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JOINT COMMITTEE ON ARTS, SPORT, TOURISM, COMMUNITY, RURAL AND GAELTACHT AFFAIRS díospóireacht -
Wednesday, 10 Feb 2010

Tourism Development: Discussion with Tourism Ireland.

It is proposed that we stay in public session to consider with representatives from Tourism Ireland the widening of the parameters and appeal of tourism on an all-Ireland basis and the harnessing of the Irish diaspora as a lucrative tourism development opportunity. Is that agreed? Agreed.

I welcome Mr. Niall Gibbons, chief executive, and Mr. Mark Henry, director of central marketing, from Tourism Ireland and thank them for their attendance. Before we begin I draw attention to the fact that members of this committee have absolute privilege but this same privilege does not apply to witnesses appearing before the committee. This is standard information that I must impart. Members are reminded of the long-standing parliamentary practice to the effect that members should not comment on, criticise or make charges against a person outside the Houses or an official by name or in such a way as to make him or her identifiable.

Before we begin I will say a few words. The Irish tourism industry has been hit especially hard in the past year by the recession but we are pleased to see the Minister's budget is holding up. We all want to see that put to good use. Each new season offers new opportunities and that is why we have invited representatives from Tourism Ireland to discuss how we can best promote Ireland for 2010 and attract foreign visitors to our island. It is just as important to encourage our indigenous population to holiday at home and in this respect I am very interested in what Mr. Gibbons has to say about encouraging cross-Border holidays, that is, encouraging people from the Republic of Ireland to visit the North of Ireland and vice versa. This is particularly salient in the context of the new position which has been arrived at in Northern Ireland in the peace process.

We also invited members of the Fáilte Ireland authority but it was not possible for them to attend because the chief executive and his senior management team are engaged in the annual series of consultative meetings with members of the tourism industry throughout Ireland. They are in Killarney and Shannon today and I wish them the very best in their work. I thank the witnesses who are present.

Mr. Niall Gibbons

I thank the committee for the opportunity to address it today. I am joined by Mark Henry, director of central marketing. As members will know, Tourism Ireland 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. 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, on-line 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 the events of 11 September 2001. 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 to the island. Mainland European markets have shown strong growth in recent years and provide a very solid 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. Whereas new and developing markets account for about 5% of visitors, they will be an important source of long-term revenue. To grow these markets, it will be important to have a visa structure that is convenient and competitive and compares favourably with that of our Schengen neighbours.

Tourism Ireland launched its plans for 2010 at the end of last year against the backdrop of what had been one of the most difficult years for tourism in living memory. As the recession deepened, consumers across the world tightened their belts and international travel felt the pinch. The island of Ireland was no exception. Our most recent forecasts for 2009 indicate that visitor numbers to the island will have fallen by 13%. Our most important market, Great Britain, is forecast to fall by 16%. In addition, we have also seen declines of 6% from North America and 10% from mainland Europe. It is worth noting that the decline from mainland Europe was driven by emerging markets and that the traditional source markets of western Europe — France, Germany, Italy, the Nordic countries, etc — declined by 4%.

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, we have seen a decline in the value of sterling against the euro of 31 % in the same period. This is an extremely difficult backdrop within which businesses have to operate given our traditional reliance on the Great Britain and North American markets.

The outlook for 2010 is still very difficult for tourism. Our colleagues in VisitBritain are predicting a 1% increase in tourism to their country next year. Tourism Economics, which provides forecasts to the UN World Tourism Organisation and other tourist boards around the world, is predicting a 2% decline in tourism to the island of Ireland in 2010 based on key economic data in our source markets. The access picture is also very difficult. Air access was down 12% last summer and winter access is down 15%. There has been some welcome news with Continental Airlines increasing frequency to Shannon, US Airways increasing capacity to Dublin and Aer Lingus and Ryanair increasing services to Cork. However, carriers are still continuing to realign operating schedules and fleets and recent announcements suggest further reductions in access this year.

Despite this, the message Tourism Ireland has sent to the tourism industry 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 will aim for 3% growth and buck the trend being outlined by the economic commentators. Achieving this growth will require us to focus on those markets that will deliver immediate returns. The priorities for 2010 include the British, German and US markets. Tourism Ireland has not withdrawn from any markets in 2010, but we are focusing resources on those key priorities I have just outlined to deliver immediate returns for our industry.

There are a number of factors which will work in our favour as we go into 2010. The island of Ireland brand and interest in visiting the island are very strong in our overseas markets. In Great Britain alone, Ireland now ranks fifth out of 50 in the list of places people want to visit, ahead of destinations such as the US and New Zealand. Our tourism industry is among the most innovative, enterprising and resilient in the world. Together with the inherent strengths of our offering, such as the natural beauty of our landscape, the quality of our tourism plant, our food, our culture and heritage — living and historic — activities such as golf, walking, waterways, and our people — the character and characters of Ireland — this will help us stand out overseas and help us on the road to recovery.

We are rolling out year two of our three-year global advertising campaign, which is called "Go Where Ireland Takes You" and which includes television, press, radio and on-line advertising. It will have an estimated annual audience reach of 200 million potential visitors. All our advertising and marketing activity is underpinned by extensive research among our target consumers overseas as well as a comprehensive review of the island of Ireland brand which was carried out in conjunction with the tourism industry representatives and with input from consumers in key markets. Our advertising challenge is to get so-called stand out for the island of Ireland in some of the world's most competitive markets. The "Go Where Ireland Takes You" campaign invites the visitor to engage with the locals and suggests that some of the best experiences will be enjoyed off the beaten track.

In 2010, our marketing priorities include implementing the recommendations of the root and branch reviews we undertook in Great Britain and Germany in 2009. In Britain, this involves 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. I hope committee members got the opportunity to see some of the media coverage today on the lighting up of iconic buildings and looking at ways to capture the imagination for Ireland overseas. We are on national television for the first time in Germany and we will seek to capitalise on the Dertour Reiseakademie which saw 900 travel professionals visit Ireland in November. Access will be critical in North America. We are monitoring the situation at Aer Lingus and keeping in touch with other airlines about their programme for 2010. We have a significant co-operative programme with the air carriers in the US and we are undertaking a series of sales blitzes there with strong island of Ireland representation.

