims to be destinations such as Ireland is to capture sustainable tourism growth and leaders, 12 of whom are featured within Industry-led, Government-enabled, and a share of the fast expanding demand for an Industry Insights insert which can be Agency-supported and collectively Ireland travel from new source markets while • Improving Access & Delivering found on page 64. can benefit significantly from tourism’s facing increased competition as air Opportunity. rich potential. services open up new destinations • Increasing Capacity to Meet A positive future but one that needs from mature source markets. Growth Aspirations. to be grasped
The importance of an environmentally • Exchequer Capital Investment in Such has been Irish tourism’s growth sustainable tourism sector Irish Tourism. in recent times – a remarkable increase of international visitor numbers to Ireland of Research consistently shows that • Managing the Challenge of Brexit circa 40% over the last 5 years – that one An Annual National Tourism Day to visitors to Ireland highly value the scenery, • State Support Framework to Facilitate natural environment, and cultural heritage raise the profile of the industry and Tourism Growth. that the country has to offer. All are unique celebrate the importance of tourism and irreplaceable natural assets and – along to Ireland.
68 7 Tourism: An industry strategy for growth to 2025 Tourism: An industry strategy for growth to 2025
Given the right policies, and appropriate investment strategies, By 2025 Irish tourism, on an annual basis and in real terms, can Irish tourism can build on its current strong foundations. aim to achieve strong revenue, employment, visitor number, and tax receipt growth.
2017 2025 Overseas visitor revenue
€4.9 billion €8.1 billion +65%
Employment
230,000 jobs 310,000 jobs +35%
Visitors
8.9 million visitors 13.7 million visitors +54%
Tax receipts
€1.13 billion €1.86 billion +65%
8 9 Tourism: An industry strategy for growth to 2025 Tourism: An industry strategy for growth to 2025
By 2025 international tourism into Ireland can deliver on an However growth targets for 2025 can only be achieved annual basis in real terms. subject to key enabling factors.
2025 2025 Value of sector More hotel bedrooms More access into Ireland per annum €8.1 billion (CAGR 6.5%) 11,000 40% Number of jobs in sector Retention of a competitive tax rate Increased annual agency budgets for overseas marketing and 310,000 jobs industry support
International visitors to Ireland annually 9% €50 million 13.7 million (CAGR 5.4%) Good to very good value for Ireland’s rating as matching or money ratings exceeding holiday expectations
Direct tax revenue to exchequer >60% >90% €1.86 billion Annual Government investment Enhanced terminal facilities programme in tourism development and new runway at Dublin Airport Revenue growth in sector compared to 2017 +65% €60 million
* CAGR = Compound Annual Growth Rate Vs 2017 levels
10 11 Tourism: An industry strategy for growth to 2025 Tourism: An industry strategy for growth to 2025
By 2025 overseas tourism to Ireland can be worth €8.1 billion By 2025 mainland Europe is likely to be the top source market by annually with 13.7 million visitors per year. Visitor and revenue volume for inbound tourism into Ireland. Britain will remain a key projections suggest stronger growth from North America, long haul market by volume although its overall share will decline as North markets and Europe than from Great Britain. America and longer-haul markets gain in importance. 2025 Great Britain Annual revenue Annual visitor numbers Great Britain 2017 2025 €1.1bn 4m 38% 29% (CAGR 0.6%) (CAGR 2.2%)
Mainland Europe Mainland Europe €2.8bn 5m (CAGR 6.4%) (CAGR 5.6%) 36% 36%
North America North America
€2.8bn 3.1m (CAGR 7.6%) (CAGR 7.6%) 19% 23%
Australia and Australia and emerging countries emerging countries €1.4bn 1.6m (CAGR 11.2%) (CAGR 12.4%) 7% 12%
* CAGR = Compound Annual Growth Rate Vs 2017 levels
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Government policies in terms of taxation and expenditure have The National Development Plan 2018-2027 been mixed for Irish tourism
Decisions to reduce the tourism Vat rate to the European norm and to This outlines the Government’s commitment to meeting Ireland’s infrastructure suspend the airport departure tax are welcome and have given a strong and investment needs over the next decade. The Plan sets out a significant level impetus to tourism growth. State investment though in overseas marketing of investment of €91 billion in exchequer funding of which tourism has only been and industry support for tourism over the last decade has been in sharp allocated €300 million. The sum allocated falls far short of the call by the Irish decline and this represents a missed opportunity as tourism gives a Tourism Industry Confederation (ITIC) for €600 million over the next decade to be significant return on investment to the exchequer. invested by the state strategically and regionally in new attractors of international appeal and scale.
A tourism Vat rate in line with the rest of the EU 20%
9% 10% 10% 10% 10% bn 6% 6% 6% 7% €91 3% State Capital Investment
Luxembourg Belgium Netherlands Portugal Germany Ireland France Italy Spain Austria U.K
Annual Government expenditure on This strategy makes the case for tourism marketing and industry support €50m extra per annum to be spent by m has been in sharp decline Government on tourism marketing and €300 industry supports – based on accumulative Current Tourism incremental overseas revenue against Allocation current receipts and this would mean a significant rate of return for the economy. €152.8m
Decrease of €133.8m €127.7m 25% €114m 2008 2011 2014 2017 34:1
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Overseas tourism into Ireland can be expected to grow by 2025, all things being equal according to UNWTO forecasts, but the A National Tourism Day difference between baseline growth and ambitious growth represents a sizeable prize for Ireland to strive for. It is proposed that Ireland mark an annual National Tourism Day to raise the profile of the industry and celebrate the value Visitor growth scenarios 2018 – 2025 and quality of tourism in Ireland, a sector
16 that employs 1 in 10 people, contributes billions Tourism Ambition 14 to the economy in taxation, and impacts 12 +2m positively on communities and cities 10 Visitors per anum 13.7m throughout the country. 8
6 Baseline Growth
4
2 m This annual event should mark the Other countries including USA,
Overseas visitor numbers in millions 11.7 importance of the sector to the national England, Canada and India celebrate a 2013 2017 2019 2021 2025 economy and highlight challenges and National Tourism Day as does the European opportunities that the industry faces. The Union and the United Nations. It is high Irish sector touches everyone – visitors, time that Ireland matched such a policy Revenue growth scenarios 2018 – 2025 residents, businesses and employees – and and elevated tourism within the national it is one of the few sectors active in every consciousness and Government and media part of the country. It’s an incubator for circles and an annual National Tourism Day Tourism Ambition entrepreneurs, a strong regional employer, would help achieve this. and promotes the best of Irish culture and heritage to a global audience. +€1.4bn Over 20,000 businesses are involved Revenue per anum in tourism and hospitality – airlines, €4.9bn €8.1bn ferry companies, hotels and other accommodation providers, tour operators, Baseline Growth restaurants, cultural experiences, visitor attractions and pubs amongst others – and This annual event should mark it is only appropriate that a day of the year the importance of the sector to is nominated as National Tourism Day to the national economy and highlight €6.7bn highlight the importance of the sector and Overseas visitor in revenue €billions its potential as an indigenous sector that the challenges and opportunities 2013 2017 2019 2021 2025 can never be out-sourced or off-shored. that the industry faces.
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National and international advocates for Tourism
“Ireland is an economy of substance underpinned by strong “Governments must lead tourism policies, but the engine behind growth sectors like Irish tourism. The sector reflects tourism development is the private sector, and one cannot work the best of both tangible and intangible assets and this without the other” strategy is a welcome initiative. The tangible benefits in Taleb Rifai, UNWTO Secretary General, March 2018 terms of expenditure from the growing base of domestic and international tourists, supporting jobs throughout the “The tourism and farming and food sectors are Ireland’s regions and generating substantial exchequer returns. The two most important indigenous industries and need to be intangible benefits in the experiences of the tourists will supported through proactive Government policies. Together, generate goodwill towards Ireland that spillover to the they offer employment opportunities nationwide. Both benefit of other Irish businesses both home and abroad”. sectors are interlinked, with food tourism offering a real Danny McCoy, CEO IBEC, March 2018 opportunity for Ireland’s economy to grow future years. Tourism and farming and food have significant potential in “Tourism earnings from overseas visitors is a classic export the coming years, adding jobs, contributing to exchequer tax business that adds significantly to Ireland’s economy both returns, and growing our national and regional economy.” nationally and regionally. Industries such as tourism are Joe Healy, IFA President, March 2018 driven by a strong private sector but the sector’s success needs to be enabled by Government and supported by state “In order to develop a forward looking agenda for the tourism agencies. Ireland’s future economic welfare is largely based sector, Governments at all levels would benefit from developing, around the success of its exporting sectors and tourism is as appropriate, long term plans. This provides the consistency and certainty the tourism industry requires, and creates a vital in that regard and this strategy should be supported in framework for sustainable and inclusive growth.” full” OCED, Paris, September 2017 Simon McKeever, CEO Irish Exporters Association, March 2018
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Irish Tourism’s Commitment to Environmental Sustainability
Research consistently shows that visitors can create employment opportunities recover from it. Therefore long-term success The ambition for Ireland’s and generate trade opportunities. lies in good planning and management tourism industry is high, to Ireland highly value the scenery, natural Key to sustainability is the ability to and that is what the recommendations however that cannot identify potential implications of growing within this strategy aim to achieve. This and should not be achieved at the cost of the environment, and cultural heritage that tourism numbers and to measure and strategy endorses and supports the WTTC environment. evaluate their possible impact. Our ambition report which identified key priorities; build the country has to offer. All are unique for Ireland’s tourism industry is high, a comprehensive fact base and update it and irreplaceable natural assets and – along however that cannot, and should not, be regularly; establish a sustainable growth achieved at the cost of physical, heritage strategy through rigorous, long-term with the friendliness and hospitality of and cultural environment. Popularity can planning; and involve all sections of society be both a gift and a curse when it comes – commercial, public, and social. In that our people – are the primary reasons that to tourism. Once a destination has reached context a key recommendation is that Fáilte visitors come to our shores. tipping point, the result can alienate Ireland, the National Tourism Development locals, push infrastructure to its limits and Authority, carry out an annual sustainability consequently impact negatively on the and environmental impact report on visitor experience as evidenced in protests tourism in Ireland. in 2017 in Barcelona and Venice. In a The most recently available World comprehensive report on the challenges of Bank report identifying number of residents It is thus vital to restate the Irish tourism Irish tourism industry and State have a key over-tourism, published in December 2017 to visiting tourists to a country places industry’s commitment to the environment role to play, through preservation of that by McKinsey on behalf of the World Travel & Ireland 32nd of 51 countries – thankfully and sustainable tourism. The goals and which is irreplaceable and the development Tourism Council (WTTC), it was highlighted due to Ireland’s open spaces there is no aspirations of this strategy are only of that which enhances the visitor’s overall that it is far easier for destinations to prevent current danger of over-tourism but it must achievable in the context of maintaining experience. The ongoing development of overcrowding in the first place than to be kept in mind as the sector aims to and supporting the quality of our natural Ireland’s tourism sector must reflect both environment. This strategy rightly aims the highest standards of environmental as for strong growth for Irish tourism which well as economic sustainability. A key recommendation means additional jobs, exchequer returns, Internationally the World Tourism is that Fáilte Ireland, and regional balance however these are Organisation defines sustainable tourism the National Tourism Development Authority, only possible if the recommendations and as: “Tourism that takes full account of carry out an annual enabling factors within the strategy are its current and future economic, social sustainability and implemented in full. Delivering an improved and environmental impacts, addressing environmental impact regional spread of tourism, creating new the needs of visitors, the industry, the report on tourism tourism products of scale and international environment and host communities.” in Ireland. appeal, and increasing accommodation and This definition highlights the attraction capacity measures are all vital interdependency of key elements of to ensure tourism’s sustainable growth so sustainability: social, environmental and that by 2025 the sector can both be a vital economic. Indeed the United Nations economic engine and environmentally- Sustainable Tourism Programme sustainable. emphasises that well designed and The quality of Ireland’s natural managed tourism can make a significant landscape and countryside, combined with contribution to sustainable development, our physical heritage, are areas in which the has close linkages to other sectors, and
20 21 Tourism: An industry strategy for growth to 2025 Tourism: An industry strategy for growth to 2025
grow ambitiously in the years ahead. In a of natural eco-systems and heritage sites The environmental diagnostic analysis of 68 cities, conducted has in many cases been enabled by the aspect of tourism is both as part of the WTTC report by McKinsey, financial benefits of tourism. Similarly, the managing numbers but Dublin – Ireland’s most visited place with heightened awareness of our natural assets also ensuring that Irish tourism is as carbon over 5 million annual overseas visitors increases public and political support to efficient as possible. – was identified as having little risk of conserve these assets. overall overcrowding, air pollution, or This strategy fully recognises damage to historic sites but did highlight and supports the emphasis placed by increasing density of tourism during the Government on sustainable tourism in the high season. This underpins much of the context of due consideration being afforded recommendations within this strategy; to the protection of our heritage assets tourism in Ireland must be spread more when detailing strategy and plans. equitably and policy interventions are It is incumbent on all tourism required to help deliver this. stakeholders to ensure that the projected Of course the environmental aspect increase in tourism numbers is managed of tourism is both managing numbers sensibly and this strategy to 2025 and but also ensuring that Irish tourism is its proposals regarding competitiveness, as carbon efficient as possible. National capacity, dynamic use of visitor statistics, climate policy in Ireland anticipates and new product development, and regional supports mobilisation of a comprehensive spread are formulated with this intention. international response to climate change, The preservation of our natural and global transition to a low-carbon environment, enablement of the positive future. The Irish tourism industry supports economic impacts of tourism, and support this objective fully. We further commit to of the social and cultural well-being of working with the Government to enable communities are central tenets within this implementation of advice from the Climate strategy. If any of these elements fail to Change Advisory Council regarding how be maintained this strategy will not be to best respond to the impact of climate successful, thus the need for sustainability change and the most effective policies and climate action measures at all stages of to assist with Ireland’s transition to a low tourism sector’s future. carbon and climate resilient economy. The Irish tourism sector is highly aware and conscious of the importance of ensuring an excellent visitor experience which is in accord with the local environment, community and cultures thus sharing the benefits of tourism development. When sustainably managed tourism has the ability to improve regional development, provide employment and strengthen communities. The protection
22 23 Tourism: An industryCompetitiveness strategy for growth to 2025 Tourism: An industryCompetitiveness strategy for growth to 2025
Methodology of Report Strategy Steering Group Tony Kelly Chair (formerly Irish Ferries) Gerard Brady Ibec Eoghan O’Mara Walsh ITIC Aidan Sweeney Ibec Tourism: An Industry Strategy for Growth Darren Byrne Abbey Group Ruth Andrews ITOA to 2025 has been developed by the Irish Tourism Niamh O’Shea Killarney Park Hotel Adrian Cummins Restaurants Association of Ireland Cait Noone Galway Mayo Institute of Technology Louise Bannon daa Industry Confederation (ITIC) over a 9 month period with Tim Fenn Irish Hotels Federation Conor Kavanagh Genesis extensive consultation and input from the ITIC Board, Caroline Kelleher Shannon Group Susie O’Connor Genesis Declan Kearney Aer Lingus Eoin Quinn Irish Hotels Federation Council members, a dedicated steering group and wider industry Mark McGovern Smithwicks Experience Kilkenny Arlene Woods ITIC players. Genesis and TTC – Tourism & Transport Consult
assisted with the strategy in terms of facilitations, A series of in-depth one-to-one interviews were conducted with tourism leaders consultation and forecast modelling. around the country
John Brennan Managing Director, Park Hotel Kenmare Niall MacCarthy Managing Director, Cork Airport Peter Carey CEO, Kildare County Council Tina Maree National Executive Officer, Irish Hospitality Institute Orla Carroll Director of Product Development, Fáilte Ireland Pat McCann CEO, Dalata Hotel Group ITIC Board of Directors James Chilton Director, Rethink Tourism Brian McColgan Co-founder & Director, Abbey Group Maurice Pratt Chair Declan Kearney Aer Lingus Enda Corneille Country Manager, Emirates Nicola McGrane CEO, Conference Partners International Eoghan O’Mara Walsh CEO David McCoy House of Waterford Crystal Padraig Cribben CEO, Vintners Federation of Ireland Danny McCoy CEO, Ibec Ruth Andrews Deputy Chair (ITOA) Cormac O’Connell daa Derry Cronin President, ITOA Diarmuid O Conghaile Director of Corporate Affairs, Ryanair Paul Gallagher Irish Hotels Federation Adrian Cummins Restaurants Association of Ireland Professor Jim Deegan Director National Centre for Tourism Des O’Mahony CEO, Bookassist Policy Studies, University of Limerick Con Quill Irish Caravan & Camping Council Nick Mottram Irish Ferries Daragh O’Reilly Head of Marketing, Irish Ferries Dr Dominic Dillane Head of School, School of Hospitality Management & Tourism, DIT Dino Steinkamp DER Touristik Diane Poole Travel Commercial Manager, Stena Line ITIC Council Members Niall Gibbons Chief Executive, Tourism Ireland Joe Gilmore Managing Director, Ireland West Airport Ken Spratt Assistant Secretary, Department of Aer Lingus Car Rental Council of Dublin Port Company Inland Fisheries Ireland Office of Public Works Transport, Tourism & Sport Ireland Howard Hastings Managing Director, Hastings Hotels AIPCO Emirates Ireland’s Blue Book Restaurants Association of Kevin Traynor National Director, Coach Tourism & (Association of Irish CIE Tours International Ireland Vincent Harrison Managing Director, Dublin Airport Transport Council Fáilte Ireland (Associate Irish Boat Rental Association Professional Stephen Kavanagh CEO, Aer Lingus Matthew Thomas CEO, Shannon Group plc Conference Organisers) Coach Tourism & Transport Member) Shannon Group plc Irish Caravan & Camping Council Paul Keeley Director of Commercial Development, Michael Vaughan Owner, Vaughan Lodge Hotel, Co Clare AVEA Guinness Storehouse Council Stena Line Convention Centre Dublin Fáilte Ireland (Association of Visitor Heritage Island Irish Ferries Tourism Ireland (Associate Dublin Airport Authority Member) Experiences & Attractions) House of Waterford Crystal Irish Heritage Trust Dublin Institute of Vintners’ Federation of B&B Ireland Technology Incoming Tour Operators Irish Hotels Federation Ireland Association-Ireland Regional workshops were A qualitative survey was ITIC is extremely grateful Jameson Visitor Centres held with local industry and conducted in January to all participants who have trade in Galway (June 2017), 2018 with a wider tourism supported and given of their Killarney (November 2017), industry audience via time in helping to formulate and Kilkenny (December 2017) an online questionnaire Tourism: An Industry Strategy where valuable feedback was which delivered extensive for Growth 2025. generated and new insights submissions. delivered.
