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Tourism Promotion.

Dáil Éireann Debate, Tuesday - 25 May 2004

Tuesday, 25 May 2004

Questions (13)

Brian O'Shea

Question:

33 Mr. O’Shea asked the Minister for Arts, Sport and Tourism his views on the fact that following the successful enlargement of the European Union, increased competition from eastern European states as tourist destinations will impact significantly on the Irish tourism market; his further views that having been thus far unable to develop fully a foothold in the continental European market, competition from eastern European countries will further prevent Ireland being marketed throughout Europe; and if he will make a statement on the matter. [15394/04]

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Oral answers (5 contributions)

I welcome the enlargement of the European Union, which was celebrated so warmly by people throughout this island on 1 May last. I consider it as a great opportunity and not as a threat. I disagree with the Deputy's assertion that we have been unable "to develop fully a foothold in the continental European market" so far. We had 6.3 million visitors to our shores last year, of which 1.5 million or almost one in four came from continental Europe. We continue to see strong growth from Latin countries in particular. Visits from continental Europe were at record levels in 2003. Central Statistics Office figures for the first two months of 2004 indicate a growth of 11.5% in visitor numbers from continental Europe over the same period in 2003.

I accept that the delivery of value for money is a common concern across all markets. If there is a specific inhibiting factor in developing our mainland European business, however, it does not relate to marketing or the fashionability of Ireland. It is more likely to relate to access, in my view, as there is still quite a way to go in developing additional routes from mainland Europe to Ireland.

The international tourism market is fiercely competitive and will become more so. I do not doubt that the new EU member states will add to the intensity of that competition, but they have been competitors for some years. Ireland has had to work in tough and competitive tourism markets for decades. It has had to compete with the strongest players and to pitch for business against long-established destinations with natural climatic advantages or cosmopolitan architectural heritage that may have outshone those of Ireland. This country has taken on this competition and succeeded in selling its unique proposition. Tourism Ireland, which is a professional and well-organised marketing organisation, is a great North-South success story. It is delivering for both parts of the island. The marketing of Irish tourism is recognised internationally as a highly sophisticated and successful operation.

If we maintain the key pillars of the Irish tourism proposition, deliver value for money and continue our high-quality marketing, we will not have much to fear from our new EU partners. We may have much to gain over time, however, given that the accession countries represent a population increase to the EU of nearly 20%. The outbound travel spending of the ten new member states came to €8.2 billion last year, suggesting that a market is available for Irish tourism. Ireland has experienced steady growth in visitor numbers from eastern Europe over the past four years, albeit from a low base, most notably from Poland, the Czech Republic and Hungary.

Ireland has not developed the foothold it needs in continental Europe if it is to get its full share of the tourism business from that region. The Minister's figures have indicated that fewer than 25% of tourists who visit this country come from continental Europe. It is obvious that if the new member states have great capacity in their tourism product, they will develop it with the assistance of the EU. They will improve access and other tourist facilities. Is it not the case that Ireland's tourism industry faces a monumental problem? There is a perception that one will not get value for money here by comparison with low-cost countries, more of which will market their products. Even if such countries do not operate in opposition to Ireland per se, we will compete for the same sort of market.

Ireland's share of the continental European market has not been as high as one might have wished. That 1.5 million people from that region came to this country last year shows that we are making significant gains. It is quite encouraging that we are making gains in markets as diverse as Germany, Italy, France and Spain. The tourism authorities are engaging in an aggressive marketing campaign in Germany, a country which is often seen as the litmus test of the continental market. We will face a greater degree of competition from the new accession states than we have before. Costs are lower in many such countries than they are here, as Deputy O'Shea said, and the holiday experience is cheaper as a result. It is important to point out, however, that Ireland has never been a low-cost mass destination and never will be. The opposite is the case. Ireland has successfully been a holiday destination for discerning visitors for many decades.

New opportunities will emerge for Ireland to gain a greater tourism market share as the accession states progress within the European Union and as their economies improve. We will closely monitor all markets to ensure that we increase the opportunity to gain market share. It is encouraging that 2003 was a peak year for tourism, outstripping the previous record year of 2000. I am confident that 2004 will be the best year Irish tourism has had.

The Minister has agreed the entry of ten new countries into the European Union will put some pressure on the market but have his Department or its agencies taken any specific marketing measures to cope with the new level of tourism product now available within the EU?

Yes. The amount of funding that has been made available for marketing Ireland abroad is at its highest ever level. We are spending record sums of money in all our main markets, as well as in other markets that do not offer as many visitors as we would like. The marketing is ongoing and between the public and private sectors it is quite considerable. I am satisfied, as is Tourism Ireland, that the available resources are sufficient to take on all comers. Naturally, we would all like to have more resources but that question is for another day. As of now, however, Tourism Ireland is in a position to take on all comers and is doing so extremely successfully.

The World Tourism Organisation estimated the number of tourists fell by 1.2% last year and Europe's performance was, at best, flat. Ireland, however, has growth rates in the order of 5% so it is clear the number of visitors coming here is increasing in a marketplace that is more competitive than ever before. Tourism Ireland deserves great credit for that good news.

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