In our main maps we are certainly doing that and if we have not done it in them all, we will correct that. We seek to do that. In our text we refer to City of Derry, Derry and Londonderry because there are different views on the correct name. In that regard, we take official guidance on the official placename.
Tourism Ireland has a good relationship with Fáilte Ireland. It is important to note that Tourism Ireland only came into being in 2002 in the operational sense. At that time, both Bord Fáilte and CERT were amalgamated into Fáilte Ireland. Therefore, we are a relatively new body with a different team of people in place. We have committed at executive and board level to ensure that we give a seamless service to industry and that whatever bedding-in and learning needs to take place does not interfere with the successful promotion and development of the industry. By and large we achieve that goal. Our job is to promote the island of Ireland as a destination and to create demand for coming here. Our colleagues in Fáilte Ireland ensure that people have a great time when they are here. We interface in a number of areas with regard to how we bring the product to the marketplace. Industry has sometimes wondered and asked questions about how it works and who does what. We try to communicate to ensure that our industry partners know what is going on and seek to improve what we do if and when issues arise.
The convention centre is essential infrastructure required to put Dublin and Ireland in a different league in terms of the business the centre would generate for business tourism. Our understanding is that the competition is coming to a close and there will be a convention centre in the near future which will enable us to compete in markets in which we are not currently involved. The centre is a significant feature of the programme of the Department of Arts, Sports and Tourism. Once it is announced and the timeframe for completion is set, we will ensure it is promoted and that this segment of the industry is promoted vigorously in overseas markets.
The tourism potential of horseracing and other sporting events was raised. We believe there is an opportunity to further the promotion of horseracing in overseas markets, with Great Britain being an obvious target. We met our colleagues in Horseracing Ireland some weeks ago to see what we could advance. We intend to use the Punchestown festival next year as a pilot. We will have a vigorous and focused promotion of that festival to see how it plays out in the British market and how we can expand the business. Both Fáilte Ireland and colleagues in Horseracing Ireland will be involved in that promotion programme in 2006.
The extent of the competitiveness issue for Ireland was raised. It is probably the single most important issue facing the future of our industry. We must ensure that the Irish product, its promotion and presentation and the experience we give our visitors equal and exceed visitors' expectations and what is available elsewhere. Price is a factor, but it is not the only issue. Ireland does not do cheap holidays. We do not try to win the price battle with a race to the bottom as we do not believe that is an appropriate strategy. We must, however, be affordable and we must ensure this affordable experience is fantastic for our visitors. Currently, more than 90% of people who come here on holidays say they have a great time. We need to nurture and cherish this and ensure that it is not only a great time but an affordable experience.
When we analyse the components of competitiveness and examine our costs, the tourism industry is, by and large, facing up to the competitiveness challenges. We benchmark our prices in terms of flights, ferries, packages and accommodation that people buy before they come here. The core tourism industry is responding to the challenge and ensuring visitors get good value. The industry must, obviously, deal with its own businesses, input costs, profitability and margins, etc. However, it understands the realities of the marketplace and we believe it is responding to them.
Other issues of concern are infrastructure, transport, car hire, and the car-brought market. Ferry or sea business has declined in recent years. Those companies are losing out, particularly to low cost air travel. The ferry companies must face up to those challenges. Despite the decline, we believe it is important to maintain faith and invest in the sector. People who bring their car here are likely to stay longer, travel further and spend more. We are currently working on strategies with the ferry companies to persuade visitors, particularly British visitors, that bringing a car is a worthwhile experience and that it is easy, accessible, affordable and competitive with other options. We realise it is an uphill battle, but we will continue to promote it. In the peak months of June to September probably 500,000 visitors come by sea. We must ensure we protect this market, notwithstanding the challenges we face in doing so.