In new and developing markets, we have developed a strategy for China, India, South Africa and the Gulf states to create awareness of and long-term interest in travel to the island of island. The strategy focuses on developing strong travel trade and media relationships. Following discussions between ourselves, Dublin Airport and Etihad Airways, we have had confirmation that Etihad will increase the frequency of its Dublin service from March 2010, serving the long-haul markets of Australia, China, India, South Africa and, soon, Japan via its hub in Abu Dhabi.

Business tourism is an extremely important high yield sector and the opening of the convention centre in Dublin in September will further enhance our capacity to attract international business tourism events. Tourism Ireland's plans for 2010 see us working closely with CCD and increasing our focus on the association conference segment.

We will continue to implement extensive publicity and promotional programmes in key markets overseas to capitalise on important international sporting and other events. Last year, we mounted a strong promotional campaign on four continents to capitalise on the Galway stopover of the Volvo Ocean Race and we look forward to maximising the opportunities provided by the race in 2011. We also worked on the World Rally Championship events here and on the visit by Real Madrid last summer. We look forward to capitalising on opportunities provided by the UEFA Europa League Final which will be held at the new Aviva Stadium at Lansdowne Road in 2011. These major events present valuable opportunities to place the island of Ireland front of mind with tens of millions of potential visitors worldwide.

Tourism Ireland will increase its focus on the Irish diaspora in our key markets in 2010. We have been working with a wide range of agencies, North and South, to capitalise on this area. Examples include working with Enterprise Ireland and Invest Northern Ireland in the business arena; with Culture Ireland and the Arts Council of Northern Ireland on arts and culture; with Bord Bia on food; with the Ulster Scots Agency on Scots-Irish opportunities in North America; and with the National Archives and the Department of Arts, Sport and Tourism to maximise the impact of on-line access to genealogical records as a means of attracting more visitors from overseas. Specific marketing programmes will target the Irish and Scots-Irish communities in relevant markets.

We will be involved later this month with the "Who Do You Think You Are" show at the Olympia in London as part of our "Born in Ireland" campaign. A range of publicity, advertising and promotional activities will target the diaspora in North America throughout 2010, conveying the message: "Welcome Home to An Even Warmer Welcome", and at festivals like the Milwaukee Irish Fest, which is the largest Irish festival in the United States. I will also meet this month the Irish technology leadership group which was represented at the Global Irish Economic Forum.

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

There is no doubt that 2010 will be another difficult year with many economic factors against us. However, 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. It is a major contributor to gross domestic product and a large employer, particularly in regional areas. We have a great product and a dedicated and innovative industry. If we can work together in a new way, I am confident we can return overseas tourism to growth and deliver a truly memorable experience for our overseas visitors.

As an organisation, Tourism Ireland is committed to delivering value for money at all levels. In the past year we have re-negotiated our global marketing and other contracts to increase efficiency and enhance our value. Ireland's effectiveness in tourism marketing and branding was ranked eighth out of 133 countries by the World Economic Forum in 2009, putting us ahead of Great Britain, France, Italy, Denmark and Norway.

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

I will call on committee members to ask questions now.

I thank Mr. Gibbons for his presentation and I congratulate Tourism Ireland on making every effort to maintain and increase what is there at a very difficult time. It is not easy to do that in the current climate.

Direct flights from destinations in the Middle East and further afield have always been a problem. What efforts are being made to increase access from the Middle East and the Far East? It takes almost two days to get to some destinations in the Middle East, not to mind further afield. Can Mr. Gibbons expand on the efforts being made on holiday visas? It is all about attracting people in. The greater the efforts that can be made so that it is easier for people to come here, particularly in the present climate, the better. The delegation mentioned the more traditional attractions, such as golf, fishing and walking. More established tourism destinations around the world have educational tourism products and there are opportunities for that in Ireland. Has Tourism Ireland examined this and are efforts being made for a major increase in educational tourism and attracting students from abroad?

I welcome the delegation and I congratulate Mr. Gibbons on his new job. He has not appeared before the committee since he took over the position. I congratulate him on the media coverage, even if it is a particularly hideous shade of green. It is nevertheless great to see it.

My questions are related to the questions of Deputy Brady. I am almost reluctant to suggest marketing ideas to the experts. I read that Tourism Ireland was ranked eighth in the world. I wonder about concentration on the British market, which is our biggest market but is not the market with the greatest number of nights. This market had plateaued even before the recession in terms of numbers and numbers of nights spent here. It is a precious market but perhaps we should expand our horizons. This year Tourism Ireland is also concentrating on the German market but perhaps we should look at the European market, where a great number of rich people live and there is no danger of currency fluctuations. It is a more certain market and the people are wealthier. They also have a tradition of being culture seekers, which is supposed to be what we are offering. The economies in these countries will recover before ours and they are not looking for sun holidays like the British. It seems there is great potential for growth. Perhaps the environment is not as receptive as the British market but we should examine this more intensively.

Some 14 routes out of Ireland were lost between 2008 and 2009 and another ten are destined to go. This amounts to 24 destinations lost to us. No one will get two flights to Ireland unless one really must come here. There has to be easy access. This must be a matter of concern. Is there anything the delegation can do about this? It is good news that Etihad Airlines is increasing the number of flights to Abu Dhabi and it is a pity that Aer Lingus did not hack it in the Middle East. I read something about visas and that the British border agency was receptive to the idea of a joint visa. Has progress been made on this? Educational tourism, which Deputy Brady mentioned, is being pursued and I understand Fáilte Ireland will head that. I am puzzled why this is because it concerns countries such as China.

I thank Mr. Gibbons for his presentation. Mr. Gibbons did not emphasise Internet focused marketing, which must be of great importance, because all of us who want to travel access a website to find the best value. We have the facility to change our minds until the last minute. Perhaps the delegation can comment on this and how it can be explored further. I refer in particular to the wider market, beyond the UK, if we are to consider markets such as China and India. It is important we focus on that.

