JOINT COMMITTEE ON THE IMPLEMENTATION OF THE GOOD FRIDAY AGREEMENT debate -
Thursday, 10 Dec 2009

All-Island Approach to Tourism: Discussion with Tourism Ireland.

Chairman

Ba mhaith liom fíor chaoin fáilte a chur roimh príomh oifigeach feidhmiúcháin Turasóireacht Éireann, an tUasal Niall Ó Giobúin agus a chomhleacaí, Shane Ó Cléirigh. Tá an-jab á dhéanamh acu ar son turasóireachta sa tír. Táimid ag súil go mbeidh díospóireacht an-mhaith againn tar éis dóibh an tuarascáil a chur faoi bhráid an choiste.

It is a great pleasure for me on behalf of all members present to warmly welcome Mr. Niall Gibbons, chief executive, Tourism Ireland, and his colleague, Mr. Shane Clarke, director of corporate services and policy in Tourism Ireland. Tourism is one of the six identified areas of co-operation in the Good Friday Agreement, operating under the overall policy direction of the North-South Ministerial Council. Tourism Ireland was set up to work on all-island basis to the mutual benefit of the tourism industry on both sides of the Border, North and South.

The past year has been challenging for everybody in the industry on all parts of the island. I was delighted to read that Mr. Gibbons announced at the launch of Tourism Ireland's 2010 marketing strategy and plan last week that Tourism Ireland plans to grow visitor numbers on the island by 3% next year, attracting an additional 230,000 visitors. I know that members of this committee and our visitors will be keen to hear from Mr. Gibbons about the details of how Tourism Ireland will achieve this ambitious target as well as to learn about the challenges and opportunities arising from Tourism Ireland's all-island approach to this key sector.

Mr. Niall Gibbons

I thank theChairman for the opportunity to address the joint committee. I am joined by our director of corporate services and policy, Mr. Shane Clarke. As members will know, Tourism Ireland, Tl, is responsible for marketing the island of Ireland overseas. The organisation was established as one of the six areas of co-operation under the framework of the Good Friday Agreement. The company was incorporated in December 2000 and commenced overseas marketing operations in January 2002, taking over responsibility for promoting Northern Ireland and the South overseas from Fáilte Ireland, then Bord Fáilte, and the Northern Ireland Tourist Board on that date.

The principal objectives of the company are to increase tourism to the island of Ireland and to support Northern Ireland in realising its tourism potential. While co-operation was already under way in many forms in the tourism sector North and South, the establishment of Tourism Ireland facilitated the development of a cohesive and well targeted message on the appeal of the island of Ireland. This is being used to maximum effect and has proven very successful in a highly competitive global marketplace.

The team at Tourism Ireland, which consists of 160 staff, devises and delivers world class marketing programmes in 23 markets across the world. We work in close co-operation with the two tourist boards, Fáilte Ireland and the Northern Ireland Tourist Board, industry partners on the island of Ireland as well as the overseas travel trade, online operators, media and air and sea carriers to encourage overseas consumers to holiday on the island of Ireland.

Tourism Ireland commenced operations on 1 January 2002 against a very difficult backdrop which included foot and mouth disease and the aftermath of 9/11. In 2001, approximately 6.9 million people visited the island of Ireland. This figure grew, and peaked at 9 million in 2007, a 30% increase. The most important market to the island of Ireland is Great Britain, which accounts for just over 50% of visitors and almost 40% of the revenue. Mainland European markets have shown strong growth in recent years and provide a very strong base on which to build. The North American market is very important in that it accounts for 11% of visitors and almost 20% of revenue. In addition, this market is vital from a regional perspective and for its access into Shannon and the western seaboard.

New and developing markets such as India and China have been identified by Tourism Ireland as markets with considerable growth potential for the medium to long term. While new and developing markets account for only about 5% of visitors, they will be an important source of long-term revenue. In order to grow these markets, it will be important that we have a visa structure that is convenient and competitive and compares favourably with that of our Schengen neighbours.

In the last week, Tourism Ireland has been launching its plan for 2010 against the backdrop of what has been one of the most difficult years for tourism in living memory. Most countries in 2009 will have experienced double digit declines in visitor numbers. The island of Ireland is no exception. Our forecasts for 2009 indicate that visitor numbers are likely to fall by 12%. Our most important market, Great Britain, is forecast to fall by 15%. It is important to note that this is the same level of decline which the Great Britain outbound market has experienced in 2009. In other words, we have held our market share. In addition, we have also seen declines of 9% from North America and mainland Europe.

An important contributory factor has been the impact of exchange rates on competitiveness. In the past eight years, we have seen the competitiveness of the dollar against the euro decline by 41%. In addition, in the same period, we have seen a decline in the value of sterling against the euro of 31%. This is an extremely difficult backdrop within which businesses have to operate in the South. It does provide a competitive advantage to Northern Ireland, being part of a sterling economy. It has been particularly difficult for those operating cross-Border business.

The outlook for 2010 is still very difficult for tourism. Our colleagues in VisitBritain are predicting an increase of 1% in tourism to their country next year. Tourism Economics, which provides forecasts to the United Nations World Tourism Organisation and other tourist boards around the world, is predicting a 2% decline in tourism to Ireland in 2010, based on key economic data in our source markets. The access picture is also difficult, with air access down 12% this summer and winter access down 15%.

The message we have sent to the tourism industry in the past week is that we need to go for growth in 2010. We need to bring the island of Ireland to the marketplace like never before with a collective effort in an unprecedented way. By working together, we feel we should aim for 3% growth and buck the trend being predicted by the economic commentators. To achieve this growth will require focus on working in those markets that will deliver immediate returns. The priorities for 2010 include the British market, the German market and the US market. Tourism Ireland does not intend to withdraw from any markets in 2010. However, we will need to focus resources on those key priority areas I have just outlined if we are to deliver immediate returns for the industry, in Northern Ireland and the South.