2426 2527 Competitiveness Competitiveness
Competitiveness – the key ingredient for sustainable tourism growth
2628 2729 Competitiveness Competitiveness
Ireland’s relative position amongst Competitiveness – the key its European competitors is telling as ingredient for sustainable Spain, France, Germany and the UK are ranked in the world’s top 5 most tourism growth competitive destinations. This is where Competitiveness is at the heart of Irish tourism needs to be. tourism policy agenda for most destinations, according to the Organisation for Economic Ireland offers a unique and compelling visitor experience in Co-operation and Development (OECD). A an expanding, but increasingly, competitive global market number of variables – broadly, the regulatory tourists rated Ireland as poor value for money, framework, the cost of doing business, and there has been a marked improvement place. Building on the strong results of recent years, and the natural and cultural offering – drive the in competitiveness with in 2016 only 5% aligned with Government’s economic objectives, Ireland’s competitiveness of Ireland’s tourism offering rating Ireland as poor value. This improved and result in its perceived attractiveness and competitiveness has been as a result of competitiveness must improve through investment, value for money in the eyes of the consumer. Government actions such as the successful Every two years, the World Economic 9% Vat rate for tourism and hospitality innovation, regulatory reform, greater efficiencies and Forum sets out to answer the question services, as well as an agile and responsive excellent service standards, all with the objective of of which countries represent the most industry reducing its prices and maintaining competitive tourism destinations. In 2017 quality of service and product. The challenge delivering compelling value for money for the consumer and Ireland was ranked 23rd out of 136 countries, is to sustain that recovery and improved down from 19th out of 141 countries in 2015. competitiveness position. long-term economic benefits for the country. Indices of competitiveness, while useful, Going forward a key enabling factor for are imperfect measures of competitiveness tourism’s success is that the industry maintains due to the subjective nature of many of a minimum of 60% as “good” to “very good” the indicators and the varying stages value for money ratings amongst overseas of development of tourism economies. holiday makers as surveyed annually by However, Ireland’s relative position amongst Fáilte Ireland. its European competitors is telling as Spain, Consumers have become increasingly France, Germany and the UK are ranked well informed about travel options and in the world’s top 5 most competitive are demanding of value for money in their destinations. This is where Irish tourism purchasing decisions. Price competitiveness needs to be. and value for money rating by consumers Ireland’s tourism has made a remarkable is based on factors such as the extent to recovery over the past number of years. A which goods and services are more or less period of rapid economic growth in Ireland expensive than elsewhere (purchasing power from the mid 1990s into the noughties, parity), the cost of travel, VAT and other followed by years of rising prices, had taxes passed on to the consumer, fuel prices, seen Irish tourism suffer a marked loss and the relative cost of hotel or other guest of competitiveness as cost inputs and accommodations. resultant consumer prices rose faster than The Government’s current policy on in competing destinations. The result was a tourism ‘People Place and Policy’, published significant deterioration in visitors’ value for in 2015, underlines the need for the money satisfaction as surveyed annually by maintenance of value for money and the Fáilte Ireland. Thankfully the Irish tourism inherent danger that price increases may industry has once again demonstrated its damage tourism competitiveness. It further resilience and since 2009, when 41% of highlights that overall value is equally as
28 29 Competitiveness Competitiveness
Key Issues and Recommended Strategic Responses
important as price. For Ireland to move up the challenges, including Brexit. In common with The following section details key strategic international tourism value chain and thereby businesses in other sectors, tourism and improve its competitiveness requires quality hospitality enterprises look to Government recommendations with respect to competitiveness. tourism products, services and experiences to rigorously pursue cost competitiveness, from hospitality businesses against a address barriers to investment and growth, As a key ingredient of the tourism offering a systemic background of a pro-enterprise environment drive productivity performance, so that approach to competitiveness is necessary against a which promotes investment and innovation. they can be responsive to competitiveness Continued growth in tourism will depend challenges and opportunities that emerge. background of macro-economic policy, supported by on providing compelling and sustainable Growth is putting upward pressure on costs experiences to visitors. The relative value of and infrastructural investment is lagging a whole-of-government approach to tourism policies natural, cultural and heritage assets is likely growth trends, which could seriously and supports. Such an approach is necessary to to become increasingly important appeals as jeopardise the industry ability to cater consumers actively seek out sustainable for increased demand. enable tourism businesses to trade competitively and authentic visitor experiences. The threats or risks to Irish tourism in export markets and achieve sustainable growth remaining competitive in the eyes of the in demand thereby delivering sustained Continued growth in consumer hinge largely on the cost inputs tourism will depend on involved in delivering the experience. While employment and economic benefits. providing compelling and Ireland’s economy is in its strongest place sustainable experiences since the onset of the recession, several to visitors serious competitiveness challenges are evident and initial 2017 “value for money” Capacity Management, Capital ratings by international tourists are beginning Investment and Infrastructure to dip. National policy needs to ensure the economy is resilient at sectoral and firm level Ireland’s ability to earn increasing within the tourism and hospitality sector export tourism revenue, by attracting and to deal with imminent competitiveness accommodating more visitors, requires investment in enabling infrastructure. ITIC supports the Government policy of Key investment in infrastructure as outlined in the 10-year National Development Challenges Plan 2018-27 including roads, broadband, 4 and utilities as critical elements of a competitive strategy for tourism. It is Pillar 01 – Competitiveness regrettable that more investment is not ear-marked for specific tourism capital development projects but tourism- enabling infrastructural investments are to be welcomed. Investment and innovation in tourism facilities, as outlined elsewhere in this strategy within the Exchequer Capital Investment in Tourism pillar, will Improvement in value for tourist money ratings by tourists since 2009
30 31 Competitiveness Competitiveness
Ireland remains a relatively high-cost location in which to do business according to the National Costs of doing business It is recommended that a number of Labour availability Maintenance of a tourism Competitiveness Council. policy areas be implemented relating to and cost Vat rate that is competitive Ireland remains a relatively high-cost cost of business inputs, which impact price with other European location in which to do business, according competitiveness, including: Tourism is a sector with a high destinations. be key to successful expansion of tourism to the National Competitiveness Council’s • Maintenance of a tourism VAT rate that level of employment with 230,000 jobs demand across the regions and throughout latest report1. A number of elements which is competitive with other European nationwide as at the end of 2017. Such the year. Current capacity issues, including impact on the costs of doing business destinations; a labour intensive industry by definition hotel accommodation in the capital, require in Ireland, particularly for SMEs which need a broad range of skilled employees. • Access to a diversity of financing options ongoing monitoring and a programme characterise the tourism sector, include Businesses in the sector attract talent from available to tourism business; of actions to ensure that growth is not ‘tax, legal, regulatory and administrative numerous backgrounds including finance stunted by insufficient capacity in enabling environment, are vital to helping improving • Reform and simplification of the and accounting, data analysts, customer infrastructure or a short fall in facilities competitiveness.’ Utility costs in Ireland are current regime of taxes and charges on service, and linguists amongst others. Given catering specifically to tourism – access, amongst the highest in the EU. Access to, employment; the high numbers of staff required in the and the cost of, credit, including working industry it is important that there be an accommodation, and visitor attractions • Realignment of Local Authority rates capital, continues to be a significant issue available talent pool on a regional basis at and services. system to ensure greater consistency; It is recommended that tourism for many businesses in the tourism sector, competitive cost to employers. • Streamline regulatory compliance Increasing insurance development programmes encouraging while increasing insurance rates threaten For industries within the services As Ireland’s economy rates threaten the investment need to be aligned with the viability of many small enterprises while obligations, whilst ensuring full health sector, of which tourism is one, costs continues to expand and viability of many small the Government’s infrastructure plans adding disproportionately to costs for larger and safety compliance, to reduce the cost associated with labour are significant. In the labour market tightens, enterprises while adding as outlined in the National Planning hospitality businesses, each threatening of doing business; 2017 Ireland had the 2nd highest monthly pressure will increase disproportionately to on labour costs and Framework to 2040. Tourism interests need competitiveness of the tourism offering. minimum wage (€1,546) and 5th highest costs for larger hospitality • Implementation of the priorities identified availability. businesses. to engage with the relevant Government Investment in expansion in many instances in the Energy White Paper to reduce monthly minimum wage in PPP terms departments – principally the Department is being stymied by rising property prices utility costs; (€1,264)2. Furthermore, as Ireland’s economy of Housing, Planning, Community and and construction costs. continues to expand and the labour market Local Government – to ensure that The impact of Brexit continues to be • Implement the recommendations and tightens, pressure will increase on labour tourism objectives are included in capital an immediate threat to competitiveness, actions arising from the second phase costs and availability. For Irish tourism development programmes over the as evidenced by exchange rate shifts on of the Cost of Insurance Working Group to remain competitive it is essential that coming years and that any statutory demand from the British market. in relation to the Employer Liability and productivity and labour costs within the barriers to tourism development Specific threats to tourism Public Liability insurance. sector do not get out of line with those growth are addressed. competitiveness in the future include It is recommended that tourism in competitor destinations across Europe. Government’s taxation policies and competitiveness be monitored and Responsibility rests with Government, international priced inputs which exert addressed in line the recommendations business and trade unions to ensure that a significant influence on energy and of the National Competitiveness Council wage levels do not outpace productivity transport costs. paying particular attention to labour, gains, as happened in the past, resulting in insurance and taxation costs. higher prices for the tourist and a marked It is further recommended that Fáilte erosion of competitiveness. The same Ireland, in cooperation with ITIC, update mistake must be avoided in the future. its 2011 report to reassess the impact The ability of the industry to attract of the range of state imposed costs on and retain talent is addressed separately in tourism businesses and the sector’s Pillar 9. Notwithstanding recommendations competitiveness. in this regard Ireland is almost at full
1) Ireland’s Competitiveness Challenge , 2017 December 2017 2 Eurostat / National Competitive Council Costs of Doing Business 2017 (May 2017 )
32 33 Competitiveness Competitiveness
Summary of Recommendations
employment and it has become necessary Value for money surveys Measuring and monitoring conducted by Fáilte in some areas that employees from competitiveness Ireland, are seriously overseas are needed to address gaps in the diminished in value due to system. It may be necessary to relax the In addition to regular international a significant time lag in the restrictive laws on work permits to attract benchmark reports on national availability of results. skilled and qualified non-EU nationals into competitiveness, the tourism sector would Recommendation Recommendation the industry, especially as visitor demand benefit from more in-depth and timely increases from new source markets in Asia monitoring of price and value perceptions Tourism development programmes Tourism competitiveness be monitored and and the Middle East. of consumers in key markets. The capture of encouraging investment be aligned with addressed in line with recommendations of It is recommended that the more consumer insights, ideally in real time, the Government’s infrastructure plans as the National Competitiveness Council paying employment permits system be reviewed would provide the industry with a valuable outlined in the National Planning Framework particular attention to labour, insurance and in consultation with industry to ensure it is marketing tool to drive sustainable growth. to 2040. taxation costs. aligned with emerging labour market needs Ireland currently does not have an and visitor profiles. on-going monitoring of competitiveness in Lead Accountability Fáilte Ireland Lead Accountability Government its top source markets, tracking price based & industry on purchasing power parity comparisons within its competitor destination set, including cost of access, accommodation, consumer taxes, and exchange rates amongst others. This lack of insight and Recommendation Recommendation ongoing monitoring of the competitive environment is a serious information gap Assessment of the impact of the range of Employment permits system to be reviewed for the sector. state imposed costs on tourism businesses in consultation with industry to ensure it is Holidaymaker surveys, conducted by and the sector’s competitiveness. aligned with emerging labour market needs Fáilte Ireland, while providing an annual and visitor profiles. monitoring of value satisfaction levels amongst peak season holiday visitors, are seriously diminished in value due to a Lead Accountability Fáilte Ireland & Lead Accountability Department of significant time lag in the availability of Industry Business, Enterprise the results. and Innovation It is recommended that a competitiveness monitor, including the systematic collection of data on price and consumer sentiment (including overseas Recommendation tour operators and OTAs) be upgraded A competitiveness monitor be upgraded and shared with the industry in real- and shared with the industry in real-time to time to influence policy and commercial influence policy and commercial decisions for decisions to best deliver quality and value the benefit of the visitor. experiences for the visitor.
Lead Accountability Fáilte Ireland 2025 34 35 Improving Access Improving Access
Improving Access and Delivering Opportunities
36 37 Improving Access Improving Access
Improving Access and Visitor arrivals to Ireland 2017 Delivering Opportunities 12% by sea The importance of access, whether that be by sea or air, to the development and growth of tourism 88% cannot be understated. This is particularly so for an by air island nation such as Ireland. The ability to easily and affordably come to Ireland on a year-round basis has been, and will continue to be, the key driver for The development and growth of A look at air access Growth in access is the sustained access – both by air and sea – primary causative factor growth in overseas tourism. A total of 34.9 million passengers went generates new options and opportunities and stimulator of tourism through Irish airports in 2017 with 88% of all for overseas tourists to visit Ireland. above all other reasons. overseas visitors coming to Ireland by plane. As has been the case in recent years, By 2025, if tourism growth as per this strategy is to Dublin Airport is the dominant Irish airport developments in access drive healthy and accounted for 85% of all air passengers competition amongst airlines and sea be delivered, then access will need to have increased followed in volume by Cork and Shannon carriers that result in better value for with regional airports such as Knock and significantly with up to 40% additional seats delivering consumers. In this context it can be argued Kerry having smaller yet still significant that growth in access is the primary over 13 million visitors to Ireland. Air and sea carriers numbers. causative factor and stimulator of tourism Access to Dublin has seen a sharp above all other reasons. will have enhanced existing routes and opened new rise in passenger numbers and dominates Development of more access and in terms of air access to Ireland in recent routes, airports – particularly Dublin – will need to have increasing demand through the year years. The continued development of is also a fundamental component and delivered significant infrastructural improvements, and facilities at Dublin Airport – including enabler of the extended seasonality of a second runway, additional terminal tourism traffic and revenue. This helps drive land transportation within Ireland will have aided the facilities, new gates and taxi areas – is incremental volume and value at times vital for Irish tourism nationally to prosper regional spread of tourism benefits. when accommodation and visitor attraction into the future. Growth at Dublin Airport capacity is under less strain, creating less The continued development is also critical for the regions with the of a reliance on peak months and a more of facilities at Dublin significant majority of international visitors sustainable flow of business. Airport – including a to the regions accessing via Dublin. second runway, additional Set against this background it is Saying that, sustainable air routes into terminal facilities, new imperative that access to Ireland is other Irish airports must be encouraged gates and taxi areas – is managed and supported so that it grows vital for Irish tourism and incentivised where possible with in a long-term and sustainable manner and nationally to prosper into Fáilte Ireland data showing that when in doing so benefits tourism as well as the the future. international visitors arrive directly to a wider economy. region they spend more time in that region. The challenge for Irish airports will be to fill current capacity opportunities in Cork, Shannon, Ireland-West and Kerry airports,
38 39 Improving Access Improving Access
Key Issues and Recommended Strategic Responses
The Government decision while increasing capacity at A look at sea access The following section details key strategic to suspended the airport Dublin Airport through land-side Arrivals by sea, on routes from Britain departure tax was and air-side enhancements. and France, have fluctuated in recent years recommendations focused on the sustainable welcomed by the Irish The Government decision to and saw a 1.6% increase in 2017. tourism industry and suspended the airport departure tax was development of access to Ireland so that it airlines have responded Access by sea is a key element of the welcomed by the Irish tourism industry and positively opening new tourism landscape. This is particularly so supports and facilitates growth of the routes and increasing airlines have responded positively opening in relation to the British market where 16% capacity new routes and increasing capacity. The arrived by sea in 2016. Notably, visitors who tourism sector. zeroing of this tax, as well as competitive arrive by sea tend to stay longer and spend landing charges at key airports, has helped more whilst on holiday in Ireland. Irish Ireland secure new routes and access from Continental Group’s (ICG) decision to build new markets. In regard to Dublin Airport, 2 new ferries for the UK and French routes Maintain competitiveness and given recent and projected growth, one of with a spend of €315 million in the coming delivering the right enabling the key challenges will be to ensure that years is a strong vote of confidence in Irish conditions key facilities, both airside and landside, tourism and sea access. Stena Line also keep apace with airlines’ ambitions and Undoubtedly consumer demand and Access by sea is a key have ambitious growth plans and Brittany needs. Dublin has the real opportunity to the strategic positioning of Ireland as a element of the tourism Ferries are launching a new Spain to Ireland landscape. This is become a hub airport between Europe gateway to and from Europe have been the route in 2018. particularly so in relation and North America and daa has plans to drivers of growth in access in recent times. Infrastructural investment at ports, to the British market where increase its passenger capacity significantly Key However, underpinning these factors have 16% arrived by sea in 2016. and the ease of getting to and from ports, in the years ahead. This is to be welcomed been a number of key enabling elements are challenges facing sea carriers, and and supported and crucially the Brexit Challenges and conditions that must be continued, investment by Dublin Port in particular 5 specifically: negotiations must ensure that a liberalised is to be welcomed and must be tourism- aviation regime remains in place as the UK centric in its delivery. Furthermore, Brexit • The continued zero-rating of the exits the EU. and any impact on the customs union will airport departure tax be particularly important for sea carriers as • Continued competitiveness of they plan access many years in advance Dublin Airport landing charges and must tailor particular ships to routes. The expansion of US pre-clearance By definition sea carriers are not as • at Irish airports. mobile or flexible to market diversification as air carriers. In summary, access development has Prioritise and expedite been very positive in recent years. There investment at Dublin Airport is significant potential for this growth to continue into the future with a positive and As previously outlined the trajectory enduring impact on the tourism sector. of access, particularly air access, is very However, growth brings challenges and positive and a further 4% growth in air these must be addressed. access is anticipated in summer 2018. However, with this new access comes a demand on supporting infrastructure. The need for Dublin Airport to expand
40 41 Improving Access Improving Access
Aer Lingus’s plans to its air-side and land-side infrastructure is Ensuring a liberalised access An airport growth strategy to Agency collaboration with It is recommended that this double transatlantic fundamental to the health of Irish tourism regime and improved air and support regions air and sea carriers collaboration be continued and dedicated co-operative passengers by 2022 give nationally. In that context it is recommended sea ports Fáilte Ireland data shows that tourists Effective marketing between marketing increased Irish tourism, for the first that essential infrastructure is expedited and time, a view of capacity As per the chapter on Brexit within this that arrive directly into a region tend to Tourism Ireland and air and sea carriers, with cost-benefit studies prioritized at Dublin Airport, and a parallel completed at year-end. on key North American strategy the continuation of a liberalised stay longer and spend more in that region. in co-operative marketing campaigns runway and terminal facilities are developed routes for the next number aviation regime when the UK leaves the In that context every effort should be and the sharing of market intelligence, of years and infrastructure without delay so that it can become an EU is critical for both tourism and trade in made to generate sustainable new routes has proven successful in driving demand on the ground must enable airport hub of scale. Other airports will Ireland. Any restrictions on air access, even into regionally based airports without and assisting new route development this project growth. be competing strongly to become a hub for a short period of time as negotiations cannibalizing existing traffic flows. It is into Ireland. It is recommended that this between North America and Europe and continue, would be enormously damaging recommended that a task force be put collaboration be continued and dedicated Dublin Airport must strive to secure a to Irish tourism and a liberalised aviation together by Fáilte Ireland to look at ways to co-operative marketing increased with primary status in this regard. Aer Lingus’s regime must be part of any new EU / UK secure new routes and additional capacity cost-benefit studies completed at year-end. published plan to double transatlantic deal. Furthermore should the UK leave the for key tourism airports such as Shannon, These studies have the purpose of ensuring passengers by 2022 gives Irish tourism, customs union, it would cause significant Cork, Ireland-West and Kerry within efforts to support access development are for the first time, a view of capacity on key cost and uncertainty to sea access and this regulatory and EU state-aid guidelines. prioritised, are visitor/passenger centric, North American routes for the next number must be guarded against for Irish tourism’s Such a working group could be made up develop regional and seasonal tourism, of years and infrastructure on the ground best interests. of the 2 state agencies, relevant airports, whilst also acting as a key platform for must enable this projected growth. Air and sea ports must invest wisely airlines, local authorities, and key overseas information sharing. This additional A concerted focus must be applied to It is recommended that a and strategically to continuously improve trade partners and terms of reference could investment should come from the increased ensure that sufficient capacity is in place to task-force be put together the experiences of carrier customers and include best practice internationally, co- funding of Tourism Ireland from Government by Fáilte Ireland to look at handle a growth in passenger numbers as tourism visitors. operative marketing initiatives, identification that this strategy calls for rather than a ways to secure new routes well as delivering an outstanding passenger of key routes, and regional product redirection of existing budgets. and additional capacity for experience. The daa has ambitious plans developments with the aim of generating regional airports within that Dublin Airport’s passenger number can regulatory and EU state- demand. Whilst Dublin Airport’s growth grow significantly and all efforts should be aid guidelines. and expansion is vital to national tourism it made to help daa achieve this. is also imperative that other Irish airports prosper as they are of strategic importance to tourism development as well as have unused capacity. Key to unlocking sustainable regional access will be the demonstration of provable demand. Airlines can only commit to routes based on commercial justification and consumer interest. 2025 42 43 Improving Access Improving Access
Summary of Recommendations
Recommendation Recommendation
Prioritize and expedite terminal Continued zero-rating of Airport Departure enhancements and new runway Tax, competitiveness of landing charges, development at Dublin Airport. and expansion of US pre-clearance facilities.
