I welcome representatives from the furthest north to furthest south to this discussion. We will allow each group to introduce its members and make a short presentation which will be followed by questions from committee members.
Tourism Prospects: Presentations.
Ms Maura Moynihan
Ar dtús báire ba mhaith liom a rá go bhfuil an-áthas orm bheith anseo inniu mar phríomh-fheidhmeannach Bord Turasóireachta Chorcaigh-Chiarraí. Ba mhaith liom buíochas a gabháil díobh go léir as ucht an chuiridh chun bheith i láthair. I am chief executive of Cork-Kerry Tourism and accompanied by the chairman, Ms Georgina Coughlan.
Cork-Kerry Tourism is part of one of the regional tourism authorities, the largest outside Dublin. We cover County Cork and all of County Kerry since 1 January 2005. Tourism in the Cork-Kerry region is worth approximately €870 million. There are some 1.5 million overseas visitors and 1.3 million domestic visitors. We are, therefore, dependent on both groups.
Most of the figures I will use are the ones available from the CSO for 2003 because at the time of putting together this presentation we did not have exact figures for 2004. I have put together some information and will make copies available to the joint committee.
To put the matter in context, tourism in the Cork-Kerry region is worth approximately €870 million. Visitor numbers total 2.8 million. Some 24% of all overseas visitors to Ireland come to the Cork-Kerry region. The figures show a 7% increase on the figures for the previous year but, unfortunately, this represents a 1% decline in our market share. On the positive side, the spend by tourists grew by 15%, bringing our market share, from a revenue point of view, back to 19%, to the 2000 level, the top year in tourism. There was a 2% decline in the numbers of domestic visitors, giving us a 1% drop in market share. Some 24% of the domestic tourist spend occurs in the Cork-Kerry area. I am pleased to say it grew by 16% on the figure for the previous year.
I was given this job approximately two and a half years ago and it is incredible how much has changed in that short time. The most important changes are the new trends emerging in tourism, trends that affect all of us and into which we must buy if we are to ensure the tourism industry grows. One trend is reflected in the number taking shorter breaks. People are taking shorter breaks and more of them during the year. This means that, to a large extent, we are dealing with a consumer who is into impulse purchasing. As committee members know, it is very hard to manage those who purchase on impulse.
Another major trend is reflected in the amount of bookings being made on the Internet. There is increasing use of the Internet for information purposes. All of this affects how the consumer purchases his or her holiday. We face a late booking trend which plays havoc with our ability to predict the kind of season we will have.
Another trend is reflected in the fact that people want experiential holidays. They want to be able to return with memories of something they have done and gained while on holiday. There is also an urban preference while people have become much more value conscious. There is growth in the health and wellness and adventure sports markets. These are all trends we need to take on board.
A major strength in the past two years for the Cork-Kerry region is the huge increase in terms of direct air access into Cork, Shannon and Kerry Airports. There are 20 airlines servicing over 73 routes. We have good ferry connections, three airports, a rapidly improving road infrastructure and a wide range of holiday experiences to offer the consumer. We also have a strong culture and heritage product. The fact that we now market all of County Kerry as one makes for a strong Kerry brand and a strong Cork-Kerry brand.
This year Cork is the European capital of culture. This buys an enormous amount of free publicity for us. We have a good tourism track record in the region, a wide range of accommodation to suit all tastes and budgets, are rich in festivals and lucky in that Tourism Ireland has sponsored the Cork-Kerry region in the German, Italian and east European markets. I am sure the joint committee will agree that in the region we have friendly, welcoming people who are passionate and proud of their counties.
On the other side, we have serious challenges facing us. There is an urban-rural divide which affects all our regions. It affects the bed and breakfast market, in particular, a market that was the backbone of our product for many years. The sector has done poorly in recent years and there is no indication that it will do better this year. Urban based bed and breakfast establishments are doing better than rural based establishments. The story is similar in the case of hotels. Hotels based close to cities or towns are doing better than rural based hotels. Consequently, there is an unequal spread of visitors throughout the region. I agree with those who say we need to spread tourists throughout the country but hope it will not be at the expense of those who come to the Cork-Kerry region where we also need an equal dispersal of tourists.
We face a challenge in that Cork city does not get its fair share of the tourism trade. Approximately one in ten visitors to the Cork-Kerry area travel to the city. It is a challenge for Cork-Kerry Tourism to market Cork city as a destination, particularly as a weekend destination, in its own right. Like all other regions, we are faced with a decline in activity holidays. Both nationally and regionally, the number of activity holidays involving golf, walking, equestrian activities and angling is well down. The lack of a transatlantic route into Cork affects our ability to capitalise on the American market. The lack of a multi-event centre in Cork is also a major challenge, although discussions are ongoing in this regard.
We need improved competitive access from Dublin by road, rail and air. If Dublin attracts the bulk of tourists, we must be able to attract some of them to spend additional days outside the Dublin region. Easy access is needed to do so. A solution is needed to issues relating to walking and the maintenance of walking routes. More family-friendly products are needed. New products are needed such as the attraction that Cork 2005 is proving in the region for overseas media and tour operators. Our existing products must be expanded and it must be ensured they meet the expectations of visitors. All development should be market-led. Tourism is no different from other industries in this regard. Attention must be paid to repackaging products.
The core functions of Cork-Kerry Tourism are visitor servicing, member servicing and marketing of the region. All marketing carried out in the region is line with recommendations of the tourism review group and the marketing plans of Fáilte Ireland and Tourism Ireland. Our objectives are to increase visitor numbers, visitor spend, length of stay and regional spread; to generate new and repeat customers through professional marketing and product development; to provide the trade with cost saving benefits and co-operative marketing opportunities through our membership programme; to generate awareness of the Cork-Kerry region based on its unique character and strengths; and to position the region as a world class destination in order that it becomes the first choice for Irish and overseas visitors intent on holidaying in Ireland.
Our target markets are cities and countries with direct access to the region, which give the best return on our investment because our funds are limited. We are developing a campaign entitled, "Discover It, Experience It", which we will promote through television, airport, press and poster advertising. The objective of the advertisements is to create clear and appealing images of the Cork-Kerry region and to portray it as a must see destination. In addition to the brand campaigns, Cork-Kerry Tourism will run product-based marketing campaigns aimed at visitors with special interests, including touring, adventure holidays, culture and heritage, golf, health and wellness, short breaks, midweek breaks and the region as a venue for business tourism. We will also take advantage of special events and times of year to run a third type of tactical or schematic campaign, for example, winter breaks or Valentine breaks, aimed at encouraging off-season visits.
While we have a wide range of holiday experiences to offer potential visitors, many need to be developed and enhanced. To create a clear image of what the region has to offer, Cork-Kerry Tourism has identified specific product areas as the core focus for marketing and product development. By focusing on the region's core strengths, we aim to help potential visitors understand what the region has to offer, including adventure sports, into which we bundle walking, cycling, horse-riding, water sports, adrenaline sports, golf, culture and heritage, health and wellness, touring, business tourism and short breaks, festivals, museums, art galleries, gardens, traditional music, arts, dance, genealogy and other attractions.
I refer to touring. Visitors are given the impression by many of the published tour guides — this applies to all regions — that not alone can they visit the Cork-Kerry region in one day but they can visit the entire country in two days. Our job is to make sure they take their time and that we put together sufficient intensive itineraries identifying what they can see and do in the region. We are paying a great deal of attention to this in 2005.
Another element of our marketing drive will be to concentrate together with Fáilte Ireland on promoting our website. Last year the website had 28.4 million hits, which means many people knew about it but, more importantly, almost 500,000 unique visitors were driven onto the site. They spent more than eight minutes each on the website. This demonstrates how important it is. We are working with Fáilte Ireland in line with the ireland.ie campaign to develop our own website.