The island of Ireland brand and interest in visiting the island are very strong in our overseas markets. In 2010, our priorities will involve implementing the recommendations of the root and branch reviews we undertook in Great Britain and Germany in 2009. In Britain, this will involve a major tactical campaign focusing on value and re-engaging with the market trade to drive business. We will leverage one of our key strengths overseas which is St. Patrick. Our St. Patrick's week activity will be one of the largest consumer events in Britain in the first quarter of 2010. In Germany, we will be on national television for the first time, we will seek to capitalise on the Dertour Reiseakademie which saw 900 travel professionals visit Ireland in November. We are also in talks with other strong island of Ireland brands with a view to leveraging the Ireland message in this vital market. In North America, access will be critical. We are monitoring the situation with regard to Aer Lingus and are keeping in touch with other airlines with regard to their programme in 2010. We intend to have a significant co-operative programme with the air carriers in the US and we will also undertake a series of sales blitzes there with strong island of Ireland representation.

I predict that 2010 will be another difficult year but I am confident that with a large effort we will restore the industry to growth. The tourism industry is the most important indigenous industry on this island, is a major contributor to GDP and a large employer, particularly in regional areas.

While many of our activities are focused at the overseas consumer, I would like to take the opportunity to give you some reflections on having worked in the North-South arena over the past eight years. First, it has been really encouraging to see the level of co-operation and joint working that has developed, to a level that was not possible a decade ago, and I would like to commend and thank those individuals in both the public and private sectors who have contributed their ongoing support over the years. It must also be said that there are many areas where advances can still be made which will make life easier for the overseas consumer or holidaymaker. For example, in areas such as car hire, where if one rents a car in one jurisdiction and drops it off in the other, one can face an additional charge of up to €300. Similarly, an angler coming to fish in both jurisdictions would need encyclopaedic knowledge to figure out the licensing arrangements. It is vital that we focus on making this type of arrangement simple for the consumer.

In addition, as I mentioned earlier, as we seek to develop new markets, such as China and India, we need to develop a visa structure that is convenient for the traveller and compares well with that of Schengen countries. It is imperative that we work towards a common tourism visa between the UK and Ireland that is easily accessible and competitively priced.

As we approach 2010, there is no doubt that we face a very difficult year ahead with many economic factors against us. It will be important to hold our nerve. We have a great product and a dedicated and innovative industry. If we can work together in a new way, I am confident that we can return overseas tourism to growth and deliver a truly memorable experience for our customers. As an organisation, Tourism Ireland is committed to delivering value for money at all levels. In the past year Tourism Ireland has renegotiated its global marketing and other contracts to increase efficiency and enhance its value. In addition, the committee might be interested to learn that Ireland's effectiveness in tourism marketing and branding has been ranked 8th out of 133 countries in 2009, by the World Economic Forum — ahead of Great Britain, France, Italy, Denmark and Norway.

I take the opportunity to commend the staff of Tourism Ireland who have come together from different nationalities and traditions across the island and the globe and have always given 100% in marketing the island of Ireland overseas. It is something they have always been proud to do and with this spirit and effort, I have no doubt that in 2010 we will succeed.

Chairman

Does Mr. Clarke wish to comment?

Mr. Shane Clarke

No.

Chairman

That is fine. I thank Mr. Gibbons for a strong robust and focused statement. We appreciate that leadership and that confidence. We are clashing with a vote in the Seanad and we have just had a vote in the Dáil. There are many committees sitting this morning, some of which started at 8 a.m. We are now into our fourth session.

Deputy Seymour Crawford

I welcome our two guests who are appearing before the committee. Tourism is one of our major industries. It is extremely important North and South of the Border and is one of the first sectors where we have been seen to work closely together. I certainly welcome the opportunity to have a discussion on it. I do not apologise for saying I am disappointed that not a single member from the Government side is present. We are all busy people. The Chairman is the only member from the Government side.

Chairman

In fairness, we have had two already.

Deputy Seymour Crawford

This is an extremely important industry. The Good Friday Agreement is extremely important in that it allows us to co-operate North and South. I note that the main areas of promotion are Great Britain, the US and Germany. I come from County Monaghan where, along with some others, we have tried to build up a relationship with Canada, based on the historic exodus of people from that area, and we are trying to build up links with places such as Prince Edward Island and so on. Does Tourism Ireland put much emphasis on that type of tourism to enable people to visit their ancestral areas? While we had great difficulty in getting the initiative off the ground in Monaghan some years ago as some people felt we were going on junkets, the position has improved quite dramatically and bus loads of people come in on a regular basis from different areas.

I am very conscious that there appears to be great emphasis on promoting areas such as the North coast, Donegal, the west and Kenmare, which is getting a new hospital. It is difficult to get promotion for the Border areas. In reality we have good accommodation and great potential. Will the delegates look seriously at what has happened to tourism in those areas? They have great potential but much more could be done on a cross-Border basis. Plans could be drawn up to link areas such as Armagh city with Monaghan town where there is a great deal of good accommodation. Armagh city has more places of historic interest. Instead of buses going direct from Dublin to Belfast they could travel via the N2 and on to Derry and spend at least some time in the Border areas. I urge Tourism Ireland to do that.

I am impressed that Tourism Ireland hopes to gain 3% this year because it certainly will be a difficult season. Anything we can do as a committee we should do. This committee deals specifically with the implementation of the Good Friday Agreement and it is important that we establish cross-Border links and that people actually benefit from it.

