Dáil Éireann díospóireacht -
Wednesday, 16 Apr 2003

Vol. 565 No. 4

Written Answers. - Tourism Industry.

Mary Upton

Ceist:

12 Dr. Upton asked the Minister for Arts, Sport and Tourism if he has any proposals to maximise the benefits to Irish tourism of major international sporting events; the estimated value to the Exchequer of such events in 2002; and if he will make a statement on the matter. [11031/03]

Liz McManus

Ceist:

29 Ms McManus asked the Minister for Arts, Sport and Tourism the total amount of funding allocated recently under the Bord Fáilte grants to sporting and cultural events; the way in which this compares with the allocation of 2002; and if he will make a statement on the matter. [11035/03]

Minister for Arts, Sport and Tourism (Mr. O'Donoghue)

I propose to take Questions Nos. 12 and 29 together.

Major international specialist events can present significant marketing opportunities for a variety of commercial interests. Over many years, Bord Fáilte has taken advantage of the opportunities provided by several major international sporting events – international golfing events being a classic example – to market Ireland as both a general tourism destination and also as a sports tourism destination, as well as attracting visitors to Ireland in their own right.

Many major international sporting events will not just be funded by gate receipts but by a variety of commercial income streams. These will arise from leasing retail/catering space, marketing stands, merchandising deals, sale of advertising, hospitality, etc. To be held at all, many major sporting events will have to be able to put forward a credible package of marketing opportunities and be able sell these to serious commercial players. This is a very specialized area and, in order to exploit some of the opportunities which it presents and to have an efficient, streamlined and transparent system for Bord Fáilte's participation in such events, the international sports tourism initiative was launched by the Government in 2000.

Even though it has a ring-fenced allocation under Bord Fáilte's budget, the initiative is not a traditional grant scheme. Essentially, it is a framework which governs Bord Fáilte's participation in commercial relationships with event organisers. Bord Fáilte is paying for a set of benefits which the event organisers guarantee to provide. If the events do not deliver the benefits promised, a certain portion of the payment may be withheld and the prospects for future marketing investments by Bord Fáilte diminished.

The initiative has invested in the staging of 46 international sporting events over the period 2000-02. On 21 March last, I announced a list of events which have been approved in principle, subject to normal contractual negotiations, for investment under the initiative so far this year. The total amount of funding allocated to the initiative by Bord Fáilte in 2003 is €5.43 million, compared with €7.62 million in 2002. A review of the benefits accruing from the investments under the initiative is being conducted by Bord Fáilte and I intend to have my own Department formally review it in the autumn.

In addition to the sports tourism initiative, the House will be aware that Ireland will, following an active Government and Bord Fáilte campaign, be host to the Ryder Cup in 2006. The Ryder Cup matches have become one of the top ten world class sporting events in media terms, reaching around 700 million homes in 167 countries and with 24 television stations carrying live broadcast. It is expected that there will be over 1,500 accredited media personnel in Ireland during the tournament.

As regards cultural events, I also announced earlier this year, a list of grants under the festivals and cultural events initiative, which is also administered by Bord Fáilte. This expenditure by Bord Fáilte will permit the development and expansion of the role of a widely distributed series of local events. These events will act as attractions for international tourists, allowing visitors to experience what Ireland has to offer while, at the same time, affording an opportunity for Irish people to also enjoy the benefits. Unlike sports tourism events, these events are generally organised by local communities and groups. The total amount of funding committed under the festivals and cultural events initiative in 2002 was €3.35 million. A similar provision is being made available this year.