Lead Responsibility Government/daa Lead Responsibility Government/ Commission of Aviation Regulation
Recommendation Recommendation
Increased co-operative marketing funds Formation of an airport task-force to drive with industry partners in line with agency demand on sustainable tourism routes to budget increases. support regional access.
Lead Responsibility Tourism Ireland Lead Responsibility Fáilte Ireland with Tourism Ireland
Recommendation
A liberalised access regime is secured as part of any new EU/UK deal.
Lead Responsibility Government
44 45 Increasing CapacityCapacity Increasing Capacity
Increasing Capacity to Meet Growth Aspirations
4648 4947 Increasing Capacity Increasing Capacity
Increasing Capacity to Meet Growth Aspirations
The ambitions as outlined within this strategy are As an island destination Irish tourism’s This proved to be a legacy of the economic The more burning issue for success is heavily depending on growth in crash with little activity from developers and Irish tourism is its ability predicated on Irish tourism having the capacity to meet air and sea access. In that context the next banks and financial institutions not lending. to add capacity within few years look positive for Ireland with the Such has been tourism’s growth to Ireland Ireland and in that context this pillar puts a clear focus the projected growth in demand. 40% additional air and expected expansion of Dublin Airport, new in recent times that the supply shortage of on accommodation and transatlantic, European and long haul routes accommodation has become evident in a attraction capability. ferry seats will need to be created and the tourism sector in the offing, and the first direct China-Ireland number of popular tourism hotspots including will have to develop 11,000 additional bedrooms and route commencing with Cathay Pacific’s Hong Galway, Kilkenny and Cork. Kong to Dublin service in June 2018. Sea That situation has begun to right itself in up to 100 new restaurants nationally. Adding capacity carriers, most notably Irish Ferries and Stena 2018 with the extension of current hotels and Line, have also made serious investments the construction of new ones. Recent analysis particularly “on the ground” in terms of accommodation in new vessels and routes as sea access for ITIC by CBRE, commercial property and and visitor attractions is vital to ensure demand can be continues to improve. The more burning issue hotel experts, outline that approximately €850 for Irish tourism is its ability to add capacity million is being committed by hoteliers and met, value can be assured, and the quality of the Irish within Ireland and in that context this pillar developers up to 2020 which could see circa puts a clear focus on accommodation and 6,890 new bedrooms open across Dublin, visitor experience can be maintained. attraction capacity. In terms of the former, Cork and Galway. It should be noted that a continued lack of hotel bedrooms – Belfast is having its own hotel development Recent analysis for ITIC particularly in Dublin where there has been a boom with 1,500 new bedrooms set to open by CBRE, commercial property and hotel experts, The tourism sector has experienced a number of significant bottleneck in recent times – would for business in 2018 and 2019. outline that approximately growing pains in recent years with supply slow to match represent a threat to growth whilst also The growth targets as set out in €850 million is being negatively impacting on Ireland’s competitive this strategy necessitate the construction committed by hoteliers the increase in demand from many markets and this has profile. A report by Fitzpatrick & Associates of 11,000 new bedrooms nationwide and developers up to 2020 for Fáilte Ireland in June 2016 found that in to complement other accommodation which could see circa 6,890 new bedrooms open across been most evident in pressure on accommodation and the previous 5 years as overseas visitors to developments and there seems to be Dublin, Cork and Galway. Dublin grew by 33%, the number of hotel strong momentum towards this after years popular visitor attractions at peak times. Irish tourism bedrooms in the city actually fell by 6%. of inactivity. Saying that the number of must deliver new capacity quickly in order to achieve its growth levels and consistently deliver an outstanding visitor experience that differentiates Ireland and delivers a competitive advantage. New bedrooms projected by 2021 +6,157 +110 +623 Dublin Galway Cork
48 49 Increasing Capacity Increasing Capacity
Key Issues and Recommended Strategic Response
The number of new new bedrooms in the market needs to be alone with new hotel constructions, new The following section details key strategic bedrooms in the market monitored carefully and it is recommended attraction developments, and sea and air needs to be monitored that Fáilte Ireland carry out an annual carrier investments. recommendations focused on the sustainable carefully. monitor of hotel stock compared to current And we’re not short of compelling new and projected demand to ensure that the tourism ideas for state investment: a coast to development of access to Ireland so that it market is in sync where possible, and where coast Greenway from Dublin to Galway and not appropriate policies are put in place to the Wild Atlantic Way; a flagship Midlands supports and facilitates growth of the stimulate construction including strategic attraction based around the Shannon tourism sector. development zones to fast-track planning and corridor or our natural peat boglands; an reduce the scope for unnecessary objections. enhanced and interpreted Siabh Liag cliffs In the context of managing capacity experience in Donegal; an observatory along There is a growing realization that there needs at visitor attractions there is a growing the Wild Atlantic Way to see the wonders of to be new things of scale realization that there needs to be new things the Dark Skies along the Western seaboard of Appropriate policies to drive and international appeal of scale and international appeal for visitors Europe; Valentia Island as a UNESCO World private sector investment for visitors to do, to both to do, to both ensure a better regional spread Heritage Site to reflect its importance as the ensure a better regional of tourism as well as take pressure off existing first communications hub between Europe As a key driver of employment and spread of tourism and growth in the economy it is important take pressure off existing Irish visitor attractions. Visitor experiences and North America in the mid-19th century; attractions. are actively investing in their own product a world-class attraction showcasing Ireland’s that the tourism industry is considered where possible – recent examples include literary achievements and heritage. These in key policies that have the capacity to Guinness Storehouse’s €16 million extension are just some of the many options to add to affect investment in new accommodation. of its rooftop Gravity bar, Center Parcs new Ireland’s tourism experiences but the State Key Specifically, this relates to creating optimum €233 million holiday village in Longford must be proactive and take the first steps – Challenges conditions for investment and construction, due to open in 2019, Westport House’s €50 hotels, restaurants and tour operators will 4 focusing on policies and regulations such million plan for development, and Jameson all follow but, like the shining example of the as planning permissions, height restrictions, Distillery Bow Street’s recent €11 million Wild Atlantic Way, the Government must hotel and amenity sizes, compulsory makeover – but often the state needs to make the initial move with capital investment purchase orders if necessary, stamp duty, take a proactive approach to this with capital budgets to help create iconic attractors. and taxation measures. It is recommended investment budgets through Fáilte Ireland As clearly demonstrated on page 20 that a review of key enablers and barriers directly creating, or helping to create, new the Irish tourism industry is keenly aware of to new accommodation is completed and visitor experiences of note. In this context the need for sustainable tourism measures that annual monitoring of supply of new it is disappointing that the 10 year National now and into the future. This requires new bed stock is conducted by Fáilte Ireland to Capital Plan published in February 2018 only attractions of scale to ensure a better regional ensure accommodation measures allocated €300 million to new tourism product spread of tourism particularly in the Midlands, are working. Likewise Fáilte Ireland’s grant whereas this strategy argues that a doubling North West and along parts of the Wild support should be tailored to incentivise of this would be more appropriate. Atlantic Way. and support private sector projects. The sum of state investment for new In addressing the challenge of capacity, tourism developments – to be channeled all parties – Government, Agencies, industry, through Fáilte Ireland – pales in comparison and trade – must collaborate to define with the money being committed by and activate solutions that will allow for tourism’s private sector which amounts to sustainable growth and simultaneously approximately €2.5 billion in the next 3 years deliver in line with visitor expectations.
50 51 strategically. invest to Ireland Fáilte for opportunity a real represents still this million €300 only of tourism to commitment spending capital state’s the outlining 2018-27 Plan Development National the Although alone. 3years next the in billion €2.5 approximately to amounts which sector private by tourism’s committed being money development the with comparison in - pales Ireland Fáilte through channelled be -to decade next the over developments tourism for new investment state of sum The visitor attractions. at parking coach and car and toilets as such of key facilities development the and basis seasonal and regional to drive capacity the have that attractions visitor built and natural of development the experiences, class world into experiences current transitioning i.e. of key agendas, anumber to address required be will investment capital on focus the mind in this With opportunities. and challenges attraction visitor of the context the in considered be must funds these of application The decade. coming the over to tourism isallocated Fáilte Ireland, through channeled programme, investment capital million a€600 that recommended is Tourism it Irish in pillar Investment place. in be must attractions visitor and of accommodation terms in both capacity appropriate a reality become to this for order In destinations. tourism traditional in and times peak at pressure capacity alleviate also but generally industry and sector the benefits tourism regional and of seasonal volume and development the in success would only Not hotspots. tourism traditional the beyond destinations regional more visit and to consider tourists to how motivate out to set required be will strategy This place. in isput country the throughout stay and dispersed are visitors to ensure designed strategy actionable and aclear, that prioritised recommended is it document of Tourism of this pillar Spread Seasonal and Regional Better Exchequer Capital Capital Exchequer the in detailed As Delivering the within outlined As development strategy seasonal and A regional 2025 attractions and assets tourism in investment Capital Increasing Capacity 52 it accordingly. it operate and appropriately invest can who operator to acommercial out tendered be should these and Museum Writers Dublin as such attractions visitor operate own and Fáilte that Ireland appropriate seems longer no it Likewise capacity. additional needed much introduce and experience visitor the to richness to add purposes tourism for used be could that buildings owned state of historic undertaken be areview that isrecommended it and country the around dotted are examples Such structures. architectural finest city’s of the isone it even though to visitors isinaccessible which and of Environment Department the as acts which Liffey River the on House, Custom the buildings, of Dublin’s finest isone example Aclassic purposes. tourism for used not are yet which and owned state are which assets and buildings however are numerous There appeal. and reputation tourism overall Ireland’s undermine can which experiences poor creating risk attractions visitor opening times. flexible more and visitors flow of a better to ensure facilities booking online including experiences tourism and visitor to improved linked directly be must attractions owned resources. the commit will they where and how identify to budget, the for responsibility with agency the Fáilte for Ireland, opportunity areal represents still this million, €300 of only to tourism commitment spending state’s capital the 2018-27Plan outlining Inadequate attractors or over-crowded or attractors Inadequate of state funding exchequer Public Development National the Although and operation and efficiency to maximise assets tourism owned state of Audit Lead Responsibility tourism purposes. for used be could that buildings owned state historic of undertaken A review be Recommendation Lead Responsibility place. in put is country the stay throughout and designed to ensure visitors are dispersed strategy actionable and A clear, prioritised Recommendation Recommendations Summary of Summary Fáilte Ireland Fáilte Ireland
Increasing Capacity
53 Lead Responsibility appeal. international and scale of attractors new create help to decade coming over the to tourism allocated is Fáilte Ireland, investment programme, channeled through capital million a €600 that recommended is It Recommendation Lead Responsibility builds. new to enable planning & fast-tracked streamlined zones, development strategic barriers to new accommodation including and key review of enablers ongoing An Recommendation Government Local Authorities Fáilte Ireland & Exchequer Capital Investment Exchequer Capital Investment
Exchequer Capital Investment in Irish Tourism
54 55 Exchequer Capital Investment Exchequer Capital Investment
€2.5 billion is being committed by Irish Exchequer Capital Investment in tourism businesses between 2018 and Irish Tourism; Investing in New 2021 as new planes, ferries, hotels and attractions are set to be delivered as Tourism Products and Experiences tourism’s private sector increases its It is accepted that infrastructural capacity in order to plan for future growth. development improves a country’s ability to The Irish State’s return from tourism is significant. In deliver higher output, enhanced efficiency, lower costs and increased competitiveness. 2017, when accounting for domestic tourism and overseas Crucially for tourism, Ireland’s largest towards the second half of the Plan. The indigenous industry, is the capacity for sum of €300 million, averaging €30 million earnings, the exchequer generated €2 billion in direct infrastructure to further Ireland’s regional per annum over the lifetime of the Plan, tourism-related taxes. The economic case for tourism economic development, increase social falls far short of the call by the Irish Tourism cohesion and environmental sustainability. Industry Confederation (ITIC) for €600 is indisputable. If tourism is to achieve its potential for Ireland’s tourism industry is million over the next decade to be invested extremely active in investing in its future by the state strategically and regionally in Ireland current and future Governments must – approximately €2.5 billion is being new attractors of international appeal and recognise the economic value and cultural importance committed by Irish tourism businesses scale. The sum of state investment for new between 2018 and 2021 as new planes, tourism developments – to be channeled of tourism to the country nationally and regionally. ferries, hotels, restaurants and attractions through Fáilte Ireland – pales in comparison are set to be delivered as tourism’s private with the money being committed by sector increases its capacity in order to tourism’s private sector. A review of the plan is scheduled for 2022 and tourism should The National Development Plan 2018-2027 outlines plan for future growth. Saying that there are certain investment areas that require get an increased allocation. Exchequer investment of €91 billion yet only €300 active state investment and this strategy Local authorities too are investors advocates that the Irish Government invests in tourism and committed €73.3 million million has been allocated to the infrastructural accordingly to help the sector achieve between 2011 and 2016 in local tourist investment needs of tourism. This is wholly inadequate its potential. attractions according to the “Collaborate The 10-year National Development Locally to Compete Globally” report and must be improved to support Ireland’s largest Plan, published by Government in February published in March 2017. Such an 2018, allocates €91 billion in Exchequer investment is vital to be maintained. indigenous industry. Furthermore tourism-enabling investment in infrastructure across a range The Irish tourism industry consists of of sectors. Regrettably, tourism is allocated approximately 20,000 businesses, the large infrastructure – such as rail, road and broadband – majority of which are small to medium only €300 million up to 2027, and the should be prioritised as Dublin becomes a strategic access majority of the investment is weighted sized and thus insufficiently resourced to hub between Europe and North America.
is being committed by Irish tourism businesses in new product development between 2018 and 2021.
56 57 Exchequer Capital Investment Exchequer Capital Investment
Key Issues and Recommended Strategic Responses undertake major development. Therefore environment and cultural heritage. Capital the State and central Exchequer must step developments, whether they be public The following section details key strategic in to fund large scale infrastructural projects or private, must therefore be completed recommendations with respect to exchequer as well as specific investment in tourism in a sustainable manner being mindful products and experiences. Furthermore, of Ireland’s natural heritage. Indeed, the capital investment in Irish tourism. the State is well positioned to create positive impact of tourism in sustaining the environment in which private sector rural economies has the added benefit The recommendations must form part of a confidence is increased on the back of of supporting the appreciation and the balanced regional development strategy and public investment, consequently increasing protection of that heritage. the overall envelope of investment in are vital if Ireland is to achieve its tourism tourism product and infrastructure. New tourism development ideas to be explored potential to 2025 and beyond. include: a coast to coast Greenway from Dublin to Galway; a flagship Midlands attraction based around the Shannon corridor or our natural peat boglands; an enhanced and interpreted Sliabh Liag cliffs A €600 million commitment over experience in Donegal; an observatory next decade in exchequer capital along the Wild Atlantic Way to see the investment to develop and renew wonders of the Dark Skies along the Ireland’s tourism infrastructure Western seaboard of Europe; Valentia Tourism is an ever-changing business Island as a UNESCO World Heritage and to retain competitiveness requires Site to reflect its importance as the first constant investment in Ireland’s tourism transatlantic communications hub; a product in order to maintain quality, expand world-class attraction showcasing Ireland’s Key capacity and continuously innovate. The literary achievements; and gala banqueting private and commercial sector within Irish facilities in Dublin. These are just some of Challenges 4 tourism is now investing heavily – circa the many options to add to Ireland’s tourism €2.5 billion between 2018-2021 alone – to experiences but the State must be proactive €91bn develop air and sea routes, additional and take the first steps – hotels, restaurants Exchequer Capital 10 year National airport capacity, new hotel and restaurants and tour operators will all follow but, like Development Plan builds and visitor attraction expansions. the shining example of the Wild Atlantic It is now time for sustained State Way, the Government must make the initial investment – to complement private move with capital investment budgets to sector commitments – in natural and built help create iconic attractors. heritage, interpretive centres, greenways, A lack of such sustained public €300m visitor facilities, and business tourism investment will lead to a stifling of Current Tourism infrastructure amongst others. Put simply balanced regional development and the Allocation investment in “attractors” generates quality erosion of Ireland’s tourism product. tourism earnings, provides regional Research consistently indicates that balance, supports job creation and delivers visitors value Ireland’s scenery, natural exchequer tax returns.