Deputy Martin Ferris

Go raibh maith agat, a Chathaoirligh. I welcome the delegates and thank them for the presentation. While the report on the industry is disappointing for the first nine months of the year it is understandable from an overseas point of view given that the recession and the fluctuations in currency values are contributing factors. Mr. Gibbons identified the three main areas of marketing as Great Britain, the United States and Germany but said Tourism Ireland hopes to take in China and other areas. That is commendable. The decline in the areas mentioned is understandable, especially this year being the year of the inauguration of a new president of America. In election years there is a tendency not to travel and that is borne out in the figures. I am quite alarmed at the decline in the German and British market from a proximity point of view. I was not aware of any great differential in currency fluctuations during that period.

Mr. Gibbons mentioned targeting special occasions such as St. Patrick's weekend to attract people here from the UK. Has Tourism Ireland explored the marketing of major sporting events in conjunction with the wider tourist benefits that could accrue to the Six and the Twenty-six Counties? In this regard rugby internationals come to mind and from a GAA perspective there are the all-Ireland games. Perhaps both bodies in the Six Counties and in the Twenty-six Counties could work together on special hotel rates for weekends and special events to encourage people to come here on those occasions.

I note that the proportion of those who came to the State and to the Six Counties on holidays in 2007 was around 5%. Has there been any marked improvement in that since then? It seems that a very small percentage of those who come to the State go across the Border to extend their holiday and cover a geographic area. There is potential for increased cross-Border tourism. A joined-up approach from the point of view of the Six and Twenty-six Counties would be far more beneficial to both sides if there was that cohesion and co-ordination. I would welcome the delegates' comments on that issue.

Clearly there is need for a single all-Ireland body to deal with tourism per se as the overseas market is particularly the function of Tourism Ireland whereas Bord Fáilte is an all-Ireland tourist board. A more co-operative approach is required to formulate strategies focused on the island as a whole. Marketing the island would be a huge boost to tourism in both parts of our country. Perhaps the delegates would comment on the issue.

Another thing that has worked against us is that we have priced ourselves out of the market in many instances, particularly since the beginning of the year. That may be understandable, given the global nature of the recession, but it is now extremely expensive for people to come to this country on holiday while it is far cheaper for people who live on the island to holiday overseas than to take a holiday here. That needs to be looked at and a strategy is required to address it.

Many people would argue that we got greedy. When events are held which might attract people to Dublin or Belfast, businesses increase their prices enormously, sometimes charging two, three or even four times what they usually charge. It is total exploitation of the situation and it does nothing to market our tourism industry in a positive way. Such a greedy approach is disgraceful and does no service to any part of the island. We need an all-Ireland approach through a single body to ensure people get value for the money they spend.

I thank the delegates for their work. It is wonderful to see Ireland being promoted internationally on an all-island basis. A lot more can be done and I advocate an all-Ireland body for internal marketing and to promote Ireland as one entity.

Deputy Joe McHugh

I welcome the two delegates. What is the opinion of Mr. Gibbons on the travel tax? Is it a barrier to entry? He made two references to Schengen and may wish to skirt around the issue. However, does he think it would be advantageous for tourism if we were part of the Schengen area?

On paper, all-Ireland tourism looks good and ticks all the boxes but it is not happening on the ground and that is why the delegates are present today. Much of the discussion has been about tourists arriving in Shannon or on the western seaboard but there are still barriers to getting tourists further north. Sligo and south Donegal, including Bundoran, were once the end destinations for tourists because of the Troubles. This was dictated by private tour operators but to what extent is Tourism Ireland trying to persuade tour operators to think in an all-Ireland framework? We are creatures of habit and southern-based tour operators have traditionally organised holidays to Killarney, the Cliffs of Moher in Clare, Sligo and then back to Dublin. Is that culture changing?

Is there a deliberate ploy to encourage people not to go to the most beautiful county in Ireland?

Deputy Martin Ferris

Kerry?

Deputy Joe McHugh

We will debate that later. We do not cry in Donegal if we do not get the things we want but we have to highlight them when it happens. Between 400,000 and 500,000 people will visit the Giant's Causeway this summer but they will stop there, even if there is a small overflow into Donegal. Donegal is the crucial link for all-Ireland tourism. There is a traditional movement of people between Belfast and Dublin because the road and rail infrastructure is in place. The product offered by County Clare or County Kerry attracts the American tourist, which we never got, but we have an unspoilt product in the form of fishing, mountain climbing and coastal activities such as diving and water sports.

Could Tourism Ireland act as a lobbying body for cross-Border rail? Derry city is the fourth largest city on the island and in close proximity to Letterkenny, being only 20 miles away. This summer, the Minister for Transport, Deputy Noel Dempsey, invested €75 million in the Midleton-Cork railway, which covers a similar distance. The Minister was promoting the western rail corridor yesterday and spoke of its expansion to Collooney and to Sligo and that is a critical piece of infrastructure for future tourism. In North America, Canada or continental Europe, rail tourism is the norm. The Minister for Finance, Deputy Brian Lenihan, yesterday advocated rail tourism and offered a discounted pass for senior citizens who come here on holidays. That is fantastic and I welcome it but what happens when those people get as far as Sligo? Are senior citizens from Cornwall going to start thumbing a lift to Bundoran, Ballybofey or Letterkenny?

There is a missing link in rail travel on this island but the European TEN-T programme funds cross-border rail and focuses on missing links. I am battering against a brick wall to convince Fianna Fáil Deputies from Donegal to see this as an opportunity but they will not do so. It is different in the Seanad because Senator Keaveney advocates rail. Will the 160 workers in Tourism Ireland look at how other countries have used rail tourism? It is the future.

Senator Cecilia Keaveney

I am not going to be afraid to duplicate some of what Deputy McHugh said because we come from the same neck of the woods and have the same issues. I apologise for missing the presentation but I was rudely called back to the House for a vote.

