Two deputations representing tourism interests are attending the committee today. Dublin Tourism is anxious to present to the committee, particularly in light of the recent independent evaluation carried out by PricewaterhouseCoopers for the Minister. First, however, I welcome the representatives of Inishowen Tourism. I must declare my interest as I am from that neck of the woods. It is a long way from Malin Head to here but two members of the delegation are from close to that area. Mr. John McLaughlin and Mr. Andrew Ward may introduce their colleagues before they speak.
Tourism Industry: Presentation.
Mr. John McLaughlin
I am chairman of Inishowen Tourism and am accompanied by Mr. Tony McLaughlin, manager of Inishowen Tourism.
Mr. Andrew Ward
I represent Inishowen Rural Development Limited, IRDL. I am accompanied by Mr. Alan Moneypenny, manager of North West Tourism Development; Mr. Anthony Doogan, chairperson of IRDL; and Stuart Morris, treasurer of IRDL.
Mr. J. McLaughlin
I am delighted to have the opportunity to address the committee. Inishowen is a peninsula larger than County Louth, with a population exceeding that of counties Leitrim and Longford. It is the most northerly peninsula in the country. It suffered more than any other area during the Troubles because its main entry points were through Northern Ireland, from where most visitors to Inishowen came. During the Troubles, many were afraid to travel but, thank God, that time has passed. I hope the situation continues to improve.
Inishowen Tourism was formed in conjunction with a Leader I programme in 1992 to market and promote the peninsula as tourism numbers declined seriously in the area. That August, we established a tourist information point in Carndonagh, which is at the centre of Inishowen and is taken to be its hub although some in the area might not agree. Our first aim was to co-ordinate all tourism providers under one marketing umbrella, because everyone was trying to do their own thing and it was felt it would be more cost-effective and promote better market penetration if individuals operated as a group. We also took a number of initiatives and produced a detailed and informative map of Inishowen. We produce literature, including an annual brochure, which covers all the approved providers in Inishowen and is distributed worldwide. Inishowen Tourism also has a popular website which receives close to 2,000 hits a day.
In the past three months we have worked continually on a promotion and marketing campaign which took in Glasgow, Manchester, Belfast and Dublin. It was a major campaign, particularly focused on the attempt to revive the Scottish market, which was sizeable before the beginning of the Troubles. We work closely with the statutory tourism bodies in the county and are currently conducting a green promotion campaign in partnership with the local Leader group, Inishowen Rural Development Limited, Fáilte Ireland and the Western Development Commission. These agencies provide the funding and we handle the promotion. In addition, we maintain a close working relationship with North West Tourism and Donegal Tourism. In rural areas such as Inishowen, it is of the utmost importance that groups such as ours are supported and retained. Given its peninsular location and significant size, we must ensure there are people with local knowledge involved in tourism in Inishowen to support, advise and greet visitors.
I must interrupt because a Dáil vote has been called. I suggest Senator Kieran Phelan take the Chair while Deputy Fiona O'Malley and I leave for the vote. This will mean the meeting is not interrupted because there is still a quorum. Otherwise, we must suspend the sitting.
I do not object to a suspension given that the subject under discussion relates to the Chairman's constituency.
We will suspend the sitting until after the Dáil vote. Is that agreed? Agreed.
Sitting suspended at 4.30 p.m. and resumed at 4.45 p.m.
Mr. J. McLaughlin
An annual small capital budget granted to groups such as ours would provide a cost-effective way to market rural areas. It would create employment and ensure a flow of information and support to providers and visitors. We would not be in existence or able to survive financially without the support from FÁS and its social economy programme. That is how we have kept our operation going for the past ten years. Without it, we would not be able to sustain Inishowen Tourism. We are appealing for some form of capital budget to pay our overheads and allow us to market and promote Inishowen.
The present national structure for approval of providers is completely wrong in that there are too many different agencies and bodies involved. A simple licensing system should exist for bed and breakfasts and self-catering accommodation. We cannot market anything in our brochure unless it is approved by the statutory bodies and this creates a problem. Anybody can put up a sign for accommodation and they are in business. This hinders the people who have paid their way through the years and it is not right. A simple system should be introduced to ensure that the people who are in the trade are licensed. We could market all providers which would be much more cost effective and would bring in money to all of the development agencies and so forth.
People in our area are obliged to pay a registration fee to North West Tourism and they must also pay us in order to be included in our brochure. This is very costly for a small provider.
Mr. Ward
Inishowen Rural Development Limited is the local Leader company. The first line of our mission statement sets out the objective "to support, initiate and facilitate innovative strategies in partnership with others". Among the innovative strategies is the development of eco-tourism. At the launch of the Green Box in Leitrim, the Minister for Arts, Heritage, Gaeltacht and the Islands, Deputy Ó Cuív, announced that it would be the first of its kind in Ireland and that he hoped others would follow. He mentioned Inishowen as a possible second Green Box. We are carrying out a number of initiatives in that regard. Sligo Institute of Technology is running a tourism marketing and management course with an eco slant, and this is delivered through our organisation. We are developing a 50 km cycling cross-Border route in conjunction with Derry City Council and Donegal County Council. In addition, we are looking into the possibility of developing a seafood cookery school which would be very successful in Inishowen.
We are involved in Inishowen branding under the Peace II Programme. Ten or 15 years ago, Inishowen was rarely mentioned. The Leader company of the day decided to have pride in our place and promote the name of Inishowen. Now it almost everywhere. We would like to link the brand and name with the notion of an eco-environment. There is a danger in respect of the ending of the Troubles and the opening up of possibilities. We are situated at one end of a 40 km to 50 km round trip from Letterkenny, Derry, Limavady, Coleraine. Without destination tourism we may end up being left with nothing but petrol fumes. We are involved in a pilot support programme with Fáilte Ireland, Inishowen Tourism and the Western Development Commission's tourism programme and are considering a number of offers. The programme seeks to engage the trade in identifying solutions and offers for a one-off pilot.
There is a forthcoming festival promoting the idea of natural living, as well as the Brí Nua inter-territorial project, Catch the Wind. This might not be tourism per se, but it comes under the category of promoting Inishowen’s green and eco-friendly image. We were also the Leader driver in the western organic strategic initiative, WOSI. As far as destination tourism is concerned, food is equally important with respect to the clean, green image the west in general and Inishowen in particular needs. We also ran festival training and events to cover issues like insurance and all the kinds of problems faced by people organising festivals with the Association of Irish Festival Events, AOIFE.
I will now turn to marine tourism of which we have taken a very broad view. As the joint committee might be aware, Inishowen is a peninsula and is 90% surrounded by water. Greencastle, where I live, was once known as the gateway to the heart of Ulster. In other words, the great rivers, such as the Foyle and the sea were the motorways of the day. Consequently, places like Inishowen were important and people who held them could control vast areas. As a nation, we have probably underplayed the sea and have tended to be inward-looking. Our nearest neighbour is Northern Ireland and for generations, we have looked at each other through binoculars because of the Troubles and other reasons.
We examined the possible development of a common cultural heritage and Inishowen Rural Development Limited, IRDL, along with Coleraine, Limavady and rural Derry set up a company called North West Rural Development Limited. Alan Moneypenny is its manager and can answer any questions about it. In the beginning, we wanted to promote good news stories for our region. We also wanted to develop strategies to promote non-contentious cultural events.
In many ways, the land divides and the sea unites. A Drontheim is a kind of vessel which came originally from Norway to Derry. It was peculiar in that it could be found from Donegal Bay along the Antrim coast to south west Scotland. We were involved in its revival and it was a catalyst for a forthcoming event, the Celtic Maritime Festival. Moreover, we were guardians to the northern approaches, by which I mean that during the First and Second World Wars and for a long time previously, we were strategically important. For that reason, our wreck sites are among the most numerous in the world, which leads us on to diving. Malin Head is one of the best technical diving sites in Europe. We must use the wrecks as an asset and are examining ways to do this.
