Dáil Éireann debate -
Wednesday, 20 Nov 2002

Vol. 557 No. 5

Written Answers. - Tourism Promotion.

Liz McManus

Question:

71 Ms McManus asked the Minister for Arts, Sport and Tourism if he will report on his recent visit to the United States; if he has satisfied himself with the level of marketing of Irish tourism in the American market; and if he will make a statement on the matter. [22478/02]

Minister for Arts, Sport and Tourism (Mr. O'Donoghue)

The US market has always been a critical one for the tourism industry in Ireland in terms of visitor numbers, but particularly in terms of yield. US visitors have traditionally been high spend, longer stay tourists. With visitor numbers falling by 13% in 2001 and a further drop of 10% forecast for 2002, the downturn in US business has had a negative impact on those sectors of the industry that rely heavily on this market, particularly the coach tour business.

The explanation for this downward trend lies primarily in the continuing fall-out from the atrocities of 11 September. More US holidaymakers are choosing destinations which are close to home and accessible by road. In addition, air access capacity to Ireland has been substantially depleted as a result of the 11 September attacks, with peak capacity down 20% on 2001. Demand has also been affected by continuing weakness in the US economy, with more expensive long haul holiday plans being replaced by more affordable short haul trips.

Conscious of the difficulties in generating business from the US, I have been anxious, since my appointment as Minister, to address these difficulties and help reverse the downward trend in this vital market. In terms of investment in tourism, 2002 has seen the largest ever budget being deployed for the international marketing of the island of Ireland as a tourist destination. As a key market for tourism, a substantial element of this marketing budget has been directed at generating business from the US.

Shortly after my appointment and following consultations with the industry and tourism agencies, I decided to re-allocate an additional €3 million in funding for front-line marketing activity. With the help of that funding, Tourism Ireland extended its marketing activities in the US and other markets. While it made little sense to put extra resources into the US during the peak season this year, given the limitations on air capacity, it was clear from listening to the industry and the tourism agencies that business was there to be won as part of a concerted autumn campaign. To support that campaign and to help kick-start the 2003 season, I travelled to the United States in October. I visited Chicago and New York where I met key players in the tourism trade and carried out a number of media promotions in order to add whatever political weight I could to Tourism Ireland's efforts to reverse the downturn in this vital market. The visit was successful in identifying the key issues to be addressed in this market, particularly the need to restore air capacity on key routes and to sustain a strong marketing presence there.

With this in mind, I was even more determined on my return to ensure that adequate funding was available to market Ireland as a tourist destination in the best possible way in this and other key markets. As regards Exchequer resources available next year, I am pleased the Government has maintained the overall tourism budget and, within that, increased the tourism marketing subhead by 20% to €30.4 million, its highest allocation to date. That is a clear recognition by the Government of the importance of the tourism sector to the Irish economy and particularly the value of marketing Ireland in an increasingly competitive international marketplace. This funding will enable a strong programme of international marketing to be rolled out in 2003, including a strong and sustained programme of marketing activities in the US. This will ensure that Ireland is in a favourable position to benefit from the anticipated upturn in the US tourism market next year.

Question No. 72 answered with Question No. 62.