I welcome the chance to talk about tourism because I believe it is one of the areas with the greatest potential for job creation. I welcomed the €15 million Carlton hotel development in Redcastle. We lost a small factory that week, which was awful news, and people scoffed at me for suggesting there was tourism potential in the hotel, saying tourism was not a real employer and did not produce real money. Perhaps the reason people in Donegal do not understand the potential economic benefits of tourism is down to the fact that we have not had much of it. This is the case in east Donegal more than in west Donegal.

Some people see the all-Ireland body as a double whammy for the county. Between Malin Head and Letterkenny on the eastern side we used to be too close to the North at the time of the Troubles. Now we are too close to the North for the Northerners who used to visit, because they now feel it is safe enough to go to Clifden, Kerry or elsewhere. We feel doubly disadvantaged because the all-Ireland body is asking people to come and see the Glens of Antrim or the Giant's Causeway but there is no tie-up with Donegal. I do a lot of travelling around the North and all we get is the golfing tourist. Ballyliffin golf club has done a lot of work in that regard and other efforts have been made. Some individual projects have been very good and will be very busy coming up to Christmas. We are not just saying that we are different, we are different and feel we are being ignored. A classic example emerges from the tripling of the product development budget. Why has no one outside the community group in Malin Head said it is the most northerly point and as a tourism group it will grab that by the neck and push to get something there, even a chip van? There have been many Malin to Mizen events but when one gets to Malin there is not even a tea shop.

One could say that is up to the local community but it has battled a certain distance and fell between various stools over who owned what and leases from the Department of Defence and so on. The national tourism organisations should apply pressure to ensure that product development happens there, whether through local community groups, commercial ventures or whatever, but people must ask why there is nothing in Malin Head. If we can get something there that brings people through the country then everybody on the path to Malin Head will gain.

Who is responsible for what in the water sports sector? There are few water sports in Inishowen yet Tourism Ireland will not give money for infrastructure because it has nothing to do with the marine yet the marine sector does not deal with water sports, because its infrastructure is for fishing. There are seven Ministers responsible for the marine and one gets into bother trying to establish who is responsible for what. I went to Castlegregory last year for windsurfing but I would like to be able to do that outside my front door because I am on the Foyle. There is no reason I cannot do it there yet there does not seem to be a drive to do what is obvious and easy.

We could have cultural activity weekends. They might or might not be for the Americans. They could bring people from Belfast, Dublin, Mayo, Sligo or wherever, to learn two Irish dances, a tune on the tin whistle, three phrases in Irish, none of which would be obvious, and paint the landscapes of Donegal. People could come to engage in an activity that is culturally specific to Donegal. Whenever I ask about cultural tourism I am told about the Cork jazz festival or the Queen's film festival but it could be much simpler. We are not helping the people at the coal face. We give tax exemptions to artists when they have achieved multi-million euro status but we do not have a facility to support the little up and coming musician or the child who dances. I know this because I am a musician.

I welcome the money being spent on Belfast city and Belfast international airports. There are massive changes there and people coming to Belfast have the best opportunity of reaching us. I welcome the Derry city link with Dublin. It is very important and must continue. The trouble with the car ferry on the Foyle is a bigger problem than can be conveyed in a simple soundbite but when I tried to get tourism money for it, because it is the tourist link for us, I was told it is nothing to do with tourism. We have no train and east Donegal relies on Derry city airport. CIE services do not even come to Inishowen, they stop at Letterkenny. There is no way to reach us. If one puts Moville into one's satellite navigation system one will be brought to the ferry, yet when it came to money I was told it had nothing to do with tourism.

I like the idea of the pensioner voucher but this brings me back to my main gripe. We need a Dublin-Derry train. The tracks are there and while there is a link in Central Station in Belfast there is no reason not to have a Dublin to Derry train. If we want to use the pensioner voucher system to encourage people to use the trains, and we have an all-Ireland tourism body, the pensioner who wants to come from Dublin to Derry to access Donegal must be allowed to access the Enterprise service to Derry. This should be linked to the bus services, where there is no train service available. I have written a note to the Minister about this. It is important that we all push the same buttons on this matter.

I have a real gripe about the Enterprise train service. It is a brilliant service. Our Governments fund it and European funding has gone into it. They are talking about putting in better tracks and trains, yet the big excitement at the moment is that one can get a €20 day return trip to Belfast but that costs only £7.50 in Belfast. How can we market tourism on an all-Ireland basis if the Iarnród Éireann website does not have any information about Belfast, apart from the train from Dublin to Belfast? In Belfast the only information available is about boarding the train at Belfast, Portadown or Newry, not about the return from Dublin to Belfast. I cannot book a ticket there on the Translink to leave from Dublin or on Iarnród Éireann to leave from Belfast. The lack of access to the north west is a fundamental problem. This is part of the effort to get a Dublin to Derry train. We need to get over the idea of calling the route Dublin to Belfast, with the Derry service being described as internal and call it Dublin to Derry, then we could start to discuss a Derry to Sligo link. That is a transfrontier connection needed to qualify for European funding. Until we do that we are going nowhere.

This will yield results. While we are being constructively critical today there is a great deal of good work being done. I agree with Deputy Ferris that because of our job, we go to many dinner dances and all sorts of functions during the winter. Over the past few weeks I have been to a couple of different places. I stayed in a three star hotel one night because the function was going to run late. That cost €69, which is steep enough for late November. When I asked if this was the regular price I was told it was the price because the hotel was busy that night. When I checked out a four star hotel for another function which was charging €149 for the night I was told that was the price because the hotel was busy. That is not the message to send out. A tourist would say that he or she would not go back to those hotels when they are not busy. The same applies to Galway races and all the other functions. If one is done when the hotel is busy one is not going to return because the bad aftertaste will remain.