Tomorrow morning, the Minister is to launch the Atlantic Drift touring route in Buncrana, which entails the coming together and promotion of tourism from Glenveigh to the Giant's Causeway. Again, this was a Leader-IRDL initiative. Approximately €600,000 has been granted and we gave €7,500 to commission the feasibility study and business plan development. The question of marine tourism also brings initiatives like the car ferry to mind. This was also originally a Leader initiative and in the first 16 months, 500,000 people used the Magilligan to Greencastle car ferry. This proved that a latent demand existed to meet, talk and work together among people who had looked at one another through telescopes for generations. This is extremely encouraging and there is an onus on us to develop those links. Obviously, the development of marinas is part of marine tourism. The Donegal marina study published recently deals with the issue fairly comprehensively.
There has been a demise of sea angling festivals, which people tell me is due the imposition of safety regulations. I will give the joint committee an example. For years, Culdaff, which is in the north-east of Inishowen, has had a sea angling festival. However, a shortage of licensed boats emerged — I believe that Mr. John McLaughlin on my left has one — and an agreement was made to bring boats over from Portrush and Portstewart in Northern Ireland. Despite the fact that the authorities in Portrush and Portstewart probably had even more onerous safety regulations in place, we were unable to bring the boats over without being obliged to put them on the slip and going to great expense with officials coming up from Dublin and claiming mileage, air fares or whatever. Consequently, the people in the North were not prepared to go ahead, rightly in my opinion. We must seek joint recognition in several areas. This particular example is sea angling but the problem applies to all areas and particularly affects Border areas. Something must be done about it.
The Foyle is a great river. As far as the diaspora is concerned, two great waves of emigration have taken place, namely the migration in the 1820s which was effectively a migration of the Ulster Scots and then the emigration linked to the Famine. IRDL has been engaged with the building up of links with Canada, Scotland and the North, which is very important and beneficial. For far too long, we stated that we are isolated politically from Northern Ireland and geographically from the rest of the State. However, we are most certainly the centre of our own existence. If we reach out to our neighbours and build on our strengths which include the numbers of people who went to Canada from Inishowen, the North and Scotland we can build a kind of new reality.
I am a member of the Loughs Agency and a marine tourism study has been carried out by the Tourism Development International consultancy. I am aware that this joint committee cannot do much about this, but because the North-South bodies set up as part of the Good Friday Agreement are operating on a care and maintenance basis, its roll-out is problematic. I hope I am not being presumptuous, but both Nationalist and Unionist members of the agency itself believe it to be worthwhile and would like to see it go ahead. However, there is probably not much that can be done about the situation at the moment. It is a problem.
I am sorry to interrupt. As I stated earlier, I must go to a meeting and I want to put some questions on the record to which Mr. Ward should reply later. When North West Tourism came before the joint committee, I suggested that in spite of the involvement of a plethora of bodies in tourism, many people feel that their area is neglected. The representatives of North West Tourism responded by stating that its organisation did not have enough money and that the other tourism bodies would be quite happy with it, if it were given more money. I noticed that Mr. McLaughlin inquired about a grant for marketing. That raises the question of whether this is better done by Leader, Inishowen Tourism, the county tourism body, North West Tourism or if it is possible to co-ordinate the effort so that we do not spend one, two, three or four grants on tourism marketing.
Another question concerns the impact of Tourism Ireland on places like Inishowen and north Donegal. Is the extra expenditure that is now taking place for the Six Counties in the context of the Good Friday Agreement having an impact on Inishowen and Donegal in general? If not, what do the delegation members think the solution is? I am sorry to leave this discussion. However, I am familiar with the issues Mr. Ward has raised and I appreciate the time he has taken to come before the joint committee in order to raise them. I would like Senator Kieran Phelan to take the Chair and Mr. Ward should continue his submission.
Senator K. Phelan took the chair.
Mr. Ward
In the opening mission statement, the first word is "innovation" and the second word is "partnership". I will list some of our partnerships and we have provided the joint committee with a comprehensive handout. Our partnership links with the western development tourism programme include a training, management and marketing course; the Green Box and a search for a seafood cookery school. Our links with North West Rural Development Limited concern cross-Border activities. We have a partnership with the county development board with respect to the roll-out of an straitéis, the Donegal development plan. In conjunction with the Inishowen Partnership and Action Inishowen, a socio-economic profile with proposals for future development was prepared. I have given committee members the tourism section of this profile. The community sector came together and tried to examine its problems, sort them out and list the priorities to be addressed as well as who would address them. The members might find this interesting. Inishowen Tourism is involved with Fáilte Ireland in the production of marketing material and strategy formulation.
We have a number of significant opportunities. If we can get the development of the remit of the Loughs Agency under the Good Friday Agreement under control and get away from care and maintenance, there are budget lines present that we must get up and running. Another area of importance is the east-west strand of the Good Friday Agreement. As members know, this was seen as a counterbalance in many ways to the North-South bodies. From my position in Inishowen Rural Development Limited, community-type organisations have the best opportunity to efficiently and effectively build on the east-west strand using the bottom-up concept. This would have a dual effect. Local areas would lead the national agenda in many ways and help the political process in a practical way. INTERREG post-2007 states clearly that maritime boards separated by up to 150 km can be included. Donegal and Inishowen are always told they are at the bottom of every scale that ever was. Here is an opportunity for us to do something with a specific budget line.
We are effectively beside Scotland. To try to formulate links, Mr. Alan Moneypenny and I visited the Scottish Parliament and will go again next week. We have spoken with the Western Development Commission, WDC, and the BMW regional authority about this. Using the budget lines that are available is imperative. This is an important line in that it is 75% grant-aided and is there irrespective of whether we are Objective One, Two or so on. An opportunity exists, through eco-tourism development, to develop destination tourism within Inishowen. The continuation of the innovative Leader approach is essential. Of course, I would say that, but we can do it in a cost-effective way and reach areas where statutory agencies have difficulties. We can cut through much of the paperwork; we are nimble and innovative.
Mr. Michael Porter, a world renowned economist who has advised the Government on its strategy, argued that a country should "try to move its economy through the value chain from a resource driven economy to an investment driven economy to an innovation driven economy". We in IRDL would argue that innovation can best be delivered through our core competencies. For us, tourism, in particular marine-based tourism, is a sector capable of driving our economy forward. Our full potential can only be realised with the spirit of innovative partnerships. In our case, this not only includes the State but also the North and Scotland, which is only 53 km from Inishowen.
I thank Mr. Ward for his presentation. Before this discussion is opened to the floor, perhaps Mr. Ward will answer the questions asked by the Chairman.
Mr. Ward
The first question was in respect of Tourism Ireland and whether money should be centred on that body alone. From a purely Leader perspective, there is a distinct role for innovation. We have an advantage in that we are nimble, flexible and capable of getting something done in ways State organisations usually find difficult due to their bureaucratic natures. Concerning the money vis-à-vis North and South advertising and tourism development, I do not doubt we are in a catch-22 situation. We feel we have been neglected and the figures speak for themselves. We have not been able to develop properly because the Troubles have made it almost impossible to do so. We are now in a situation where peace is building but what do we find? If one watched television on any day of the week, one would find vast amounts of advertising money being spent in the North. Inishowen, with 31,000 people, North West Tourism and the tourism industry does not have access to the North’s budget lines. In many ways, this is a double disadvantage. The IFI can fund hotels and there are all types of grant aid for this area but we, with Derry as our main town, have none. We are at a strategic disadvantage. This issue must be examined. The likes of Inishowen and perhaps Donegal could be seen as pilot areas. We were badly hit by the Troubles but we are not now reaping the peace dividends to the same extent as elsewhere.