58 59 Exchequer Capital Investment Exchequer Capital Investment
It is recommended that a €600 million A published spatial plan Development of a new events/ Prioritise and fast-track capital investment programme, channeled by Fáilte Ireland outlining convention centre outside tourism-enabling infrastructure through Fáilte Ireland, is allocated to tourism public investment in new Dublin – maximising the value of such as airport development, over the coming decade. This equates to tourism products of scale and business tourism infrastructure rail link to Dublin airport, approximately 1% of the annual overseas international appeal national broadband plan, earnings of tourism to the State and is an Business tourists – those that come improved motorway access, appropriate amount commensurate with It is recommended that Fáilte Ireland, to Ireland for meetings, incentives, and coach parking facilities tourism’s potential. the National Tourism Development conferences, and events rather than for The National Development Plan Authority, develop and deliver a multi- leisure purposes – are a very valuable Thanks to a blessing of geography, allocated only €300 million up to 2027 for annual tourism product plan outlining how component of the Irish tourism economy Ireland is strategically well-positioned tourism and ITIC is of the view that this is and where they intend to commit capital with the average spend per business between the European continent and half the appropriate commitment. A full investment budgets. Well-researched tourism visitor a significant multiple of the North America. In that context Dublin mid-term review of the Plan is scheduled products of scale are vital for Irish tourism’s average spend of a leisure tourism visitor. Airport, already in 2017 serving 29.6 for 2022 and it is vital that tourism’s share success and public investment through In 2017 12% of visitors to Ireland were million passengers, is now one of Europe’s of the exchequer envelope is increased Fáilte Ireland’s capital plan should be business tourists and it is recommended leading airports for both direct and hub accordingly. focussed on products with sustainable that product improvements are put in connectivity, according to ACI Europe’s appeal. As per the Government’s 10-year place for this market including incentive Airport Industry Connectivity Report 2017. National Development Plan published in facilities and appropriate gala banqueting Investment at Dublin Airport is a key February 2018 Fáilte Ireland have a capital venues. It is specifically recommended that piece of tourism-enabling infrastructure A mid-term review of the investment budget of €300 million or a large scale convention/events centre is that needs to be prioritised and expedited. In 2017 12% of visitors the equivalent of €30 million per annum. developed outside Dublin. The Convention It is recommended, as per the “Improving to Ireland were business National Development Plan is tourists. scheduled for 2022 and it is vital This strategy advocates that although a Centre Dublin (CCD), voted ‘World’s Access and Delivering Opportunity” chapter that tourism share is increased. higher figure is necessary, the €300 million Leading Meetings & Conference Centre within this report that infrastructural allocated to tourism and to be dispensed by 2017’ at the World Travel Awards, has investment in Dublin Airport be prioritised, National Tourism Development Authority proved very successful for business tourism fast-tracked and expedited. This includes still represents a sizeable investment needs attracting conventions, events and the new Runway North as well as increased opportunity for Fáilte Ireland. A “bigger, conferences to Dublin since its launch in terminal capacity, additional gates, and fewer, better” approach should be followed 2010. The CCD recorded over 157 events airside and landside facilities. This will allow with large scale investment in well- with 300,000 delegate days in 2016 and Ireland the freedom to compete globally in researched tourism products. Fáilte Ireland is estimated to have made an economic a more uncertain post Brexit environment. investment should be conscious of regional contribution to Ireland of €51 million. It is The afore-mentioned 10-year National balance including the need for a flagship Ireland’s only purpose-built international Development Plan outlines specific tourism- attraction in the North West, support of conference centre. The building is owned enabling infrastructural projects including greenways, and developing appropriate by the Office of Public Works, managed by the M20 Limerick to Cork motorway, Dublin products within Ireland’s Midlands. A Spencer Dock Convention Centre Dublin Metro which will be a rail link to Dublin published spatial plan of this nature DAC and was developed as a public-private Airport and it is recommended that these would allow the private sector of tourism partnership – it could be replicated as a projects be prioritised. The direct rail link “A bigger, fewer, better” approach to develop new initiatives and business model in another major city outside Dublin from Dublin Airport to a transport hub in should be followed with large clusters to support public investment goals. to enhance Ireland’s business tourism the city centre is vital to both allow quick Fáilte Ireland’s grant and investment prospects and assist with the regional access to the capital but crucially allow for scale investment in well- process needs to be improved and spread of tourism. easy connectivity to the regions via Ireland’s researched tourism products.” enhanced, and made comparable to other State agency investment methods
60 61 cities without a rail link to airport. link arail without cities 2capital of only isone Dublin capitals European Western Within network. rail Capitals with Capitals Western European Austria 2025UK Sweden Spain Slovakia Portugal Poland Netherlands Luxembourg Italy Ireland Greece Germany France Finland Estonia Denmark Belgium rail link toairport link rail Exchequer Capital Investment Capital Exchequer London Stockholm Madrid Bratislava Lisbon Warsaw Amsterdam Luxembourg Rome Dublin Athens Berlin Paris Helsinki Tallinn Copenhagen Brussels Vienna
62 rail link to the to airport. link rail capital cities that do not have a the only European western two Dublin and Luxembourg are is maximised. experience visitor and investment on return the that to ensure assets owned state and Fáilte Ireland funders between place in put be should agreements, level service or agreements, Partnership tourist. the of benefit the for maximised be can assets the that so consideration due with and strategically isdone assets these in investment that isvital it context that In authorities. local or Coillte Service, Wildlife and Parks National Works, Public of Office the be that whether State by the owned Much of Irish tourism assets are are assets tourism of Irish Much state-owned tourism assets tourism state-owned in efficacy operational and investment public Maximising Lead Responsibility parking facilities. coach and access, motorway improved plan, broadband national Airport, Dublin to link rail development, airport as such infrastructure Prioritise and fast-track tourism-enabling Recommendation Lead Responsibility and international appeal. scale of products tourism new in investment Exchequer outlining plan spatial A published Recommendation Lead Responsibility assets. tourism operational efficacy in state-owned and investment public Maximising Recommendation Recommendations Summary of Summary Government Fáilte Ireland Fáilte Ireland Exchequer Capital Investment Capital Exchequer
63 Lead Responsibility Dublin. outside centre Development of a new events/convention Recommendation Lead Responsibility period. 10 year over a product tourism new in programme investment capital public million A €600 Recommendation F Government á ilte Ireland
Brexit Brexit
Managing the Challenge of Brexit
66 67 Brexit Brexit
Managing the Challenge of Brexit
Brexit, the UK’s decision following a referendum in The UK’s decision to exit the EU has consequences of Ireland’s largest tourism The cost to Irish tourism significant consequences for a variety of market leaving the EU. of Brexit in 2017 has been June 2016 to leave the European Union, is the single trading sectors in Ireland and tourism is no In the short-term, with the fall in the estimated at €86 million different. Indeed arguably tourism is more value of sterling, Ireland has become less with 2,400 jobs foregone. biggest external challenge that is likely to impact on Irish exposed than most to a hard Brexit – in competitive in the British and Northern 2017 the UK was Ireland’s largest single Ireland markets – key source markets for tourism in the coming years. source market for visitors accounting for many hundreds of the country’s small and 38% of all footfall. Although Britain’s share medium sized tourism businesses. While of Irish tourism has been declining in recent the impact of the downturn is felt across all Any new EU-UK deal will include lengthy negotiations times, it remains Ireland’s largest source parts of Ireland, it is most pronounced in market by some distance. the Border counties and in Dublin – each and political compromises and will be a fluid and The immediate impact on Irish tourism a particularly attractive and convenient fast-changing situation right up to its completion, set of the Brexit vote was the weakening destination for Northern Irish and of sterling which affected Ireland’s British visitors. for March 2019 although likely to feature a transition competitiveness making trips to Ireland by Equally a weakened sterling makes the Britons more expensive – as a result visitors UK a more attractive destination for source period. Any new EU-UK deal must protect the from Britain to Ireland fell by 5% in 2017 markets – 2017 saw record tourism numbers Common Travel Area between Ireland and the UK, when all other markets enjoyed an upward into Britain – and as a result Ireland has a trajectory. Fáilte Ireland data suggests stronger rival as a neighbour. include no hard border on the island of Ireland, that the Brexit “cost” to Irish tourism was Irish tourism is particularly €86 million in 2017 with 2,400 jobs lost or vulnerable to a weak sterling and a loss of maintain liberalised aviation access regimes, protect foregone in the sector. competitiveness in the British market. Past all-island marketing, and ensure a harmonisation of The impact of Brexit has significant experiences highlight the damaging impact potential to damage jobs and economic it can have on businesses across all sectors regulatory standards North and South. growth if appropriate policies are not of the tourism and hospitality industry. established to mitigate the adverse Following unfavourable exchange rates,
Although the British market is at risk of softening, or at The Brexit impact: revenue changes by source market in 2017 best growing less strongly than other markets, it will still Pillar 05 – Managing the challenge of Brexit €225m remain a key source of business for Irish tourism and North America everything must be done to protect Ireland’s market share. Annualised estimated fall in: €67m Trips -297,000 Rest of World Export Earnings -€86m €30m Mainland Europe Tax Earnings -€19m Employment -2,400
-€86m Great Britain
Revenue changes by market 2017 Vs 2016 Source: ITIC/Fáilte Ireland
68 69 Brexit Brexit
Equally a weakened sterling makes the UK a more Key Issues and Recommended attractive destination for Strategic Responses source markets - 2017 saw record tourism numbers allied to high tourism inflation in Ireland, into Britain - and as a result The following section details key strategic the annual volume of British visitors fell by Ireland has a stronger rival as almost one third from a peak in 2006 to a a neighbour. recommendations that detail the required nadir in 2012, with the volume of holiday visits collapsing by half over the same strategic response for the tourism sector with period. Despite the growth in demand impacts. Although Fáilte Ireland produced respect to Brexit and its implications. over recent years the volume of visitors in September 2017 a “Get Brexit Ready” from Britain has never returned to its 2006 initiative there has been no additional peak. Furthermore Ireland is now losing resources or budget from Government. market share as British outbound travelers Tourism appears to have been left Development and implementation choose alternative destinations. The current behind by the Government in terms of a of well-resourced and Government downward trend represents a major threat strategic and practical support framework endorsed Brexit action plan to the industry and requires an immediate in relation to Brexit. This needs to be for the tourism sector strategic response to minimise the damage addressed urgently – the Irish tourism to businesses and employment. industry has significant vested interests The impacts of Brexit on tourism are In the longer run, the terms of any in the British market as evidenced by the not being treated with the same degree of new EU-UK deal must be cognisant of Irish decision by Irish Continental Group (ICG), urgency and importance as other export tourism needs. Brexit may lead to adverse owner of Irish Ferries, to commit €165 Key sectors of the economy. No additional consequences on the movement of people, million in January 2018 to build a new ferry supports of note have been made available the liberalised common aviation market for the Irish sea, set to be the largest cruise Challenges to Ireland’s tourism industry. This is in and regulations governing the respective ferry in the world in terms of 2 stark contrast to measures in Budget 2018 conduct of business in Northern Ireland vehicle capacity. An additional ferry has where the Government announced a and the Republic of Ireland. Such outcomes subsequently been commissioned bringing further series of policies to assist other would be detrimental to Irish tourism and ICG’s investment to €315 million. export sectors deal with the threats posed must be guarded against. The tourism euro is as valuable as by Brexit. New measures, in addition to a Of particular damage to Irish tourism’s the euro generated by any other export range of supports already in place through interests in Britain has been the decline sector and more valuable in the context agencies under the aegis of the Minister for in Tourism Ireland’s marketing budget Business, Enterprise and Innovation and the The impact of Brexit has that tourism is one of the few industries for Britain €13 million annually in 2008 to significant potential to that can provide regional balance and Minister of Agriculture, Food and Marine, damage jobs and economic just €5 million in 2018. This has led to a sustainable local employment. Tourism, include: a new €300 million low-cost Brexit growth if appropriate clear “share of voice” loss and weakened where Ireland is promoted overseas as an Loan Scheme, extra staff and resources for policies are not established “advertising recall”. As well as Government ‘all island’ destination, is uniquely vulnerable Enterprise Ireland, IDA, Bord Bia and Science to mitigate the adverse cutbacks to tourism marketing, the Foundation Ireland and a €50 million support consequences of Ireland’s to Brexit and warrants a strategic support supports offered to other industries by largest tourism market framework, comparable to that being put in scheme for food businesses. leaving the EU. Government in response to Brexit have not place for other exporters. As the cloud of uncertainty hangs over been extended to tourism. State agencies Brexit and its impact on Ireland’s tourism responsible for the development of the and transport sectors, businesses highly agri-food, manufacturing, and other export vested in the UK market are already suffering sectors have received additional funding from a downturn which is endangering and resources to support businesses in their continued viability. Set against this their sectors to mitigate the anticipated background it is recommended that a
70 71 Brexit Brexit
Any restriction on the movement 23 cent of every euro spent by of people between both islands tourists goes back to the exchequer or on the island of Ireland would in direct tourism-related taxes. be anathema to Irish tourism prospects.
detailed and appropriately resourced With 23 cent of every euro spent by The “Irish” question was specifically would greatly reduce the ease and tourism action plan to address tourism’s tourists going back to the exchequer in dealt with in Phase 1 of the EU-UK talks flow of Irish sea crossings thus Brexit challenge be established. It is direct tourism-related taxes. According to which were completed in December 2017. damaging ferry access into Ireland. envisaged that this strategy would be Fáilte Ireland there is a clear-cut case to A commitment was undertaken that the • The harmonisation of regulatory devised via a collaboration between the stem the fall in British visitors and fight to Common Travel Area, dating from the standards across the island Irish tourism industry, Fáilte Ireland and retain Ireland’s market share. The need 1920s, between the UK and Ireland would of Ireland. Tourism Ireland. It is however imperative for Irish tourism to maintain its value for be maintained and that no hard border that the strategy and action plan that arises money rating to the British consumer is vital would be imposed on the island of Ireland. Brexit has the potential to is fully endorsed and resourced by funds in this regard and it is recommended that At time of the strategy’s publication deliver a competitive advantage to that are in addition to the current budgets the Irish tourism industry strive to deliver it remains unclear how this will be the UK, depending on the outcome of of the aforementioned Tourism Agencies. this consistently. There are signs that British implemented particularly if the UK exits the negotiations. For example, any Such a strategic action plan should include holidaymakers’ ratings of Ireland as being Single Market and Customs Union. It is vital reduction in the cost of doing business the establishment of a Brexit tourism task value for money is weakening although that these matters are copper-fastened in the UK compared to Ireland, force to input into the negotiations, design this can be largely linked to currency within the terms of the final EU-UK deal. resulting from a withdrawal from EU a series of practical supports and mentoring movements. Likewise, as stated in the Any restriction on the movement of people inspired regulations and compliance for businesses impacted by Brexit, and Competitiveness Pillar it is incumbent on between both islands or on the island of issues, would see Ireland disadvantaged. establish a fund for business supports to the Irish Government not to impose any Ireland would be anathema to Irish tourism Likewise – after Brexit – should the UK assist tourism through education, training, additional tax or regulatory burdens on Irish prospects. Should the Common Travel Area Government be allowed to grant state re-skilling and product enhancements. tourism businesses as the sector battles the be undermined or weakened it may well be aid to certain sectors, this would skew Furthermore the supports available to challenge of Brexit. in Ireland’s interests to join the Schengen the playing field unfairly for Irish tourism other export sectors should be extended area of EU countries. businesses in the Republic of Ireland. to exposed tourism businesses, including • The support of an all-island approach Irish tourism interests to be • The retention of liberalised aviation & sea access to low cost finance through the to tourism marketing. respected in new EU-UK trading access between the UK and the EU. Strategic Banking Corporation Ireland (SBCI) deal negotiations In large part it is accepted that the together with access to the range of labour As the UK exits the Single Market it marketing of Ireland as an all-island support schemes. Brexit negotiations between the EU exits the Single Aviation Market destination is the most appropriate and and UK are likely to be fraught and lengthy and is no longer part of the Open consumer-centric approach with the with the situation heavily influenced by Skies Agreement across Europe. With greatest potential to deliver impact. political interests in London and Brussels. no WTO aviation conditions to fall back Both UK and Irish Governments However any new EU-UK deal, whenever on, an alternative must be put in have stated that all island agencies it might come into effect, must reflect the place to ensure that UK airlines can such as Tourism Ireland will be strategic importance of tourism to the Irish operate freely into the EU and vice unaffected no matter what the Brexit economy. Phase 1 of the EU-UK talks were versa. Irish tourism is heavily Good value for money rating by British holidaymakers outcome is and it is vital that this is deemed a positive outcome for Irish tourism dependent on liberalized air access delivered. Retention of the Common with the retention of the Common Travel and a restriction or limitation on Travel Area and a soft border on the Area and a commitment to not impose air agreements would be enormously island of Ireland are critical measures a hard border on the island and both detrimental not only to Irish tourism 54% to secure and further underpin the need to be re-enforced in any final deal. but also to the wider Irish economy. importance of an all Ireland 44% Heading into Phase 2, and the trading terms Similarly customs checks at sea ports marketing strategy. between the EU and UK, the following key areas must be prioritized: 2014 2015 2016 2017 • The preservation of the Common Travel The marketing of Ireland as an all-island Area and no imposition of a hard border destination is the most appropriate and on the island of Ireland. consumer-centric approach. 2025 72 73 Brexit Brexit
Summary of Recommendations
Recommendation Recommendation
The preservation of the Common Travel Area Ensuring that value for money is delivered between the UK and Ireland and a soft border consistently to the British consumer and on the island of Ireland. no additional tax or regulatory burdens are placed on the Irish tourism industry.
Lead Responsibility Government Lead Responsibility Industry & Government
Recommendation Recommendation
The harmonisation of regulatory standards The retention of liberalised aviation and sea across the island of Ireland. access regime between the UK and the EU.
Lead Responsibility Government Lead Responsibility Government
Recommendation Recommendation
The support of an all-island approach to A resourced Brexit action plan for tourism marketing. tourism sector.
Lead Responsibility Government Lead Responsibility Fáilte Ireland / Industry
74 75 State Support Framework State Support Framework
State Support Framework to Facilitate Tourism Growth
76 77 State Support Framework State Support Framework
State Support Framework to Facilitate Tourism Growth
It has been proven in recent years Departmental competencies, local authority Government, state agencies and local authorities that the tourism sector has delivered, and commitment, and the effectiveness and must be fully focused on the economic potential and exceeded, its growth strategy and has been efficiency of state tourism agencies. a crucial element in both re-establishing In this context the Export Trade importance of Irish tourism. Pro-enterprise policies Ireland’s economic reputation and setting Council needs to be reconvened and the country on a path to economic recovery. the new tourism targets of this strategy need to be delivered by effective, responsive, However the contribution and potential should be incorporated within the national and appropriately resourced tourism agencies that of tourism, and its profile as a significant Trade, Tourism and Investment strategy. growth enabler, has not been fully realised Likewise research and investment agencies support an agile, labour-intensive industry that offers nor has it been adequately resourced or should adopt a tourism remit to reflect the given due attention by successive Irish importance and potential of Ireland’s largest a world class tourism product to the consumer. Governments. This is reflected in the fact that indigenous industry. the total tourism budget (current and capital It is also critical that any review needs expenditure) by central Government is down to encompass a fundamental review of 25% since its previous peak in 2008, a near the role and functions of Fáilte Ireland, the €40 million deficit. National Tourism Development Authority, This strategy argues that the export to strengthen it and to ensure that it is value of overseas tourism can rise to €8.1 appropriate to best serve the needs of billion annually in 2025 with 310,000 people the industry in a changed investment and employed in the sector. However to realise trading environment. The review needs to this ambitious growth potential a step re-assess the effectiveness and efficiency change in Government support is needed, of the state agency architecture, functions based on pro-tourism policies implemented and resources to optimise the support to by nimble state agencies. In that context, industry in delivering on sustainable growth. given the importance of the sector to the Similarly as per the national tourism policy, economy nationally and its significant “People, Place & Policy”, the efficacy of potential, it is an opportune time to review Tourism Ireland’s marketing spend needs to how the State and its various organs support be continuously analysed. the Irish tourism industry. Ireland is unusual in that there are two The structure and capabilities of the state tourism agencies with responsibility industry, agencies, local authorities and and influence over the sector; namely Fáilte Government department need to be Ireland and Tourism Ireland. Furthermore analysed in preparation for a period of Tourism Northern Ireland has responsibility significant change. The tourism sector cannot for developing tourism North of the border. be assessed, and its structures amended, in However Fáilte Ireland is the only isolation. Elements of it are interlinked with state tourism agency with an exclusively almost every Government department and it touches off a host of related industries. Therefore, a holistic approach must be taken to preparing a vital industry for accelerated The contribution and potential growth from national Government of tourism to the State has not focus through to Ministerial seniority, been fully realised.