Once in Galway I was refused a room at a bed and breakfast. When I pointed out that the sign said "Vacancies" the woman of the house replied that I was on my own. I said there were two of us but we needed a twin room. Again she refused. I repeated that her sign indicated vacancies and she said that I would not be able to afford it, even though I had a BMW sitting outside the gate. I hope that we have moved a long way from there. When I asked somebody next door what was going on she said that there were probably two double beds and two singles in the room and they were looking for at least €50 a head. That was several years ago. The woman wanted in the region of €300 for the room but would not tell me that. I found it hard to go back to Galway after that although I love it very much. The Keaveneys came from Glenamaddy.

I would prefer now to stay on the outskirts, where the Chairman lives.

Chairman

Members have posed many questions and raised a large number of points. I will not add to Mr. Gibbons's burden at this stage. I will give him an opportunity to respond and I may then revisit some of the issues.

Mr. Niall Gibbons

That is fine. I will group some of the issues because they overlap with each other.

Genealogy is extremely important. It is going to become even more important in the coming years. We have a fantastic resource in the on-line version of the 1911 census. We are involved in a dialogue with the National Archives in this regard and I can inform members that information relating to the 1901 census is going to be going on-line next year.

One of the greatest untold stories across the island of Ireland is that relating to the Scots-Irish. For historical reasons, this story has tended to be buried. There is a massive tale in this regard which we have begun to tell in the United States, where we already have genealogy campaigns in train. This is a way of reconnecting with people. Genealogy is going to be crucial in the next ten to 15 years. Now that we have an on-line resource, which is attracting a huge number of hits, it is something on which we are going to be working much more closely. Genealogy is going to deliver for Ireland in the medium to long term.

The Canadian market is extremely important. Approximately 100,000 people from Canada visit the island of Ireland each year. Access is critical and that is what it comes down to in terms of this market. There have been a few losses in recent years. We will continue to invest in the Canadian market. We have some very good links and the carriers are extremely important to us.

I hope to see even further cross-Border co-operation. The British-Irish Agreement has been in place for ten years. There have been some terrific initiatives in recent years from a marketing perspective. For example, the Destination North West and Glens & Lakelands campaigns brought together interests from particular counties — Donegal, Cavan, Monaghan, Sligo, Derry and Fermanagh — which had never worked with each other previously. Customers do not see boundaries or borders, they merely want an experience. We need to encourage people to work together in the coming years in order to ensure that overseas visitors will be treated to a visual experience which will encourage them to choose Ireland ahead of other destinations. We have a great product in the north west but there is a need to get people to work more closely together. There is much we can do in that regard.

We have worked closely with the relevant authorities in different sports. For example, we promote horseracing in the UK and we will be launching another campaign into the marketplace over the winter. In GAA, we have sponsored the Asian Games, which assists in bringing Irish culture to a region where not so much would be known about Ireland. Our work in this regard is fairly opportunistic in nature and depends on what is happening at the time.

Deputy McHugh referred to Schengen. One of the strongest messages I could give to the committee in the context of new and developing markets for the future is that such markets only deliver 5% of our visitors. I met the chief executive of VisitBritain a number of months ago and we agreed to co-operate closely in the years ahead, particularly in respect of new and developing markets because it makes economic sense to do so. We will do this by putting a UK-Ireland offering on the market. We can make a promise in the marketplace but it must be delivered on the ground.

If someone travels to the Schengen area, he or she can visit 25 countries at a cost of €50 for a visa. If he or she travels to the island of Ireland, he or she will need both a visa for the UK and one for the Republic. I received a letter from a visitor from India who stayed for a couple of nights in Dublin before travelling north to the Giant's Causeway and who was stopped at the Border because he had a single-entry rather than a multiple-entry visa.

The strongest message we could possibly send is that there is a need for a common tourist visa for visitors to the UK and Ireland. People's holiday requirements are relatively simple. They want to know how to get here and then discover how they can travel around. There is no doubt that, for safety and security reasons, visa requirements are essential. However, people must be in a position to travel freely across this island. This is going to be one of the most important issues in the next ten years in the context of attracting tourists from extremely valuable markets. We have invested a good deal in the markets of India and China in recent years. There is a need, however, to break down the barriers on this island in respect of accessibility.

We deal regularly with tour operators, who frequently criticise the fact that there is not sufficient accommodation capacity to enable them to offer an all-island facility. The position in this regard has improved somewhat. The number of bedrooms in the Republic increased from approximately 28,000 ten years ago to 60,000 today. In Northern Ireland, the number of hotel bedrooms is approximately 7,500. There is a major gulf in this regard. The lack of accommodation capacity, particularly on the northern coast, is a barrier to tour operators offering all-island itineraries. However, we work closely with tour operators and encourage them to offer such itineraries.

The number of people who spend at least one overnight in both jurisdictions on this island has increased dramatically. As a percentage, however, it is still quite small and fluctuates between 4% to 5%. I reiterate that tourists do not recognise borders and want to travel to places where they will gain new experiences. There have been great advances in Northern Ireland in recent years. The opening of the Giant's Causeway visitor centre and the anniversary of the sinking of the Titanic will provide Northern Ireland with a great opportunity to showcase what it has to offer in the coming years.

I visited Donegal on Monday. We launched our marketing plans against the backdrop of what has probably been an extremely difficult year for businesses in the county. There was an extremely good turnout at the event. Donegal has probably suffered more than any other county in the past year. It has been affected on a number of fronts. For example, there is depressed international demand, the supply of rooms is larger than what is required and there is a lack of flow of credit from the banks which is creating difficulties for many small and medium-sized enterprises in the tourism sector. Allied to these issues, sterling is weak against the euro and the improvement in the situation in Northern Ireland means that people from there are not visiting Donegal as much as they did in the past or else they are taking flights abroad. This has had a major impact.

There are great accommodation facilities and tourism attractions in Donegal. It will be critical for the authorities in that county to work closely with those in Derry, which has an airport and good access from the UK. In addition, Derry offers a good visitor experience, particularly in the context of the money that has been invested in the arts, the city's walls, etc. It is important that the two counties work together in order to reap the benefits offered by tourism.

