One of my first official engagements on the tourism side was the AGM of the Irish Tourism Industry Confederation last year, so it’s useful to reflect on what’s happened since and our plans for the future.
I believe we’ve made good progress in a year. The decline in visitor numbers has been arrested. Latest CSO figures for 2011 show a 6% increase in overseas visits, to 6.5 million. I’m also glad to hear that the industry is confident it can achieve the target of a further increase of 4.5% this year.
We’ve improved our competitiveness and our value-for-money ratings in 2011. And we’ve gained market share in many of our key source markets – in particular Britain. Employment in accommodation and food services has risen by 11,000 over the last three quarters to the end of 2011, as reported by the CSO - albeit following a significant decline.
The Government has put the tourism sector at the heart of its economic recovery programme. Last year’s Jobs Initiative introduced the lower VAT and PRSI rates, the visa waiver scheme and a strategy to address the loss in air access through reduced Travel Tax and enhanced cooperative marketing with the air and sea carriers.
We have built on this initiative over the course of the past 12 months by protecting the Tourism Services Budget for 2012, despite general cutbacks across the board. We have a reinvigorated international tourism marketing programme and a new advertising campaign that will reach out to 200 million potential holidaymakers. We have recently extended the visa waiver scheme for four years.
Both I and Minister of State Ring have visited the key source international markets on nine separate occasions to support the trade, and to exploit media opportunities to sell Ireland as a holiday destination.
The tourism sector featured prominently in the Government’s Action Plan for Jobs which included commitments to the Tourism Marketing Fund, Failte Ireland’s Capital Investment Programme (for which €21 million has been provided in 2012) and business supports, as well as setting out a programme of wider measures to address business costs, reduce red tape and improve access to finance.
I note the emphasis that ITIC has placed on continuing the 9% VAT rate into 2013. While the current legislative position is that the reduced rate will apply until the end of 2013, I need the continued support of the industry and as much hard evidence as the industry has to prove that the initiative is delivering for tourism and the economy. We must ensure that it successfully comes through the review process envisaged by the Minister for Finance at the end of this year. I have asked Fáilte Ireland to commission a report on this and I would encourage you all to support that exercise.
We are putting significant resources in place in terms of funding and staff to ensure that the Gathering Ireland 2013 initiative will be successful in its goal of delivering an extra 325,000 visitors and associated spending of €170 million. I secured a special additional allocation of €5 million in 2012 for it and I hope to make a similar amount available next year. I know that the tourism sector is involved in the planning process through a Tourism Sectoral Body Advisory Group overseen by Ruth Andrews that feeds back to the Project Advisory Board and the Project Executive.
The Gathering was recently unveiled internationally as Government Ministers launched it in 27 cities to 17,000 influencers at 40 events over St Patrick’s weekend. The initiative presents an unprecedented opportunity for the Irish tourism industry to showcase what it has to offer and I would encourage you all to play your part in supporting what promises to be one of the most important initiatives ever undertaken in the country.
Apart from the Gathering next year, we do have an extensive programme of events to look forward to in Ireland in 2012. These include:
Volvo Ocean Race finale in Galway
Tall Ships in Dublin
Navy/Notre Dame College Football Game in the Aviva
The Irish Ladies and Gents Open Golf in Killeen Castle and Portrush, and
Bavaria City Racing in Dublin
There will also be major conferences such as the Eucharistic Congress, the City of Science and a number of big Association Conferences in the Convention Centre in Dublin.
We are constantly adding to and upgrading our tourist attractions and facilities through Failte Ireland’s Product Development Programme. Arising from earlier approvals, we have commitments up to 2015 of around €60 million. I hope to announce details of further projects over the coming months. I would also love to see a Diaspora Centre and have asked Failte Ireland to scope out such a project.
Following on the integration earlier this year of Dublin Tourism with Fáilte Ireland, I am awaiting the results of a consultancy report by Deloitte into the tourism activities of Shannon Development. I note ITIC’s own consultancy work on capitalising on Dublin’s tourism potential and hope to see some innovative thinking emerging as to how the Dublin brand may be developed further.
I am very anxious to continue an active engagement with the key industry associations – in particular ITIC which brings together all of the key interests in tourism. I value the insights that this engagement brings in order that I can ensure that any legitimate concerns are taken into account by Government, both through me and the Department in its impact assessment role.
While I believe we have made real progress, I know that not all sectors and regions have benefited from the recovery last year. I appreciate that your members continue to face financial pressures and a difficult and uncertain future but I can assure you that we in Government will strive to support you through our efforts to bring about economic recovery.