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The designation of tourism as an area of cooperation under Key Issues and Recommended the Good Friday Agreement. Strategic Responses
Republic of Ireland remit and it operates As of its last published annual accounts under the aegis of the Department of (2016) Fáilte Ireland had an Oireachtas grant The following section details key Transport, Tourism and Sport while Tourism of €80 million to fund current and capital strategic recommendations with respect Ireland has an all-island marketing remit needs and had 323 full time equivalent staff. and reports to the North-South Ministerial Meanwhile Tourism Ireland was officially to organisational structures best suited Council. incorporated on 11 December 2000, Fáilte Ireland was established under following the designation of tourism as an to enable Irish tourism grow ambitiously the National Tourism Development area for cooperation under the Good Friday in the years ahead. Authority Act 2003 and its general functions Agreement (1998), to carry out the include as per the Act; to encourage, overseas promotion of tourism to promote and support tourism; to develop the island of Ireland. Tourism Ireland tourist facilities and services; to encourage, is funded by both the Irish and UK promote and support the recruitment, Governments and reports to the A “Whole of Government” training, and education and development North-South Ministerial Council. approach of potential employees of the tourism industry; to establish and maintain registers There is sufficient, reliable evidence of accommodation stock; to promote and to show that economies that adopt a engage in research and planning. whole of government approach to tourism development and management are among the most successful in terms of tourism Key performance.1 Challenges As an industry that is present in every 6 county and corner of the island, has a strong SME representation, is dependent on domestic as well as international prosperity, trades on the beauty of the environment, promotes and enables the best of agri and food offerings at home and abroad and is reliant on a well-functioning infrastructure, tourism – above most industries – necessitates a cross departmental whole- of-Government approach to sustainable planning and implementation of a growth enabled strategy. Any review needs to encompass Tourism represents one of the largest a fundamental review of the role services export industries in the country. and functions of Fáilte Ireland to A range of policy areas influence a visitor’s strengthen it and to ensure that it is wish to travel and have an impact on the competitiveness, desirability and appropriate to best serve the needs of sustainability of a destination, and therefore the industry in a changed investment greater policy coherence across all areas of and trading environment.
1Governing National Tourism Policy”: World Travel and Tourism Council 2015
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Government is necessary to achieve Tourism as a senior cabinet post Well-resourced, efficient an export focus should be a collective tourism growth. within an Economics Ministry and responsive state triumvirate agency (Fáilte Ireland, As is the case with particular agencies serving a growing Tourism Ireland, Tourism Northern Ireland) Government initiatives, a structured and Tourism’s position within Irish tourism industry approach to reflect the fact that Ireland strategic assessment is taken (usually by Governmental Departments has varied is positioned overseas as a single island The current structure of tourism a section of the Taoiseach’s Department) over the years. Since 2011 it has been within tourism destination. state agencies on the island of Ireland are of the impact of decisions in multiple the Department of Transport, Tourism designed with intended clear delineation departments on an important sector or and Sport and prior to that it was in the between product development and Local Authorities and initiative. Given the wide–ranging nature Department of Arts, Sport and Tourism and marketing. importance for tourism of the tourism industry it is important before that again it was in the Department The in-depth consultations and that a helicopter view be held of policies, of Tourism and Trade. Crucially, and unlike feedback attained during the formulation A number of different legislative and initiatives and fiscal changes that will have many other EU countries, tourism has of this strategy highlighted a consistent policy initiatives have contributed to the an impact on the industry. It is therefore always been within a senior Cabinet post issue in relation to the role of the Fáilte evolution of State interaction in tourism. recommended that a whole of government and it is imperative that Ireland’s largest Ireland, the National Tourism Development Namely the National Tourism Development approach be taken to tourism and that indigenous sectoral employer is at the Authority. It was felt that there was Authority Act 2003, the incorporation of policies be ‘tourism-proofed’ to ensure Cabinet table. Positioned currently with weaknesses in the key areas of product Tourism Ireland under the auspices of the best fit with industry and visitor needs. Transport is a useful fit due to synergies development, industry engagement and North South Ministerial Council (NSMC), relating to access and in particular airports training, and research analytics. It is noted and the Government policy – People, and aviation. However too often the that Fáilte Ireland have undergone a period Place and Policy – which commits to myriad of issues within transport relating of restructuring and budgeting cutbacks “an enhanced role for local authorities to publicly-owned transport companies but the industry view is that the role and and recognition of the contribution of or labour/union issues tend to occupy a responsibility of Fáilte Ireland, the only communities to tourism.”3 Minister’s time and tourism fails to get due tourism agency dedicated solely to tourism In terms of the latter, local authorities’ attention or resources. development in the Republic of Ireland, enhanced role in tourism is to be welcomed A better fit for tourism, a multi- need to be more clearly defined and as they are often the funders and billion euro export sector that is very responsive to industry needs. In this context patrons of local areas of tourism interest. labour intensive, could be within a senior it is recommended that an external review According to the 2017 County and City Economics Department where tourism is conducted of Fáilte Ireland to ensure Management Association (CCMA) report, agencies could sit alongside other job it is appropriately focussed, adequately “Collaborate Locally to Compete Globally” creating agencies with a national resourced, and geared-up to be responsive local authorities made an operational and regional focus. to a growing industry’s needs. The last contribution of €28 million to tourism It is recommended that tourism be external appraisal of Ireland’s state tourism attractions in 2016 as well as supporting strengthened as a senior cabinet post agency was back in the 1980s when Arthur 1,403 local festivals and events, ranging with a clear economic focus. D Little carried out a review of Bord Fáilte. in size and topic, but typically celebrating Fáilte Ireland itself has never been reviewed local assets and heritage. since its incorporation 15 years ago and the In March, 2017 each local authority Irish tourism industry and marketplace has launched their “Tourism Strategy The industry view is that the role changed dramatically since then. Statements and Workplans”.It is critical and responsibilities of Fáilte Ireland Widespread industry consultations that the activities and funding plans of need to be more clearly defined and as a result of this strategy highlight that local authorities complement the strategic responsive to industry needs. any strategy or vision for tourism that has work of Fáilte Ireland and in that context all
3) Department of Transport, Tourism and Sport (2015) People, Place and Policy, Growing Tourism to 2025, pg 10
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activities should remain aligned with the Tourism to be identified within A whole-of-Government approach and Tourism to be included within regional experiences whether that be the national research priority areas tourism proofing of initiatives would ensure IDA responsibility Wild Atlantic Way, Ireland’s Ancient East, that tourism is considered as an important Dublin, or the new Midlands Brand. Local Accessing and harnessing the best element of any research and innovation Ireland’s inward investment promotion authorities expenditure should be focused thinking in universities, technology, food initiatives. It is therefore recommended agency, the IDA, is a non-commercial, on capital and product developments science and the creative and culture that the Department of Transport, Tourism semi-state body promoting Foreign Direct rather than local branding initiatives and in sectors has the potential for the tourism and Sport joins the membership of the Investment into Ireland through a wide that context it is recommended that a close sector to be at the forefront of innovative Interdepartmental Committee on Science, range of services. Partnering with potential alignment between local authorities and and disruptive product and experience Technology and Innovation which oversees and existing investors the IDA have helped Fáilte Ireland is undertaken to maximise development allowing the co-creation and the implementation of the Government plan many international companies establish or tourism strategies. cross pollination of ideas between experts Innovation 2020. This would help generate expand their operations in Ireland. It seems Furthermore it is recommended that a in multiple fields. forward-looking data on insights, behaviour strange that Ireland’s largest indigenous directly elected Lord Mayor by popular poll Currently the data available to Ireland’s and technology and furthermore could employer, that accounts for 10% of the is in place for the Dublin region, covering tourism industry is far slower than it should lead to the creation of a Tourism Satellite country’s employment, is not included each of the 4 Dublin Councils, and with be. Examples include data on Ireland’s Account within the national accounts. Other within the IDA’s portfolio of sectors. As and increased powers and responsibilities. One value for money perceptions and the countries worldwide that have operated when new products have been researched, of the key powers of an elected Lord Mayor regional spread of tourism which, although a Tourism Satellite Account – according to and market opportunities identified, it is should be a specific remit on tourism, captured contemporaneously, tend not to UNWTO the standard statistical framework recommended that the IDA, in consultation as is common in many EU capital cities, be published and made available to the and the main tool for the economic with Fáilte Ireland, assist in attracting promoting and developing Dublin as a tourism industry until the following year. To measurement of tourism – include would-be international investors to leisure and business tourism destination. a hotel, tourist attraction or activity-provider the USA, Australia and Canada. support Irish tourism. this means that as they price or plan for a Other countries have successfully busy summer they have often no choice but adopted such a policy – one such to use data from two summers previously. example is Australia where tourism has It is recommended that enhanced and been included as one of four National improved data is shared with the tourism Investment Priorities by the Australian Trade industry in real-time or close to real time. Commission (Austrade), which now actively Fáilte Ireland who collect data have a markets Travel & Tourism investment responsibility in this area and the Irish opportunities to global and domestic banking sector, data-rich due to ATM and investors, resulting in increased point of sale purchases by tourists, should tourism investment. be encouraged to share their aggregated data on overseas visitor spending habits and patterns. Likewise the CSO, the state agency responsible for gathering One of the key powers of an elected and processing key travel and tourism A whole-of-Government approach Lord Mayor should be a specific statistics, are encouraged to adopt new and tourism proofing of initiatives remit on tourism, as is common in techniques and technology to improve their would ensure that tourism is data collection. many EU capital cities, promoting considered as an important and developing Dublin as a leisure element of any research and and business tourism destination. innovation initiatives. 2025 84 85 State Support Framework State Support Framework
Summary of Recommendations
Recommendation Recommendation
Tourism to be strengthened as a senior A “whole of government” approach and cabinet post with economic focus. national policies tourism-proofed to ensure best fit with industry and visitor needs.
Lead Responsibility Government Lead Responsibility Government
Recommendation Recommendation
Alignment between local authorities and External review be conducted of Fáilte Fáilte Ireland to ensure maximisation of Ireland to ensure sharper definition of role tourism strategies and enhanced tourism role and responsibilities with appropriate levels for publicly-elected Dublin Lord Mayor. of funding and resourcing.
Lead Responsibility Local Authorities/ Lead Responsibility Department of Fáilte Ireland Transport, Tourism and Sport
Recommendation Recommendation Enhanced and improved data be made The IDA, working with Fáilte Ireland, to be available in real time to the tourism tasked with attracting would-be international industry including creation of Tourism investors to Irish tourism sector. Satellite Account.
Lead Responsibility Fáilte Ireland/ Lead Responsibility Government CSO
86 87 Regionality & Seasonality Regionality & Seasonality
Delivering a Better Regional and Seasonal Spread of Tourism
88 89 Regionality & Seasonality Regionality & Seasonality
Intervention is required, at policy level, to both ensure that popular regions Delivering a Better Regional remain successful but not over- and Seasonal Spread of Tourism touristed and less popular regions receive the product and marketing support required. The desire and ambition to drive Tourism is one of the very few industries that can growth in on both a regional and seasonal provide employment and economic activity in every basis has been a pillar of tourism growth strategies for many years. The benefits and part of Ireland: North, South, West and East. Although motivations to do so are numerous but at its core the development of regional and A look at regionality certain parts of the country benefit more than others seasonal tourism supports the prosperity from tourism, every county is a beneficiary and every and progress of businesses, towns and In terms of regionality statistics from communities throughout Ireland. Fáilte Ireland, and with ITIC interpretation, county has the potential to grow its share The recent strong performance of show all regions have generated growth tourism has created a new motivation to from overseas tourism revenue over the of an increasing market. develop the scale and flow of regional and period 2014-2016. While in real terms the seasonal visitors. Advancing the regional trend is positive, the growth that has been and seasonal offering and performance has delivered has disproportionately benefitted This unique aspect of tourism must be welcomed and as much become a ‘need to do’ imperative the region of Dublin. Dublin’s share grew to as anything else. The increased volume 43% in 2016 from 38% in 2014. Meanwhile, embraced and pro-tourism policies should mean that of overseas tourists has put significant the overall share of all other regions, the regional benefits of tourism will be felt more strongly pressure on capacity both in terms of with exception of the Border region, has accommodation and attractions in key declined. Certain parts pf the country – throughout Ireland in the coming years. Likewise Irish locations generally, and in particular at most evidently the Midlands and the North peak times of the year. This poses certain West – are infrequently visited by overseas tourism has improved its seasonal spread in recent times potential negative impacts including a tourists. This is likely as a result of 2 reasons; with more international visitors coming in the quieter weakened visitor experience and inflated firstly a lack of tourism product in those prices. With the ambitions laid out within regions, and interlinked a lack of awareness quarters – this needs to be maintained and this strategy for a step change in overseas of these regions amongst overseas tourists. tourism numbers to Ireland in the coming Intervention is required, at policy level, to strengthened as tourism consolidates itself as a year- years it is vital that Ireland’s regional and both ensure that popular regions remain round business where possible. seasonal offering is strengthened and successful but not over-touristed and less improved. Such an outcome will ensure popular regions receive the product and that the benefits of increased tourism are marketing support required. Although there sustainable and distributed on a more is an increasing trend in global tourism for This strategy’s vision is to secure a growth in visitor diverse basis. short stays and city breaks rural Ireland numbers and revenue that benefits the tourism sector on a more diverse regional basis, that is sustained for longer throughout the year, supporting employment and prosperity throughout the country. Dublin’s share grew to 43% in 2016 from 38% in 2014. Meanwhile, the overall share of all other regions, with exception of the Border region, has declined.
90 91 Regionality & Seasonality Regionality & Seasonality
Key Issues and Recommended Strategic Responses
In terms of seasonality offers an experience that is compelling, A look at seasonality the overall distribution of distinctive and unique. Ireland’s regional The following section details key strategic In terms of seasonality the overall visitors throughout the year brand experiences – Wild Atlantic Way, distribution of visitors throughout the year recommendations focused in the development has not varied significantly Ireland’s Ancient East, Dublin, and the in recent years. has not varied significantly in recent years. impending new Midlands brand – offer of regional and seasonal tourism in Ireland. The peak season (defined as June, July & the overseas consumer a compelling August) delivers 32.2 % of visitors (2016) with proposition to whet their appetite. In With appropriate resources and implementation, this number remaining static over the last that regard the Midlands brand, long in number of years (32.6% in 2014). However, it is estimated that overseas earnings from gestation and at date of publication in looking at the percentage of visitors per March 2018 still in development, must be Irish tourism can be worth €8.1 billion nationally by month in 2016 it is apparent that there is a rolled out without delay to give industry robust base of visitor arrival already coming in that Shannon-corridor swathe of the 2025 with 310,000 employed in the sector. throughout the year to build upon and country an opportunity to differentiate itself. the balance of seasonality has become somewhat more better distributed, especially in the first quarter of the year. With this in mind it is recommended that A published spatial plan the overall intent and focus on developing outlining public investment in seasonality should, unlike regionality, be new tourism products of scale focused on growth in real terms rather and international appeal and than a primary focus on the percentage regional targets of growth of visitors in given months of period of the year. Furthermore, it is recommended It is recommended that a detailed that the priority focus be on delivering and prioritised strategy for regional and greater visitor numbers in the so called Key seasonal development be defined, led ‘shoulder season’, specifically April/May and by Fáilte Ireland, supported by Tourism September/October, thus extending the Challenges Ireland and the industry. Such a plan season. This however does not preclude 4 should have regional growth and market efforts to drive growth in other months share metrics and should outline the key of the year and the desire, as previously areas for investment. Fáilte Ireland’s capital stated, is to deliver growth in real terms envelope (See Chapter Exchequer Capital throughout the year. Investment in Irish Tourism) up to 2027 includes a product development figure of €300 million. Although this is significantly less than the Irish tourism industry would like it is still a significant sum of money and a clear, focused, spatial plan needs to be The Midlands brand, long in gestation, put in place outlining where and how this money is to be spent. Such a tourism spatial must be rolled out without delay to give plan should be aligned where possible with industry in that part of the country an the national spatial plan to 2040 recently opportunity to differentiate itself. launched to ensure that Government
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resources are allocated meaningfully and in Iconic products of scale in Roll out of Midlands brand from Limerick to Leitrim – was in the final a joined-up manner. North, West, and Midlands experience and cap number stage of development by Fáilte Ireland and Both regional and seasonal strategies thereafter of regional brand the industry in the area await its launch need to be underpinned by measurable Tourism has the real potential to offer experiences: Wild Atlantic Way, keenly and look forward to supporting its and meaningful targets. It is recommended economic activity and jobs to parts of the Ireland’s Ancient East, Dublin, implementation. that Fáilte Ireland and Tourism Ireland, in country that have little other industry. Fáilte and Midlands It is also recommended that with consultation with the tourism industry and Ireland, using capital resources allocated to the roll out of the Midlands brand a cap The development of Ireland’s regional key representative bodies set clear long- then as part of the National Capital Plan, should be put on any future regional brand brand experiences – namely the Wild term targets for regional and seasonal have a capex budget of €300 million out experiences to avoid fragmentation and the Atlantic Way, Ireland’s Ancient East, and tourism growth. These targets should be to 2027. This needs to be invested wisely potential of consumer uncertainty. Dublin – have proved successful in offering published metrics detailing both targets in and, on the back of detailed research 4 regional proposition of scale – Wild compelling and enriching reasons to visit terms of value, volume and share. and development, Fáilte Ireland should Atlantic Way, Ireland’s Ancient East, Dublin the regions. These represent branded ‘big The local authorities have a key role be prescriptive particularly in parts of the and the Midlands – is the appropriate Each regional brand experiential ideas’ that have been designed to play in season extension and regional country where product is unlikely to be number for a country the size of Ireland experience should receive to quickly capture the consumers attention development initiatives and they should delivered initially by the private sector and each regional brand experience should appropriate exchequer and act as a key motivator to drive visitation. work with Fáilte Ireland to deliver real due to commercial risk. In that context the receive appropriate exchequer investment investment in new tourism The Wild Atlantic Way has been the most product developments stand out in international markets. Likewise North West and the Midlands need and in new tourism product developments. successful concept to date, and although Fáilte Ireland should continue their Visitor deserve new tourism product of scale and Consideration should also be given to the Western seaboard of Ireland has been Experience Development Plans most international appeal and it is incumbent extending the regional brand experiences there since time immemorial, a clever recently rolled out for Dingle Peninsula with on Fáilte Ireland to ensure that exchequer to Northern Ireland. As trademark owners branding initiative launched only in 2014 similar plans in place for the Skellig Coast, money within their remit is used to help of each regional brand experience Fáilte has elevated the region to a new level. The the Burren and Cliffs of Moher, as well as achieve this. The North West and Midlands, Ireland should be encouraged to maximize identity was first conceptualised by the for Connemara and the Aran islands. traditionally two of the weaker regions revenue-generating opportunities and Irish tourism industry in an ITIC report in for overseas tourism traffic, have much should seek to merchandise and monetize 2011 on tourism challenges in the West of to offer the visitor in terms of landscape, the brands with all income generated being Ireland. The report called for a “branded natural beauty, boglands, and culture and re-allocated to product development within Atlantic coastal route” and this was brilliantly these should be interpreted in a compelling the region in question. brought to life by Fáilte Ireland and local manner so as to increase footfall and spend It is important that regional and authorities with the launch of Wild Atlantic to the area. seasonal product and development efforts Way in 2014. The establishment of the are designed and implemented within regional brand experiences has created Ireland’s regional brand experiences. well-defined assets that have been used While new product and experiences may to position and sell the Republic of Ireland be compelling enough to get cut through in overseas markets. It is recommended “First conceptualised by the Irish in their own right it will be much more that this process be completed and a tourism industry in an ITIC report effective if they are positioned in the regional brand experience for the Midlands in 2011 on tourism challenges in the context of the regional brand experiences – neither along the Wild Atlantic Way nor – for example it is envisaged that the Dark West of Ireland, the report called for a comfortably within Ireland’s Ancient East – Skies experience in development in Kerry “branded Atlantic coastal route” and be rolled out without delay. At time of the and Mayo will be positioned as a signature this was brilliantly brought to life by strategy’s publication this Midlands Brand experiences on the Wild Atlantic Way. Fáilte Ireland and local authorities – stretching along the Shannon corridor with the launch of Wild Atlantic Way in 2014.