I welcome my fellow Donegal men. I thank Mr. Tony McLaughlin, Mr. John McLaughlin and Mr. Andrew Ward for their presentation so far. We may hear from the other gentleman a little later. To give a bit of a background on the matter of Inishowen, my involvement indicates there is no more resilient a breed of people in this country. Perhaps much of this is a result of Inishowen's proximity to the North during the Troubles combined with its good entrepreneurial system, be it due to isolation, peripheral location or whatever.
I like the presentation's outward focus on the marine sector, be it at angling level or tapping into the resources that are available. I have spoken to Mr. Tony McLaughlin previously. To use a success story, though it is outside the ambit of the marine, the Isle of Doagh farm is an example of an industry that survived and grew without any real State support. It is a tourist project that works well in the summer peak season and has developed a product for the winter "off" season due to the industriousness of the proprietor, Mr. Pat Doherty.
The road the delegation is going down as a Leader group is the right road. As Mr. Ward mentioned, it is important to avoid getting bogged down in bureaucratic centralisation. Groups such as his must facilitate and encourage local indigenous investment in an entrepreneurial way. Any support a company can be given should be given. I certainly do not need to tell these gentlemen about the recent history of transition from a manufacturing sector, as everyone knows about it. Hopefully, we will move on and the IT, organic and tourism sectors will fill this void. The resilience, location and history of Inishowen will stand it in a good stead. At the same time, Government focus should be "zoned in" on whatever ideas are coming up from ground level. The only groups and representative bodies that will provide these ideas are those such as this delegation.
Mr. Ward mentioned there is a Donegal marina strategy through the Deloitte & Touche report. As far as I am concerned, we have moved on since this report and we should be examining the issue of marinas in terms of a cross-Border and national focus. There is a marina in Kilrush, County Clare. The closest one in our county is Fahan. I am of the opinion we need a necklace of marinas. Many people talk about that and I am in favour of having an all-Ireland strategy on marinas, which we do not yet have. There are worthy locations within the county. Priority cases were involved in the Deloitte & Touche report. The local expertise of Inishowen Tourism Society Limited is needed to input into a national and cross-Border strategy. I am keen to be involved in that process. The members of the delegation are here today to sell their wares and to identify what should happen in the future. Can they expand on the type of Government or financial support they seek?
Mr. J. McLaughlin
Inishowen Tourism Society Limited is a voluntary organisation, which has been in existence for 20 years. We are looking for support that would be guaranteed to continue every year. All our efforts to raise funds are spent on overheads, which are not that high. It is probably more cost effective than some of the State bodies. If we had a small budget to pay our overheads we would provide a good service for the people of Inisowen, in conjunction with statutory bodies.
Mr. Ward
At this stage, we are more interested in process than product. I would like to see an INTERREG link with a budget we could use. It is 53 miles from Holyhead to the Republic and 33 miles from Inisowen to Scotland. This service should already be in place. Building links with Scotland is a practical way of progressing, especially for Inishowen, Fanad and Donegal in general. I mentioned the east-west strand of the Good Friday Agreement. The work that has been done in north-west rural development is an example of what can be achieved. We are going to Scotland next week because people there are interested in our achievments. From my reading of the rules it would be possible to get an Ireland-Scotland INTERREG.
I am delighted to have the opportunity to meet the witnesses in Dublin. I appreciate the long journey from Inishowen to Dublin. I apologise for not being here for the submissions. Coming from south-west Donegal I have much in common with the members of Inishowen Tourism Society Limited. Unfortunately people think that Donegal is cut off from the rest of the country. Tourism can play an important part in the economy of Donegal. It has not reached its full potential. A number of factors are responsible; the area is somewhat cut off as one can only access Donegal through Northern Ireland if one discounts the bridge atBallyshannon.
Scotland used to be a catchment area for Donegal tourism. I remember when the big tourist season in Donegal was the month of July. One could not count the Lough Swilly buses coming from Derry, some going to Inisowen and some to West Donegal. Unfortunately that has gone and people have moved on. The connection between Donegal and Scotland remains. One of our priorities should be to resurrect the tourism patterns of 20 to 50 years ago.
Donegal natural industries such as farming and fishing are going through difficult times. The manufacturing industry has gone and Inishowen has suffered from the Fruit of the Loom fiasco. Tourism is an area that must be developed to keep our people there. It can provide employment and is based on a natural resource. The area has a lot to offer and it is a question of promoting the county, including Inishowen. Have any associations or connections been made between the Inishowen Tourism Society Limited and other tourism development agencies in the rest of Donegal? What are the lines of communication? All agencies in the region could be mutually supportive. Could Mr. John McLaughlin elaborate on that?
Senator McHugh mentioned marinas. I believe Donegal has one of longest coastlines in the country, with the exception of Cork. Kerry certainly does not, although it may have more All-Ireland medals.
I understand Kerry's coastline is 300 miles long.
Donegal certainly has a longer coastline. I think the council wanted to support a number of marinas. I understand there is one in Fahan and I would like to see a few of them around the coast. There is great potential there. Does the Inishowen Tourism Society Limited consider it is receiving adequate funding to support the projects in which it is engaged in Inishowen and Donegal?
Mr. Tony McLaughlin
I am delighted to hear what Deputy McGinley has said. Mr. John McLaughlin alluded to our spring marketing campaign in Glasgow, Manchester, Belfast and Dublin. We spent 19 days in Glasgow because an old Lough Swilly bus driver told me 88 extra buses used to go to Gweedore and the Rosses every day of the week when Scottish boats were coming into Derry. He was told to go and hire anything with wheels on it. We recognise the Scottish market is a big one into which we could tap. We were at a world Celtic music festival and we were the only tourism stand there. We were delighted that last year's Lord Mayor of Glasgow, Alex Mosson, attended. His relatives come from Gweedore. We were welcomed in Glasgow like long-lost cousins and a number of bands coming to the country from Glasgow for St. Patrick's Day festivals decided to come to Inisowen, Buncrana and Moville. Dundee United and Hibernians are holding pre-season training in Buncrana. I was delighted to hear Deputy McGinley mention that and I hope he bears it in mind when we are requesting money.
We need some type of annual subvention. Committee members can see from the paperwork we have handed out that we do not require a fortune and as Deputy McGinley stated, it would be repaid 100-fold. The Scottish item, also mentioned by Mr. Andrew Ward, is part of the east-west strand of the Good Friday Agreement. It is more important to us because if we could tap into the Scottish market alone, it would be sufficient.
Members should make their questions as brief as possible as we must meet another delegation.
I welcome the delegation. Inishowen experiences similar problems to parts of County Kerry. Recent Central Statistics Office figures showed Donegal had the lowest amount of disposable household income in the country, and Kerry had the second-lowest. Both Kerry and Donegal depend largely on tourism. The perception is that all of County Kerry benefits from tourism but it does not. Killarney, Dingle and Kenmare do, but in large tracts of the county tourist numbers are falling, similar to the delegation's experience.
I remember being in Donegal in the mid-1990s to launch the Leader and minituber programmes in Carndonagh. There was great hope and optimism then and I can see much has been achieved since. The delegation is before the committee to make a case for funding and, while we are not a funding agency, we can support the delegation in that. I agree that much could be achieved with a small amount of funding. I hope, now that the regional tourism authorities are being examined, that provision can be made for creating and funding sub-regions. We can make that proposal to the Minister when he is considering funding.
North West Tourism was before the committee a few weeks ago and its chairman, Mr. Seán McEniff, stated that his budget for promoting his hotels is greater than North West Tourism's total budget for the entire region. A place like Inishowen must be suffering because only a pittance of the budget would be spent on promoting it, and money must be spent on promotion.