Our marketing campaign contains a number of separate items which I included in the document I circulated to members and I am happy to answers questions on them. A major challenge facing us is that parts of the region lack the tourism product to attract visitors. Cork-Kerry Tourism will work closely with tourism interests in these areas to further product development. Many of them have not been fully exploited from a tourism point of view which means they can be brought to tourists as practically a new product. However, it also means private industry must have a significant involvement in development of the product in these area. We need to find champions of these initiatives.
The tourism prospects for the region in 2005 are heavily dependent on tackling the challenges on a co-operative basis with the tourism trade. Recent indications from Tourism Ireland indicate a good interest in Ireland but that product providers need to be conscious of value for money. Our experience at overseas trade shows highlights a strong interest in the Cork-Kerry region. However, with the late booking trend, it is difficult to forecast trends this season.
I thank Ms Moynihan for her document and comprehensive presentation.
Mr. Paul McLoone
I am accompanied by Mr. Sean McEniff, chairman of North West Tourism. Perhaps members will refer to him during the question and answer session. I will circulate relevant documents. The north west is the poorest region by some distance in tourism terms. Our presentation, therefore, will deal with different aspects of tourism from the previous presentation.
The joint committee asked us to examine the prospects for 2005. I will outline the trends nationally and regionally in recent years, the issues that arise in the north west, the actions required and resources needed to support them, and issues relating to marketing plans and the committee's recommendations which could be important in moving tourism forward.
In the past four to five years the number of overseas visitors to the region has decreased by 33% from 650,000 to 400,000. The greatest issues in this regard are the availability of short breaks and direct access to the north west. We are affected by changes in the length of stay in Ireland, booking patterns and the 25% decline in the number of visitors bringing their own cars. People do not stay for seven to 14 days and do not bring their own cars. This has a significant impact on rural tourism on the western seaboard because people tend to stay near airports and may not hire a car, depending on price. A 25% drop, mainly from the UK market, provides some explanation. It is important to bring this issue on board.
In the local and national media there has been the issue of price and "rip-off Ireland". However, the operators are saying it is not a big issue and that the country should stop shooting itself in the foot. We are affordable being in the middle of the price range. All the negative vibes about Ireland are emanating from this country. The operators are saying their customers are not complaining but coming and talking about it because they are reading our newspaper websites and sensing the negative vibes coming from Ireland.
The joint committee must be careful when it considers overseas tourism performance. Visitor numbers are how tourism is measured in Ireland. A visitor is defined as someone spending at least 24 hours in a country. People such as Seán McEniff would say tourism should be measured in bed-nights. The revenue to Ireland in the past two or three years has begun to level off because of the length of stay. The number of real holidaymakers to Ireland is less than three million rather than 6.3 million.
Regarding rural tourism in the north west, we do not get many visitors like those coming into Dublin for a football match or meeting. The figures the committee with responsibility for rural Ireland must consider are those for actual holidaymakers, of whom there are fewer than three million. The number of bed-nights, therefore, give a much better measurement.
The number of overseas visitors to the north west dropped from 604,000 to 416,000 but went back up again to 492,000. In real terms, regarding overseas holiday nights, revenue to the north west is 5% of the national total. We cover counties Donegal, Sligo, Leitrim, Cavan and Monaghan. The other Border county is Louth. When Ray MacSharry was Minister for Finance, he insisted that six counties in the country be designated as having a problem because of the Troubles in Northern Ireland, namely, the six mentioned. They were designated in the 1970s, 1980s and 1990s as the Southern Border counties for preferential treatment. Since the Good Friday Agreement, we have had no problem with Northern Ireland growing its tourist numbers but no preferential designation has been accorded to the counties mentioned. I am giving the figure of 5% which is far behind that for any other region. Unless specific initiatives are taken for the north west, we cannot catch up. Leaving the six Southern Border counties on the same playing field as each of the other Twenty-six Counties, as has been done for the last seven years, results in our continuing to lose ground, especially overseas.
Where the north west has made a recovery in recent years is in the Republic of Ireland market. I will not criticise County Kerry since I see that there are one or two people from that county present. However, County Donegal is only three hours from Dublin, while County Kerry is five hours off; yet the image is that we are a great distance away. There is an issue of driving a marketing campaign to put this into the minds of over one million people in the greater Dublin area. Therefore, there has been growth in the Republic of Ireland market. We lost a few of our Northern Ireland visitors, although they have been retrieved. To put the matter in context, approximately 72% of the revenue to the north west comes from the Irish market.
I would like to raise an issue regarding accommodation nights and holidaymakers. For those of us involved in rural tourism, it is a fact of life that guesthouses and bed and breakfast establishments which were the bread and butter of tourism have lost approximately 25% to 40% of their custom in overnight accommodation. There is, therefore, a real problem for that accommodation sector. Hotel accommodation has grown on a national scale, while the self-catering market has been holding up fairly well. We expect that trend to continue. The number of beds in the region is 22,000, split in order that the main centre is County Donegal with 12,500. County Sligo has 5,000, County Leitrim has approximately 2,000, while counties Cavan and Monaghan have 3,000 to 4,000 between them. Our real tourism centre is County Donegal. We must examine marketing and continue to grow the market while keeping our eye on the ball regarding the others.
Hotels are under construction to counteract our problem with bed and breakfast accommodation. Some 2,500 new hotel bedrooms have either just opened or are about to open within the next year. This means that the accommodation stock in the north west will be quite good. The joint committee is examining prospects for tourism and must know how many beds there are. It is important that we replace the bed stock since customers have been saying they prefer staying in hotels to bed and breakfast establishments. The latter sector is looking at this and recovering quite well in places. We must address the issue. If one is to attract tourists, one must deal with the obvious question of whether one has enough rooms for them to stay in. A coach operator needs a hotel of more than 85 beds, since it must accommodate 35 or 40 people from the coach while also looking after its own business. If one does not have the right accommodation stock in one's region, one has a problem.
Looking at prospects for the north west, the fact that hundreds of millions are being invested by the private sector is very encouraging for the region and leaves us the tools to move forward as a tourism authority and have much more aggressive marketing for the region. This is very important. Side by side with this is the issue of the product. We could discuss the issue all day but niche products are losing share. Nationally, without sensationalising the issue, activity holidays were very close to collapse. This hits rural tourism. The graph shows that the number coming here for angling, cycling, equestrianism, golf and hill-walking has dropped by 50%. Anyone involved in angling will know that anglers have got much older, coming from the traditional UK market. Young people are not angling.
What is our national strategy to deal with this? Is it all about price, competition from eastern Europe and cheaper markets? If we get the product and accommodation right, since our quality is reasonably high, it is a matter of how we package and sell it. It is important that each region in Ireland examine this. The west, from County Kerry to County Derry, is very distinctive but if one is from outside Ireland, one has no idea what county or region one is in. What are we selling abroad? Is the west of Ireland a place? I know that surveys were conducted with Italian visitors who had no idea if they were in the south west, Shannon, north west or west. They were looking at what was good about Ireland, namely, the friendly people and the unspoilt environment. They do not go looking at county or regional boundaries. If that is part of marketing, one should not get hung up in this country about what county or region one is in. One must think like the customers. If I am going to France, I do not care what region I am in. If there are counties, I do not go. I will go to Paris and then see parts of France. I may also go to the seaside if there is a nice resort. Counties and regions are not the big issue that we make of them here.