94 95 and promotion. of interpretation terms in partners industry by supported are and sector entire the for focus aprimary are development their and experiences brand regional Ireland’s that offer. they It is recommended experiences of breadth and depth quality, the and profile international of their terms in both potential, of their development the for need issignificant there and infancy their in are 2025 experiences brand regional of the Each Regionality &Seasonality Regionality 96 co-operative marketing funding. marketing co-operative greater through access sea and air regional for support its increase should Ireland Tourism Likewise this. task-force to explore a up set Fáilte that Ireland recommended is it pillar Opportunity Access &Delivering Improving the per as and, capacity spare fill to possible where assisted –are potential tourism significant with – all particular in airports Kerry and Ireland-West regions. to the access easy prevents this and connectivity such without cities capital European Western 2of of only isone –Dublin expedited be to iscritical hub to atransport connection onward and Airport to Dublin link rail Likewise hubs. key tourism two and cities largest third and second Ireland’s linking completion early for isimportant motorway Cork-Limerick the and access motorway includes This regions. to of the access ease to facilitate isprioritized infrastructure enabling that isvital it and this to play in role Tourism amajor has Ireland. within balance regional appropriate ensuring of terms in critical are launched, recently both to 2040, Strategy Spatial National It is necessary that Shannon, Cork, Cork, Shannon, that isnecessary It the 2018-27 and plan capital Ireland’s within, regions within, to, and access Improving Lead Responsibility funds. marketing co-operative enhanced and task-force, access airport an of establishment regions, Ireland’s to access of ease ensure to infrastructure enabling Prioritise Recommendation Lead Responsibility experiences in interpretation and promotion. brand regional of support Industry Recommendation Lead Responsibility Ireland. of regions West Midlands and North the in experiences tourism stand-out new and strategy a Greenways of Development Recommendation Recommendations Summary of Summary Tourism Ireland Fáilte Ireland, Industry Fáilte Ireland
Regionality &Seasonality Regionality
97 Lead Responsibility Midlands. and Dublin, East, Ancient Way, Atlantic Wild Ireland’s experiences: brand regional of thereafter number cap and experience brand Midlands of out Roll Recommendation Lead Responsibility growth. of targets scale and international appeal with regional of products tourism new in investment exchequer outlining plan spatial A published Recommendation Fáilte Ireland Fáilte Ireland Overseas Marketing Overseas Marketing
Getting Marketing Right – Selling Ireland to the World
98 99 Overseas Marketing Overseas Marketing
Getting Marketing Right – Selling Ireland to the World
Destination marketing is a key component of driving Marketing a destination is a critical However only one entity can be the Ireland has a successful aspect of ensuring positive tourism growth. guardian and custodian of “Brand Ireland”. history of promoting the tourism growth. Promoting and effectively marketing As stated in the 2015 Government policy Tourism Ireland’s role in this regard is of country to potential visitors for tourism “People, Place & Policy”, critical importance to the tourism sector’s however the task has become more challenging a country as a tourism destination is vital within a the promotion of Ireland as a tourism success. Traditionally consumer marketing due to the complexity of fiercely competitive market place where global travel destination in overseas markets “has of Brand Ireland focused around above channels and increasing additional significance beyond its direct the line channels including TV and print competition. and tourism growth continues. As well as a high-quality purpose of generating visitor numbers and material advertising but increasingly digital revenue. The positive images of Ireland that marketing platforms are gaining relative unique tourism product – delivered by a world-class are highlighted in tourism marketing, such importance – this trend is likely to continue as our high quality natural environment, as new digital communication channels tourism industry – Ireland must also have a tourism and friendly and welcoming people, come to the fore. Brand Ireland therefore brand presence that is authentic, compelling and support the Government’s activities in other has no choice but to compete strongly areas of economic development, such as and effectively across both traditional and enduring. Brand Ireland must be optimally positioned the promotion of foreign direct investment emerging marketing channels. into Ireland. The continued promotion of In recent years Ireland has invested and supported through increased investment, so that Ireland as a tourism destination in overseas heavily in researching, developing and it creates awareness, consideration, cut-through and markets is also significant in terms of raising promoting a tourism brand identity. public awareness and perception of Ireland.” ‘Jump into Ireland’, launched in 2012, has attracts new audiences. Despite a broadening of sources from been the mainstay of Tourism Ireland which consumers gain images, perceptions marketing campaigns. Backed by annual and appreciation of the appeals and research Tourism Ireland has delivered attractions of a place to visit, destination performance metrics and valuable insights marketing continues to be a critical driver into the effectiveness of unique appeals of demand. Ireland has a successful history as well as monitoring the impact of the of promoting the country to potential brand positioning within the overseas visitors however the task has become marketplace. more challenging due to the complexity of Ireland’s brand as a tourism destination channels and increasing competition. is a critically important asset. It captures The marketing of Ireland to an the sum of the thoughts, associations and overseas audience is the task of Tourism feelings that consumers, industry, trade Ireland, an all-island agency dating from December 2000, following the designation of tourism as an area for cooperation under Ireland’s brand as a tourism the Good Friday Agreement. Of course the Irish tourism industry itself is also very active destination is a critically important in marketing Ireland – to sell a hotel room asset. It captures the sum of the or airline seat or attraction ticket business thoughts, associations and feelings must first promote Ireland – and in 2017 the that consumers, industry, trade Irish tourism industry spent €92 million on partners, carriers and all other overseas promotions, over twice what was relevant audiences hold about committed by Tourism Ireland. Ireland, positive and negative, strengths and weaknesses.
100 101 Overseas Marketing Overseas Marketing
Investment in marketing Ireland overseas has seen a sharp decline Key Issues and Recommended over the last decade. This declining Strategic Responses investment has resulted in a reduction in Ireland’s share of voice and spontaneous advertising recall in Ireland’s low conversion from interest The following section details key strategic our top markets. This is a worrying to active planning by consumers is trend that will impact on Irish driven by 2 factors. Firstly there is a lack recommendations focused on the strengthening of promotional funds to drive home the tourism’s success in future years marketing message as evidenced clearly in of Ireland as a destination brand. if not arrested promptly. the reduction of marketing budgets across all main markets. However the second factor has to partners, carriers and all other relevant do with the quality of the creative and An increase of €25 million in audiences hold about Ireland, positive and collateral of Ireland’s tourism brand. Does overseas marketing funds negative, strengths and weaknesses. Ireland’s tourism brand resonate strongly In spite of the recent positive Irish The degree to which Ireland’s tourism and effectively enough with consumers? tourism performance, there is significant brand is known for its unique features – Recent research (September 2017) by amount of data that indicates the overall whether they be artistic, cultural, natural Red C on behalf of Tourism Ireland profile of Ireland’s tourism brand in key or man-made – the greater the context to conducted in the key markets of the US and markets is weakening and our competitive encourage visitors to discover first-hand Germany concluded that while the current ranking is slipping. It can be fairly claimed what Ireland has to offer. In this regard it positioning and consumer perception of the Key that, in no small part the reduction in behoves Irish tourism to protect, strengthen brand was positive, Ireland generally lacked marketing budgets (35% reduction in the and support its destination brand. distinctiveness and was not conveying Challenges There is a commitment and 4 budget of Tourism Ireland from 2008 to enough compelling reasons to travel 2018), has led to this weakening in overall requirement by Tourism Ireland to put its ahead of other competitor destinations. brand strength. Furthermore, it can be global creative, media and digital account This resulted in a lack of urgency by the argued that there has been an opportunity out to pitch every 6 years and this process consumer to visit Ireland. This must be cost as a consequence of underinvestment commenced in Q4 2017. addressed as part of any new Brand in recent years, and the recent tourism Annual research conducted by Tourism Ireland’s proposition. growth levels may well have been even Ireland shows Ireland enjoys a relatively State investment in marketing Ireland greater if investment levels had of been strong position in its main source markets overseas has seen a sharp decline over the sustained or increased. The adverse impact – Great Britain, USA, Germany & France – last decade and is down 35% since 2008. where 9 out of 10 consumers are open to on the brand equity will be cumulative Brand Ireland must This declining investment has resulted in over time. There is now an urgent need to compete strongly and visiting Ireland, with up to 3 out of every a reduction in Ireland’s share of voice and redress the situation – it is recommended effectively across both 4 interested in visiting. However, the level spontaneous advertising recall in our top traditional and emerging that an appropriate investment of of those actively considering or planning a markets. This is a worrying trend that will marketing channels. €25 million be made so that destination visit is less strong. This differential between impact on Irish tourism’s success in future marketing activities can be increased in line “interest” and “action” is the challenge for years if not arrested promptly. A clear with the ambitions of this strategy. destination marketing. example is in North America where Tourism An increase by Government in current In the international tourism Ireland have a marketing budget in 2018 funding of €50 million per annum, at marketplace Ireland is pitted against of less than €9 million, wholly inadequate least half of which needs to be allocated destinations with strong brand identities to support the 21 gateways that now to overseas marketing budgets, is a key each of which have succeeded in conveying exist across USA and Canada. Likewise enabler to allow the goals of this strategy positive appeals and images, compelling the marketing budget in Britain has been to be achieved. By 2025 overseas revenue attributes, leading to a strong desire to visit. reduced to less than €5 million in 2018, a from tourism can be worth €8.1 billion All brands, including Tourism Brand sum of money that is not commensurate annually with 80,000 more jobs, and a Ireland are fluid, evolve over time and with the importance of retaining market 65% increase in to the exchequer in direct require refreshment. share and mitigating against the impact tourism-related taxes: the prize is big. of Brexit.
102 103 Overseas Marketing Overseas Marketing
Yet on exiting the country a significant It is recommended Rejuvenation of tourism brand Ireland’s communication Growing Ireland’s digital that brand Ireland’s number of the same tourists state that Ireland to increase levels of message be developed to leadership in tourism marketing communication message interest, share of voice and incorporate the quality and Ireland’s food offering exceeded their and e-commerce capabilities incorporate the quality drive brand reassessment depth of Ireland’s food offering expectation. There is an obvious mismatch and depth of Ireland’s While traditional channels remain and it is recommended that Brand Ireland’s food offering. Given the competitive context, It is accepted that the Irish food scene highly relevant the importance of digital communication message incorporate crowded communications landscape – from restaurants through to fresh produce platforms in tourism cannot be overstated. the quality and depth of Ireland’s food and wide range of choices available to and artisan producers – has improved For all types of consumers – in all markets offering so as that it features within the consumers it is imperative that Ireland dramatically in recent years offering world – digital platforms inform and drive top 10 reasons for considering Ireland as succeeds in positioning itself as a ‘must visit’ class, varied and authentic cuisine served destination perceptions, consideration, a destination. Tourism Ireland and Fáilte destination rather than a holiday destination to very high standards. However Ireland holiday planning and booking. Tourism Ireland should work with Bord Bia to for ‘sometime in the future’. This must be as a food destination or as an island with Ireland have a deserved reputation for support this initiative. This should help addressed in positioning Brand Ireland a quality food offering is not conveyed or being leaders within the space of digital differentiate Ireland from competitors to break through the inertia, ensuring communicated to the consumer adequately marketing and have won numerous awards and grow new market segments. the urgency of purchase is highlighted. when they are considering Ireland as a and exploited Ireland’s recent association This will call for outstanding creative holiday choice. That needs to change. with Star Wars and Game of Thrones communications, delivered in the right place A differentiating aspect for Ireland as a particularly effectively. It is recommended and at the right time, and a stream of new tourism destination can be the quality of that Ireland’s position as digital leaders news and content – all critically under a its food and furthermore markets that within tourism marketing be consolidated rejuvenated Brand Ireland that re-enforces are attracted to high reputation food and increased and additional resources are the strengths of the country’s regional destinations tend to be high-spenders and allocated to this area including investment brand experiences. particularly valuable. in social media platforms and Ireland.com. It is recommended that this be A recent Fáilte Ireland Food & Drink Likewise Ireland’s tourism industry must addressed as part of a rejuvenation of Strategy 2018-23 aims to reposition Irish develop their e-commerce capabilities the Brand Ireland, a process that Tourism food and drink from being “a pleasant and digital platforms ensuring they are Ireland has commenced with results surprise to becoming one of the compelling prominent within the 21st century expected in 2018. A rejuvenated Brand reasons to visit Ireland”. By targeted shop window. Ireland should lead to increased levels of investment and effective promotion the There is also merit in exploring a single interest, share of voice measures, as well as Fáilte Ireland report estimated that national brand identity for overseas markets drive destination reassessment. Ireland’s food offering could grow tourism to cover the full spectrum of Ireland’s The current “Jump into Ireland” revenue by as much as €400 million over exports including food, drink, tourism, brand positioning has served the sector the next 5 years. FDI, exports. Other countries do this very well but dates from 2012 and Ireland has Within surveys of overseas effectively including Sweden, New Zealand, changed considerably in recent years; a holidaymakers, conducted annually Canada, Australia and Germany and it growing economy, a youthful population, by Kantar Millward Brown for Fáilte would seem an opportune time for Ireland an invigorated popular culture and cultural Ireland, food and cuisine fails to feature to explore a similar initiative. context; a revived food offering should all as an important factor for tourists when be reflected in the brand. More importantly considering Ireland as a destination. the consumer landscape, segmentation and The Irish tourism industry path to purchase has changed dramatically spent €92 million on overseas over the intervening years. promotions in 2017, over twice what was budgeted to Tourism Ireland.
104 105 2025 Overseas Marketing Overseas Marketing
Summary of Recommendations
Recommendation Recommendation
Invest in rejuvenation of tourism brand An increase of €25 million in overseas Ireland to increase levels of interest, share of tourism marketing funds. voice and drive brand reassessment.
Lead Responsibility Tourism Ireland Lead Responsibility Government
Recommendation Recommendation
Growing Ireland’s digital leadership Brand Ireland’s communication message in tourism marketing and e-commerce be developed to incorporate the quality capabilities. and depth of Ireland’s food offering.
Lead Responsibility Tourism Ireland Lead Responsibility Tourism Ireland, & Industry Bord Bia
106 107 Education & Skills Education & Skills
AnCompetitiveness Educated, Skilled and Motivated Tourism Workforce
108108 109 Education & Skills Education & Skills
An Educated, Skilled & Motivated Tourism Workforce
Tourism is Ireland’s largest indigenous industry with As one of the most important services One of the key challenges faced now A lack of talent, or of a sectors in the Irish economy, tourism has and into the future will be to ensure that skilled workforce, will 230,000 people employed in the sector as of March 2018 made a major contribution to the Republic the volume and quality of talent within the compromise growth and of Ireland’s strong employment growth sector supports rather than restricts growth. undermine the delivery of Ireland’s tourism with a strong regional balance of employment. in recent years. The sector is an essential Whilst our built and natural tourism assets experience, damaging the By 2025, a further 80,000 jobs can be created within component of Ireland’s employment base play a huge role in defining the appeal of overall destination brand and as outlined in this strategy has the the Republic of Ireland it is the interaction and its reputation. the tourism and hospitality sector and it is vital that capacity to make an even more significant between overseas visitors and those contribution. As of March 2018 CSO and employed in our tourism sector that the industry improves its attractiveness to talent and Fáilte Ireland data indicate that tourism ensures an outstanding holiday experience employs 230,000 persons representing and has the capacity to differentiate Ireland appropriate education, skills and training opportunities are 10% economy-wide employment. It can be relative to competitors. in place and coordinated by an accountable stage agency for estimated that there are 20,000 businesses within the sector, most of which are small tourism development. to medium-sized enterprises. The number of people employed within tourism and hospitality has grown significantly in recent Regional distribution of employment in the years, creating an estimated 57,000 new tourism sector 2017 jobs between 2012 and 2017, and this strategy estimates that the sector has the capacity to generate an additional 80,000 10% jobs by 2025, should the right policies be Mid-East adopted and implemented. 11% 37% While the majority of employment Border Dublin is driven by accommodation providers, restaurants, pubs and visitor attractions, the 11% West employment profile of the sector is broad and diverse with air and sea carriers, events, 16% 5% tour operators, galleries and museums, Southwest Midlands 10% coach companies, heritage, adventure and Southeast marine tourism creating and sustaining employment for people with differing skills and abilities. Furthermore, due to Data source: Hospitality Sector Oversight Group Interim Report, May 2017. the diverse nature of the sector, tourism makes a valuable contribution to regional and local economies, and provides flexible employment opportunities that have the capacity to facilitate greater labour market participation.
110 111 Education & Skills Education & Skills
Key Issues and Recommended Strategic Responses
A lack of talent, or of a skilled One of the key challenges The following key challenges have faced now and into the workforce, will compromise growth future will be to ensure and undermine the delivery of Ireland’s been identified with respect to education, that the volume and quality tourism experience. With this in mind of talent within the sector the optimisation and management skills, training, recruitment and retention in the supports rather than of education, training and skills in the restricts growth. tourism sector must be a key factor tourism sector and clear recommendations in delivering sustainable growth. This have been outlined. The key issues and actions pillar theme has identified a range of key issues that need to be addressed 80,000 areas are defined as follows: so that the sector creates and sustains a dynamic and skilled workforce that additional jobs is recognised as a key strength of our overall tourism proposition. by 2025 Developing and sustaining appropriate skilled and motivated labour pool is a complex process that involves the collaboration of a broad range of stakeholders and focused policy. A dynamic and productive interaction Coordination of the education, between Government, State Agencies, skills and training strategy for educational bodies and the Irish tourism the Irish tourism sector industry will be vital to its success. Currently there are a broad range Key of stakeholders contributing to the Challenges ‘education, skills and training’ agenda but 5 no clear owner of a defined and prioritised development strategy. Key players include Fáilte Ireland, Solas, Education Training Boards, Institutes of Technology, and other 3rd level education providers. However there is no singular entity, working with clearly defined objectives and metrics, that is accountable for the overall coordination of education, skills Developing and sustaining and training for the sector. appropriate skilled and motivated Given the importance of the labour pool is a complex process development of skills and talent as a facilitator for future growth it is imperative that involves the collaboration of that a clear owner – responsible for a broad range of stakeholders and management rather than delivery of the focused policy. development agenda – is determined and resourced to carry out this task.