A related point concerns language translation when people come to this country. We have fallen behind in comparison with other European countries I have visited where sophisticated translations in a range of languages are widely available. Perhaps the delegation can comment on how this can be improved. A minor point that may concern Fáilte Ireland rather than Tourism Ireland is signage, how one gets from A to B and where one is going. Tourists always mention it.

I welcome the delegation and thank it for the presentation. I refer to the overlap between Fáilte Ireland, the Northern Ireland Tourist Board and Tourism Ireland. How does individual marketing fit in with global marketing? Is it considered the most appropriate?

Ireland, North and South, has some of the best golf links courses in the world. They are playable 99% of the time and I am lucky enough to play on one of them. As a country, we are not promoting golf as well as we could. We have never utilised Rory McIlroy, the new superstar, and Pádraig Harrington to promote the tourism package. Bearing in mind that golf is one of the big games for men and women, we are not telling people that we do not get cold weather, with the exception of January this year, and golf can be played. If one books a week or weekend of golf, one can be pretty sure one will play. We should put packages together in conjunction with the golf clubs, hotels and restaurants.

I refer to the major number of concert events that take place. These are sometimes in Croke Park, the O2, the new Aviva stadium or the Grand Canal Theatre. We do not sell these as packages. It annoys me to hear, through friends, that people from the UK, France or Germany come over to watch U2. I must admit I am not a fan of U2 and I do not like their music. That is my personal choice. However, people travel the world to see them and I know Irish people who have travelled to Paris, the UK and the USA to see their shows. We should really put packages together. The group believes in Ireland and Tourism Ireland could approach the group and suggest putting together a package for the British, French and Germans, including flights, hotels, restaurants and concert tickets for an all-inclusive price. We could increase our tourist numbers by doing so.

I read that there will be a cycling event, attracting 2,000 participants, in Clare in the autumn. That package could be developed so that families are attracted. We should utilise all-inclusive packages. We hear the airlines crying out for business. Aer Lingus, Ryanair or BA could come up with all-inclusive packages, as would hotels and restaurants. Dublin played Kerry last Sunday in Killarney and many of the real, genuine Dublin supporters drove down or took the train. An individual who attended the match asked me why the tourism authorities had not arranged a weekend special so the wives and girlfriends, who might not be interested in the match, could have travelled. They would have got good value, given the time of year, in any hotel——

Maybe even the husbands.

Absolutely, yes.

My daughters come to the Dublin matches with me so I fully understand that women are great supporters of all sports now and they are also players. My point is we are not using opportunities like that.

I regard the London Olympic Games in 2012 as a significant opportunity for Ireland to promote itself to all those coming to the Olympic Games and to promote the country as a venue for pre-Olympic training for teams. We have everything going for us as a country, both North and South. The participants in the Olympic Games will experience the same climate conditions, time zone and a similar culture in Ireland as in London. I suggest airlines, hotels, restaurants and pubs should be included in packages to be offered as a tourism promotion.

I will group questions from members. I wish to add my comments. I welcome the delegation and thank Mr. Gibbons for his presentation. He stated in his presentation that Tourism Ireland is keeping in touch with and monitoring the airline industry. Deputy Mitchell referred to the Great Britain market. In my view, that market represents 50% of visitors to Ireland and 40% of our revenue. According to predictions, that market is set to fall by 16%. If this is the case and with regard to the airlines issue, would it be wise, from a marketing point of view, to look again at this famous departure tax from the point of view of the tourist from Great Britain who has to pay a departure tax on leaving Great Britain and then pay this departure tax when leaving Ireland? I know Michael O'Leary has been making his own case for his own reasons and for some time. From a tourism point of view would it be correct to say there is a danger this tax is damaging our competitiveness and our image? People are very price-conscious now and a tourist will get very good value in our hotels and restaurants throughout the length and breadth of the island but the departure tax is an issue. I ask for comments from the delegation.

The other issue raised by Deputy Kennedy is very important.

I remind the Chairman that the tax is Government policy.

As Chairman of this committee I think I am allowed to raise issues.

Change it or raise it with the Government.

I think we have raised many issues here in a non-partisan way and in my view the tax is an issue——

——and this is the right place to raise these issues.

No voice in Government at all.

Deputy Kennedy's point about the arts is valid. I am delighted to see that Tourism Ireland is using the arts when marketing Ireland. I note big events involving Irish artists which have an immediate and significant television audience of millions or billions, major film or music events abroad. This is an area we must tackle head on and pursue aggressively and I encourage Tourism Ireland to do so. Deputy Kennedy referred to sporting events in Ireland. However, I know from my time in Government that Enterprise Ireland is very involved in using Irish involvement in sporting events abroad to promote Ireland. Tourism Ireland will need to work with Enterprise Ireland and other agencies to promote Ireland. I make no apologies for raising the issue of the departure tax because it is important to discuss these issues with people in the field who have knowledge of these areas.

Mr. Niall Gibbons

I will try to answer the long list of questions as speedily as possible.

With regard to the Middle East, we had much better access from the Middle East a couple of years ago with flights by Gulf Air, Emirates and Aer Lingus. The situation for airlines in general in the past two years has been precarious as global losses for the airline industry ran into billions of euro last year and many airlines are consolidating and taking the opportunity to reduce capacity. Unfortunately, the Middle East has been a victim of this.

The good news is we have worked very closely with airports and in the case of the Middle East we talk regularly with Dublin Airport where opportunities sometimes arise. There have been situations where the airport has been very close to finalising deals. We talk to them when a contract is close to being signed to ensure a co-operative marketing effort with an airline in advance. In the case of Etihad Airlines, Tourism Ireland will have a €100,000 co-operative campaign in place as this was agreed in advance with the airline when it decided to increase the route from seven to ten rotations from March. There is a possibility that this route may increase to a double-daily pattern later this year. The load factors are very good and the mix of traffic is fairly 50-50, in that it is not all outbound traffic. This is a good news story. However, with regard to other means of access from the Middle East, I am not holding my breath at the moment but we will monitor the situation and if there is potential for a new route we will put co-operative marketing behind it.