As a Border county, we considered in the region what the way forward might be for the north west. We worked on the issue of the western seaboard. We formed an alliance. Mr. Concannon from Ireland West will talk a little more about the western regions as a concept. There is a partnership. We asked an external agency to look at the north west. It issued a report in January 2005 stating the best actions in the next few years and the best markets that we could look at. In our estimation, if the west looks the same to overseas visitors, I am fairly sure counties Derry, Fermanagh, Donegal, Sligo and Leitrim will not mean much to them either. There is, therefore, an opportunity for us to work more closely both with the west and with our Northern partners, and we intend to do so.
The best prospects for us this year, to answer the member's question, are at least to maintain the number of overnight stays in the region. Recovery from Great Britain depends a great deal on what happens in terms of access regarding Knock Airport and City of Derry Airport. We must act on Donegal Airport. Sligo Airport has limitations relating to the length of its runway, as does City of Derry Airport. Donegal County Council is working closely with the authorities in Derry on the development of City of Derry Airport. One can access the area covered by North West Tourism by flying into Knock and Derry airports. There are six new routes from the UK into Knock Airport and four new routes into City of Derry Airport. North West Tourism needs to focus on increasing that capacity.
Every time I use Knock Airport, I notice that my fellow passengers are Irish people availing of cheap flights to the UK. We need to consider whether we are engaged in enough marketing in the UK. We should try to ensure that at least 20% of those who use regional airports are incoming tourists. Members of the committee who use regional airports for overseas travel will notice the phenomenon I have mentioned. When I flew from Knock Airport to Manchester recently, every accent I heard on the airplane was Irish. When I flew from Manchester to Dublin, a far greater proportion of the passengers were from other countries. We need to examine such matters when trying to promote tourism in rural areas.
North West Tourism needs to maintain its growth in the Republic of Ireland and Northern Ireland and to retrieve business from Great Britain, France and Germany. It needs to work with Belfast International Airport to promote the new route from Newark that is to be provided by Continental Airlines. It needs to specialise in a number of things, such as product-based short breaks for visitors from Europe. I met a tour operator this morning to discuss the preferences of people from various parts of Europe. We need to think about customers, but we do not always do so. In Germany, I should sell the activities in which German people are interested rather than a generic product. The same thing applies to all international markets.
It is unlikely that tourists enjoying a short break in Dublin will travel to other parts of the country. That is a significant issue for tourism in Ireland. How do we entice visitors to take short breaks in the regions? How can we encourage people to bring their cars here? We seem to attract many people to come here for two or three days, but few people come here for seven or 14 days. If that trend continues, tourists will be more likely to stay in Dublin after they arrive rather than visit other parts of the country. Our tourism development should have at least two or three strands.
I am glad that Tourism Ireland and Fáilte Ireland, under the aegis of the Department of Arts, Sport and Tourism, are considering the development of tourism in the regions as a key issue for the first time. I ask the committee to resource such development and listen to what the regional bodies have to say. It is a major issue. There is a need to specialise the marketing of the various regions in the various overseas markets. We do not always have to consider regions as the south west or the north west. We can consider the west or we can include counties Derry and Donegal in our consideration of the north west.
The tourism bodies need to be somewhat smarter and to think more like their customers. They will not increase the spread of tourism throughout the country by focusing on a crude measurement of visitor numbers to the country as a whole. We need to think regionally. I will not speak about matters like website development which are related to the matter under discussion.
I would like to discuss the important issue of the level of resources available to the regional tourism organisations. Regardless of the amount of money that has been allocated directly to regional tourism authorities in recent years, it cannot be disputed that the percentage of the national tourism budget given to the regions is just 6%. Those who have cited figures like €25 million and €33 million refer to money that is spent on behalf of the regional authorities. North West Tourism is responsible only for the €6.4 million that is allocated directly to it. If someone else spends €18 million or €19 million, I can honestly say that I do not know what it is being spent on.
The Department and the Government claim that the amount of money being spent on the development of tourism in the regions has increased from €25 million to €33 million. I assure the committee that the amount of money given directly to regional tourism is approximately 6% or 7% of the national budget. The members of the committee should bear that in mind in the context of the current national review of the regional tourism authorities. North West Tourism asks for the money that is to be spent on developing tourism in the regions to be given explicitly to the regional authorities. People can then hold the authorities accountable in any way they see fit. It is hard to be accountable for money that one does not receive.
Five counties have been given a total budget of €380,000 to be spent on marketing. I joked earlier with Mr. Seán McEniff, who is sitting beside me, that even though I am from the poorest region in Ireland, I have one of the richest men in Ireland with me. Mr. McEniff probably has a budget of approximately €380,000 for two of his hotels. I am trying to market five counties with the same amount of money. It is a bit of a joke.
Following a great deal of sweat and toil, North West Tourism has sourced €1 million for 2005. I am happy to inform the Chairman of the committee, who is from County Donegal, that INTERREG agreed this week to give North West Tourism a grant of €2 million to support the southern Border counties. It is a pity that INTERREG, which is a European body, was the first to make a move in this regard. North West Tourism asks the Government and Tourism Ireland to match the funding it has secured from the EU. The organisation does not need to produce a begging bowl because it has succeeded in getting some money.
When the Minister for Social and Family Affairs, Deputy Brennan, launched an Aer Arann service in his former capacity as Minister for Transport, he asked those of us in the west to stop whinging. He said that we should go out and do something for ourselves. He assured us that the Government would not be found wanting when we come back to Dublin. Mr. McEniff and I have returned to Dublin with €2 million in EU funding. We would like the committee to use its influence to ensure that we can acquire a further €2 million over the next two years.
The representatives of North West Tourism have attended many meetings at which partnership was discussed. While we welcome partnership, we would like to be seen as equal partners who receive a fair share of funding. North West Tourism's independent consultants, who have identified our marketing and resource needs, have recommended that we should spend 55% of our budget in Ireland, 25% in Great Britain, 10% in the US and other long-haul markets and 10% in Europe. The consultants estimate that we will maximise our chances of meeting the region's tourism potential in 2005 if we spend our resources in such a strategic manner.
North West Tourism needs to develop its partnerships with other interested parties, for example, by strengthening its strategic alliances with airports and sea carriers. It is encouraging that so many new flights come directly to the west. It is important that the north west should get an equal share of the tourism growth that will accompany the increase in population of the Dublin region by 400,000 by 2020. North West Tourism needs a fair share of national funding to ensure that it achieves an improved performance in the Republic of Ireland market.
As a tourism authority, North West Tourism needs to work much more closely with the local authorities in the north-west region to improve the tourism product offered there. People have asked me what families can do if they come to Ireland for a holiday. We need to sell to them the idea that there is plenty to do here. It should be considered that the over-55 age group is the fastest growing age group in this country. We need a market for them and something for them to do. We need to bear that in mind as we develop new tourism products.
North West Tourism is glad to have been asked to contribute to the compilation of a new ten-year strategy by analysing its experience of working in partnership with local authorities to develop products. All I am ever asked by the organisation's 1,200 or 1,300 members, all of whom are from the tourism trade, is how many visitors I will be able to send to their hotels, bed and breakfast and self-catering facilities. Regional tourism bodies should not lose sight of that; we should not allow ourselves to be caught up in administrative problems, etc. If such bodies are free to do the job they are charged with doing, they will not be found wanting. If people want them to operate within new structures, that will not be a problem as long as they are resourced properly.
I am aware that the regional tourism authorities are here to give information to the committee, but I would like to ask it a question. Can the committee use its influence to ensure that more resources are allocated directly to the regions? Such funding is crucial to the development of tourism in the north west and the other regions.
It is hard to make all one's points in ten minutes. I appreciate that the paper trail will be useful to the joint committee. I invite Mr. John Concannon to make a presentation on behalf of the western region.