112 113 Education & Skills Education & Skills
The current positive A key recommendation of this strategy Although a record number of people Alignment of education, Retention of talent within state of the Republic of is that Fáilte Ireland, in accordance with the are now working within tourism and qualifications, training and the tourism sector Ireland’s economy, with National Tourism Development Authority hospitality, with 57,000 having joined skills with needs of Irish an unemployment rate of While much effort is required in the Act 2003, is the body that is accountable the sector between 2012 and 2017, tourism industry under 6%, the challenge development of talent, management of and responsible for this coordination, it is imperative that tourism jobs and of attracting talent to As previously referenced, a broad existing talent within the sector is of equal, if the tourism sector is governance and management role. In careers are positioned in a positive and range of different stakeholders contribute not greater importance. Generally, there are significant. practical terms this would necessitate compelling manner. While current efforts to the development of a skilled workforce significant costs associated with recruitment Fáilte Ireland, in collaboration with other are welcomed, such as the Irish Hotel for the tourism sector. Set against this and a loss of good employees results in a key stakeholders, to define key objectives, Federation’s ‘Get a Life in Tourism’ and background it will be important that the loss of experience. priorities and metrics associated with Irish Hospitality Institute’s ‘Tourism Insight’, provision of education and training is wholly The tourism and hospitality sector education, skills and training and devise the overall positioning of the sector as an aligned with the needs and demands of must work harder at retaining and a clearly defined plan to focus on their attractive industry for lifetime employment the Irish tourism industry as it charts an rewarding its employees. It is recommended achievement. Fáilte Ireland would be needs to be strategically managed and ambitious future. that apprenticeship and traineeship the key link between the industry and invested in over a sustained time period. Building on the recommendations of programmes – ‘earn and learn’ – must be education. A Director of this function It is important that not only is the sector the Expert Group of Future Skills Needs embraced by the industry and rolled out should be appointed within Fáilte Ireland’s promoted in its own right but relative (EGFSN) and work of the Hospitality Sector nationwide as an effective and proven way leadership team to reflect the importance to other sources of employment and in Oversight Group it is recommended that for employer and employee of the responsibility. Nearly €3.5 million this regard the positive dimensions of a periodic review every three years is to prosper. is committed by Fáilte Ireland annually employment in tourism need to be defined, carried out to examine the relationship In addition to the retention of existing to tourism education, training and skills substantiated and actively communicated. between education, training and skills talent the sector faces a major challenge according to its 2016 Annual Report Specifically, it is recommended that supply and demand (public and private in ensuring a high volume of individuals and it needs to ensure that appropriate a strategically managed and funded sector skills needs). On the basis of this who graduate with tourism/hospitality outputs are secured for this and future communications programme to develop review adjustment of the overall provision qualifications decide to enter and remain investment and that there is management interest in careers in the tourism sector is of education skills and training needs to be in employment in the sector. The tourism and co-ordination of all tourism education put in place targeting second level students, put in place. This adjustment should seek industry in Ireland is no different in this platforms so that the industry is well-served jobseekers, and the general public. This to optimize the provision of courses and regard than the tourism industry in by professional and committed labour force. should be coordinated and funded by qualifications linked to the sector. This must most mature markets. Fáilte Ireland. focus not only on the number but type Set against this background it is Furthermore it is recommended that Promotion and positive of courses, e.g. full time, ‘learn and earn’ recommended that a focused talent a National Tourism Day be launched, a positioning of careers programmes and apprenticeships. retention strategy is devised by the day of the year which becomes an annual within Irish tourism It is also recommended that tourism industry to address this trend. While it feature on the national media calendar and businesses, that close due to seasonal will be first be necessary to conduct a As of early 2018 and the current positive reflects the importance of the sector both reasons, are incentivised to open their fact-based assessment of the key drivers state of the Republic of Ireland’s economy, nationally and regionally. This would elevate kitchens and premises as training venues. of employee turnover a qualitative with an unemployment rate of under 6%, the profile of the tourism sector, entice This can be done through direct funding assessment of the current situation the challenge of attracting talent to the would-be employees into the industry, and or a specific tax-relief for the business in concludes key reasons for churn in the tourism sector is significant. The range of generate awareness of tourism as a key question. The facilities of perfectly good choice that people seeking employment are economic engine of activity. presented with is broad and in a competitive hotels, guesthouses, restaurants and context the overall profile of the industry attractions could be used more productively year round earning income for the owner- from an employment perspective requires It is recommended that apprenticeship considerable development. operator whilst training tourism’s future workforce. In this regard it is recommended and traineeship programmes must be that Fáilte Ireland devise and develop a pilot embraced by the industry and rolled programme where properties are identified out nationwide. and measures enacted.
114 115 notwithstanding measures aimed notwithstanding reviews, to relevant subject and exist, attendance. industry with abroad fairs recruitment relevant at presence Irish an arrange Fáilte Ireland shortages, of labour analysis appropriate following that, isrecommended it regard this In work. and to come talent’ ‘tourism for adestination as itself to promote seek proactively should sector tourism Irish The EU states. other in employment seek may Britain in working currently nationals of EU range awide process, Brexit of the aconsequence as that, possibility a strong is EU. There the within countries on focus a with markets, overseas in of employment asource as positively itself position actively to sector the for necessary be also will it addressed to be need visas temporary and employment, internship permits, work of areas the in progress While Ireland. in alive and to work come, skills appropriate with those for easy it makes critically and overseas from talent to attract seeks that astrategy to deploy necessary be will it of talent supply future limited likely the given pool, labour indigenous the on focus detailed have been that as their career progresses. career their as supported and mentored are professionals tourism young committed and talented where programme Tourism Leaders” “Emerging annual an develop ITIC within body sectoral each that recommended isalso It development. path career and remuneration to training, through to recruitment relate and multi-faceted are responses required the and sector Where consistent skills shortfalls shortfalls skills consistent Where recommendations of the many While 2025 gaps employment to fill overseas from talent Attracting Education &Skills Education 116 such as chefs, should be prioritised. prioritised. be should chefs, as such supply, of labour shortfall is aparticular there where sector the within occupations regard this In eligible. be might workers foreign which for of occupations list the expanding nationals, non-EU qualified and skilled for permits work term short laws on of Ireland’s to arelaxation relate implemented. These changes should proactively be should criteria existing employment permit eligibility to the changes that recommended is it supply domestic increasing at
Lead Responsibility Programme. Leaders Emerging and Strategy Talent Retention Industry An Recommendation Lead Responsibility gaps employment fill to overseas from talent Attracting Recommendation Lead Responsibility sector. tourism within careers promote to programme communications A strategically managed and funded Recommendation Recommendations Summary of Summary sectoral bodies ITIC and & Innovation Business, Enterprise Department of and Fáilte Ireland and Industry Fáilte Ireland
Education &Skills Education 117 Lead Responsibility schemes. apprenticeship national of roll-out and off-season in centres training as operate to businesses seasonal incentivise to programme pilot of Development Recommendation Lead Responsibility needs. skills and training, co-ordination of tourism education, and management assume to within, Function of Director of appointment and agency, state accountable Single Recommendation and Industry Fáilte Ireland Fáilte Ireland
Balanced Portfolio Balanced Portfolio
A Balanced Portfolio of Tourism Markets
118 119 Balanced Portfolio Balanced Portfolio
The challenge for Irish tourism is to A Balanced Portfolio of identify best growth prospects into Tourism Markets the future and balance investment between established and emerging growth markets. World travel and tourism levels Like every economic sector, a balanced source of markets continue to expand with the UNWTO is fundamental to minimising risk and ensuring anticipating that the sector will be worth years is illustrative of where the growth $2 trillion with the expectation that Europe has come from for Irish tourism with North sustainable growth into the future. Irish tourism is will continue to be the world’s No.1 travel America growing strongly year on year, no different in this regard. Global travel and tourism destination over the next 20 years. Tourism Mainland Europe performing well, and flows to Europe are expected to grow by new and developing markets contributing continues to expand and there is a significant an average annual 3.5%-4.5% up to 2030 consistently. Up to 2017 the British market (UNWTO: Tourism Towards 2030). There is a had been reclaiming lost ground but opportunity for Ireland to gain market share in the real opportunity for Ireland to benefit in an sterling’s weakness and Brexit’s impact coming years but to do so, and to minimise cyclical expanding global travel market. contributed to it falling backwards. In terms of market diversification The challenge for Irish tourism is to changes, Irish tourism needs to have a Ireland has been experiencing a shift in identify best growth prospects into the In terms of market source market mix over time. In terms of future and balance investment between diversification Ireland has been experiencing a balanced portfolio of source markets from which volume (number of overseas tourists) 10 established and emerging growth markets. shift in source market mix business can be secured. years ago, back in 2007, Britain accounted A key performance metric will always be over time. for 50% of international arrivals to Ireland, market share. Has Ireland gained share of this has come down to 38% of all arrivals in a source market’s outbound travel market? 2017 as growth from other markets have far There is compelling evidence that due to Britain will remain a vital market to Irish tourism with outpaced that of Britain. improved access Ireland has gained market strong volume figures and important seasonal spread Likewise from a value perspective share in the valuable US market which Britain now accounts for 23% of Irish highlight the growth in tourism from the but Mainland Europe offers untapped potential and tourism revenue compared to 40% 10 years US and Ireland’s increasing market share ago. Saying that as Ireland’s nearest source which continued into 2017. Therefore in North America can deliver impactful growth with the market and, one with significant cultural terms of market diversification Irish tourism’s potential of new and emerging markets in Asia and business ties, Britain will continue to be goal must be to at least maintain market important and likely the top volume market share in established markets while aiming offering exciting possibilities. over the period to 2025, albeit declining in to gain an increasing share of developing relative importance. This trend is likely to or new markets for Ireland. The US market be the case irrespective of Brexit although evidence shows Ireland winning share but this event, ever-changing at time of writing the same focus must be applied particularly in March 2018, will probably hasten the to European markets where Ireland’s softness of the British market. share needs to improve and investment in When looking at most recent CSO destination marketing and a more intensive measurements and the value of each industry wide focus must be applied with source market to Irish tourism Britain, due to improving air access offering the tendency for short visits and city breaks, real opportunities. on a per visit basis compares unfavourably With the impact of Brexit, consumer to Continental Europe, North American or uncertainty in the UK, and currency long haul visitors on both a spend basis challenges growth from Britain is likely to and length of stay. The immediate past 3 remain constrained between now and 2025.
120 121 Balanced Portfolio Balanced Portfolio
The immediate past 3 years is illustrative of where the growth has come from for Irish tourism with North America growing strongly year on year, Mainland Europe performing The reduction in brand To prosper and achieve the goals as set In 2017, according to ITIC research, Irish 2025 which the Taoiseach, Leo Varadkar well, and new and developing markets Ireland investment has out in this strategy, Irish tourism needs to tourism industry invested €92 million in TD, announced in April 2017. Tourism was contributing consistently. contributed, according to aggressively continue growing other source overseas marketing of which 41% was specifically referenced with “a commitment annual market research, to markets. Despite strong calls for assistance committed to North America, 27% to to double the Team Ireland footprint Ireland losing share of voice with a market diversification strategy, Mainland Europe, 25% to Britain and overseas by 2025. This means new and and spontaneous recall – brand Ireland’s equity through increased funds for overseas the balance of 7% to new and emerging augmented diplomatic missions and as well in key overseas tourism promotions of Ireland, to date there has markets. However only Tourism Ireland as significantly increased resources for our markets is being eroded been no increase of note in resources can promote brand Ireland and similar to investment, tourism, cultural and food and this has worrying for Tourism Ireland, whose in-market the marketing spend patterns of industry, agencies overseas”. implications for tourism’s promotional budget in 2018 is down 35% the overall strategic focus needs to place Such a strategy needs to be prospects. compared to 10 years ago. The marketing an increasing marketing focus on North implemented in full and will help Irish budget must be increased if Ireland’s largest America, Mainland Europe and new and tourism develop a market diversification indigenous sector is to realise its potential; developing markets and to support the strategy and a balanced portfolio of as an example an annual marketing tourism sector whilst shoring up the source markets. investment by Tourism Ireland of under €9 Great Britain market as a source of The Irish tourism industry million in North America as committed in overseas visitors. itself has been investing 2018 is wholly inadequate to support 21 The British market is of particular heavily in overseas gateways that are served across the USA concern to Ireland’s tourism industry and marketing to sustain and and Canada; the €2.2 million to be spent in a full strategic review of this key source grow the sector. 2018 across Australia and Emerging Markets market is overdue. Key elements of Ireland’s is not going to allow Ireland to achieve its tourism industry are interlinked with the tourism potential in exciting markets such as British market, are well programmed within China and the Gulf States. it, and in the case of sea carriers fulfil a The reduction in brand Ireland need that will continue from that market. investment has contributed, according to The ultimate aim should be to continue annual market research, to Ireland losing maximising growth in North America, share of voice and spontaneous recall France and Germany, to consolidate market – brand Ireland’s equity in key overseas share and grow discrete segments from tourism markets is being eroded and this has Great Britain, while moving strategically, worrying implications for tourism’s prospects. and in line with the State trade policy, The Irish tourism industry itself into long haul and emerging markets. has been investing heavily in overseas The Government has a stated aim of marketing to sustain and grow the sector. doubling Ireland’s global footprint by
The British Market is of particular concern to Ireland’s tourism industry and a full strategic review of this key source market is overdue.
122 123 Balanced Portfolio Balanced Portfolio
Key Issues and Recommended Strategic Responses
The following section details key strategic revenue. Irish industry has traded with Great Britain – consolidation Ireland’s ‘Net Promoter these markets for many years and and renewed focus Score’ is in sharp retreat has a level of insight, knowledge and and this can only be recommendations with respect to Irish tourism’s market reversed through enhanced understanding of visitor motivations Within the context of a focus on our media presence. diversification needs. With appropriate resources, and expectations. Research, consumer core markets a renewed emphasis on focused implementation and increased access, segmentation, product, food and Ireland’s ‘foundation’ market of Britain is accommodation offerings are tailored to necessary. The British market is not only Irish tourism can deliver a balanced these markets and Ireland’s Regional Brand important in terms of numbers of visitors Experience – namely Dublin, Wild Atlantic but has a positive effect in relation to ‘risk assessed’ diversification portfolio and thus Way and Ireland’s Ancient East – are seasonality with British visitors travelling withstand economic shocks to specific markets. attuned to these travellers’ motivations. year-round throughout the country. Even as Brexit and related uncertainties The marketing budget must An increase of €25 million in affect the outbound British market, there is be increased if Ireland’s Tourism Ireland’s overseas no reason Ireland should lose market share largest indigenous sector is to realise its potential. marketing funds as has begun to happen. Furthermore there are discrete segments of leisure and As highlighted within this chapter business travel that Ireland could exploit. To Tourism Ireland – the all-island agency ensure this investment is correctly targeted Emphasis and focus on North responsible for promoting Ireland overseas it is recommended that a full strategic America and Mainland Europe – has seen its marketing budget from the review of the British market is undertaken to for accelerated growth Irish Government decline severely since determine the most appropriate approach It is recommended that overall strategic 2008. The Irish Government – through its to maximising tourism opportunities. focus needs to be placed on North America Tourism Action Plan 2016-2018 – has already The last review of the British market and Mainland Europe for accelerated stated that this budget will be restored to was conducted in 2012 by the then Tourism growth. Britain should be targeted as a ‘pre-recession levels’. This would amount to Recovery Task-force and the GB Patch Key key foundation market for recovery and circa €15 million investment but there has to Growth report was instrumental in a consolidation while opportunities should been no progress to match this commitment. subsequent recovery in that market and Challenges be identified in new and emerging However for Irish tourism to prosper and also launched the consumer segmentation 4 source markets. achieve its potential it is recommended that model that has since been applied to Industry and state agencies need to €25 million is invested in overseas marketing other markets. be aligned to this and focus should be to allow Irish tourism to defend its share Since 2012 – a time that pre-dated applied to improving the conditions for air of the British market and target ambitious the Wild Atlantic Way, IAG’s purchase and sea access and ensuring that market growth in North America and Europe as well of Aer Lingus, and the British vote to share metrics are used as a measure of as exploiting opportunities that arise in new leave the EU – there have evidently progress. Air carriers, principally Aer Lingus and emerging markets. been significant changes and consumer and Ryanair, have invested heavily in As has been shown earlier Ireland’s behaviour, competitor offerings, currency increasing capacity in North America “Net Promoter Score” in terms of advertising fluctuations, and global travel growth have and Europe respectively. awareness and recall is in sharp retreat all changed the British market and a review The core markets of Great Britain, across key source markets and this can is well overdue. Such a review necessitates North America and mainland Europe only be reversed through enhanced significant research in order to gain a account for almost 88% of overseas media presence. granular and dynamic understanding of
124 125 Balanced Portfolio Balanced Portfolio
Summary of Recommendations
segmentation, consumer sentiment and to the growing number of Chinese travelers motivations allowing Irish tourism to adapt who visit Europe which is estimated to have to Brexit implications, buying behaviour and increased significantly in recent years. income levels in the British market. In this context it is recommended that marketing and promotional investment is increased in emerging new source markets Investment in emerging Recommendation Recommendation to unlock growth opportunities and that markets, expansion of visa the industry increases its engagement programmes Increasing Ireland’s global footprint and Emphasis and focus on North America and in relevant overseas sales missions. destination marketing funds. Mainland Europe for accelerated growth. Fáilte Ireland’s initiative for Irish tourism The Government has set out businesses such as their “Get China Ready” plans to double Ireland’s global footprint programme is welcome as it aims to by 2025 identifying strategic markets to educate the tourism industry about the increase Irish exports such as China and opportunities available from the Chinese India and this initiative has committed to Lead Responsibility Government Lead Responsibility Industry and tourist market. It is recommended that such including tourism. Tourism Ireland programmes be extended and continued. Two key aspects of any breakthrough in new and emerging markets are access and ease of visas. In terms of the former, 2018 sees the first direct scheduled Asia-Ireland flight with Cathay Pacific Recommendation Recommendation commencing a Hong Kong to Dublin Investment in emerging new source markets A strategic review of British market to route – this, and other anticipated routes, to unlock growth opportunities and industry consolidate share and target new segments. need to be supported and encouraged. engagement in overseas sales missions. Likewise visas, and in particular joint visas between the UK and Ireland, are particularly important for new and emerging markets. The British-Irish Visa Scheme, currently Lead Responsibility Tourism Ireland Lead Responsibility Tourism Ireland in place for China and India, has been a and Industry very welcome initiative and it is vital that it be retained on an ongoing basis. It is recommended that the British-Irish Visa Schemes is expanded to other emerging markets to ensure competitive and efficient Recommendation visa regimes for long-haul markets. Recommendation With access to Ireland increasing Industry development programme to Expansion of British-Irish Visa Schemes from the Asia Pacific region and given enhance capability to meet new market to other emerging markets to ensure the general increase in travel from the opportunities. competitive and efficient visa regimes countries such as China there is significant for long-haul markets. opportunity for Ireland. 2018 marks the China-EU Tourism Year, a European Union- funded project aimed at promoting travel Lead Responsibility Fáilte Ireland Lead Responsibility Department and cultural exchange between EU member of Justice and states and China. The designated tourism Equality year is the European Commission’s response 2025 126 127 Exchequer capital Competitiveness - the key Improving access and Increasing capacity to investment in Irish tourism; Managing the challenge ingredient for sustainable Summary of delivering opportunities meet growth aspirations Investing in new tourism of Brexit tourism growth Recommendations products and experiences
Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Tourism development programmes Tourism competitiveness be monitored and Prioritize and expedite terminal Continued zero-rating of Airport A clear, prioritised and actionable An ongoing review of key enablers A published spatial plan outlining A €600 million public capital The preservation of the Common Ensuring that value for money is The following section details encouraging investment be aligned addressed in line with recommendations enhancements and new runway Departure Tax, competitiveness of strategy designed to ensure and barriers to new accommodation public investment in new tourism investment programme in new Travel Area between the UK and delivered consistently to the British with the Government’s infrastructure of the National Competitiveness development at Dublin Airport. landing charges, and expansion of visitors are dispersed and stay including strategic development products of scale and international tourism product over a 10 year Ireland and a soft border on the consumer and no additional tax or the overall key strategic plans as outlined in the National Council paying particular attention to US pre-clearance facilities. throughout the country is put zones, streamlined & fast-tracked appeal. period. island of Ireland. regulatory burdens are placed on Planning Framework to 2040. labour, insurance and taxation costs. in place. planning to enable new builds. the Irish tourism industry. recommendations and strategy Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Fáilte Ireland Government Government / daa Government / Commission of Fáilte Ireland Fáilte Ireland and Fáilte Ireland Government Government Industry and for growth to 2025. and Industry Aviation Regulation Local Authorities Government
Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Assessment of the impact of the Employment permits system to Increased co-operative marketing Formation of an airport task-force A review be undertaken of historic That a €600 million capital investment Prioritise and fast-track tourism-enabling Development of a new events/ The harmonisation of regulatory The retention of liberalised range of state imposed costs be reviewed in consultation with funds with industry partners in line to drive demand on sustainable state owned buildings that could programme, channeled through Fáilte infrastructure such as airport development, convention centre outside Dublin. standards across the island aviation and sea access regime on tourism businesses and the industry to ensure it is aligned with with agency budget increases. tourism routes to support be used for tourism purposes. Ireland, is allocated to tourism over rail link to Dublin Airport, national of Ireland. between the UK and the EU. sector’s competitiveness. emerging labour market needs and regional access. the coming decade to help create new broadband plan, improved motorway visitor profiles. attractors of scale and international appeal. access, and coach parking facilities. Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Fáilte Ireland Department of Business and Tourism Ireland Fáilte Ireland with Fáilte Ireland Government Government Fáilte Ireland Government Government Enterprise Innovation Tourism Ireland
Recommendation Recommendation Recommendation Recommendation Recommendation A competitiveness monitor be A liberalised access regime Maximising public investment The support of an all-island A resourced Brexit action plan for upgraded and shared with the is secured as part of any new and operational efficacy in approach to tourism marketing. tourism sector. industry in real-time to influence EU / UK deal. state-owned tourism assets. policy and commercial decisions for the benefit of the visitor. Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Fáilte Ireland Government Fáilte Ireland Government Fáilte Ireland / Industry
State Support Delivering a better Getting marketing right – An Educated Skilled and A Balanced Portfolio Framework to Facilitate regional and seasonal selling Ireland to the world Motivated Workforce of Tourism Markets Tourism Growth spread of tourism
Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Tourism to be strengthened as a A “whole of government” Development of a Greenways A published spatial plan outlining Invest in rejuvenation of tourism An increase of €25 million in A strategically managed Single accountable state agency, and Increasing Ireland’s global Emphasis and focus on North senior cabinet post with economic approach and national policies strategy and new stand-out exchequer investment in new brand Ireland to increase levels of overseas tourism marketing funds. and funded communications appointment of Director of Function footprint and destination America and Mainland Europe for focus. tourism-proofed to ensure best fit tourism experiences in the tourism products of scale and interest, share of voice and drive programme to promote careers within, to assume management and marketing funds. accelerated growth. with industry and visitor needs. North West and Midlands international appeal with brand reassessment. within tourism sector. co-ordination of tourism education, regions of Ireland. regional targets of growth. training, and skills needs. Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Government Government Fáilte Ireland Fáilte Ireland Tourism Ireland Government Fáilte Ireland and Industry Fáilte Ireland Government Industry and Tourism Ireland
Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation Alignment between local authorities External review be conducted Industry support of regional Roll out of Midlands brand Growing Ireland’s digital Brand Ireland’s communication Attracting talent from overseas Development of pilot programme Investment in emerging new A strategic review of British and Fáilte Ireland to ensure of Fáilte Ireland to ensure brand experiences in experience and cap number leadership in tourism marketing message be developed to to fill employment gaps. to incentivise seasonal businesses source markets to unlock market to consolidate share and maximisation of tourism strategies sharper definition of role and interpretation and promotion. thereafter of regional brand and e-commerce capabilities. incorporate the quality and to operate as training centres in growth opportunities and target new segments. and enhanced tourism role for responsibilities with appropriate experiences: Wild Atlantic Way, depth of Ireland’s food offering. off-season and roll-out of national industry engagement in overseas publicly-elected Dublin Lord Mayor. levels of funding and resourcing. Ireland’s Ancient East and Midlands. apprenticeship schemes. sales missions. Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Local Authorities/ Department of Transport, Industry Fáilte Ireland Tourism Ireland Tourism Ireland, Fáilte Ireland and Department of Fáilte Ireland Tourism Ireland and Industry Tourism Ireland Fáilte Ireland Tourism and Sport and Industry Bord Bia Business, Enterprise & Innovation.