Lonely Planet recently identified Cork as one of the top counties to visit in 2010. I realise that there are no Deputies from the county are present.

Chairman

One of them is a member of the committee.

Senator Cecilia Keaveney

One of them is travelling to Cork for the weekend

Mr. Niall Gibbons

It is important to state that we will be leveraging things of that nature. The Lonely Planet choice of Cork is an opportunity for the county, particularly in the context of the opening of the Cork-Swansea ferry service which will increase access.

Cross-Border rail services are extremely important, particularly in the context of regional distribution. One of the major developments in tourism in recent years is that with people's ability to book flights on-line, there has been a massive increase in traffic into urban areas. This has, to some extent, been detrimental to the regions. There is no doubt that rail, bus and road access are vital in the context of regional distribution. There have been significant improvements in road access in recent years and the current rail service is far superior to that which obtained ten years ago. This opens up real opportunities for us and a dialogue is taking place between Tourism Ireland and Iarnród Éireann with regard to how the excess capacity, particularly at off-peak times, might be utilised. I was delighted with the announcement in yesterday's budget and I hope we can bring a suitable product to the marketplace because it is going to be really important for rural areas.

The question in respect of cross-Border rail services is whether we should engage in lobbying. Our job is to go out to the marketplace. That is where we must be focused in terms of making promises. There are other agencies which must deliver services, etc., in this country. Accessibility, both into and within Ireland, is vital, particularly if we are to succeed from a tourism perspective. We do a great deal of work with airlines and ferry companies. Approximately 80% of people who visit Ireland travel here by air while the remaining 20% come by sea. There is a need for really good access if people are to travel around and enjoy what counties have to offer, particularly those on the periphery.

I met people from Shannon in recent days who are concerned with regard to the situation in Aer Lingus, particularly from the perspective of transatlantic access, the figures relating to which are down by over 20% this winter. The position is still slightly uncertain in respect of next summer. We work closely with carriers such as Continental Airlines, Delta, American Airlines and United Airlines and we will engage in a significant co-operative campaign with them and Aer Lingus in the United States next year. There is no doubt that access into Shannon Airport is extremely important for the west. It is important for Donegal too. However, Belfast Airport creates the opportunity for cross-Border tourism as well.

We must deliver a product that is competitive on the ground, particular when sterling is an issue. Our most important market for the foreseeable future and our number one priority next year is the British market, which declined significantly in 2009. That being said, the outbound market from Britain in general has been down by the same figure as the number of people who have come into Ireland. It is not just an Ireland phenomenon. With sterling being depressed and likely to be depressed for the next year, people's credit cards are going to be hit and we must ensure when they arrive what we offer is as competitive as what they will get somewhere else. Otherwise we will lose those visitors and it will be really hard to attract them back.

All our research shows that the cost of getting here is good, as is the price of accommodation, although there are odd blips. However from the independent surveys we conducted the price of eating out and alcoholic drinks are issues that must be addressed. There is nothing worse having spent all this money on marketing and being successful in attracting people to come to the country, than they leave with a bitter taste. The Great Britain market is critical to our targets. I cannot overstate how important it is. We must get Ireland to Britain in a way that we have not done before. We have not witnessed what we have seen this year before. We are back to the visitor numbers of the 1990s and we need a collective effort on an unprecedented scale to do that. We will do that. Ten years ago, we could not have a St. Patrick's Day parade in Britain, now we have. We will make it a St. Patrick's week and it will be the biggest consumer show in Britain in the first quarter of 2010. I ask that when visitors come to Ireland, they get a great welcome and have a great experience and they return home feeling they got great value. Positive word of mouth is one of the most effective means of marketing.

Culture is what sets us apart. I try to keep the definition of culture simple, it is just an expression of ourselves. It can be our music, literature, genealogy, film, etc. We have a great deal to celebrate and we are doing that in Great Britain in 2010. Every month we will have a different theme. Genealogy will be the theme for January, born in Ireland, filmed in Ireland, written in Ireland. We have so much to celebrate.

We have liaised with Culture Ireland and other agencies as to how we can leverage the island of Ireland message from a cultural perspective in the overseas marketplace. I am absolutely passionate about what we have to offer. It is ten years since the North-South bodies were established. We have many cultural opportunities across the whole island coming up in the next decade that we need to reflect on as they will impact on our relationships, our perceptions of ourselves and how people perceive us overseas. I am referring to the Titanic, the plantation, the Great War, 2016 which provides unparalleled opportunities for dialogue across the island. Tourism Ireland has been fantastic from a personal perspective in meeting people and getting people working together that have not come together before. We have worked on projects on 12 July that could not have been conceived years ago. The next decade provides us with unparalleled opportunities to get the dialogue up to a new level and create a wonderful perception of the island of Ireland overseas that makes us stand apart from other destinations. We will never be cheap, we will always be cheerful. I am absolutely confident that we have a fantastic product that stands apart from other destinations. We have more than 100 people overseas who will continue to do that work.

I worked in the Marine Institute for seven years before I came into tourism. Our role is overseas, but there is no doubt that there are opportunities for product development in the marine sector. I think it is an area that will grow in the years to come. It is very important for the agencies that are involved to ensure they are all singing from the same hymn sheet. The south and the west provide great opportunities, for example, surfing in Rossnowlagh. Our inland lakes and waterways are a great asset and I remember promoting them vigorously. The quality of the product is absolutely vital. I am a big advocate for marine tourism. We do not have a role in product development but we talk to our colleagues in Fáilte Ireland on these types of issues and that is one that I would be very happy to advocate.

I am happy to take any questions or queries.