The delegation is trying to recover a market from Scotland. I remember the Scottish market was good in places such as Ballybunion and, when I was there in the 1970s, most of the people visiting were from Scotland. That was affected in the same way as the delegation's area by the Troubles in the North.
I would be optimistic if I were in the position of the delegation but there is no point in being optimistic and investing energy unless the resources to promote the region are available. The delegation has quite clearly made the case that it is about money. Human resources and the basic product are in place, although the region could do with a few more tourist projects, but the message from today's discussion is that funding for marketing is necessary.
Would delegates like to make a final comment?
Mr. Ward
It is about money and processes. Ireland is in a funny situation. We in Inishowen can probably work with places in the North such as Coleraine, which is an 80% Unionist area, better than anywhere else and that dynamic is unique in the Border area. It is imperative that we exploit and develop it. There is no point in the Taoiseach having meetings at political level if at ground level the people vote otherwise. I do not want to discuss votes, but I believe it is not only about money. It is about making the political decision that Ireland and Scotland should be linked and that we should seek an Ireland-Scotland INTERREG with 75% grant aid. We can provide the rest of the money, so it would not cost the State a penny. Any link between Ireland and Scotland will disproportionately benefit Donegal, and as Deputy Deenihan stated, Donegal is at the bottom of the heap. If we take action on that, we are providing the committee with one element of a solution.
Mr. J. McLaughlin
I thank the committee for the opportunity to speak. Deputy McGinley asked if we worked closely with other organisations. We work closely with Donegal Tourism and North West Tourism and are constantly in touch with them. We are all delighted the Troubles are over but, as Mr. Ward stated, the amount of money given to products and marketing in Northern Ireland is far in excess of what we get. We are again in an unequal situation. Tourism in Northern Ireland is booming and we are cut off. All we want is fair play. If we get that, we will be able to meet the challenge.
I thank the delegation for coming and for its impressive and informative presentation. We are meeting all tourism groups and the delegation's views will certainly be taken into consideration. I want to say a special word of thanks to the delegation for travelling down from Donegal to be here today. It is appreciated.
I welcome Mr. Frank Magee, chief executive officer of Dublin Tourism and Mr. Michael Flood, chairman of Dublin Tourism. As chairman of East Coast and Midlands Tourism, I served with both gentlemen for a number of years and therefore know them well. Before we begin, I wish to draw attention to the fact that the parliamentary privilege enjoyed by members does not extend to witnesses.
Mr. Michael Flood
I thank the members of this committee for their invitation. We are pleased to elaborate on the role and mission of Dublin Tourism, which is the body responsible for tourism in Dublin city and county. Tourism in Dublin, after showing considerable growth over the past five years, is at a crossroads. It will be a daunting task to continue that growth because over the period 2004 to 2005 bedroom stock in the city will increase by 25% to 16,000 rooms. Extensive marketing and effort will be required to fill these rooms.
Last year, Dublin attracted 4.6 million visitors, who spent €1.2 billion and generated €600 million for the Exchequer. It is conservatively estimated that tourism in Dublin generates 60,000 jobs. This is not an inconsequential figure. In international terms, Dublin is now third in the European league table, after London and Paris. Bearing in mind our island location, this is a tremendous achievement. We are the envy of many other cities in Europe. In the context of the current examination of regional tourism, why fix it if it is not broken? I wish to debunk the myth that Dublin competes with other regions. Dublin does not compete with any other region in Ireland but competes with major European cities, particularly those of the new EU member states which are now developing their tourism structures.
Dublin has four tourism information offices, including an office at Dublin Airport which operates 363 days of the year until 10 p.m. These service 46% of all callers to the national network of 68 tourism information offices. In addition, 30% of their bookings are made for regions outside Dublin. The city has become the engine of tourism and generates much business for the rest of Ireland. Some 40% of visitors to Dublin continue to other regions.
A number of challenges face Dublin. The discussions on a second terminal at Dublin Airport are being followed with great interest. This terminal urgently needs to be completed. It is estimated that 18.8 million tourists will use the existing terminal this year. It was built to a maximum capacity of 20 million, which will soon be filled if numbers grow by more than 1 million each year. At present, 36 airlines fly into Dublin and other airlines are interested in doing so. American Airlines have announced new services between Dublin and Chicago. A national convention centre is required to achieve sufficient growth to fill the new rooms being built. An open skies policy for the US market is also a priority. Aer Lingus has said that, should an open skies policy exist, it would fly to a further 16 US cities. This would be of tremendous benefit not only to Dublin but to the entire country. Dublin is the gateway for a number of services. Hotels are being lost to property development. If a new terminal, a national convention centre and an open skies policy existed, tourism figures in Ireland might be doubled.
As I am not a member of this committee, I would prefer to wait until others have had an opportunity to speak. I suspect that Deputy Deenihan has priority.
I have no difficulty with Deputy Carey speaking first. He has not attended this committee before and we will enjoy his contribution.
I am pleased, as an observer at this committee, to have the opportunity to speak and I welcome the two representatives of Dublin Tourism. When I joined Dublin City Council in 1985, it was virtually impossible to attract tourists to Dublin or to keep them in the city for an extended stay. Since that time, Dublin has been marketed as a strong cultural tourism product. Dublin Tourism has been instrumental in promoting Dublin as a destination.
Will the representatives respond to the argument that no rationale exists for Dublin Tourism to promote Dublin city and county? I believe that such a rationale exists. It would be to the detriment of tourism in the Dublin region if Dublin Tourism were subsumed into Bord Fáilte. Examples of Dublin's unique tourism product include Newbridge House in Fingal, Malahide Castle, where Andrea Bocelli will perform in July, the Dublin Writers Museum and the James Joyce Centre. In the same way that Cork-Kerry Tourism effectively markets Cork and Kerry, there is a need for an entity to promote the Dublin region.
I concur with Mr. Flood on the issue of the second terminal. A convention centre and a metro are also needed. The large number of jobs which Dublin Tourism helped to create in the service sector is important to the economic life of this city. When we think of Dublin, we think of Temple Bar, sometimes for the wrong reasons. Other important cultural tourism products also exist. Dublin is a base for visits to Glendalough, Newgrange, Killarney, Cashel and Galway. It is proper that an organisation exists to promote Dublin as a capital city and a region. Perhaps Mr. Magee and Mr. Flood would elaborate on whether they see reasons Dublin Tourism as an organisation should be allowed continue.
I will call Deputy Deenihan following which we will get answers and then call on a few others.
I welcome Mr. Magee and Mr. Flood to the committee and recognise the work they have done on behalf of tourism, not only in Dublin but in the country as a whole. What has happened in Dublin is a phenomenon. I have been travelling to Dublin for the past 22 years. Coming from a tourist county such as Kerry, one is always looking at where tourists are going and what is happening in the tourism industry. In the 1980s and 1990s, one would ask taxi drivers in the months of May or June if any tourists had arrived in Dublin. What has been achieved in Dublin is a 12 months-365 days of the year industry for which somebody must be responsible. I know Dublin City Council and Governments would be responsible but there must also be an engine behind that achievement. When one looks at the amount of media space regional tourism authorities get, certainly Dublin Tourism is the one that features almost as frequently as Fáilte Ireland.
Dublin Tourism is a branded organisation at this stage and has worked hard to achieve that. Given its many advantages, that is the reason Dublin is doing so well. Temple Bar is an exciting development and brings in a different type of tourist from those who came to Ireland in the past. All the cultural institutions located in Dublin certainly attract a different niche market. There are also many golf courses in the area and an increased amount of hotel accommodation due largely to the tax-driven allowances, all of which is welcome. This is an area where tax incentives could be justified because they resulted in the creation of the accommodation base.
