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Tourism Promotion.

Dáil Éireann Debate, Tuesday - 25 May 2004

Tuesday, 25 May 2004

Questions (30, 31, 32, 33)

Joan Burton

Question:

47 Ms Burton asked the Minister for Arts, Sport and Tourism the details of the agreement that gives Ireland authorised destination status with the Chinese Government; when this agreement comes into effect; the number of tourists from China to Ireland he expects will materialise from this agreement; if this agreement represents a shift in the areas to which Ireland is being marketed as a tourist destination; and if he will make a statement on the matter. [15369/04]

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Eamon Ryan

Question:

57 Mr. Eamon Ryan asked the Minister for Arts, Sport and Tourism if, in view of the fact that Ireland has now been awarded approved destination status, ADS, from China, the proportion of current Chinese tourists that arrive here via Shannon or Cork, as opposed to Dublin; if there is scope for setting up an arrangement whereby Shannon and Cork would be hubs for new routes originating from China; and if he will make a statement on the matter. [15349/04]

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Written answers

I propose to take Questions Nos. 47 and 57 together.

The Memorandum of Understanding on Approved Destination Status with China, or the ADS agreement as it is more commonly known, was signed on 11 May this year in Dublin Castle in the presence of the Taoiseach and the Premier of China. This is a technical co-operation agreement governing group tourism from China to Ireland. It is anticipated that it will come into effect on 1 July 2004. I have lodged a copy of the approved destination agreement with the Dáil Library.

It is generally recognised that the locus of global economic development is moving East. China has emerged as a major economy. India looks set to follow suit. From a policy perspective, we have to look at the implications of these trends for tourism. Tourism Ireland has, this year, chosen three long-haul markets as "incubator" markets where it will set about establishing a presence, via agents, and embarking on a more systematic and targeted set of activities. These three markets are China, India and Korea.

China has emerged as one of the most rapidly expanding tourism markets in the world. In order to facilitate group tourism from China, it is necessary for a destination country to receive authorised destination status, ADS.

Put simply, an ADS agreement basically provides for travel agents in China, who are designated by the China National Tourism Administration, CNTA, to organise tours to ADS destinations. Travel is in groups, with a group leader, according to a specified travel plan. The agreement is mainly concerned with the technicalities around the organisation of such group tours, particularly the issue of visas and the relationships between the Chinese designated agents and the visa authorities.

It is far too early to say what number of visitors we can expect as a result of ADS but I have no doubt that, in the medium to long term, there is significant potential. Certainly countries like Australia and New Zealand have experienced tremendous growth since obtaining ADS status but these are closer geographically to China.

I visited China earlier this month for the Ireland-China Cultural Festival in Beijing and Shanghai, which is sponsored by my Department. I used that visit to promote awareness of Ireland in both the cultural and tourism spheres. The impact of that visit was greatly enhanced by the extensive coverage in the Chinese media of Premier Wen's presence at the signing of the ADS agreement in Dublin which paralleled my visit to China.

I have no information on the number of Chinese tourists currently visiting Ireland via any of our international airports and the issue of arrangements to promote Shannon or Cork as hubs for such traffic is a matter for the Minister for Transport.

Willie Penrose

Question:

48 Mr. Penrose asked the Minister for Arts, Sport and Tourism his views on the fact that ongoing problems with regard to direct access to Ireland’s regions continues to hinder the tourism industry here; the efforts being made to ensure that tourism here is developed throughout the country as opposed to being concentrated in particular areas; and if he will make a statement on the matter. [15378/04]

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Michael Ring

Question:

60 Mr. Ring asked the Minister for Arts, Sport and Tourism the Government strategy to re-balance the East-West divide in tourism spend here; and if he will make a statement on the matter. [15361/04]

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I propose to take Questions Nos. 48 and 60 together.

One of the key objectives of national tourism policy is to achieve as wide as possible a distribution of visitor numbers across the different regions with the consequent distribution of tourism revenue.

Achieving that goal has long been recognised as a major challenge and is something that is fully reflected in the programmes and initiatives operated by Fáilte Ireland — the National Tourism Development Authority — and Tourism Ireland, and in the action plan set out in the recent report by the Tourism Policy Review Group.

The Tourism Policy Review Group report sets out a strategy for tourism that is comprehensive, coherent and challenging for both Departments and agencies and for the industry itself. It has put the emphasis on an agenda for action, highlighting 70 individual recommended actions that will support the development of the tourism sector over the next decade. The implementation group that I established to drive forward the recommendations in the report is up and running. It has met on four occasions to date and is engaged in an intensive dialogue with all the key actors at national level who will help determine the future success of Irish tourism.

While many of the actions proposed by the review group will have an impact on the regional distribution of tourism numbers and revenue, key actions in this regard include those relating to product development, tourism promotion, access transport and the appropriate infrastructure and arrangements for the delivery of tourism at regional level.

As the House will be aware, I have no direct responsibility for individual actions or measures relating to tourism promotion or development in so far as specific areas of the country are concerned. These are a day-to-day function of the tourism agencies.

The Deputies may wish to note that a number of programmes and initiatives particularly favour the regional distribution of tourists and tourism revenue. These include the nature and focus of the tourism product development scheme; the differential levels of support offered to regional tourism authorities for marketing purposes; expanded domestic tourism marketing campaigns; the use of predominantly rural imagery in the advertising and promotion of Ireland, both at home and abroad; the regional coverage with respect to visiting media; and the specific focus on achieving a wide spread of visitors in relation to access transport policies.

On access transport policies, the development of good access, particularly air access, is key to strengthening the competitive position of the regions. Both tourism agencies recognise this issue and are investing significant time and resources in encouraging good air links. Already, Knock and Galway airports are reaping the rewards of their efforts to promote direct access to the west, particularly from Britain.

In recent years the domestic market has become increasingly important to the tourism industry, especially in difficult times, and last year expenditure by Irish people at home increased 16% compared to a 3% revenue growth from overseas visitors. It underpins performance, particularly in shoulder seasons and throughout the regions and, with total expenditure of €1.1 billion, is our largest single market. In recognition of the fact that in the short term the home holiday market offers the greatest prospects for boosting regional tourism, Fáilte Ireland has invested an additional 20% funding into this market this year, bringing its marketing spend to a record €3.3 million.

On the promotion and development of tourism by the regions themselves, Fáilte Ireland is channelling in the region of €5 million directly into the regional tourism companies to strengthen and enhance their operational and marketing capabilities this year. This investment, which represents a 20% increase in funding to the RTA network, is designed to ensure both a high quality visitor servicing experience at key tourist information offices and also a strong overseas promotional effort. Building on this, and on foot of the recommendations of the report of the Tourism Policy Review Group, Fáilte Ireland is now actively considering the question of how best to establish a closer correlation between the identified core visitor servicing and development functions provided at regional level and the State financial support provided through itself and Shannon Development. The outcome of this work will inform Fáilte Ireland's ongoing deliberations on the most appropriate regional structures for the discharge of its functions and the relationships and arrangements that should apply at regional level.

Home holidays and supporting the RTAs represent just two of the many ways Fáilte Ireland is funding the development of tourism in the regions. In total this year, Fáilte Ireland is investing in the order of €25 million on developing regional tourism, from supporting local festivals to building capability and strengthening the tourism product itself. Initiatives such as the festivals and cultural events initiative will continue to favour the lesser-developed regions. The tourism product development scheme will develop tourism capital infrastructure in a sustainable way that widens the spatial spread of tourism, diverts pressure from highly developed areas and increases the under-performing regions' share of overseas tourism revenue.

Question No. 49 answered with QuestionNo. 37.
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