Mr. John Concannon
Tá an-áthas orm agus ar an chathaoirleach a bheith ag an choiste seo inniu. On behalf of the chairman, Mr. Richard O'Hara, and the board of Ireland West Tourism, I thank the committee for giving me the opportunity to make this presentation. I have circulated a document that briefly summarises the points I intend to make.
I joined Ireland West Tourism last July, having worked in an industry that is very different from tourism before then. After I started to work for the organisation, I spent approximately four months travelling around the west meeting the key people who influence the industry, such as politicians, members of local authorities, Ministers and officials from Fáilte Ireland and Tourism Ireland. We reached some conclusions and in October presented a strategic plan for the region to the board and that has been adopted and implemented.
There has been strong growth in the west's economy in the last five years, with a 30% increase in full-time employment. Looking between the sectors and at the sustainability of that growth, agriculture, which was the mainstay of the western economy for 100 years, has undergone a massive 25% decline, even before the Fischler reforms. Also, growth has been driven by construction which accounts for 80%, but that is cyclical. The sustained element of growth, therefore, is services. The western economy is now service driven and our major service industry, export and economic engine is tourism. In future, it will be the sustainable economic platform for the region. That sustainability, however, must derive from design, unlike other parts of the world where sustainability was assumed and did not come to fruition.
More than €700 million was spent in the tourism sector in the last year. That figure is increasing but many people do not see it. We commissioned studies by Professor Jim Deegan in the University of Limerick on tourism policy and Professor Dick Maloney from University College Cork on economic policy, and they concluded that the tourism industry spend of €700 million creates through a multiplier effect a full impact of €1.9 billion in the three counties. Almost 2.5 million people come to the west and the numbers are growing. As only 380,000 people live in the region, local authorities plan for them but there is a transient population that is not being taken into account in terms of infrastructure.
There has been a decline in the international market since 2000 and most of the growth in the north west has come from the domestic market which accounts for 50% of the overall market. The visitor numbers to Ireland in the last three years have shown strong growth, with 3% more people coming last year than the previous year, but visitor numbers are not the most relevant measure because they hide a serious decline in regional tourism. Visitor growth was driven by one element, the short break market into Dublin. That visitor stays for two or three nights, does not engage with the country culturally or travel to the west so he has no impact on us. Those who have an impact are the regional tourists who hire a car in Shannon or Dublin and travel through the west. Their numbers have declined significantly since 11 September 2001 and have not recovered.
We must bear in mind that the increase in total visitor numbers is driven by one small segment in Dublin only. When it is taken out of the data, there is a decline in numbers. The visitor numbers, however, are only one factor. The real issue in the west is the number of bed nights, which is the visitor numbers multiplied by the length of time they are staying. They represent the economic opportunity for the industry to get a return. Since 1999, the country's international holiday bed nights have declined by 3%. There was growth of 40% in Dublin with a halo effect in the midlands and south-east, but there was a major decline in the west with 22% fewer holiday bed nights than in 1999. The national development plan and the spatial strategy highlight tourism as the driver of regional development, but since 1999 that has not been the case.
The decline in product quality is one of the reasons for this downturn in numbers. In 1993, more than 300,000 people came to Ireland for a walking holiday. Trekking is one of the major attractions in Ireland. By 1999, however, the figure had fallen to 190,000 and by 2003 it was 160,000, almost half the 1993 figure. In the west that translates into 250,000 bed nights lost. If we look at the quality of the product, there are very few maps, guides, walks and little or no innovative management and maintenance of the product. It must be seriously improved if we are to attract people to rural areas in the west. Of the walkers who come to Ireland, 93% holiday outside Dublin and they stay on average for 14 nights throughout the country. Every walker is worth five city break tourists in Dublin. If we are to revive the industry in rural areas, we must link it closely to walking and angling and give people reasons to come.
Although there has been a major decline in demand for beds, there has been a substantial increase in supply. Between 1999 and 2003, there was a 20% increase in hotel capacity in the western region, with major growth in the three star hotel sector which underwent a 50% increase in capacity. There was no corresponding increase in demand, however, so supply is now contracting, as we can see in the bed and breakfast sector where there has been a 20% decline in accommodation. There has been a switch from bed and breakfast accommodation to hotels in urban areas but in rural areas it is the only accommodation on offer. If there is to be an economic input into rural areas, bed and breakfast accommodation must be in place. Currently, however, there is an explosion on the supply side. Two hotels are planned for Tuam, with more planned in Loughrea and Claremorris — places where there were never hotels before. There are so many now that if we do not drive demand, there will be a crash in future.
We have a slide of the picture that greets people crossing the Shannon. We were told by the industry that a new image for the west was needed so we developed a brand that will appear on all of our material. We are calling the west "Croí cultúrtha na hÉireann", Ireland's cultural heart. We did extensive work with the industry to say that the west is more than a region; it is a unique experience, the vibrant heart of Ireland, and it is our job to uphold that reputation. There are three elements that underpin that. It is an exceptional place to come on holiday, it is friendly and it nurtures creativity with a deep tradition of arts, language and heritage that we willingly share. We are promoting those three elements as croí cultúrtha na hÉireann.
From a promotional perspective, the industry in the west was fragmented between many groups that promote tourism. We are making a strong effort to bring the west together and are working with county managers. For the first time in recent history, local authorities in Galway city and county, Mayo and Roscommon will come together to promote the west and we have had some success in matching funding from various sources. We work closely with the Departments of Arts, Sports and Tourism and Community, Rural and Gaeltacht Affairs. We hope to focus on the domestic market and to sell the west as a great experience.
Internationally, we are taking a position as a key cultural destination and there are four reasons underpinning that. First, there is the archaeological heritage, including Dún Aengus on the Aran Islands, the Céide Fields in County Mayo and Rathcroghan in County Roscommon. Second, there is the traditional culture. The soul of the Irish language and traditional music is in the west. There is a global movement around Celtic culture and its soul is in the west. The third area is our educational culture. NUI Galway, or UCG as it is better known, is emerging as the main university of the Border, midlands and west region and is a major player on the international scene. The fourth element is our living culture. We have many artists, poets and writers living and practising their trade in the west and we believe that these people should be celebrated through festivals and events.
We have worked closely with the local authorities, profiled all the festivals and events and have produced a brochure for the members which outlines what takes place. Like the other regional tourism authorities, we will promote these festivals and events in partnership with Fáilte Ireland. We have worked with the arts officers within each local authority and have identified those festivals that should be promoted internationally, nationally, regionally or locally. We have agreed collectively that the Galway Arts Festival would provide the best platform for discussing the west. Next week we will launch the festival in New York. This year's festival is very significant because the Druid Theatre Company, which has won several Tony awards, is staging a world premiere of all Synge's plays. The Minister for Arts, Sport and Tourism, Deputy O'Donoghue, will launch the festival in Manhattan. The target audience is arts and travel writers and the aim is to highlight the west in New York. We will also launch the festival in London.
While the cultural element is very important for tourism in the west, we feel that the future is also closely tied to the future of products. We are setting up a number of product groups throughout the region. For example, under Christian heritage we have Knock Shrine, Kylemore Abbey, Boyle Abbey, Galway Cathedral and so on. The aim is to bring these together and work with them as a single unit or product. That is something on which we will concentrate this year.
We are developing a new website. This is important because we are in the middle of an e-travel revolution. Many businesses in the west generate more than 50% of their trade through the web, so the website development is a significant project. We have also produced for the first time a guide book and holiday planner which was launched in Galway last week by the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív. The guidebook highlights all the activities on offer in the west and the attractions in the three counties. It will be available free of charge in all our local tourist offices and in every Tourism Ireland office worldwide. This will drive interest in the western region.