The delegation will probably disagree with me on this point. People coming to Ireland are coming to Dublin and the trend is towards shorter stays. There is more to do in Dublin so they stay there. That is a new fault. I know that from my experience. By the time they have explored Dublin, a week could have elapsed. One could spend a fortnight in Dublin and yet not have explored it fully because there is so much. As a result, they are not travelling throughout the country to the same extent as in the past. There was a time when tourists came into Dublin and left for the regions. Now they stay in Dublin because there is so much to do here.
Is the Deputy suggesting that we cut back on the available activities?
No. I am stating what is happening. This is the reality. Some 50% of those tourists who disembark in Shannon from America will eventually end up in Kerry. Of those who disembark in Dublin, 22% end up in Kerry. That has been proven through the tourist flows in the country. From a west of Ireland point of view, the more tourists who come into Dublin, the more will stay in Dublin. That is a reality but that is not the problem of Dublin Tourism. I do not see that as Dublin Tourism competing with the rest of the country. What will have to happen is that the rest of the country will have to do its job better and more resources will have to be invested in the rest of the country. Much of the product throughout the country has gone stale and is inferior in many cases. Some of the centres were probably created under-budget. Tour operators coming here would say that people are no longer attracted to them. There is a need for a major review of tourism products throughout the country, but that is another issue.
Dublin Chamber of Commerce came before the committee recently in connection with the national convention conference centre. It made the case that such a centre would generate another €50 million at least for the economy, that it would bring 30,000 additional visitors to Dublin, who would obviously spread around the regions, and there would be a spin-off because most of those who come to conferences usually bring their families back afterwards. The national conference centre in Dublin is critical for the future.
An announcement was made last week by the National Concert Hall when it unveiled its plans for 2,000, 900 and 400 seat auditoria on the Earlsfort Terrace site. It is obvious that UCD wishes to move its engineering and medical faculties out of that site. It is critical that the Government deal with UCD and ensure that footprint is purchased for the expansion of the National Concert Hall. It has even quantified that it would mean approximately €50 million to the region. It would also open up Iveagh Gardens at the back of the complex and create a cultural landmark in the city. It is an exciting proposal.
The upgrading of the national theatre is also important. Dublin has a good product overall which is growing. The city is viewed throughout Europe as an exciting one. Wherever one goes, Dublin is regarded as an exciting city. It is now London, Paris and Dublin. In some of the survey ratings it is viewed as more exciting than London and Paris.
The whole issue of security comes to mind. There are not as many attacks on tourists as in the past. Certainly O'Connell Street appears to have improved, is looking much better and, obviously, people are more secure there. How does the delegation view the issue of security for those coming into Dublin as regards attacks on the person, petty theft, damage to cars and so on? Is there a need for a tourist police force in the city? This issue was raised previously.
Reference was made to the proposed second terminal. Does the delegation consider there is room for a third terminal, whatever the logic? I note the Dublin Airport Authority mentioned that for it to invest in Dublin Airport, it will have to increase landing charges. If so, would that be a deterrent for other airlines coming into Dublin?
Has the delegation seen the PricewaterhouseCoopers report? If so, obviously it disagrees with it. Members of the committee have not seen it and we know only what we have read in the newspapers. Does the delegation disagree fundamentally with the proposal to bring all the RTAs under Fáilte Ireland? This would mean the Dublin Tourism operation at Dublin Airport would be run by Fáilte Ireland with the brand name being changed, although Dublin Tourism itself would not be changed. Do the representatives consider that such a change would streamline the operation and make it more effective, not only in Dublin but throughout the country?
I will take the questions from the three members offering and the representatives can then reply to them.
I welcome the representatives. Like Deputy Carey, I am interested in the organisation's attitude to whether Dublin Tourism should continue as a single independent entity. Despite some people's view, it is good for the city and the country that tourists come here. Mr. Flood made the point that Dublin competes on an international stage rather than only in terms of attracting visitors who decide to make Ireland their holiday destination. Some people come here for a city break while others come for a golfing, fishing or other type of holiday.
I also wish to make a point about Dublin city and the regions. I represent Dún Laoghaire. There was a traffic jam at the top of my road this morning caused by two large tourist buses bringing tourists to see the James Joyce tower. Despite that the buses caused a traffic jam, I was delighted to see them. Clearly, good tourism promotion is taking place after the centenary celebrations last year. It is great to see visitors travelling beyond the city boundaries into the county. What strategy or long-term relationship has the organisation with Dún Laoghaire Tourism and how do they co-operate with each other?
I wish to raise the question of the upgrading of the DART. I am sure this issue applies to the north side of the city as it does to the south side. Throughout the area I represent, businesses, visitors and residents have complained bitterly about the unreliability of the DART during its upgrading. While this organisation cannot control the carrying out of such works, do the representatives have a comment to make on the effect it is having on tourism? The service was not available in some stations in the period coming up to last Christmas and it affected tourists staying in hotels in Killiney and other areas where many tourists choose to stay rather than in the city centre. It was also difficult for employees in those hotels to commute to and from work. When I heard that the service would not be available at the weekend in some stations on the DART line, it transpired to be a more serious issue than I had anticipated. People in my area despair, as I am sure do people on the north side of the city, at the prospect of the DART service not being available at weekends coming up to the summer. It will affect residents who wish to go to any of the fine beaches along the coast and it will also have a major impact on tourism in the city.
I, too, welcome the chairman and chief executive officer of Dublin Tourism. I recognise the wonderful work Mr. Frank Magee has put into Dublin Tourism over many years. He did so at a time when we were not talking about tourism in such glowing terms as we are today. In many ways he was the architect of the progress that has been made and I salute him on that.
Dublin has an enviable record when it comes to tourism. That was underlined to some extent in the short confident presentation made, given that by normal standards presentations to the committee are much longer. That shows a quiet confidence in what the organisation has already achieved.
Regarding the PricewaterhouseCoopers report, with which we are not familiar although we have read the many leaks from it in the newspapers and the reaction to it, I am surprised that the issues covered in it have not surfaced before now. My reaction to change is that if something is not damaged, one should not repair it. That is particularly true when it comes to Dublin Tourism. I have noted some of the figures given and its success rate, of which we should be proud. Tourism is about people who drive the industry and who receive the visitors. If one speaks to a tourist and apologises for the poor weather, the first reaction is that he or she has not come to Ireland for the weather but to meet the people.
In the first instance, tourism is about people who drive the industry. It is important that they should be able to retain an identity for their functional area because this sense of loyalty and commitment to an area, whether it is in Croke Park, industry or elsewhere, is important. The more groups are subsumed into a larger body — we are not au fait with what is intended in regard to this organisation — there will be some loss of identity and control. Mergers and conglomerates covering various services have been created over the years and, three or four years subsequently, invariably there have been discussions on undoing the changes that were made. There is not a county in Ireland that would not like to revisit the idea of a county committee for this and another one for that and so on but most of them would not have sufficient funding to operate or be clear about the boundaries of their portfolios. In that respect, many opportunities are falling through the floorboards, so to speak. I would be inclined to focus on that area.
I have certain reservations about the over-development of Dublin. It has nothing to do with Dublin Tourism but relates to infrastructural considerations. There is a sense of over-development taking place. My esteemed Dáil colleague will not think I am trying to ensure that any service is moved to Tipperary or Cashel and I thank my other Dáil colleague for having brought Cashel into the equation. This issue is not about that but about all of Ireland. If a city becomes over-developed, and in many ways it is the flagship of the country, there are many negative by-products from that. One is the breakdown in law and order, which has been raised. The last two-hour period in the Seanad has been devoted to discussing law and order issues. The Minister, Deputy McDowell, is discussing those issues in the Seanad and I also hope to speak on them. It is a worrying development.