Recommendation Recommendation Recommendation Recommendation Recommendation Recommendation The IDA, working with Fáilte Enhanced and improved data be Prioritise enabling infrastructure to An Industry Talent Retention Industry development programme Expansion of British-Irish Visa Ireland, to be tasked with made available in real time to the ensure ease of access to Ireland’s Strategy and Emerging Leaders to enhance capability to meet new Schemes to other emerging attracting would-be international tourism industry including creation regions, establishment of an airport Programme. market opportunities. markets to ensure competitive investors to Irish tourism sector. of Tourism Satellite Account. access task-force and enhanced and efficient visa regimes co-operative marketing funds. for long-haul markets. Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Lead Responsibility Government Fáilte Ireland and CSO Fáilte Ireland, Tourism Ireland ITIC and Sectorial Bodies Fáilte Ireland Department of Justice and Equality Tourism: An industryBalanced strategy Portfolio for growth to 2025 Tourism: An industry strategy for growth to 2025
Industry Insights Industry Insights — Tourism: An Industry Strategy for Growth 2025 Geraldine Enright
Director Cliffs of Moher Visitor Experience 02 Guinness Storehouse opened to the public in December 2000 It was a record year for visitor numbers at the Cliffs of Moher Visitor and we have welcomed over 18 million visitors with a record breaking Experience with 1,526,440 visitors, a 7% increase year on year. The growth 1.7 million in 2017. has not just been in the peak season but across the 12 months of the year. As Ireland’s number one visitor attraction, we recognise the important All markets have performed strongly in particular the US and Germany. role we play in encouraging visitors to experience other Irish attractions New developing markets China, Australia and New Zealand have seen and experiences. AVEA (Association of Visitor Experiences and Attractions) significant growth in 2017. There has been an increase in visitors booking was recently established to provide a voice for the visitor attraction sector, their visit online to guarantee entry to the popular attraction. of which Guinness Storehouse is a proud founding member. In a recent 2018 is expected to be another busy year with significant investment in a independent study conducted by CHL consulting, results showed new coach reception building, additional toilet facilities and refurbishment that 34% of visitors stated that a visit to Guinness Storehouse played a of the historic O’Brien’s tower. crucial role in their decision to travel to Ireland. Geraldine highlights the importance of tourism in terms of regional spread: The CHL report concluded that Guinness Storehouse made an economic “Iconic things to see and do in Ireland are vital to develop so that there are contribution of €361.2 million to tourism over the past 12 months. Guinness compelling reasons for visitors to explore the country”.
Industry Insights — Tourism: An Industry Strategy for Growth 2025 Storehouse is continually developing its visitor experience to meet and exceed expectations and we recently announced a €16 million expansion plan that will see its iconic ‘Gravity Bar’ double in size in Summer 2019. Located in the heart of Kilkenny city, our sister attraction the Smithwicks Experience has become a must-see attraction in Ireland’s South-East. Paul advocates also that ease of access is critical for Irish tourism: “Getting to Ireland easily and efficiently is critical for tourism throughout the country – when they are here we have a rich variety of unique experiences to offer the consumer.”
Paul Carty
Managing Director 01 Guinness Storehouse Industry Insights — Tourism: An Industry Strategy for Growth 2025 Con Quill
CEO, Irish Caravan & Camping Council Blarney Caravan & Camping Park 04 Blarney Caravan & Camping Park is a Fáilte Ireland registered 4 star Andrew is a chartered engineer and has been involved in shipping touring holiday park situated 3 km from Blarney village in Cork. With for over 26 years. He has been a Director of Irish Ferries since 2013 and tourism experiencing strong growth in the 1990’s, the Quill family saw an Managing Director since March 2015. opportunity to develop a Caravan Park in 1992 on their family farm and Commenting on the tourism market Andrew said “Irish Ferries carries has since grown into a successful tourist facility benefitting many local around 1.7 million passengers a year and nearly 425,000 cars across our Irish businesses in the area. The Caravan Park has 40 parking bays and a large Sea and Ireland – France services. The British Market accounts for nearly camping area and can cater for up to 250 persons per night. Facilities on site half of our total tourism business and is therefore critical to our success. include toilet/shower blocks, kitchen, TV room, laundry room, campervan British visitors arriving by car tend to visit more regions and to travel in the service area, 18 hole pitch & putt course, children’s playground and free Wifi shoulder and low seasons thus assisting the regional and seasonal spread of throughout the park. tourism outside of the peak summer months and away from the peak tourism The Caravan Park operates from April to October and employs five full locations”. time staff during the season. It also creates employment for many local Andrew said “The launch of our new cruise ferry W. B. Yeats – and contractors with ongoing maintenance and upgrading work on the Park the expectation of our second new cruise ferry to come – represent an
throughout the year. The visitor profile is: UK, Irish, German, French, Dutch Industry Insights — Tourism: An Industry Strategy for Growth 2025 investment of €315 million into our Irish Sea operations and herald a new era and other European countries. The typical visitor stays in the area for 2 days in ferry travel between Ireland, the UK and continental Europe bringing visiting Blarney Castle and Cork City before continuing to tour other parts with it new standards in terms of passenger and freight capacity, comfort of Ireland. and reliability beyond anything previously envisaged”. Con says: “Accommodation providers of all types – big and small – are vital to Irish tourism and we are major employers with a sizeable regional footprint”.
Andrew Sheen
Managing Director 03 Irish Ferries Industry Insights — Tourism: An Industry Strategy for Growth 2025 Breffni Jones
Marketing Director Trinity College Dublin 06 Over two million visitors come to Trinity College Dublin each year. Darina Allen runs the multi-award-winning Ballymaloe Cookery School Trinity’s iconic campus has plenty to offer the culturally curious visitor: situated on a 100-acre organically run farm and gardens in Shanagarry the Book of Kells and Long Room, housing 200,000 of the Library’s oldest in East Cork, which has been delivering a first class culinary education to books, one of the few remaining copies of the 1916 Proclamation and the students all over the world since 1983. Brian Boru Harp; the Zoological Museum; the Science Gallery and student- Our prestigious 12 Week Certificate is internationally recognised and has led walking tours, plus the opportunity to stay overnight in a heritage room been the first step on the culinary journey of many well-known chefs, food on the beautiful 40 acre campus during the summer months. producers and food writers around the world. The Book of Kells and Old Library Exhibition, one of Ireland’s greatest The Ballymaloe story as a whole is a long and fascinating one, really cultural treasures, saw a growth in visitor numbers with over 964,000 beginning when Myrtle Allen opened a restaurant in her own country visitors up 10% on last year. Trinity are continuously improving the visitor house. Harbouring a desire to cook with fresh, seasonal ingredients and experience, last summer visitors enjoyed an enhanced visitor experience not relishing the male-dominated restaurant landscape of the time. Darina with new developments such as the refurbished entrance at Nassau Street, sought out Myrtle Allen who was making a name for herself by designing a refreshed Book of Kells exhibition and a brand new visitor centre in Regent her daily menu based on the fresh produce available in the locality each day.
House. Further projects in the pipeline include implementing a campus tours Industry Insights — Tourism: An Industry Strategy for Growth 2025 Myrtle’s ethos was simple yet ahead of its time: local produce, in season, full policy to allow only authorised tour providers and a visitor app to complete of flavour and simply cooked. the visitor experience. This was what Darina had been searching for and she says: “Food and Breffni points out “Developing world-class tourism products to Ireland go hand-in-hand – fantastic fresh produce served with creativity and complement Ireland’s rich cultural and heritage offering is vital into flair give Ireland real tourism stand out internationally.” the future”.
Darina Allen
Head Chef 05 Ballymaloe Cookery School Industry Insights — Tourism: An Industry Strategy for Growth 2025 Pat McCann
Chief Executive Officer Dalata Hotel Group 08 Dalata is Ireland’s largest hotel operator, with a current portfolio of 38 Brendan Vacations was established in California in 1969 by Dubliner hotels (owned, leased and managed). We successfully operate the Maldron Jimmy Murphy. Over 90% of Brendan’s customers in those early days Hotel brand and Clayton Hotel brand throughout Ireland & the UK, as well as were first time travellers and had to apply for a passport to travel. Brendan managing a portfolio of Partner Hotels. Vacations opened their Ireland office in 1984 when Catherine Reilly joined Over the last number of years we have put together a group of hotels that the company. are well located, modern and well invested. In 2006 Brendan was purchased by The Travel Corporation (TTC), a We currently operate 7677 bedrooms with a further 1280 bedrooms worldwide travel expert, with 40 sales office and 10,000 team members. under construction and that are coming on stream in 2018. Serving over 2 million customers annually we take our travellers to over 70 We plan to open new hotels in Belfast (237 rooms), two in Dublin countries. In addition to Brendan Vacations the TTC brands that the Irish (326 rooms), Cork (167 rooms) and Newcastle (269 rooms) with additional industry would be familiar with are Trafalgar, Insight Vacations, Grand bedroom stock being constructed in 4 of our existing hotels in Ireland. European Travel, Contiki and Shamrocker Adventures. TTC continued their People are the cornerstone of our business with over 4,500 employed commitment to Ireland with the purchase to 27 Merrion Square in Dublin as throughout the company. Dalata is a place where you can do great things their Ireland head-quarters in 2011 and in 2013 acquiring Ashford Castle and
– individually or as a team. We develop our talent and with our growth and Industry Insights — Tourism: An Industry Strategy for Growth 2025 the Lodge at Ashford Castle, now fully restored to its historic splendour. expansion plans we can offer a fulfilling career. Catherine says “The US Market has seen phenomenal growth over the “Tourism is vital to the economic health of our country and Dalata Hotel past few years and Brendan Vacations has grown from strength to strength. Group will play a vital part in the growth of this important industry” says Pat. Increases in air access and aligning our Marketing and Sales strategy in partnership with Tourism Ireland have significantly added to our efforts”.
Catherine Reilly
Managing Director 07 Brendan Vacations Industry Insights — Tourism: An Industry Strategy for Growth 2025 Clare Tolan
Managing Director, Brand Homes & Education Jameson Distillery Bow St, and Jameson Distillery Midleton 10 Jameson fans travel from all over the world to see where it all began. The Park Hotel Kenmare dates from 1897 when it was opened as a We have welcomed 7 million visitors over the last 20 years to our Great Southern Railway Hotel. Since 1980 the hotel has seen significant Brand Homes in Dublin & Cork. Our job is to create a unique Jameson investment from Francis and John Brennan, providing sitting rooms to all experience that more than justifies those journeys. bedrooms, SÁMAS Destination Spa, 25m Swimming Pool, Luxury Residential Last year was an exciting year as we invested €11 million in to Apartments and Cinema. Unlike many hotels, The Park concentrates on renovating the Jameson Distillery Bow St. We set about building a place resident guests hence the conscious decision not to cater for conferences, where the spirit of Jameson could be brought to life. The redeveloped seminars and banquets. With 46 bedrooms the hotel caters for up to 90 Jameson Distillery Bow St. draws on brand immersion and theatre to guests and is 100% leisure based with 50% American, 30% Irish and the complement our iconic 230-year-old Dublin distillery. It’s a fun, lively remainder from rest of world. space that engages guests in multi-sensorial experiences that ignite a Together with John Brennan’s other property, Dromquinna Manor, deep, and hopefully lasting connection to the Jameson brand. the businesses employ over 140 people in the season. Given the small Clare says “The Irish Whiskey Tourism Strategy aims to attract 1.9 population of Kenmare this is a significant employer in the area and possibly million visitors by 2025 and the Jameson Distillery Bow St. along with the biggest. Totally based on visitors to the area the importance of the
the Jameson Distillery Midleton will undoubtedly play a central role in Industry Insights — Tourism: An Industry Strategy for Growth 2025 environment is crucial. The acceleration of transatlantic routes in recent delivering on this vision. Jameson Brand Homes have a rich history which years is a main reason the businesses have extended their season by over will also continue to attract and enthral visitors from near and far”. 3 months annually. The repercussions of this can be felt in shops, cafes, restaurants, pubs and shops locally. “The Wild Atlantic Way and such promotional natural products are magnets that draw visitors from near and far. Tourism is the bedrock for this region and its exposure in the greater market is the lifeline” says John.
John & Francis Brennan
Managing Director 09 The Park Hotel Kenmare Industry Insights — Tourism: An Industry Strategy for Growth 2025 Martin Dalby
Managing Director Center Parcs 12 Center Parcs is due to open its doors in Longford Forest in Summer Aer Lingus is the national airline of Ireland, founded in 1936. We operate 2019, which will be its first Irish forest resort. Phenomenally popular in 63 aircraft on over 100 routes to destinations in the UK, Europe and North the UK and boasting an impressive 97% occupancy rate, Center Parcs are America. We currently serve 13 cities in North America and carry more than developing a site near Ballymahon, Co.Longford for this project. The site 12 million guests per annum, including more than two million guests on was chosen for its proximity to infrastructure links to the main cities and transatlantic services. towns across the island of Ireland. We provide award-winning guest service and are Ireland’s only 4-Star Center Parcs Longford Forest resort will accommodate over 2,500 airline, awarded by Skytrax, the international airline rating organisation. Our guests in 466 luxury lodges and 30 apartments and guests will be able mission is to connect Ireland to the world and to be the leading value carrier to choose from over 100 indoor and outdoor family activities and a range operating across the North Atlantic. Our home base is Dublin Airport. of restaurants and shops. Perhaps the jewel in the crown of the resort Aer Lingus is a member of International Airlines Group (IAG), one of the will be the Subtropical Swimming Paradise, heated to 29 degrees all year world’s largest airline groups. round and set to be Ireland’s biggest and most impressive water park. Declan says: “We are proud of our role in Ireland’s vibrant inbound Martin Comments “Once operational Center Parcs Longford Forest tourism sector, bringing millions of visitors to Ireland’s shores every year.
will employ nearly 1000 staff in both full-time and part-time roles and Industry Insights — Tourism: An Industry Strategy for Growth 2025 Investment and infrastructure is vital to allow carriers to continue growing it is expected to add €20 million annually to Ireland’s GDP”. into the future”
Declan Kearney
Director of Communications 11 Aer Lingus
An Industry Strategy for Growth to 2025 earnings, export tourism’s Growing benefits and exchequer employment, Tourism Spring 2018 Spring
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employed in the sector. employed in the sector. 2025 with 310,000 2025 with 310,000 €8.1 billion annually by €8.1 billion annually Irish tourism can be worth Irish Overseas earnings from Overseas earnings from