There has been a major increase in flights from the west, as Mr. McLoone mentioned previously. There are now 221 flights from the UK per week, 112 of these from London alone. Air access has been a major issue for the region. In the airports from Shannon up to Derry, there has been a major increase in traffic, which is very welcome. All the airports are doing well and Knock Airport, which is in the centre of our region, is experiencing very strong growth. However, the initial feedback from Ryanair is that UK bookings are not as strong as we would like. The Ryanair low-cost base in Shannon has resulted in half a million seats from the European market which is a very positive development that will benefit the region greatly.
The partnership between Ireland West Tourism, North West Tourism and Shannon Development under the title, Ireland and its Western Regions, ensures that we can promote the region while achieving economies of scale and maximising our expenditure internationally. We pooled our resources to yield a budget of €350,000. The airports joined the alliance and added €150,000 to the budget. We then joined forces with Fáilte Ireland and Tourism Ireland and lobbied for matching funding from the Department. Our budget is now €1 million which is nowhere near what is needed, but the symbolism of the west coming together has been acknowledged by the State agencies.
There are a number of elements to our collaborative programme. The first element is consumer advertising throughout the UK inviting people to fly to the west. Another element is a new website, which acts as a portal to our existing websites. We have also produced a simple 32-page brochure which has been translated into German, Japanese, Spanish and a host of other languages. It is available in every Tourism Ireland office worldwide. We also co-operate on a series of trade shows in order that one representative attends on behalf of all three regions, thus enabling us to attend more shows. We also conduct a series of public relations promotions.
There are many reasons to be optimistic about tourism in the west. A number of the State agencies are beginning to implement the tourism policy review group document and we hope that it will be implemented in full. It must be pointed out that the main innovation has been in the accommodation sector where the hotel industry has invested enormous sums. However, no other sector has invested to the same extent and the result is that we have half the amount of anglers visiting, less than half the amount of walkers and we are seeing a serious decline in the rural economy compared with ten years ago. We must accelerate investment, innovation and the revised operational programme for tourism or the situation will deteriorate further.
Improved air access provides another reason to be optimistic. However, this improvement in access has happened very quickly and we are trying to work as a team in the western region to exploit its full potential. We know that our efforts are not enough but they represent a start. We have made a commitment to our partners to focus our spending in the marketplace to drive demand.
Infrastructural improvements also bolster our optimism. Developments such as the Ennis and Loughrea bypasses are very welcome. However, many infrastructural gaps have yet to be addressed. The improvement of the N18 from Ennis to Galway has been approved by the National Roads Authority but has yet to be formally signed off. Knock Airport, which has a €40 million long-term development programme, needs €5 million immediately for a category 2 landing system to expand its services. The Galway city bypass is essential to the Connemara region because getting through the city can often add an hour to a journey.
There are many reasons to be optimistic. As tourism authorities, we champion new partnership models between us, Tourism Ireland, Fáilte Ireland, local authorities, the Department of Community, Rural and Gaeltacht Affairs and the Department of Arts, Sport and Tourism. We must drive demand collectively. The challenge ahead is to manage the tourism industry effectively because it will be one of the strongest economic drivers in the future.
There is a fount of information in that for members and I know the committee has a considerable interest in all this. I will start by asking three questions relevant to all areas and then a specific question for each region. All the questions from the committee members will be taken together followed by responses from each of the regions.
Do the regional representatives agree that, despite the number of people involved in tourism, including those in Fáilte Ireland, Tourism Ireland, and the regional, county and local tourism bodies, there are still areas within regions that do not get their fair share of the regional budget? What can be or is being done to address this?
I am interested in the representative's views on whether we can afford to forget about the bed and breakfast sector. If we cannot afford to do this, what options are available to support this sector?
Could all the regional representatives outline their spending priorities in the event of extra money being made available to them? Would the focus be, for example, on better access, product development or marketing?
My next question is for the south-western region. Why are people in Cork still fund-raising for the city of culture, when we are nearly halfway through the year? What was the role of the regional tourism board? How did it contribute to improving Cork, given that Europe's attention is focused on the city this year? What priority has been placed on the development of new products in the north west? This is an issue which occurred to everybody. There are products in most areas but this is not being regenerated. In some areas such as our northernmost point, Malin Head, there are no products. What role does the North West Regional Tourism Authority feel it should play in actively consulting groups to maximise the region's under-exploited potential? In the context of the Six Counties being the north west's largest potential market, how will the regional authority meet the challenge of the massive expenditure which is a dividend of the peace process? It appears that the peace process has resulted in phenomenal marketing for the north to the dis-advantage of areas in Donegal.
Our discussion may be premature because the Government now has the PricewaterhouseCoopers report which will make recommendations on the future of regional tourism authorities. Leaks of the report suggest that their outlets will fall under the administration of Fáilte Ireland. I read of this in newspapers and I am uncertain of its accuracy. The report will certainly be significant and will result in changes, some of which will be welcomed.
A number of years ago the Dáil discussed the marketing of the western seaboard from Kerry to Donegal in a similar fashion to the Algarve, the Riviera, Spain and the coast of California between San Francisco and San Diego. The western seaboard is a coherent entity. Is there discussion of a joint marketing campaign among the three organisations which represent the entire western seaboard? They have supplied literature on the west but there are some differences between the west and the western seaboard. This is a strong product which would benefit every region.
The UK market declined by 6% between October and Christmas. This is worrying because it does not appear to have yet recovered. Many tourists wished to get away from urban centres in the UK and visit the west of Ireland. This was to the benefit of Donegal, Kerry and the western seaboard. Will the delegates inform us whether the decline in the UK market directly affects these regions?
Last year's case of the farmer in Sligo who was imprisoned in regard to walkers on his land received extensive exposure. The walking fraternity throughout the world is closely knit and reads the same magazines. Bad news about fenced off walks circulates quickly. Has bad publicity resulted?
Dublin receives increasing numbers of visitors because it is currently the second most exciting city in Europe and has strong products. Almost two weeks are required to visit every sight in Dublin. It also has high quality hotels. Visitors are therefore not inclined to travel west. The strength of Dublin's products presents a major challenge to the remainder of the country. Unless the new regions develop strong products they will become less competitive. A major conference centre will be built in Dublin within a few years which will attract more events.
I welcome the incorporation of north Kerry, which was previously divided, into Cork-Kerry Tourism. However this was done too quickly and should have involved a transition period. North Kerry was not a traditional tourist area and I fear it will suffer in the short term. From a political point of view, the consultation process was poor. Although I am involved with most aspects of north Kerry tourism, my opinion was not sought on this issue. I might have made a positive contribution.
I would like to ask Mr. McEniff a question on the decline of bed nights in bed and breakfast accommodation. Hotels in north Kerry offer discounts which can make their rates lower than those of bed and breakfast accommodation. People opt for hotels that have swimming pools or other facilities. That is one reason for the decline. Hotels are under heavy pressure to ensure cash flow. Would Mr. McEniff draw on his experience to respond to this matter?
What is the expenditure on promotion for the combined Cork and Kerry area as well as for the respective counties? Is Cork promoted more heavily than Kerry? A recent advertisement in the Irish Echo primarily featured Cork and only a quarter of it was devoted to Kerry. My concern may arise from the tradition of rivalry between Cork and Kerry. In the past we lost out on health and industry and we do not want to do so with tourism.