I travelled to China, Japan and Canada in the past five or six weeks and in virtually every place I spoke to people who spoke English. I learnt that there is a sense abroad that while Ireland is considered a great country with a wonderful economy, there is an element of anti-social behaviour to be found of a very extreme nature. This problem was documented for us on a "Prime Time" programme. Many people got excited about the issue at that time, there were editorials on it in the newspapers etc. However, it is a reality. Over-development can sometimes partially contribute to that.
I am inclined to make a suggestion, which has nothing to do with the chairman's opening point. He was right in what he said. I do not see anything wrong with competition, even internally whatever about externally. Deputy Deenihan, to some extent, touched on what I am about to suggest. When we discussed the question of a national convention centre, I made exactly the same point. This is a very small island. There should be ways of creating a more proactive partnership between the cities and the rest of the country, particularly when it comes to tourism, whether through marketing or dealing with the group leaders who bring people to this country. There should be a greater understanding in this regard, and perhaps that is the viewpoint in the PricewaterhouseCoopers report, although I believe it is a misplaced view in that context.
We should not try to stifle the independence or the work of a very successful operation. When we have a full debate in reaction to the PricewaterhouseCoopers report, part of the response to that from Dublin Tourism, Shannon Development or any other group that might be mentioned in the report — the same fears exist in the Shannon Development area regarding being subsumed into a larger body — should be to suggest that there should be greater co-operation between the regions. I am not saying such co-operation does not exist. However, tourism is changing at a rapid pace. It would be good if the people of Kerry, Tipperary, Cork, Donegal or any other county believed that, to some extent, there was a spin-off from development within Dublin Tourism.
I compliment the chairman and the CEO on the work they have done. When a discussion takes place on the PricewaterhouseCoopers report, I hope it will be an informed debate and that we will have an opportunity to contribute to it.
I also welcome Mr. Frank Magee and Mr. Michael Flood and congratulate them on their work because I did not in my wildest dreams envisage that Dublin would be a major tourist destination. I have travelled extensively but I did not believe we had the facilities here. Over the years, however, with the addition of new hotels, the Liffey boardwalk and other innovative ideas, Dublin has certainly become an interesting city. People seem to like the Irish welcome as well as our culture. They visit the Guinness hop store and other venues. An industry has built up around not what is good in Ireland, but what people associate with Irishness.
Two weeks ago, I took a tour bus around Dublin. I have done so on previous occasions also because it is easier to take the tour bus than go for a few pints. It costs €10 or €12 and one can spend three hours seeing the city. I pay tribute to those who run the tour buses for the quality of their drivers and tour guides. They are very witty and give a flavour of the true Dubliner or Irish person. The tour providers interact with tourists in a way that I have not seen in other cities. Dublin's tour bus services stand head and shoulders above their foreign competitors.
I make no apologies for raising the issue of value for money. People from various tourist organisations get upset about rip-off Ireland. We should be strong and positive enough to stand up and take such criticism, but costs are rising, including insurance costs. I had a bar and restaurant and I have a shop which used to sell souvenirs. I know that rising costs will put smaller operators out of business. I went into a restaurant today for two coffees and a dessert, and it cost me nearly €10, which is a bit exorbitant. Unless this matter is addressed Ireland will be seen as an expensive destination.
Ryanair should take a bow for having introduced cheap and affordable flights into Ireland. People access the Internet and say "We will fly to Ireland and will take our chances on the Internet".
The quality and increased quantity of taxis has helped in recent years. Tourists use taxis when they cannot avail of a proper transport infrastructure. Taxi drivers' manners have certainly improved over the years and it takes nothing to say "Hello" or "Please" with a smile. Taxi fares can be excessive at times, however.
We have come a long way in running the tourism sector and this debate is not all about back-slapping. Mr. Flood said that Dublin is a stand-alone entity, but it is not altogether correct to say that tourism around the country has not been affected. It has been to a limited extent due to the popularity of Dublin with tourists. I am not complaining, but Fáilte Ireland should try to attract tourists to areas such as mine in Roscommon. I am chairperson of the Lough Key Forest Park action group, which provides tourist facilities. If I fly into a city, I invariably stay there. It is difficult to get people to see the real Ireland, in places such as Boyle, where I come from, but which does not have a tourist infrastructure. We normally do not see tourists. I understand that is not an issue for Mr. Magee or Mr. Flood, whose job is to get tourists into Dublin and to improve the tourist potential, but it is an issue for Fáilte Ireland.
Years ago, people came to Dublin and then drove around the country by car, staying in bed and breakfast establishments. That is an issue for the Irish tourism industry, but it is not being addressed. I am delighted to see so many fine hotels but bed and breakfast establishments are falling through the net. The Government should do something to safeguard bed and breakfast establishments which are unique to Ireland. When I travel to a city I normally stay in a hotel, which is good value, but we must examine issues relating to rural tourism. There has been a fall-off in fishing, golf and horse riding. Such issues need to be addressed, although it is not an issue for Mr. Magee and Mr. Flood. Their product is excellent and is improving all the time. However, the committee should raise the issue of rural tourism with the Government to ensure its future.
I congratulate Mr. Magee and Mr. Flood on their efforts.
I welcome both representatives of Dublin Tourism. In recent years, people have been taking more breaks, yet shorter ones than heretofore. Dublin Tourism must welcome the recent decision by the GAA to open Croke Park to other sporting codes, which will prove helpful to tourism in the capital while other sporting facilities are under construction. The GAA's decision must be acknowledged and saluted.
We seem to have developed quite a negative reputation for thuggery and crime generally. I recall visiting a large foreign capital city where people led us to believe that one could walk anywhere at any time of the day or night without fear. I found out later, however, that there was a serial killer in operation there. I will not say that fact was suppressed because it was known about, but people there were seeking to provide a more balanced view, although it was a problem.
When I was in the Department of Agriculture and Food, I recall that the Italian market for beef was opened because supplies were coming from the east and there had been an outbreak of foot and mouth disease. The Italian market is a fashion market and the Irish product filled a huge gap there where considerable business was done. A big part of the selling involved the impression made by Irish football fans attending Italia 90. They behaved themselves and consequently it went down well in Italy. When Irish supporters attend football matches abroad they bring credit to their country. It is very different from what we see happening in England.
The increased air access to Ireland must be good for tourism. I concur with what Senator Feighan said about taxis in Dublin. For over a year I have had to use taxis a great deal and I can only speak highly of taxi drivers who are courteous and helpful. It makes me feel secure. At one stage there was some negativity concerning taxi drivers' attitudes, but I can only praise them. Myths can develop and we are not always the best people at scotching the fire by providing our own positive picture of what is happening. The cost of various items is an issue. I am concerned that we present a culture which is very much alcohol-centred. That is not necessarily good internally and externally. We have infrastructure problems and there is gridlock in Dublin, but most capital cities have problems during rush hour. Dublin has a particular niche. I spent time as a student in the city and there is a great deal to draw from. We could benefit from a larger national art gallery, for instance, but people who live outside Dublin have not always appreciated the Museum of Natural History. They are aware of the National Museum but the Museum of Natural History has more attraction for young people.
There are positive and negative aspects, but good progress has been made. Many prestigious international conferences have been held in the city in recent years and if facilities improve, more can be done in this area. The conferences do not always involve significant numbers of people, but Dublin has progressed well in this regard.
Senator Ó Murchú referred to the over-development of the city but various cities and towns have expanded, and services and infrastructure have not kept pace, particularly the provision of housing. Dublin's core product, which comprises its culture, heritage and so on, is attractive to large numbers of tourists. New facilities can be developed. Dublin is progressing well. The Abbey Theatre and the National Concert Hall can be improved and we should always seek to do so. However, Dublin has a solid core, which has generated revenue, and it has been a credit to the State. Various media reports have highlighted the amounts generated by an international soccer or rugby match over a weekend. These are important events in generating wealth, creating jobs and maintaining employment.