Reference was made to the US market. This market was down 10%, cumulatively, in the first quarter and 5%, cumulatively, for the second quarter or the first half of the year. The market started to turn in June when we had a 9% increase in visitors and there was a further 8% increase in July, leaving a cumulative 1% down for the first seven months of the year. We believe this will be redressed over the balance of the year and that we will have a net growth. However, it is unlikely we will hit the target for the market and for that reason we are establishing a review group to undertake consumer research in the North American market to see whether we are losing touch or whether there is uncertainty about where we are going in that market. This is a highly valuable market that we need to grow. We believe we can promote growth in the market, which suffered terribly post 2001. We have been trying to build it up ever since, believe it will turn into net growth this year and that we will be poised next year to get back on the growth curve.
On inland waterways and the challenges and opportunities they present, as an island water-based leisure is very important to tourism. Our colleagues in the Marine Institute are advancing a strategy blueprint to maximise marine or leisure tourism. We are participating in that process and hope it will translate into a new policy that will help develop marine tourism such as angling, cruising, water sports etc. There is further potential in this area and we will support the work of our colleagues in the Marine Institute to develop that potential.
One of the ways of addressing regional tourism issues such as airports, car hire etc. is, undoubtedly, to nurture the development of airports, including Dublin Airport. The network of regional airports has different levels of business, experience and success. When visitors come for short periods and time is of the essence, it is an advantage if they can access their destination quickly, conveniently and competitively. We support airlines that open new regional routes, but it is important "to join the dots" so that people who arrive in a regional airport have the means of going further through bus, rail or taxi services. There is more to be done in that regard.
The issue of length of stay was raised. Growth over recent years has been in the short break market, one to three nights. Dublin has benefited extensively from this market. The number of longer stay visitors, two weeks plus, has not declined in absolute terms, but has declined in terms of share of the overall market. This issue is a challenge. Length of stay is important in terms of the total take from the business. We believe consumers are voting with their feet and that they are more inclined to take shorter breaks. There is considerable value in changing a one to three night break into a four to seven night break and developing that should be the focus of our strategy.
I was asked what our new campaign will do and whether it will focus on urban centres. Our new campaign seeks to help the person who has never been here to imagine something other than a green island. Our research shows that in our main markets overseas visitors have a strong, consistent, warm and positive image of Ireland and its people. The challenge is that people find it difficult to imagine what there is to do on holidays here. The change in our marketing direction will show what they could incorporate in their holidays, including festivals, events, scenic landscapes, monuments, culture, traditional music, etc., all strong images that resonate well in the marketplace. They are strong images for Ireland and we want to ensure that in future campaigns they will remain strong and well presented by Tourism Ireland.
With reference to British visitors and the importance of sporting or artistic events, events-based tourism is a key plank of our work. Our colleagues in Fáilte Ireland have an extensive programme of support for arts festivals and events and we promote their programme in the marketplace. An improved web presence will help in this regard. Events are a key component of short break visits because they add an incentive for people to come here. On the question of possible duplication of the work of Fáilte Ireland, we both work on aspects of the same market and it is more a case of where we share functions that issues of understanding arise rather than from duplication. It is incumbent on both agencies to continue to work at ensuring clarity in the information given to our tourism enterprises.
On the question of the Ryder Cup, Tourism Ireland is responsible for the overseas promotion of the event on behalf of Fáilte Ireland which is the main investor in the project. This event will be a stunning success and it will also serve as a launch pad to present an exciting, full, vibrant and special image of Ireland when it is held next year. We are working with colleagues in Fáilte Ireland to ensure it is properly promoted.
Tourism Ireland has a good working relationship with the tourism industry in Northern Ireland which is becoming aware of the benefits of the all-island promotion. People in Northern Ireland come from different traditions and have differing views as to the way the British market should be described. Tourism Ireland is presenting an image of the island of Ireland to all overseas markets, including Great Britain.
The biggest challenge facing the industry is to remain competitive, not just in terms of prices but also in the overall quality of the experience and its affordability. This is the key challenge facing policy-makers, Tourism Ireland and the tourism industry.