I come from the south east and live in Tramore. The remarks on bed and breakfast accommodation interest me because there was a huge demand for this form of accommodation during the 1970s in Tramore. Family groups were the mainstay for bed and breakfast establishments, many of which were unregistered. However, this demand died by the end of the decade and the emphasis changed to self-catering and attracting tourists from the Continent. By the time investments were made the market had changed and people did not come.
I note the remarks that bed and breakfast operators are more successful in urban than rural areas. Does the decrease in walking based tourism arise from current controversy over access? Interest in my area in mountain walking is growing although I am unsure of the consequence. I have visited the Cork and Kerry region for more than 20 years and remember seeing cyclists, but I have no doubt that numbers have decreased since the 1980s in the rural areas I visit. I know people who invested in bed and breakfast accommodation in the 1980s and when the market declined, it took them a long time to realise a return on their investment.
I can understand the concerns regarding rip-off Ireland. If that negative image is projected on the Internet, it does no good. As the younger members of my family use the Internet for booking virtually everything it is difficult for the smaller operator to compete. Would the fact that we have had some anti-social behaviour and attacks on tourists also be a negative factor? Perhaps the representatives have information on whether this has been damaging to tourism, specifically in terms of our ability to attract people into the country.
The points made on access are familiar to me. In our region, there was a long-held belief that before air access had developed to the extent that it has, Rosslare and the south east were gateways and people were leaving that region for other areas. The strategy was to try to keep people in the region. Has the pattern of entering the country changed over the past decade and is there potential for developing more air routes? On the issue, for example, of Cork having a transatlantic service, unless it involves back-to-back charter flights, it would be difficult. However, it would be very welcome and in the national interest if someone was to take it on. I remember with Waterford airport——
Will the Deputy ask a question, please.
With Waterford Airport, in the 1980s we sought to interest travel agents in our activities, but there was not much response because the carriers have to do a lot of the business, or someone must do it on their behalf. I remember talking to people from Jersey, for instance, who were looking for equitation and golfing facilities. A number of people were going from the Waterford region to Jersey, but it was not possible to interest an operator in developing that business. It is a tough business and I would like to see further developments in the future.
I do not wish to interrupt members but, while I know that members would like the opportunity to expound the benefits of their areas, we must try to be succinct.
I compliment the three regions on their presentations, which were outstanding. I served with Mr. Richard O'Hara, Mr. Seán McEniff and Ms. Georgina Coughlan when I was chair of the East Coast and Midlands Tourism Authority. I had a tough battle on my hands trying to get funding for the midlands.
As Deputy Deenihan has said, the publication of the PricewaterhouseCoopers report will have a major bearing on the regional tourism authorities. It is time they received the recognition and the funding they deserve. They have worked very hard in the past, with limited resources and have been very successful.
My question relates to the decline in the number of approved bed and breakfast establishments. Obviously, with the issue of drink driving, people are more inclined to stay closer to towns. What are the authorities doing to arrest the decline in the more outlying areas?
We had a prestigious event in County Clare recently, the World Irish Dancing Championships, but people left Ennis with a very sour taste in their mouths due to rip-off Ireland, not because they were ripped off in the hotels, but because the organisers of the event ripped them off. I propose that this committee writes to the organisers to find out why that happened. This will affect tourism. I have been led to believe that while there were two very successful dance championships in Ireland, there are plans to move the event to the United States next year because of the treatment meted out by the organisers here. I would welcome the views of the representatives on this. I met people, including performers, who left the State with a very sour taste in their mouths because they were ripped off by the organisers. That is not good for our image as a tourist destination.
I welcome the representatives and compliment them on their presentations. Previously, I owned a restaurant, pub and shop in the tourist area of Lough Key forest park. I saw that the lack of infrastructure meant that tourists did not visit the park. I am delighted there is now extra hotel capacity in the north west, the west and the south west, and I believe this will generate more tourism.
However, like everyone else, the first thing that I look for is value for money. We have seen that businesses have had their costs increase, with the introduction of the minimum wage, the rise in insurance and electricity prices, the rise in rates etc. It is very difficult for any business to strike the right balance between prices and costs. I accept that the tourism authorities are doing good work, but I take issue with the comments on rip-off Ireland.
Rip-off Ireland is a Fine Gael initiative, which outlines and highlights rip-offs, such as that outlined by Deputy Breen. We highlight issues on the Internet and encourage providers to give customers value for money. I do not think that it has a negative effect. It highlights where people have been ripped off. Obviously, if I am ripped off in a country or in a hotel, I will not go back there and I will tell 10% of my friends about it. We have to be mature enough to compliment the product when it is good and I believe it has improved, but if people have an issue or a complaint, they have a right to protest.
I am anxious about the decline in angling, which is obviously caused by the fact that fish are no longer plentiful in our rivers. Various politicians have tried to draw attention to the fact that fish stocks have been declining in the past ten or 15 years. British anglers were very important to the less developed areas but they are not coming back, not because of prices, but because of lack of fish stocks. Nobody is addressing that problem. The regional fisheries authorities have no answer. They tell us that there is nothing wrong with the water quality, but the absence of fish is obvious.
I am concerned at the 3% decline in holiday bed nights in the western region, while the Dublin region has increased by 40%. It is obvious that Ryanair has made a significant contribution to the tourism market. Its low-cost flights into Dublin have boosted the industry. These flights are also welcome in Shannon and will be welcome at Knock and Derry. We can praise Fáilte Ireland for its work, but Ryanair is a very important factor in tourists deciding to come here. Perhaps we should provide a second terminal at Dublin Airport as well as some funding for Ryanair because it has been the major contributor to the growth in tourism.
I compliment the hotel industry on providing value for money. The two-day break initiative on Fáilte Ireland's website is welcome. I hope that bed and breakfast establishments will not be excluded. However, as was the experience in my own business, the strongest survive. The Government may subsidise smaller providers to ensure they survive and compete. We have a good product and service, which is provided by immigrant workers, and which has improved in hotels and restaurants. Service providers in the UK have much to learn from Ireland.
As we are here to elicit information, I ask the members to ask questions.
I wish to make some brief observations before asking my question. I welcome the members of the tourism boards who are doing their best to promote tourism. I am acquainted with Messrs. McEniff and O'Hara each of whose record demonstrates practical contributions to tourism. That cannot be disputed. I would keep this committee in session for a week if I were to speak to their successes in tourism.
I was lucky to spend last weekend in Galway and Donegal. I found good accommodation, food and service. The value for money I received was unbelievable. I dislike to hear the term "rip off" used in the context of Irish tourism. I hope the word "rip" will not stand as an acronym for rest in peace because I would like to meet those here in the future.
We are still in business.
There is value for money and good products to be found all over Ireland. It is codology to suggest otherwise. What one action would these experts recommend the Government take to fill beds? Mr. McLoone was correct that this is the bottom line. I am sure the Government would be willing to act on the recommendation.
I would like to follow Deputy Kelly's question by asking the members of the delegation to suggest three issues they believe to be of critical importance. Otherwise our discussions may roam across a wide spectrum from fisheries to beaches. I also welcome the delegation and compliment those involved in tourism for their significant investments over the past years and for the services they provide.
Reasons for the decline in international business include the state of the German economy which has resulted in fewer visitors from that country. The experience of many years is that election years in the US are bad periods for American visitors. Despite a temporary blip in the market some people have experienced no reduction in numbers because of extensive marketing overseas. What international marketing is being carried out in, for example, Germany? The German market will improve.
What major attractions should be in place? We lack major events such as the Cheltenham races or last week's Grand National which attract large numbers of visitors. We have held discussions here regarding a conference centre in Dublin. There is a desire also for a national centre in the mid-west or south west which might attract conference business to the regions. Overall, however, the people and organisations have done a good job. There is no question that more needs to be done.