Deputy Niall Blaney

I welcome the delegation from Tourism Ireland. I apologise that I missed the presentation but I had to deal with business in the Chamber. I was pleased to hear Mr. Gibbon's final remarks because for too long the tourism potential of the area north of the Galway-Dublin line was neglected. The potential for cross-Border tourism is massive. Traditionally tourism would come in through Dublin and head south. One has to give credit to the Kerry people because they were up long before the rest of us. Kerry in particular and the south and west coast have done very well from tourism.

There is a need to invest in infrastructure to develop tourism in the north east and north west. If one starts from the Antrim coast, and stays along the coast through Donegal to Galway, there is nowhere in the world that has such potential. We must tap into that potential and develop it. I have a friend who is trying to develop a hotel not too far from my home place in north Donegal. He steps on a plane 25 minutes from his home in the UK, arrives in Derry Airport and hires a car. He can get from his home to near my home in 3.5 hours. I would struggle to drive to Dublin in that time. We have an incredible ability to attract tourism from the United Kingdom. We need to realise that potential by selling the product. There are so many activities that are being developed along our coastline in counties Derry, Donegal, Sligo, Leitrim, Mayo and Galway.

Tourism has the ability to break down borders. If people realised the tourism potential of their area, it would go a long way to breaking down borders, on either side, North and South. I encourage Mr. Gibbons to do all he can to sell tourism. If we can be of any assistance at any time, such as St. Patrick's Day or any other day, we would be only too happy to help out.

Chairman

I will now comment and Mr. Gibbons and Mr. Clarke may respond to both Deputy Blaney and me.

It was not a totally bad year for County Donegal. The Solis Lough Eske hotel was awarded international hotel of the year, which is a major achievement and we congratulate Mr. Turner and his staff. We stayed there when we attended the British-Irish Parliamentary Assembly hosted by Mr. Blaney. It was a great occasion and we had wonderful opportunities in that quality centre.

To introduce the historical dimension; in the 7th century two holy men from Donegal decided to meander into east Galway to evangelise my community where they built two monasteries. As we were fairly fast converters, they moved on to Scotland and built a series of monasteries there. There is a long history of heritage tourism across the island and into Scotland, to which Mr. Gibbons has already alluded, where there is a massive opportunity to capitalise. Perhaps Mr. Gibbons would expand on the common tourism visa. Some of our colleagues have referred to the common travel area. I wish we would manage that in a more simple way whereby people would have a multi-visitor visa coming in to Ireland, through the common travel area.

In regard to the car-hire penalties the committee secretariat would be prepared, perhaps with some assistance from Tourism Ireland, to take up all these issues with the relevant agencies and Departments to see what can be done to minimise the confusion and maximise the opportunity for people to ensure that there are no impediments to their embracing the real Ireland.

I agree with what colleagues have said on hotel charges. Even in hotels where we stay in Dublin as parliamentarians, I found that booking in on the weekend of an international rugby match or an all-Ireland final or semi-final the prices are outrageously dear for those occasions. That is not fair to the consumer. When running a hotel, one should know one's prices and one's staff. There is no reason this massive inflation should take place, whether it is the Galway races or otherwise. Nobody should be victims of that.

I see huge potential in heritage tourism, genealogical tourism and green tourism. We can capitalise on geology, archaeology, the environment and water where there is huge potential from a North-South point of view. The coastline and inland waterways have much potential.

Accessibility and carriers are critical to an island nation. Mr. Gibbons and I had the opportunity to visit St. John's, Newfoundland, with which there is a huge historical connection. I see no reason we cannot develop a new carrier facility operating out of St. John's International Airport across into Boston and on either to Ireland West Airport Knock or Shannon or Belfast or Kerry. This would minimise the distance and maximise the opportunity. Perhaps Mr. Gibbons would give some consideration to the issue and perhaps we may be able to work on it. There is huge connection with the north American area, on which we have not fully capitalised, between Newfoundland, Canada and the United States.

I compliment Mr. Gibbons on the Asian games. I had the privilege on two occasions of attending the Asian games in Shanghai and Beijing where I was so proud to be Irish. We had 500 young people, some not so young who have retired in Ireland. Deputy Ferris has a huge interest in games and possibly could have made it on the great Kerry teams if he had concentrated on football. He was an outstanding footballer and still makes a major contribution to football in his area. Some 500 young people from the ages of 18 to 40 take part in those Gaelic games, hurling, football, camogie and ladies football. Many international people, particularly ladies, from all over the world take part in these games. One is proud of their commitment, enthusiasm and absolute enjoyment. I had the privilege of addressing them on four occasions, once when they arrived and finally on the night of the presentations. It was a major statement for our country. We salute Tourism Ireland on capitalising on that market. It is a credit to the Diaspora that everywhere they go they bring our culture with them, whether music, song, dance or games. They are ambassadors for our nation. We are proud of our own people, particularly the diplomatic corps and the public officials who represent our country, such as Mr. Gibbons and Mr. Clarke, who work overseas on behalf of Ireland and do an unbelievable job. We are grateful to all of them. I leave the final words to Mr. Gibbons.

Mr. Niall Gibbons

The Chairman touched on some really important issues. Obviously, the priority next year will be to restore and grow the market in Great Britain. It is vital to the success of tourism across the whole island. We have to regain our position in Great Britain in a significant way. For the medium to long term, markets such as India, China and Asia will be very important. At the end of the day the people who come from those places stay longer, spend more and are more likely to visit regions which is important. We can go out and make a promise in the marketplace on how good Ireland is but I cannot overstate the issue of the common tourist visa and how important that could be in unlocking potential for those markets. We have met my counterpart in VisitBritain and we will meet again in January with a view to working together on that issue.

Senator Cecilia Keaveney

The British-Irish Interparliamentary Body has been looking at that issue.

Mr. Niall Gibbons

I am aware of that. We have done some research ourselves. I understand that of the order of 2 million visas are issued by Britain every year to some of those countries. If we can get a slice of that at action it could be of real benefit. With a UK visa one can automatically visit Northern Ireland. We need to ensure we are included in that action. It is an important source of business for us and it should be a relatively simple fix.