I refer to non-national workers who are at the coalface of tourism in Dublin. Many receptionists and porters are non-nationals. Is that positive for Dublin Tourism? Does the body receive comments on that? The issue of signposting is raised frequently because people get lost travelling around the city as a result of inadequate signposting.
Mr. Frank Magee
I thank the members for their kind comments about Dublin, Dublin Tourism and myself. I will confirm with Mr. Flood the status of the PricewaterhouseCoopers report because we did not know this would be raised, although we accepted the invitation to attend the committee. The report is on the Fáilte Ireland website, but I received an instruction from Fáilte Ireland not to speak about its contents. That is its policy and I cannot go against that.
A group comprising John Travers, John Power and Paul Tansey has been set up "to close the consultation process with Dublin Tourism". In spite of the adoption of the report, it was understood it contained elements with which Dublin Tourism was not happy. We met Mr. Travers yesterday and he said we had moved on from PricewaterhouseCoopers. On that basis, I assume I am in order to respond to the committee. Out of respect to the committee, I have an obligation to do that but I must clear it with my chairman.
Mr. Flood
As we are before an Oireachtas committee, and its members are the elected representatives of the people, it is absolutely entitled to hear our views on PricewaterhouseCoopers and it is our intention to speak about it, despite the letter. It is essentially a gagging order, which is contrary to my basic human rights and my democratic rights as a citizen.
Mr. Magee
PricewaterhouseCoopers was invited by Fáilte Ireland, following a recommendation of the tourism review group, to carry out a review of the regional tourism structures in Ireland. PwC, as part of the process, was to consult representatives of the industry and people involved in tourism. We in Dublin Tourism feel that the level of consultation was tokenism at best. No effort was made to have a meaningful engagement with us. There was one two-hour session during which we outlined what we did. That involved the chairman and myself. There was one hour-long meeting with our management committee or board. An indication of the quality and meaningfulness of the consultation is that a meeting took place with the city manager half an hour after the report had been adopted. It calls into question the validity and quality of the consultation.
Our gripe is with PwC and the manner in which it conducted the consultation, not with Fáilte Ireland. The media coverage to which members referred has been a source of embarrassment to me because I am a public servant and I am conscious of my responsibilities as a public servant. Following a gagging order made by Fáilte Ireland, we were instructed to advise our board members they were gagged. Our board comprises eight elected members from various parties. If they are told they cannot speak on an issue, they will go public. The first we knew about it entering the public arena was when the four Labour Party local authority mayors in Dublin issued a joint statement. We had no hand, act or part in the public debate. It came directly from the gagging order.
The PwC report is riddled with inaccuracies. The greatest inaccuracy is that it states, should the report be implemented, the advantage for the staff of regional tourism bodies is that they would become public servants. I am a public servant employed by Dublin Tourism and I receive public service benefits. Our figures are returned to the CSO as part of the returns of State-sponsored bodies. We benefited from benchmarking. We have a letter from the Taoiseach's Department, dated 1992, confirming our status as public servants. Had PwC checked with us in the first place, many of the issues under discussion would have been resolved. The Acting Chairman is a former chairman of regional tourism and he will understand totally the status of the staff.
The report benchmarked Ireland's performance against other destinations. The countries chosen were New Zealand, Canada, Scotland and Wales. A sixth grader would understand that Dublin's competitor set is Amsterdam, Vienna, Prague, Budapest, Rome and other European cities. We have absolutely nothing in common with New Zealand, Canada, Scotland or Wales. They look on us with envy. That is typical of the report's inaccuracy. The report refers to the inefficiencies of the tourism information network. My chairman referred to the fact that there are 68 offices throughout the country. The report states that the visitor experience is uneven throughout the country. It states that there is a poor level of training and visitor reception and that the average cost of servicing a tourist office is 66 cent. What it fails to realise is that 45% of the business is done in four of the 68 offices. In Fáilte Ireland awards, which Fáilte Ireland initiated, runs and manages, in the national category for tourist offices, six of the seven finalists were Dublin tourism staff. The overall winner was Dublin Tourism. Dublin Tourism has been awarded Optimus, Ireland's best training programme by Fáilte Ireland. How PwC can criticise the operation of Dublin Tourism is difficult to understand.
One section in the report refers to commercial revenue from all the six regions. A heading in a particular section is €1 million. That €1 million is specifically a Dublin Tourism figure. We are saying that Dublin is different. It accounts for 50% of the total business into Ireland. It is professionally run and managed.
In his opening remarks, Deputy Carey spoke about the success of tourism in Dublin. The success of tourism in Dublin is due to the fact that Dublin Tourism, as an umbrella body, pulls together the city council, the trade and everyone involved in tourism. The people who run the businesses are the members of Dublin Tourism. They elect the board from their members and the city council nominates its people to the board of Dublin Tourism.
PwC is very disparaging about the elected councillors. It states that some of them have no knowledge of what tourism is about, they waste time and they are not up to the job. I am paraphrasing, but that is effectively what it says. The role the five elected members of Dublin City Council have played in Dublin Tourism has been tremendous, as has the role of the three members from each of the three other areas. There is one from Fingal, one from Dún Laoghaire-Rathdown and one from south Dublin. The eight councillors who are part of the Dublin Tourism board, attend of their own volition. They are good contenders and contributors and they have greatly enhanced the success of tourism in Dublin.
The fact that the city manager is on our board has greatly impacted on tourism in Dublin. Dublin Tourism espouses the whole partnership approach. We work hand in glove on issues such as the development of Smithfield, the rejuvenation of O'Connell Street, the boardwalks and the whole excitement that is Dublin, as well as the sensitivity in regard to coach parking. We regard ourselves as an extension of City Hall. That comes about because the elected members are on our board.
It is disgraceful — some of our board members have criticised this strongly — that public money has been spent on PwC, which got so many things wrong. It did not even know how our board meetings worked. It was not aware of the representation on the committees. These are the flaws in PwC. It does not address growth in tourism. Let us be clear about the proposal. The words the press used is that Dublin Tourism is being dismantled, which has been refuted.
Dublin Tourism is a membership organisation. The members elect, from the members, the board. The staff report to the board and the members. Under PwC, membership will be discontinued and local authorities' contributions to Dublin Tourism will not exist. The report is aspirational, and states that Dublin Tourism might be funded in some other way, but effectively the right of the trade to elect the board from the trade will be gone under PwC. Instead of reporting to the board of Dublin Tourism and the members, the staff would report to Fáilte Ireland. The fundamental difference between Fáilte Ireland and Dublin Tourism is that when Fáilte Ireland gets its grant-in-aid, it deducts its operational costs, including salaries and travel expenses, and spends the rest.
Dublin Tourism gets €1 million from the Exchequer to operate four tourist offices that represent 45% of the total business into Ireland. It represents the State on 42 outside agencies, including county development boards, county tourism committees, strategy groups and so on. Our salary costs alone are €2.5 million, therefore, we are immediately €1.5 million behind. We generate €1.2 million in tourism spend for marketing. We get €80,000 from the Exchequer through Fáilte Ireland for marketing and we spend €1.2 million. For the €1 million we receive from the Exchequer, we have the ability to generate an extra €5 million. This is generated through the commercial activities and entrepreneurial spirit that is Dublin Tourism. That would not exist if the board were dismantled and if the staff ended up reporting to Fáilte Ireland.
The tourist information network within Dublin is a very crucial part of our ability to generate income and revenue. The vision, passion and commitment that is Dublin Tourism comes from the fact that we report directly to the members on an annual basis through our AGM. Throughout the year, on a two-monthly or three-monthly basis, we are out there. I am probably one of the few chief executives of a State-sponsored body who stands up in front of the members on a two-monthly basis to account for my stewardship.