I realise that the delegation has been asked a great number of questions, although some are on similar subjects. I intended to ask the Western Regional Tourism Authority about value but probably due to parochialism limited my questions to the north west. Is there agreement that there is good value, particularly when a specific area is busy such as Ennis during dancing championships or Galway during its races?
Exploitation by some people does their industry no credit. I sought accommodation in a bed and breakfast establishment while attending the Galway races some years ago. The proprietress on being told that there were two in my party informed me that only family rooms were available, which she claimed I could not afford despite having parked a BMW beside her gate. I know that there is good value but what happens when the industry is let down by someone? Are spot checks carried out during events to ensure nobody ruins the trade? Had I been a foreigner who was not there to attend the Galway races I would not have understood the situation.
Mr. Concannon
To answer the last question specifically addressed to the western region, it is our view that there is excellent value in this region compared with the east. Everything from a round of golf to the price of a pint or hotel room represents significantly better value than can be found on the east coast. However, individual operators at certain times of the year engage in predatory pricing. The Galway races is a situation in which people have abused their positions for short-term outcomes. We must collectively decide what should be done. Along with the chamber of commerce and the races committee we have highlighted the issue through a public relations campaign on pricing during the races. I lived in Dublin for ten years and I agree with the view of other speakers that the west of Ireland is the destination with the best value for money in the country. We need to do more to transmit that message. In the past five years, the price of a holiday in Ireland has been reduced owing to competition in the hotel industry and low air fares and car hire charges. Only in the food service industry have prices not been reduced. Tourists must make decisions on meals every day which is an emotive topic and one that is remembered. However, the food service industry suffers from a high cost base due to VAT and the minimum wage, unlike other competitive destinations such as Portugal. It is not comparing like with like. It must be accepted that more than half the visitors to Ireland believed there could have been better value for money. However, 94% of visitors said their visit was an excellent experience and they would recommend it to their friends. In the west, we are trying to ensure the media and industry does not create an impression of a rip-off Ireland.
People with rural bed and breakfasts are feeling pain. In our region, international holiday bed nights have declined by 22% in the last five years. While Galway and Westport are seeing growth in bed nights, rural areas have seen a decline. Bed and breakfast owners are becoming angry and animated because it is their business and livelihood. Some weeks ago, when in Letterfrack in west Connemara, I met an old lady who had run a bed and breakfast for 24 years. Her daughter and son-in-law had intended taking over the business but had decided not to and were moving to Galway city. That is one small community that will lose a family which will also have a social impact.
The urban and rural differences of the bed and breakfast sector must be examined. The urban bed and breakfast sector is shifting towards the hotels while in rural areas new hotels will not be built. The bed and breakfast house is essential in getting visitors to rural areas. We would recommend re-examining unapproved bed and breakfast establishments. Ireland West Tourism believes that it is politically acceptable to deal with the unapproved bed and breakfasts. There are now more unapproved establishments. This would remove the fat out of the market, namely, those establishments that only enter in the peak seasons, and would reward those who invest in their businesses and standards.
The hotel sector has received generous tax breaks in recent years. While tax breaks may not be applicable to the bed and breakfast sector, grant-aiding would assist in its capital development. No one will visit a town or an area if there is no place to stay.
The weakness of tourism products is the main reason the sector is in decline. For example, the Western Way is closed in parts of County Mayo forcing many bed and breakfasts on the far side of Croagh Patrick to close down. If we want to get people into rural bed and breakfasts, the provision of tourism products such as angling and walking must be addressed.
As Ireland West Tourism has yet to see the PricewaterhouseCoopers report, it has reserved its position on it. However, we welcome change and believe it is necessary. The regional tourism authorities have been stuck in a paradigm of survival with several Ireland West Tourism offices run with sub-optimal resources. Our focus has been on surviving as an entity rather than driving the industry. Any initiative that will drive more resources to the regions and allow the tourism industry to develop must be welcomed.
The UK market in terms of bed nights has declined by 30% in the last five years. Tourism is a major economic driver that is not in a healthy condition. For a more realistic check of the industry, the main measure that must be used is bed nights. By only measuring visitor numbers, we are not getting a real picture of the industry. If bed nights are used as the main measure, all agencies such as Fáilte Ireland, and the regional tourism authorities will get a different and more realistic picture. If we are going to use bed nights as the main driver, the provision of products such as walking, angling must be ensured and they must be innovative.
There are three key factors in driving and developing the industry. Accurate measurement using bed nights must be used. The regional tourism authorities, in whatever form they emerge from the PWC report, will need more resources. In the past, the regional tourism authorities have not had enough money to do the job required. They are in the best position being closely linked with the local industry and providing innovative ideas for driving and managing the industry. Innovation is also required, and not just in the hotel sector.
Mr. Seán McEniff
The competition between hotels is intense as evidenced by the numerous advertisements for hotels in the national newspapers. Between 65% and 70% of our tourism industry income is repeat business which means visitors believe they are getting value for money. The national media creates more problems for our tourism industry with its claims of a rip-off Ireland.
I listened with interest on the comments on angling. However, it should also be noted figures for golfing and walking are also down. I await with interest the PricewaterhouseCoopers report. However, I believe it will be wrong to have less involvement from regional tourism authorities in marketing. Regional tourism truly represents the industry as our members elect us every year. I am not elected as a politician as chairman of North West Regional Tourism Authority Limited. I come from the hotel sector and every other sector in the industry is represented on the authority, yet our limited resources will now be taken away leaving less money for marketing. The people who know most about the tourism industry are those involved directly in it. I spend more in marketing my hotel than regional tourism spends on marketing five counties. We are strapped for cash.
They are starved of cash.
Mr. McEniff
Yes. The self-catering sector has come on very strongly which is not helping the bed and breakfast sector. Tourists tend to go to the main urban areas. In the north-west region the new hotels being built are in Carrick-on-Shannon, Sligo, Bundoran, Donegal town and Letterkenny. It is regrettable that not much is happening in Inishowen. I have addressed seminars in County Donegal in how to address this urban bias. While tourists will visit the small resorts such as the Ards, the Downings and Mullaghmore during the day, they will return to stay in urban centres where there are more night-time activities. In the last programme for the development of tourism products, the north-west region was promised three flagship projects but did not receive a single one. As Mr. McLoone pointed out, the region is the weakest one without any additional resources to match the competition from Northern Ireland.
Mr. McLoone
Some regions feel neglected in the national context. Where the accommodation is based is where the visitor will go. I will put my hand on my heart about the issue of resources. It seems there will be no support for new tourism products. We are looking for an innovative tax investment scheme for this area. There are many investors willing to invest in it. The issue is marketing property and seeking excellence in the products we have. We should focus on the strengths of each region and go to the market with them. We could have thrown our hands into the air and said it does not matter what is said. If somebody is being given only 6% of the budget, how can they be held accountable? However, somebody must be held accountable and we are up for it. It will not cost the Government additional money. We just ask that it be shifted from the centre to the regions and we will be accountable for it.
The reason there are so many small agencies in the regions is that the regional authorities were not considered strong enough. Where there are no resources and they are strapped for cash, they go to the county council instead and seek matching funding. There is a plethora of groups. A strong regional authority is needed. We do not care what the structure is. If there is a strong authority, it generates respect and will become the umbrella and driving force for the region. It would address many of the issues mentioned. The Northern Ireland aspect is just unfair competition and more resources should be directed at it.
If I were in another agency, be it a county tourism body or the like, I would look to the regional tourism authority for leadership. Four years ago, after I took this job, a county manager in Sligo apologised to me and said he did not realise the resources that were being given to me and was there anything he could do for me. That is a poor way to do business. The strengthening of the regions requires a real shift in resources.