I referred in my comments to the visa situation. We need to try and take actions that do not cost us money. One such action would be a common tourist visa between the UK and Ireland. I met my counterpart in Visit Britain on this matter and we are both agreed on it. Tourism Ireland is marketing Northern Ireland and the island of Ireland. If someone on a visa travels to London and Belfast that is fine but if they come to Dublin they are not covered by that UK visa. If they come to visit the island of Ireland they will require a UK visa and an Ireland visa. Questions of possible single or possible multiple entry make it more complicated than it should be. It should be a case of making things simple for the customer. If one is in a Schengen Agreement country one can travel for a much cheaper price around 25 countries without any barriers whereas in these islands there are barriers to entry.

I understand the Department of Justice, Equality and Law Reform is the real barrier, that it is extremely slow to move on this issue. Has Tourism Ireland been in contact with the Department in this regard? Is there any sign of the Department making a move?

Mr. Niall Gibbons

There have been discussions on this matter. We are committed to pushing this issue this year as strongly as possible. We currently have a good relationship with the UK authorities who have chosen the secure borders route so we need to be conscious that if they are going down the biometric route there may be security considerations in relation to Ireland too. There are many issues in the mix but this is a win-win issue from the perspective of the island of Ireland and from an east-west perspective. There is something in it for all of us.

Britain issues several million visas to Asia every year. These are not all tourist visas as some are business visas. If Ireland could get a slice of that action it would be good for us because those visitors stay for longer and they are good spenders and good travellers. We hope to be very active in this regard this year.

A question was asked about activities such as golf, fishing and walking. There has been a renewed interest in activity-type holidays. Our surveys in the past number of years have shown that people sometimes now tick the box for culture and sightseeing and this can include a bit of fishing or walking. The investment made by Fáilte Ireland in cycling and walking in the past number of years will pay dividends in the year ahead and we are incorporating these activities into our activity plans.

Ireland has a strong business in teaching English as a foreign language and this is a very good sector. Tourism arrivals from southern European countries, especially Spain and Italy, in the past couple of years, have completely bucked the trend of every other country coming into Ireland. We undertake research on a private basis in overseas markets and this shows a much higher conversion rate from interest in Ireland to the actual booking pattern in southern European countries compared to northern European countries. We do not have a definitive answer but I suspect that courses in English as a foreign language have played a particularly significant role. Young people have come here to learn English and they return 15 or 20 years later as adults. I am fairly convinced by this anecdotal evidence.

I will deal with the proximity of the British market. At the last count there were in excess of 20 carriers on more than 100 routes between Britain and Ireland. It will always be the largest market given the diaspora and the fashionability. The fall in visitor numbers from Britain, from approximately 5 million in 2007 to the likely figure of 3.7 million or 3.8 million for 2009, is colossal. If the number by which visitors reduced stayed an average of three or four bed nights it would amount to 5 million bed nights, which is a staggering figure. We must get that market back to growth. From all of the meetings I attended there in the past six months I am convinced that the fashionability of Ireland has never been higher. We have great ambassadors such as Ronan Keating. I know people made tongue in cheek remarks about Jedward but we will use every opportunity we have.

Around the time of St. Patrick's Day we will take over nine railway stations in Britain and some of the best practitioners in the industry will meet people face to face. We will sponsor Comhaltas Ceoltóirí Éireann and the world Irish dance championships, the Best of Britain and Ireland show and the StAnza poetry festival with Seamus Heaney are just some of the events taking place. Spotify, the music download site, will have an Irish section during the week in which St. Patrick's Day falls. We will bring Ireland to Britain in a way we have not done before and the lighting up is the icing on the cake.

The fashionability is very strong and our research from last year suggests that converting it into business has two requirements. The first is that we have to grow the difference between Britain and Ireland. While there is a recession in Britain and people are watching their wallets there is not enough to convince them that coming to Ireland is different to staying in Wales, England or Scotland. The second is that we must also grow the value perception. While it is still relatively cheap to get from Britain to Ireland it is also still very good value to stay here. However, the costs of eating out and alcoholic drinks are still Achilles heels. This morning, I met the Irish Hotels Federation and I have also met the Restaurants Association of Ireland and I know it is very difficult and that many businesses are hanging on by their fingernails. While I would not tell them that they have to reduce prices, we must find ways to adjust menus to tastes in the current climate so we can deliver a better value message, particularly with the currency going against us. They are the two big challenges we face to turning that market to growth. I accept the point made on concentration.

Mr. Mark Henry

I will add some comments on the British market. Not unlike ourselves, last year the British stayed at home proportionally more than they went abroad. Given the proximity and the fact that Northern Ireland is included in Tourism Ireland's remit it is an opportunity to use Northern Ireland as a home holiday for those from the UK and then get them to travel further afield. With people staying closer to home, they could not stay closer than in Ireland and it is an opportunity.

Our concentration remains in Britain but we will target a wider audience in 2010. Traditionally we targeted the ABC1 socio-economic group and we have broadened that to include the C2D group also to ensure that everybody can travel to Ireland given the cost of access and staying here. Trying to get more people to consider a holiday here is part of the plan.

Mr. Niall Gibbons

Access has been precarious for us over the past year. This winter period we had a 15% decline in the number of seats available to fly into Ireland. Last summer it decreased by 12%. Summer schedules have not been released yet but we reckon, based on recent announcements by Ryanair, Aer Lingus and US carriers, that we are likely to see a small percentage decline. As an example of how precarious the situation is, I gave a presentation on our German plan to the board, which is based on a super piece of research done on that market last year, and an hour before the presentation I found out that eight routes from Germany to Ireland were being axed. This makes it very difficult for us and we must be very flexible and agile in how we invest resources this year because things can change so fast. We have focused on air carriers but it would be appropriate to mention sea carriers also and very good access is available there. We also had good news on the Cork to Swansea service and we will conduct a co-operative campaign during the spring.

