Vol. 526 No. 2
1 Mr. Allen asked the Minister for Tourism, Sport and Recreation the plans he has to address serious concerns with regard to the British tourism market to Ireland which is our largest tourism market; and if he will review the destination marketing of Ireland programme contained in the national development plan. [26204/00]
The national development plan includes an allocation of £150 million for a tourism marketing sub-programme over the period 2000-06 and consists of two measures, a destination marketing measure and a niche marketing measure. Decisions as to the allocation of funding under this sub-programme are a matter for Bord Fáilte in consultation with the Tourism Marketing Partnership, a special group set up within Bord Fáilte composed of Bord Fáilte executives and tourism industry representatives.
Britain is our largest and most important tourism source market, accounting for more than 3.4 million visitors in 1999 or 58% of total overseas visitors and almost £800 million or 43% of overseas revenue. However, growth in visitor revenue slowed to 5% in 1999 compared to annual average growth of 15% in previous years. The British holiday market is among the most competitive in the world and is constantly changing. Although sterling remains strong, all foreign travel is cheaper and new exotic destinations now come within the reach of a wider number of British holidaymakers.
Latest intelligence for 2000 indicates that the length of stay of British holidaymakers to Ireland continues to shorten, with above average growth in short breaks to cities such as Dublin and Cork in additional holidays, at the expense of the more traditional main holiday. This is part of a long-term trend in the short-haul international tourism market, affecting all holiday taking. Shorter holidays are now the most dynamic growth sector affording us new and growing opportunities in that area.
Bord Fáilte commissioned an independent review of Irish performance in the British market within the past 12 months. I understand that, given the importance of the British market to Ireland, Bord Fáilte is already addressing, in full consultation with the industry, the current issues arising within the British market as highlighted in this review.
Additional information
A combined industry and Bord Fáilte response is expected to emerge through the Tourism Marketing Partnership which will outline future strategy for the British market. Meanwhile, in the immediate term, Bord Fáilte will, I understand, be running a combination of brand building with a tactical advertising campaign which will highlight value for money and product options. Bord Fáilte state that it also proposes to work with the industry to develop a direct marketing approach to make the most of the potential for repeat business.
There is already provision for a comprehensive mid-term review of measures in the national development plan in 2003 which will include the operation of the destination marketing measure. The Deputy will be pleased to note that notwithstanding our concerns about the British market, official CSO figures for the first half of 2000 showed that total British visitors grew by 2%. I understand from Bord Fáilte that preliminary unpublished figures show there was further growth up to August.
Does the Minister agree that, despite peace on this island and the strength of sterling, it must be very worrying that the British market is becoming stagnant? Does he agree there is a fundamental change taking place in the attitude of British people to holidays and that studies and investment in advertising will not in itself solve the matter? Does he agree the competitiveness of our industry and access to areas outside our cities are important factors in coming to grips with what is becoming a major problem in relation to the British tourism market?
Yes, there are problems associated with the British tourism market, as with other markets. I have pointed out to the Deputy that the British market is not just competitive to us but also to every other country. The Deputy pointed out the strength of sterling. Sterling is very strong throughout the entire European zone, including in France, Italy and Spain. There will be advertising of destinations which are exceptionally competitive.
Access to various parts of the country is a very important factor which we must continue to improve. Certain areas are over-congested as a result of the tourism bonanza which has taken place in the past ten years. I hope Bord Fáilte will continue to address this issue in the context of the North-South body which has been set up. I accept the market exists but the British market continues to be our most important market. Some 3.4 million visitors come from Britain. There was a certain downturn in the market last year but recent reports indicate the British market is again picking up. I returned from the World Travel Fair in London yesterday where all those involved in the industry indicated it was a bonanza week for them. There were dips in the market last year but I believe we are overcoming that downturn.
I am concerned about the Minister's sense of complacency in relation to the British market. Does he agree that the recent rail and airline strikes and the congested roads are a far cry from Ireland's image in the past of open roads and uncrowded countryside? Given the slowing down in the friends and relations tourism market to Ireland, does the Minister agree there is now a need for a major rethink in relation to the issue? Has he engaged seriously with the industry sources to establish what are the problems as they see it? Has he ensured that Bord Fáilte has consulted with the regional authorities involved in tourism?
I am concerned about aspects of the research carried out in relation to the tourism industry and we have undertaken a review of that aspect. The Deputy is correct in saying there is a problem regarding visiting friends and relations. This is partly due to the fact that many people have returned from the UK to live in this country. That does not mean there is not a large proportion of people with Irish ancestry in the UK whom we must continue to target. Nevertheless, a small vacuum has developed in this area. I was the first Minister to give the regional tourism authorities a budget.
A sum of £8 million between them is not much of a budget.
I am confident that the regional tourism authorities will grow in strength. In recent years I have noticed the different markets throughout the world—
I call Question No. 2.
A day trip to London will not solve the problem.
