Vol. 568 No. 3
25 Ms Burton asked the Minister for Arts, Sport and Tourism his proposals to maximise the benefits to Irish tourism of major international sporting events; the estimated value to the Exchequer of such events in 2002; and if he will make a statement on the matter. [16132/03]
Major international specialist events can present significant marketing opportunities for a variety of commercial interests. Over many years, Bord Fáilte took advantage of the opportunities provided by several major international sporting events – international golfing events being a classic example – to market Ireland as both a general tourism destination and also as a sports tourism destination, as well as attracting visitors to Ireland in their own right.
Many major international sporting events will not just be funded by gate receipts but by a variety of commercial income streams. These will arise from leasing retail-catering space, marketing stands, merchandising deals, sale of advertising, hospitality etc. To be held at all, many major sporting events will have to be able to put forward a credible package of marketing opportunities and be able sell these to serious commercial players.
This is a very specialised area and, in order to exploit some of the opportunities which it presents and to have an efficient, streamlined and transparent system for Bord Fáilte's participation in such events, the international sports tourism initiative was launched by the Government in 2000. Following the recent dissolution of Bord Fáilte, responsibility for implementation of the scheme has been taken over by the new National Tourism Development Authority, Fáilte Ireland.
Although it has a ring-fenced allocation under Fáilte Ireland's budget, the Initiative is not a traditional grant scheme. Essentially, it is a framework which governs Fáilte Ireland's participation in commercial relationships with event organisers. Fáilte Ireland is paying for a set of benefits which the event organisers guarantee to provide. If the events do not deliver the benefits promised, a certain portion of the payment may be withheld and the prospects for future marketing investments by Fáilte Ireland diminished.
Under the initiative there has been investment in the staging of 46 international sporting events over the period 2000-02. On 21 March last, I announced a list of events which have been approved in principle, subject to normal contractual negotiations, for investment under the Initiative so far this year. The total amount of funding allocated to the Initiative in 2003 is €5.43 million. A review of the benefits accruing from the investments under the Initiative is currently being conducted by Bord Fáilte and I intend to have my own Department formally review it in the autumn.