Somebody mentioned the Internet and made a very good point; I could not cover everything in my initial speech. The Internet is vital as more than 70% of those who travel to Ireland book some element of their holiday on-line. We have 41 websites in 19 languages. The good news last year was that the number of visits to our website increased by 34%. There is still big interest in visiting Ireland. The use of the Internet varies across markets. In Germany the majority of people still book their holidays through a travel agent and 900 German travel agents visited Killarney and other parts of the island to ensure a good mix of business from that market. In Britain a much higher percentage of people book on-line.

Mr. Mark Henry

We are in the third year of our corporate plan and we had an ambition to grow our investment in Internet marketing from approximately 15% to 25% of our total investment over the course of the plan. We exceeded that last year when we hit 27%, which equates to spending approximately €12 million on e-marketing in all its forms, including developing the website, advertising on-line, working with Google, concentrating on building our databases and sending out e-zines. Mr. Gibbons mentioned the 34% increase in business and 13 million people from overseas visited Irish websites last year seeking information on holidaying here. He specifically referred to China, which was our third biggest website last year. There is much information but it is a large market and it will not all convert in the short term; it is hoped that we are building interest there in the long term. Investment in e-marketing in those markets is proportionally much greater because it is the way to reach large numbers very cost-effectively.

Mr. Niall Gibbons

Somebody made a point on signage that was well made. In every visitor attitude survey two major issues are litter and signage. It is frustrating as it is something in our control and the more that can be done the better. With regard to the overlap between us, Fáilte Ireland and the NITB, our job is to promote the island of Ireland overseas. We do not have a role in Ireland other than feeding back the voice of consumers to the tourist boards. We have good relations with Fáilte Ireland and the NITB. They have responsibility for the domestic market.

A good point was made on packaging in general. Events are extremely important and the Volvo Ocean Race stopover is a good case in point. Other events such as tall ship events give the country an opportunity to stand out. We are not a bonded operator; we cannot go out and offer packages as we are in the marketing game. If people put packages together we are happy to give them a platform to try to sell them overseas. We have a website and can link into any organisation that meets quality criteria. People can then visit those sites to book packages in Ireland.

The point I was making is that Tourism Ireland could be a catalyst. All of these people operate independently and there does not seem to be co-ordination. Tourism Ireland could get all of them into a room to see whether an event can be organised to bring in 2,000 or 500 people. I realise that individually they do their own thing but somebody could co-ordinate a package so a particular price would include flights, a concert and a hotel.

Mr. Niall Gibbons

In fairness, that does happen in on-line packages with Expedia. Last year, we had a big campaign with Expedia in Europe and 130 hotels signed up immediately. Expedia is an on-line travel agent and can bundle hotels with activities such as surfing or walking. Putting together the commercial package is much more complicated than one might think. What tends to happen in the private sector is that people try to squeeze margins all the time.

Does Fáilte Ireland do a certain amount of packages? I read about thoroughbred trails. It is the same idea as clustering.

Mr. Niall Gibbons

Fáilte Ireland does work on clustering. I will be with Fáilte Ireland tomorrow in Shannon where we will meet a large group of operators. We always encourage people to bundle and cluster offerings for the marketplace. The Internet is great as one can go on-line and book a flight or ferry and other things. However, we need to go back to bundling an experience so it is not just a transaction. The topping on the cake is meeting the local people.

I am conscious that other members have not had a chance to put across their points of view.

I am delighted to welcome the delegation. Some of my questions have been answered, particularly on the common visa. I have been lobbied by tourism coach operators travelling throughout Europe who visit Northern Ireland but cannot come to Dublin because of the visa. They would like to bring their guests to the Ring of Kerry and Galway. It is a hugely important issue.

Has Tourism Ireland examined the Swiss model of marketing tourism? I have spent a good deal of time in Switzerland hiking in the mountains and its tourism model is absolutely tremendous. A problem here is that people are quite nervous about going into the mountains and hiking long distances. They do not know the distance or height of the mountain. However, in Switzerland at the foot of a mountain is a little yellow sign with a picture of a man saying how long it will take to get to the top of the mountain.

Kerry has experienced a number of mountain rescue events involving people who decided to dash up Brandon only to become lost when the mist came down. If signs were place to warn climbers about the time needed to climb and descend, this problem might be reduced. Walking activities are increasingly popular and in a time of recession, all one needs are a good pair of boots, a map and proper signage.

Those who are not particularly interested in heading into the wilds of Ireland may instead be attracted by ecclesiastical tourism, which is a major industry in France and Spain. When one wishes to tour the Gothic cathedrals of Chartres, Rouen or Reims, one can purchase a beautiful map of the French countryside. Ireland also has tremendous Gothic and Norman buildings in some of our more rural areas. Villages such as Graiguenamanagh would benefit enormously from ten tourists stopping by for a cup of coffee. However, signage is key to that market.

I am pushing the Government hard to finance a national trail strategy which would combine cycling, hiking and horse riding. A national trail strategy would bring significant benefits to small communities. Dublin, Cork, Limerick and Galway would, of course, remain as centres but the strategy would attract visitors to the rural peripheries. It would also represent a relatively inexpensive holiday for families who are at present feeling the pinch because they could stay in local bed and breakfast accommodation or small, good value hotels. I would like to hear the witnesses' views on the national trail strategy.

I am grateful that members are prepared to speak about their areas of expertise. Before I call Deputy Connick, I wish him to know that I consider County Wexford a fabulous place for a holiday.

I thank the Chairman for that great introduction. He is more than welcome in Wexford anytime he cares to visit. I would like to see more of him down there, although his constituents may think otherwise.

I welcome the witnesses and commend them on their exciting presentation and get up and go attitude. I welcome Tourism Ireland's initiative on lighting major attractions in the world's cities on St. Patrick's Day. This is the kind of creative thinking that will help us to get out of our present circumstances. We will have to box more cleverly than we ever have done before. No other country has a global captive audience for an entire day each year.

