Vol. 436 No. 8
3 Mr. Deenihan asked the Minister for Tourism and Trade the future role of Bord Fáilte in relation to marketing Ireland in the USA in view of his recent decision to initiate a £3 million marketing drive in the USA in early 1994; and if he will make a statement on the matter.
47 Mr. Timmins asked the Minister for Tourism and Trade his views on the drop in US visitors that came to Ireland in 1993.
51 Ms McManus asked the Minister for Tourism and Trade the aims and objectives of the recently announced £3 million tourist campaign in North America which he announced recently would be overseen by his Department; and if he will make a statement on the matter.
I propose to take Questions Nos. 3, 47 and 51 together.
On 21 November last, I announced details of a special £3 million consumer marketing campaign, aimed at the North American tourist market. In effect, it heralds a new approach to that market, based on active partnership between the public and private sectors and will be driven by the latter's commercial assessment of how best to complement the traditional marketing efforts in the market.
The campaign will be co-funded by the Exchequer, the EU and the tourism industry. It will be overseen by the Department of Tourism and Trade, in partnership with the tourism industry, including hoteliers, tour operators and carriers. Bord Fáilte will also be involved.
The objectives of the new campaign are to: (1) create a greater awareness of Ireland as a desirable and affordable destination; (2) reverse the trend of decline in visitor traffic expenditure and loss of market share; (3) secure more business, particularly shoulder and off-peak traffic; (4) support expanded airline capacity for 1994 and beyond; and (5) complement Bord Fáilte's trade promotional campaigns.
The campaign will be an intensive consumer campaign in two phases, the first will be active early in the new year and the second later in the year.
I acknowledge that the industry has taken a lead role in this initiative, as it meets the challenge of increasing its own marketing activity and spend. Overall, the effect of the initiative will be to supplement greatly Bord Fáilte's regular expenditure in the marketplace, both with the additional Exchequer moneys being directly provided and the incremental spend on the market being committed also by the private sector participants.
With regard to 1993 performance, the American market to Ireland, in common with other American travel to Europe, was weak in the early part of the year. A strong recovery in the autumn, however, is likely to result in total numbers and revenue for 1993 being approximately the same as in 1992. As to 1994 and later years, on foot of the new initiative I have just described, I am confident that we can look forward to greatly improved performances from the North American market for the rest of the decade.
Will the Minister agree that his Department's initiative undermines the credibility of Bord Fáilte, not alone at home but abroad? Is it part of his campaign to scrap Bord Fáilte in the long run? Will the Minister clarify recent statements he made vis-á-vis Bord Fáilte that some empires may have to fall? It is important to clarify both statements.
There are other questions on the Order Paper regarding recent statements I made about Bord Fáilte.
Let us not anticipate them.
We will not anticipate them; I would not like to be disorderly. I do not think this initiative undermines the credibility of Bord Fáilte. Since I became Minister for Tourism and Trade — and previously — I heard from the industry and others involved that if they had money they could do the job as well as Bord Fáilte. The only way to find out if that is true is to put it to the test. Since I became Minister I have said I was willing to give private operators an opportunity to invest in the market-place with some funding from the State and the EU. Some groups in the industry came forward with this initiative and I was glad to be able to accommodate them. This initiative is meant to complement the activities of Bord Fáilte in the North American market-place. For a small amount of money we will find out whether people in the industry can do the job better.
I make no apologies for recent statements about Bord Fáilte.
Is that an indication that the Minister could still scrap Bord Fáilte? Will he accept that its bad performance in America in recent years is the result of lack of funding rather than lack of extensive marketing? Is he aware that for every $600 spent on the promotion of travel and tourism in America only $1 or less is spent in Ireland and that is money given to Bord Fáilte to market Ireland? Is the Minister further aware that the British Tourist Board spends over $30 million a year while Bord Fáilte with Aer Lingus and Delta Airlines, spends only $3 million. Will the Minister agree, therefore, that his statements were unfair to Bord Fáilte and that it should be allowed to prove itself by heading up this campaign, given the extra resources now to hand?
We must get away from the idea that hoteliers mind their business, that Bord Fáilte looks after promotion and that never the twain shall meet. Bord Fáilte might say that nobody knows more about marketing than it but that is not true. People involved in the industry whose bread and butter it is to make profits to repay their financial institutions are as likely to give as good value for money as any State organisation. Here is an opportunity to complement the activities of Bord Fáilte in the North American market for a small amount of money as that market has not increased for a number of years. The out-turn for 1993 will be roughly the same as for last year. We have not yet reached the figure that obtained in 1990, our peak year. A number of factors figure in the sluggishness of the North American market in relation to Ireland. This initiative is an effort to target one market to see if, with some extra promotion and drive in the next few years, with EU and State money, the industry, complementing the activities of Bord Fáilte, will be able to rejuvenate the North American market. We will attempt it and we hope to succeed.
Will the Minister agree that, at a time when we are trying to have focused marketing drives all over the world for Ireland, this will lead to fragmentation? There will now be two agencies promoting Ireland in America, Bord Fáilte doing mainstream promotion and the Department carrying out its own initiative. This is a bad way to do business.
The decline in the number of visitors from America results mainly from a lack of funding. Bord Fáilte funding reduced from £35 million in 1985 to approximately £21.5 million in 1992. Is the Minister aware that during the past ten years the number of American tourists visiting Scotland increased by approximately 200,000?
I do not accept there will be fragmentation in regard to this initiative. My Department will co-ordinate the activity of this group. As I stated in the Programme for Economic and Social Progress when announcing this initiative, the industry will operate this activity. Our Department will have a co-ordinating role. The industry has funded this activity, but the State and EU have also contributed funding and, therefore the Department should have a co-ordinating role in the activity. The industry will spearhead this marketing drive and the Department will have a public watchdog role as State moneys have been contributed. The Department will not direct operations, that job will be left to the industry. Bord Fáilte will be consulted to ensure there will be no duplication of its activities in the North American market.
I do not accept that the sluggishness of the North American tourist market for the past number of years is due mainly to lack of funds. A myriad of other factors must be taken into account, not least the problem of access from North America to Ireland.