On the car-hire issue we have stated in our plans for next year that we want to get this industry back on the path to growth. While 3% may not sound much, it is still 7.8 million visitors. The clock goes back to zero on 1 January and we have to get almost 8 million people here next year. Car hire is potentially one of the biggest crises confronting tourism in 2009. We are getting feedback from markets in the United States and Germany that this is one of the barriers to travel. The reason is that car hire companies cannot get access to credit. If they do, they buy cars but there is no resale value into the trade. We have an aging fleet and will not have enough cars next year to satisfy demand which means that the price will go up. We are getting feedback on that already. I hope some solution can be brought to bear because from a regional perspective this is an important part of the cake.

On the issue of hotels, value for money is critical. I an conscious that I can pontificate and make statements but there are hoteliers who are hanging on by their fingernails.

Chairman

I appreciate that.

Mr. Niall Gibbons

It is very tough and it is the one sector where there are family businesses that are in real difficulty and will struggle to survive into next year. I am really sympathetic to their plight.

Chairman

And the industry.

Mr. Niall Gibbons

Yes. They are critical to our industry. There are so many people who are real professionals in the industry and we take pride in them. One great thing the hotels did in 2009, during the Volvo Ocean Race which was an outstanding event for Ireland on the world stage, was to put a charter in place that week. The year before it came to Galway we promoted it in Cape Town, Qingdao and Boston and Good Food Ireland came with us around the world. The charter enabled people to get hotels at the same price as at a normal time of the year. The signal that sent to people generally that they could get value for money and would not be ripped off was tremendous. There is a lesson there to be learned.

In regard to green tourism we need to be careful about how we develop our product in the years ahead. There are lessons from the past in respect of development, how we look after our natural resources. While mistakes have been made we are still in a good position and are well-perceived internationally as having a good green reputation.

In regard to St. John's, I was there a month after 11 September when the world was a very different place.

Chairman

What about the decision to travel?

Mr. Niall Gibbons

It is a remarkable place which, I suppose, is a reflection on the Irish Diaspora. The issue of access is precarious. The estimated global losses for the airline industry in 2009 are €2 billion. While consolidation is taking place at present I do not know how it will pan out. We have seen it with British Airways and Futuro. We are aware of the situation in Aer Lingus. We are an island on the periphery of Europe and access is absolutely critical. The only way we can reach our targets next year is by having strong, competitive access.

I was asked about the travel tax. I was a member of the tourism renewal group, chaired by Mr. Maurice Pratt, which recommended its abolition but that is a matter for Government. It remains for the time being so we must concentrate on having direct, competitive and convenient access. There are 12 airports on this island and we must maximise the co-operative opportunities when carriers announce new routes. This has been a difficult year for carriers and there has been a 12% decline in the number of seats taken by people coming into Ireland this summer, with a 15% decline during the winter. We have lost routes in San Francisco, Los Angeles and Washington DC, which will not return in the short term. It is a really difficult situation but we have to hope that, in the future, airlines can restore their balance sheets to a position of strength to launch new routes because they are vital to us. Norwegian Airlines is the only new carrier to fly into Dublin, operating from Copenhagen and Oslo, and that is great news but other airlines have to follow.

It would not be fair to leave out the sea carriers who, while they only account for 20% of arrivals, are critical for regional tourism and longer-stay breaks.

Chairman

It is fortuitous that we are discussing tourism. I acknowledge the presence in the Visitors' Gallery of two young tourists who have recently come to Ireland. They are the Canadian Rose of Tralee entrant for 2009, Sarah Thornton from Ottawa, and her friend Julie Long from Pasadena, California. They are students in their final week and are now completing their work. We wish them well in their future careers and thank them for their contribution to our country. They are two great ambassadors for their respective countries and hopefully they will return at some point.

I sincerely thank Mr. Gibbons for his very positive and focused presentation. We are all aware that we will require courage, enthusiasm and vision to grow the economy on both sides of the Border in 2010. It is heartening to hear there will be ambitious leadership in the tourism sector, which is a key sector to local economies across the island. In the budget debate, the Government took a clear decision that one of the sectors we expect to assist the renewal of our economy was tourism. The political leadership is there, as is the professional performance of Mr. Gibbons, Mr. Clarke and their colleagues. With the co-operation and collaboration of our colleagues in Northern Ireland we will do what we can. We all have a serious responsibility, as citizens of this country and inhabitants of the island, to ensure we maintain our traditional value system and the traditional welcome which is critical to ensuring it remains a special place for everybody in the world who wants to visit and for those of our own who want to return. Across the island there needs to be constant interaction and mobility so that everybody, North and South and of every tradition, understands the special place the island is for all of us.

As this is the last meeting of 2009 I wish all members of the joint committee including all our staff, those who are present today and those who are absent, a happy, peaceful and restful Christmas and new year. I look forward to seeing them all again in January and to a fruitful and productive year ahead for the joint committee in all of its activities in 2010.

I warmly congratulate Deputy Niall Blaney and his lovely wife on the birth of their baby boy, Harry, this week. I also congratulate Deputy McHugh and his lovely wife on the birth of their baby boy last month. There is no need to worry about the future of Donegal — the rest of us will have to do the worrying.

The next meeting will be on 28 January 2010, when we will discuss cross-Border co-operation in the education sector with the respective Ministers for education in the North and the South. Ba mhaith liom fíor-bhuíochas a ghabháil libh uilig. Guím Nollag shona agus athbhliain faoi mhaise dhaoibh go léir. Casfaimid le chéile arís, le cúnamh Dé.

The joint committee adjourned at 1.05 p.m. until 11.30 a.m. on Thursday, 4 February 2010.