I am strongly supportive of initiatives around St. Patrick's Day. I always get annoyed when politicians are criticised for travelling overseas during that period. We should encourage as many people as possible to travel on these occasions, albeit by more frugal means than heretofore, because we have access to the largest marketing network in the world in the form of the Irish diaspora. In this regard, I love the idea of flash mobs performing Irish dances in city centres.

In regard to the monitoring of tourist facilities, we have fantastic amenities from historical and heritage points of view but are we catering for younger tourists outside of pub culture, U2 concerts and sporting events? Young families might be attracted by, for example, an aquacentre. Should we consider developing a world class indoor water park, beach or ski facility in a location with good access to international markets?

New Ross has benefited from budget funding for the Kennedy homestead and a €1.8 million grant for the Dunbrody. However, we are not playing to our strengths in terms of these attractions. Last year I travelled through Springfield, Illinois, a town with few attractions other than a fantastic visitor centre and a library at Abraham Lincoln’s homestead. All the action centred around that attraction and without it the town would be on its knees.

In advance of the budget, I advocated a free flights initiative whereby the Government would spend €20 million to buy 1 million flights. We should embrace the likes of Michael O'Leary, who could deliver enormous numbers of people to this country if we support him. We should sit down with our airlines and sea carriers to come up with initiatives for bringing people into the country. If 1 million people each spent €1,000, that would result in €1 billion trickling through the economy. Given that most people travel in pairs, one can imagine the impact.

I attended a trade fair held in the RDS a couple of weeks ago because outside of my political life I deliver Irish goods to a company, Le Comptoir Irlandais, which has 36 Irish shops dotted throughout France. While attending the trade fair, I met a number of representatives from the shopping channels, who I will not mention now. These people were placing orders for tens of thousands of Aran sweaters and Claddagh rings from Irish companies. Are we using these shopping channels and other outlets such as social networking? Almost everybody in the country has a Facebook account. If everyone in Ireland sent an invitation to visit the country through Facebook, it would have a huge impact. I am trying to foster a different type of thinking in terms of encouraging people to visit. In regard to pop bands, I am a fan of U2. We should be using Bono, Ronan Keating and the next Jedward to promote the country.

I am chairman of a very popular event in New Ross, the JFK Dunbrody festival. The festivals throughout the country are of a very high standard and there is significant potential for marketing them to UK visitors. The fast ferry from Rosslare takes passengers to Wales in 90 minutes. I can get from Rosslare to Wales in less time than it would take me to travel to Dublin. Could we work with local festivals to develop weekend and other tourist packages?

The work done by Tourism Ireland in pushing the country and advocating tourism is one of the ways we can get out of our current difficulties.

I welcome the delegation and commend Tourism Ireland on its strong marketing plans. I certainly concur that we need to promote Ireland more than ever. However, is there not a difference between presenting Ireland in the marketplace and selling the Irish experience and the ceád míle fáilte? Does Mr. Gibbons agree that we need an overarching plan to ensure value for money and quality?

I was involved at local authority level in promoting Cork. Notwithstanding the recession, we are now paying the price for the fact that during the Celtic tiger we lost the plot in terms or our competitiveness, cost base and price. Members made legitimate comments but there appears to be no joined-up thinking on hotels and restaurants in Tourism Ireland and Fáilte Ireland. In preparation for today's meeting I read the Fáilte Ireland newsletter. In some quarters it appears we have not got the point on overcharging for beds, food or travel.

A point was made about travel. There is no integrated ticketing system and no joined-up thinking between Bus Éireann, Iarnród Éireann, the ferry companies and airport authorities. I fully subscribe to the view expressed by Deputy Connick. I would embrace Michael O'Leary, although I do not agree entirely with his philosophy. This week Aer Lingus outlined that passenger numbers were down on the North American routes, a matter to which Mr. Gibbons referred. As an island nation, we are very much dependent on air and sea carriers. In that regard I very much welcome the fact that the Cork to Swansea ferry route is to be reopened. It will be a tremendous asset for the south-west region and provide a boost for west Cork, in particular. I commend Mr. Conor Buckley and his team. What plans does Tourism Ireland and the Government have to invest and assist in that regard?

A point was made about Ireland being fashionable. Has a marketing survey been carried out on the Irish experience for tourists? I do not wish to be a kill-joy but some of the behaviour I witnessed on St. Patrick's Day leaves much to be desired. I am a glass half full kind of person.

Mr. Gibbons spoke about the cost base which we have reduced but at what expense? There has been a proliferation of hotels dotted around the country. I accept that it is not Mr. Gibbon's responsibility but a catastrophic number of jobs have been lost in hotels and the tourism industry generally. This has had an impact. I do not wish to be political vis-à-vis the Chairman or Deputy Connick but surely it is time for the Government to revisit the travel tax because it is a barrier to travel. Mr. Gibbons made a great suggestion about free flights which the Chairman reiterated. Removing the travel tax would be an incentive to travel. Some of the suggestions made by the committee should be taken on board. We are dealing with a loss of revenue of €3.9 billion owing to lower visitor numbers. Overall, tourism revenue was down 18% in 2009. That is €5.2 billion we could have had in the national coffers.

I commend Cork's achievement in the Lonely Planet guide. It is a welcome addition and a great boost. We are a great nation with many festivals. We have a great product to sell. We have all the rhetoric and marketing strategies needed, on which I commend Mr. Gibbons. However, there is also the travel tax and our costs are high. They must be reduced. The dollar is at an eight-month low against the euro this week, while the euro is down against sterling. While we have advantages, we need investment. We also need a sense of realism in the sector. I question whether we have it. I thank Mr. Gibbons for his work.

I appreciate that representatives of Fáilte Ireland are not present and that Tourism Ireland is addressing issues on its behalf. It might be difficult for it to address the issue of the travel tax but a comment would be welcome.

I welcome Mr. Gibbons and his colleague. I support what has been said about packaging products, especially sports packages such as golf, walking and fishing. Reference was made to flights. I accept that direct flights to Ireland are difficult to find at this time. One issue about which tourists often complain is the long stopovers if they have to take more than one flight. I very much welcome what Etihad is doing in providing extra flights. It is good on stopovers, a source of annoyance for many.