Reference was made to salmon angling as a tourism product. The angling tourism market has shown a decline in recent years and there are a number of differing views as to the reason. Part of the reason is that the number of people, particularly in Britain and also in other overseas markets, who engage in specialist activities, such as angling, is in decline, but product issues also need to be addressed. Our colleagues in Fáilte Ireland and in the Marine Institute of Ireland, are undertaking market research to ensure Ireland wins its share of the angling business and the business is coming under close scrutiny to help bring this product back on track.
Tourism Ireland will this year invest approximately €900,000 in researching overseas markets which we regard as a very worthwhile investment. The industry is worth almost €4 billion. We study the markets and the consumers and relay that information to policymakers and to the industry so that it develops to meet overseas consumer needs, based on information from the customer.
The bilateral arrangements between the EU and the United States and between Ireland and the United States need to be reviewed and there is an inevitability about changes to the current arrangements. Ireland must ensure it is in the best possible position to develop business from the North American market. Shannon Airport is a significant component in the delivery of leisure tourism business from North America to the west, north west and south west. The removal of the bilateral arrangements without recognition of this fact and without constructive action in respect of Shannon Airport, Shannon Development and the tourism industry, would be an error. I have had discussions on this issue with tourism interests and with Shannon Development and I will have further discussions with Shannon Airport Authority in the next two weeks.
Tourism Ireland has this year put considerable investment into the support of Ryanair services to Shannon and the new American Airlines service to Shannon and over time it has assisted four routes from the United States to Shannon. We are confident of putting in place a constructive investment so that the promotion of Shannon Airport goes hand in hand with any changes that may occur. It is essential that a joined-up approach is adopted rather than dealing with issues separately.
With reference to Tourism Ireland's action plan for the regions, our marketing campaigns are designed to give the customer a complete picture of all parts of Ireland, including its urban and rural centres and the product they offer. We have invested specifically in initiatives highlighting the western regions which include an initiative in the Great Britain market which is beginning to bear fruit and we hope to adopt similar initiatives with our colleagues in North West Tourism, Cork Kerry Tourism, East Coast and Midlands Tourism and South East Tourism. This will be a challenge but we are confident Tourism Ireland can play its part by means of focused promotional efforts for the regions.
The bed and breakfast business is declining and a major review of the business is under way. This business is losing out to hotels on a competitive level and approximately 10% are leaving the business each year for various reasons. It is vital that what was once the bedrock of Irish tourism continues to thrive and flourish, albeit in a different environment. In my view, bed and breakfasts should not compete with hotels for heads on beds but rather compete on the basis that they offer the tourist a uniquely Irish experience. It will be a more challenging future for them but Tourism Ireland wishes to see them flourish.
Stag and hen parties in Temple Bar are inclined to go awry and they do not create a desirable image of Ireland. Many of these parties are now going to Riga so this issue may have moved on. The various interests in Temple Bar have worked to ensure the negative image caused by those parties does not conflict with the overall positive image Tourism Ireland tries to foster.
Regional tourism authorities, local industry groups and tour operators can help present a tourism package for local areas. Consumers must be convinced it is worthwhile travelling to Ireland by ferry. Tourism Ireland has undertaken this promotion this year but there is a lot more to do, such as a new programme in conjunction with the ferry companies planned for 2006.
Total visitor numbers are broken down under headings such as main purpose holidaymakers, those visiting friends and relatives, business visits and visits for other purposes. Tourism Ireland targets the category of main purpose holidaymakers and discretionary visitors. Those visiting on business or home visits are not its core target.
Our heritage of traditional music and the traditional arts but also the new more cosmopolitan culture all play a part in what consumers seek. I agree with the comments made about the changes in the ethnic market in North America, but these present an opportunity. Tourism Ireland has penetrated the ethnic market very well but it must develop its business by reaching out to new opportunities in a non-ethnic market.
JWT, J. Walter Thompson, also has an Irish operation and Tourism Ireland works with its Irish and London operation to develop the campaign. It is our intention to make our website the best in the world. Tourism Ireland is not a funding agency for major twinning programmes. Where there are significant twinnings, such as Cork and Shanghai, we would use that as a lever into and a means of accessing a new market such as China. We do not fund it but we support it through overseas promotion.