Deputy Deenihan mentioned the PWC report. I looked at some parts of it but the issue of resources and the shifting of resources is not addressed. It is a smokescreen. If that is not addressed in the report, the report will not bring new business to Seán McEniff, hotel owners or the bed and breakfast sector. A report should not be produced for the sake of it. I am four and a half years in the job and nobody has ever said to me that I have a problem in the north west and that they will help me. There were more barriers put in front of me than help offered. I am speaking on behalf of everybody here, although some might not say it out loud. There must be some voice in the committee to represent us on this issue.
On behalf of the board of Cork-Kerry Tourism, I thank the committee for inviting us before it today. The bed and breakfast sector was mentioned a number of times. I am a bed and breakfast owner and I am on the management board of the Town and Country Homes Association. A seminar is starting this evening in Athlone at which the national executive of the Town and Country Homes Association will come together for what could be called a brainstorming session. A consultant from Mayday Marketing will talk to us all day tomorrow.
The age profile of bed and breakfast owners is one of the factors in the decline in the number of bed and breakfast premises. With regard to the home market, there is so much money available now that families can afford to go to hotels. Fifteen or 20 years ago they could not afford hotels. As a result of the Celtic tiger people have more money and they are bypassing the bed and breakfast premises. It is not that the bed and breakfast accommodation is not good enough but hotels have bars, swimming pools and facilities for children.
For years, bed and breakfast premises have received no subsidies or help. However, they are competing with hotels. One need only look at the daily newspapers to see hotels advertising accommodation for four people in two rooms at €25 per person sharing. The average price of bed and breakfast accommodation is €28 to €33 per night for a room with en suite facilities. No bed and breakfast operator can do it for less than that if they are giving the service required. I am sorry about the experience in Galway and I hope it will never happen again. On behalf of the Town and Country Homes Association, I apologise profusely.
Tourism accommodation providers have a price structure which they produce every year. There is a minimum and maximum price. If we charge above that price, we are breaking the law and we can be taken to task for it. If it happens again, the Chairman is entitled to take the person to task.
I ended up getting accommodation that was much cheaper. I found out from next door how much the single room would have been. It was quite scary. It would probably have paid for three weeks in any of Seán McEniff's hotels.
Ms Moynihan
I grew up in the bed and breakfast industry. The Chairman mentioned that the age structure is getting older. I generally ask bed and breakfast accommodation owners if their children will follow them into the business. All of them tell me "No". I would not have gone into the business either. It is tough.
My two colleagues mentioned bed nights. We need to be careful when looking at the tourism spend. Less than 20% of the money spent by tourists is spent on accommodation. The fastest growing part of the tourism spend is on shopping. After that there is spending on food, entertainment, transport and so forth. All those sectors benefit from the tourism spend. We should concentrate on other areas as well as on accommodation.
Within the bed and breakfast sector there are bed and breakfast premises and farmhouses. Farmhouses have not suffered the negative impact to the same extent as the bed and breakfast premises. One of the reasons is that they have a clear niche. The fact that they offer a farm holiday allows them to sell something that is different. They have a unique selling proposition.
It is worth mentioning how we are funded. Mr. McEniff, John Concannon and Paul McLoone have made their case. Cork-Kerry Tourism must bring in more than 50% of its income from the retail sales in its tourist offices. That means we start every year in the same position as the people in the tourism industry. If it is a bad season, we are also affected because people will not be coming to the tourist offices.
There is ongoing tension in the job of ourtourist offices. Are we there to service the visitor or are we there to generate revenue? Mr. Concannon and Mr. McLoone mentioned that we welcome change if it is for the benefit of the industry. I would need to see the changes before I would know if they were of benefit to the visitor because there is a strong endorsement on a continual basis by visitor surveys of the tourist information offices. They are often said to be the best in Europe.
We have approximately 1,800 members and we tend to use our members' funding for marketing. Deputy Deenihan asked if Cork was being favoured but I hear meetings have been taking place in Cork this week. They believe all the money is being given to Kerry. Believe me, I am pleased that Kerry is not involved in hurling as well.
I just asked the question. A person who showed me the Irish Echo in New York thought it gave that signal. I will show Ms Moynihan the advertisement.
Ms Moynihan
Ireland is not a cheap country and we do not compete as a cheap country. People who make comparisons are often not comparing like with like. One of the members mentioned the complaints procedure. When we look at the complaints that come in from tourists, few, if any, are about money. They are about many different matters but never about the cost of anything.
If a person were involved in manufacturing and was told that their product is really good but expensive, they would be forced to examine the product and, perhaps, re-engineer it to see whether it was being over-engineered for the target market. In light of the type of products we have available in Ireland, all the agencies involved are duty bound to target the correct audience overseas and at home. Mr. Concannon pointed out that the tourism surveys show that people would recommend Ireland to their friends. We were at a presentation this morning from Tourism Ireland and Great Britain. It came across strongly that the crucial influence on holiday destination is word of mouth from a friend, neighbour or family member. If such people have had a good experience in an area, they will return.
In the research being carried out in Great Britain, Ireland comes across as a destination for adults. We do not have a reputation as a family friendly visitor destination. I am glad that the opening hour restrictions for children was changed to 10 p.m., but it still has serious implications for our providers in the summer months. We should be able to bring children with us to enjoy the experience in bars during the summer. I do not know what went wrong in Ennis during the World Irish Dancing Championships last year. It was in Killarney the year before and I did not hear of any bad news then.
If I got funding, I would first seek to have it put into product development. We have a small project called the Skellig Experience Centre. It is owned fully by Cork-Kerry Tourism and was put in place by people who had great vision. We hired a Scottish consultant recently to examine it, following the call for applications under the product development scheme. This consultant runs a number of similar centres in the UK. He was astounded at the number of visitors we get every year given that not one penny has been put in by Cork-Kerry Tourism to update the technology or improve the facilities. We do not have the money, yet this product can still attract tourists. I can only imagine what we could do if we received the money to update the project properly.
The second action I would take is to ask tourist traders to match the funding available. However, it is no good marketing a product unless the product is good in the first instance. The third action I would take with the funding is to develop ongoing research. We still do not have the figures for 2004. Anyone in the private industry planning for 2005 must plan on the basis of what went right or wrong in 2004. We do not get those figures until well into the year and that needs to be rectified.
What do the representatives think of the bilateral arrangement between Ireland and the US on transatlantic flights? Should the Americans bid to come into every airport in the country or should the existing arrangement with Shannon remain in place? Do the representatives think that there should be an orientation course for non-nationals who work in the tourism industry here?
There is one such course running at the moment for immigrants.
There is one course, but it is not widespread. I met someone who worked as a receptionist and she told me she had been on no such induction course.
I was talking about it this morning.
There is a new induction course run by Fáilte Ireland for non-nationals.
What about the bilateral agreement?
Mr. Concannon
It should be changed.
I compliment the tourism authorities for their presentations which give a sense that the regions are very accessible. We were in Argentina recently and Deputy James Breen and I argued whether people should be coming to Donegal or Clare. The travel agent there wanted to know where Ireland was, which woke us up. Sometimes we think we are wonderful, yet in reality some people think Ireland is outside London or near France or Iceland. We must get back to the reality of working together. If we can get people into the country, we can start dispersing them. I thank the members and the visitors who have been with us a long time. The presentations have been very much appreciated. We believe that tourism is one of the largest employers for every region and that must be maintained.
Mr. McEniff
I thank the committee for inviting us. I would like us to have meetings such as this on a biannual basis.
It would be a pleasure.
The joint committee adjourned at 6.15 p.m sine die.