The St. Patrick's Day festivities are now a big event. I welcome what is being done in Britain in this regard. Is Mr. Gibbons aware if there will be more festivals in Britain? I agree that Ministers and others should travel more to promote this country during the week in which St. Patrick's Day falls. We probably do not have many Ministers travelling to Britain as to other places.

Many positive things are happening. I welcome the opening of the national conference centre in September, which is very much a plus. Reference was made to the Volvo Ocean Race stopover in Galway last year. The Government is now investing €4 million in the promotion of that event. I hope it will be equally successful next year. I was promoting Galway at the committee meeting held last week, in particular the Galway Races and the horse industry. It should not be forgotten that there are events in Galway throughout the summer, inlcuding, for example, the arts festival, the racing festival and the oyster festival. There are also many good festivals held throughout the country, in which traditional music features strongly. I would like to see greater promotion of Irish music at the various festivals that take place.

I accept that Tourism Ireland does not deal with the issue of travel but there have been many complaints by tourists that there is no consistency in intercity train travel. This has been an ongoing battle since I was first elected in terms of the difference between travelling from the west to Dublin and from Dublin to the west. A similar case is being made about train travel between Dublin and Belfast and elsewhere in the North of Ireland. It is something which is difficult to explain to visitors and I hope Mr. Gibbons will take up the issue, as I will with the tourism industry and the Minister. An explanation is required. Reference was made to the need for an integrated ticketing system. People are confused and feel ripped off when they receive different quotes in travelling between cities.

I will be brief as many of the questions I wanted to ask have been asked. Reference was made to the travel tax. What difference would it make if it were abandoned? A total of €80 million was raised last year. Does Mr. Gibbons believe €80 million could be realised in the provision and creation of jobs?

Tourism Ireland has a well thought out marketing plan but is there adequate co-ordination of marketing activities? Various Deputies have referred to their own areas. I welcome everyone to County Mayo. How do the local tourism bodies feed into Fáilte Ireland and Tourism Ireland, as it has been said there is an unnecessary overlap? Is the tourism industry operating as a united jigsaw or could there be improvements in some areas? Reference was made to various counties and regions. Mr. Gibbons has mentioned that he meets representatives of the airports. Does this include the regional airports? Tourism is very important to the regions and those of us who live there. How effective is the interaction?

I must declare an interest in that up until recently I was chairman of Fáilte Ireland north west when I worked closely with Tourism Ireland and the board of Fáilte Ireland. I would like to think that in this instance it is an advantage, not a conflict of interest. I commend the presentations and comments made. Every member will welcome the significant advances made by Tourism Ireland in marketing.

Mr. Gibbons and Mr. Henry will comment on the travel tax. However, we should examine the other aspect of the matter — airport charges. If one books a flight on-line, sometimes Ryanair will charge nothing for a ticket to a UK destination, yet the flight will still cost €40, a significant portion of which is airport charges. Like other colleagues, I applaud Mr. Michael O'Leary. Ryanair transformed the island of Ireland from an international perspective but there is begrudgery in this country. When a businessman such as Mr. O'Leary, in defending his corporate position, criticises higher charges and then reduces the number of flights into Ireland and transfers aeroplanes to another country, he should be listened to, rather than criticised. He is about making a profit but the country has benefitted and will continue to benefit from Ryanair making a profit. Airport charges are within the gift of the Government. As taxpayers, we own the airports, although a regulator sets the charges.

Given that I also come from the west, I share Deputy O'Mahony's view about the importance of the promotion of regional airports, including Ireland West Airport which is doing an extraordinary job. The fact that Aer Lingus and other airlines fly from it has been a significant boost to tourism in the west and north west. I am glad Aer Arann has concluded a deal with Aer Lingus which feeds its regional network into the international plan.

In the light of everything we have heard from Tourism Ireland, will the media, please, not go down the road of criticising public figures who travel abroad to sell Ireland during the week in which St. Patrick's Day falls? As a former emigrant and somebody who broadcasts regularly to the Irish diaspora, the consistent message from those involved with the diaspora is that they want local and national politicians to visit them because they see this as a form of recognition. They had to leave Ireland for economic reasons and are selling Ireland. St. Patrick's Day celebrations have been taking place since the foundation of the State. Deputy Connick summed up the matter. The focus on this little island for one day each year is not replicated for any other country. It is an extraordinary bonus, of which Tourism Ireland is taking advantage. The media are playing to the populist mob. Certain elements in this country would resent anything but if the media stood back and could see the wood for the trees, they would realise this is a form of national sabotage. It undermines everything being done by Tourism Ireland and others to sell Ireland when every day during the week in which St. Patrick's Day falls newspapers print details about who went where, what it cost and describe how awful and terrible it is. They do not join the dots. The amount spent on foreign travel during that week is a pittance in the context of how much is delivered in return.

All politics are local. There are huge difficulties in the north west mainly because, of the five regions in Ireland, we have experienced a downturn in international visitor numbers, especially because of the exchange rate with the United Kingdom. County Donegal, in particular, is suffering grievously. It has the largest number of hotels. Of the 111 hotels in the five counties of the north west, County Donegal has two thirds. Therefore, the hotel industry is of significance to the county. What plans does Tourism Ireland have to increase the number of overseas visitors and revenue in the north west in 2010? I am sure Mr. Gibbons has been asked this question by other regional authorities which are in the business of selling Ireland globally.

Reference was made by other members to developing specialist activities. We are not totally successful at attracting international visitors to partake in such activities. There are ecclesiastical and walking tour strategies. The Minister for Community, Rural and Gaeltacht Affairs has spent a considerable amount of taxpayers' money in liaising with various county development boards to develop tourist walking trails with the assistance and support of local farmers. I applaud those farmers who have displayed patriotism by maintaining walks and providing access for the few euro they receive. There was a major controversy a few years ago about providing access for tourists visiting beauty spots and I applaud the IFA and the farming community, in general, for embracing the concept in the national interest. What plan is Tourism Ireland putting in place to address specialist activities, as they are of crucial importance to the development of the economy in rural Ireland?