The Dublin Tourism website is recognised as one of the most successful websites internationally from a tourism perspective. On a monthly basis, it generates more than €500,000 worth of bookings into Dublin. We were told to close it down. That request was then denied and we were told we were not meant to close it down, that we should keep the domain name of Visit Dublin, but it will go on to the Fáilte Ireland website. There is no doubt that PwC is dismantling Dublin Tourism. It is removing from the people and the trade the right to elect the members. It is removing a board and replacing it with a partnership group. These people may be appointed to a statutory body but they will be nominated rather than elected from the members.
The staff of Dublin Tourism is currently about 130. We would end up with nine and a half staff to run Dublin Tourism. The TIO staff would report to Fáilte Ireland to run the tourist offices from a destination outside of Dublin. Redundancies are not covered. There may not be actual job redundancies but the work would be redundant because the report refers to integration of staffing. I guesstimate that if this were to be implemented, Dublin Tourism as it is currently structured would lose at least €1.5 million a year in its potential to generate revenue. In addition, there is the cost of the extra staff who would have to be employed to carry out the additional duties. The whole thing is a nonsense simply because there was no discussion or consultation. It is very embarrassing that this has to be done in public and that there was no opportunity to discuss the matter directly with PwC.
I hope that clarifies the position in regard to PwC. Members may wish to pose questions on PwC or, alternatively, I will move on.
I am aware of PricewaterhouseCoopers' argument. Perhaps Mr. Magee will indicate why he believes Dublin Tourism is required as a marketing tool for this region of the country.
We should not get into a full discussion on the PricewaterhouseCoopers report because a number of us have not read it. We will deal with the relevant questions.
Mr. Magee
Dublin Tourism is in competition with other European cities. Each of our competitor cities has a dedicated tourist office promoting the city. If one is travelling to Vienna, one is not travelling to Austria. If one is travelling to Prague, one is not travelling to the Czech Republic. In all our competitor cities there is tension between the national tourist office and the city, which is good for competition. It keeps us sharp and on our toes. We must try to stay ahead of the posse. That is the main reason the people who control tourism in the city, including the city council and the trade, call the shots and set the agenda.
I will move on to some of the other issues that were raised. In the overall scheme Temple Bar probably accounts for less than 5% of tourism to Dublin. While that 5% is important, the other 95% does not get the same profile. Take, for example, the 54 golf courses within the greater Dublin area, the significant contribution made by a number of new hotels outside the city centre and places like Malahide, Newbridge etc. There are many other attractors, beaches, the coast, Newgrange and similar places.
The security issue was also raised. Any crime against a tourist is a crime too many. However, when we take the total number of visitors against the number of reported incidents, we are up there with other countries on safety. Lost passports and the like are included in the reported incidents to Tourism Victim Support. Statistically we would be in the top five destinations in the world from a safety viewpoint. I think it is because we care about people who come here that we talk about it more and it gets more media coverage than it would in other cities.
With regard to the development of Dublin, in conjunction with Dublin City Council and the three local authorities, Dublin has the potential to easily cope with double the number of visitors we currently get. Look, for example, at the significant improvements in the city and the difference made by Luas. We can only imagine the improvements when the port tunnel is finished shortly. The city has the potential for further development.
Mr. Flood
Deputy Fiona O'Malley raised a number of points. She asked about our relationship with Dún Laoghaire Tourism. We have an excellent relationship in that its chief executive sits on our board. In addition, an elected councillor from Dún Laoghaire-Rathdown, the cathaoirleach, also sits on our board.
Deputy O'Malley spoke about the DART as a fantastic resource for the citizens of Dublin city and county and for tourism. I agree the closing of the DART was negative from a tourism aspect. We run the Joyce Tower in Sandycove and it showed a reduction in the number of visitors. Whatever can be done to get the DART back in action is welcome. In other cities the work is done between midnight and 6 a.m. I do not know the practicalities of that from an engineering point of view, but it should be considered.
Senator Feighan complimented us on our tour buses. I agree the tour is great. There are many other great tours in Dublin, including the splash tour in the old DUKW. I have done the Dublin literary pub crawl and it is fantastic fun. It is not just about drinking. It is a combination where one has a drink at the same time as one gets an insight into the literary and cultural history of the city of Dublin. The Senator also spoke about the wit and humour of our taxi drivers. I have heard it said many times that they are fantastic tourist ambassadors.
I would like to say more about the concept of "rip-off Ireland". This is a negative phrase with negative connotations. We are tremendous at shooting ourselves in the foot when it comes to something like this. Ireland does not market itself as a low cost destination. We are a value for money destination. I was in Cardiff for the Ireland versus Wales match — unfortunately the result was not the best — where I went into a hostelry and ordered a glass of wine and was charged the equivalent of €9.50. I thought that was expensive for a glass of wine in a bar.
We must realise that we live in a country that enjoys the second highest per capita income within the European Union, Luxembourg being number one. We have one of the highest minimum cost-per-hour wages, at €7.65. We have a rising tide and our citizens have enjoyed the benefits of a growing economy. If we have high costs, insurance, wages and per capita income, our costs will rise in accord. The hotel industry, however, is tremendous value for money in this city. We did some research on this and during some of the recent rugby international weekends a person could get a room in a three star hotel in the city for €100. That is value for money. If one goes to any of the other major international cities or destinations, Paris, Tokyo, London or New York, accommodation and eating out is more expensive than in Dublin.
Senator Feighan spoke about the regional spread of tourism. We live in a different world today in terms of tourism. Access is changing with the growth of low cost airlines such as Ryanair and Aer Lingus. Over the past five years we have seen an increase of 19% in arrivals by air and a reduction in arrivals by sea by 33%. If people come by sea they are more likely to bring a car and to drive around the country, but if they come by air they are more likely to come to a specific area.
I will give some figures on the various airports in the country and their share of the British market. These are Tourism Ireland figures for 2003. Of the 3.5 million British tourists who came to Ireland in 2003, 49% came to Dublin by air, 20% to Belfast International, 14% to Belfast city 14%, 7% to Cork, 5% to Shannon and all others combined, 5%. There is a truism in tourism that tourism is about access. Some 36 airlines fly into Dublin. People will go where they want to go, but the short break market has seen a large increase and that is where Dublin has done well against other cities.
I contend that where people come to Dublin on a short break trip for their first time, they experience Ireland and the friendliness of the people — the people are still our biggest asset — and this creates a desire to come back. The next time they come they bring their family and travel around Ireland. There is anecdotal evidence to show that this is what contributes to regional tourism and growth.
I think that answers all the supplementary questions.
Mr. Magee
Deputy Deenihan raised the issue of cosmopolitan Dublin. We find the visitor experience is every bit as good as it was in the past. The cosmopolitan nature of the city adds to its excitement. Dublin is a capital city which competes with other cities. There is no diminution in the Irish welcome.
I asked about the people working in reception and other areas. This is raised by visitors, particularly Irish Americans, who like to meet Irish people at the coalface. Comments of Americans on this have been reported in the media, but Dublin Tourism does not seem to see this as a disadvantage. The other issue I asked about was signposting.
Mr. Magee
Signposting is a horrendous problem. I suggest that when Bord Fáilte had responsibility for signposting many years ago, it was in a better state than it is currently. The difficulty is, as the Deputy is aware, that local authorities have responsibility within their areas and there is a cross-over to the NRA. I agree there is a significant difficulty with signposting. I cannot understand why we cannot get it right. We see the model in French cities where there is no difficulty getting people into different areas and showing where accommodation is available etc. There is a major problem with signposting and I think the split responsibility is the cause of it.
I thank everybody for their contributions and I wish Mr. Magee and Mr. Flood well in the future.
The joint committee adjourned at 6.40 p.m. sine die.