I do not take from the agency's international role. I echo the Chairman's comment that it is regrettable that representatives of Fáilte Ireland are not present for justifiable reasons. My last official function concerned the north west strategy briefing, at which I met Mr. Gibbons and Mr. Henry. The timing of the meeting is unfortunate but I plead with the Chairman to afford time between now and the summer to meet representatives of Fáilte Ireland because that agency complements Tourism Ireland in the work it is doing. An overlap is inevitable in questions and comments when both agencies appear before the committee but their briefs vary. If representatives of the two agencies were in attendance, we would receive a much broader response to the questions and comments made. I am not anticipating what Mr. Gibbons will say, nor am I trying to save his bacon. The two agencies have particular mandates and it is regrettable that officials from Fáilte Ireland are not present to balance what we are discussing. However, that does not take away from what has been said.

It would be good if representatives of Fáilte Ireland were present but there are good reasons its officials are not in attendance, which I accept. It might be wise to bring them in, perhaps after St. Patrick's Day.

Between now and the summer.

We can review the position. Tourism is a major issue for the committee, as is right and proper.

Fáiltím roimh an toscaireacht. Tréaslaím leis na comhaltaí as ucht an sár-jab atá ar siúl acu ar son na turasóireachta agus ar son na hÉireann.

I compliment Tourism Ireland which has done a remarkable job since 2002. One of the most relevant aspects is that it is marketing the entire island of Ireland, which is an additional asset. From my experience of the agency abroad, it has been particularly accessible to all those who want to engage in the tourism industry. Most of our views are based on our experiences abroad. I have been fortunate in that I have attended expos in Osaka, Nagoya and Seville, while this year I will visit the expo in Shanghai, China. The Government will have a stand at the event, with a full programme for six months. Millions attend the event and it is evident they have a particular image and concept of Ireland, which is what makes us distinctive as a people. That includes our culture, scenery, people, literature, etc.

It is important that we remember our greatest strength. For a while we may have strayed in our marketing. In the last decade we tended to leave behind us the very thing that gave us an exclusive claim as a holiday destination. We tended to go after the floating tourist and discovered that that was not always successful because other destinations were able to compete better in that regard. Having met Tourism Ireland when I was in New York and when representatives came before the committee some time ago, I believe there is an idea that we should retrace our steps. I can see this in the branding being used.

There are three types of people we try to attract to Ireland. First, there are those who have an affinity with Ireland who include the Irish diaspora. When we consider that there are 40 million people of Irish extraction in North America, it indicates to us what exclusivity means because straightaway we have a way of making contact with them. We should bear in mind, however, what they will be looking for.

The second group consists of those looking for cheap holidays who are also welcome, but I always worry that we might prioritise them. That is not our strength and it is not from where the income will come.

The third group which is very large is that of discerning tourists who want a different experience. We should be careful about those in the first and third groups who want to come here and generally have the wherewithal to spend money and so on.

I wish to take up Senator Buttimer's point on surveys. Do we conduct surveys on an ongoing basis? The reason I ask is that many years ago a survey was done of the interests and experiences of tourists in Ireland. There were six main points, the first of which concerned the attraction of national monuments. This fits in with what Deputies Mary White and Connick are saying. Such monuments will attract both those with an affinity with Ireland and discerning tourists, a major block of people. The second important attraction was Irish traditional music, while the third was high class evening entertainment. These were followed by genealogy and so on. If Tourism Ireland were to conduct a comprehensive survey, as was done then, it would find little change in these headings.

There is one thing of which we must be careful. I do not wish to take from Dublin in any way, but I have noticed that in the last four or five years there seems to have been an emphasis on people visiting and staying in Dublin. One of the reasons for this in my part of the country is the change at Shannon Airport. Tourists would have flown to Shannon Airport and then travelled throughout the mid-west, but that has changed. However, our branding should be careful to encompass the whole country, although I am sure this is being done. I have great regard for Fáilte Ireland and its predecessor, Bord Fáilte, but it will need to consider seriously how we can ensure people will be accommodated if they wish to avail of attractions such as I mentioned.

We must bear in mind that from an economic point of view, that was the strength we had in the past. Even the most isolated areas were able to benefit because that is where the attractions were. We might not always have had the infrastructure of hotels but we had bed and breakfast establishments and so on. For this reason we must be careful. Dublin will reach a point at which it will be saturated with tourists and the character of the city will be changed. It would be far better to have a dispersed arrangement under which there would be more comfort in Dublin, whereby people would have a greater chance of experiencing the real Dublin and at the same time extend their holidays by travelling to other parts of the country.

I am glad the representatives mentioned China a few times. I have no doubt Asia will present us with major opportunities. Distance was a major problem in the past but, as the Chinese economy improves and there is a different approach abroad, there is no doubt Tourism Ireland can succeed in attracting many more visitors. It was the same when Bord Fáilte endeavoured to interact with Japan in the same way. Golfing facilities in Ireland were a paradise for Japanese players compared to those available in Japan.

Will Tourism Ireland have a presence on the ground throughout the six months of the expo? That is important.

I underline what Senator Mooney said about travelling abroad. I am glad to say I have been invited to be the main guest at the St. Patrick's Day parade in St. Louis this year. I make no apology for this as it will not cost the State anything. When the honorary consul rang me and asked whether I would be prepared to go there as the chief guest, I felt proud and privileged. Senator Mooney is 100% right because whenever Ministers travel abroad, the media focus on them at the time and there is a message to be sent. Surely this is not a banana republic which will not be represented where it should be. We should all be saying the same. It is too cynical to adopt a superficial attitude without considering the underlying reason we represent the country.

There are still opportunities in promoting our traditional culture. I will give one statistic. The all-Ireland Fleadh Cheoil attracts 250,000 people over a nine-day period who spend between €30 million and €40 million in the area concerned. That is only one event. I do not wish to take from U2 concerts or sports events which are all important, but it requires a different structural approach. We might just take that which is part of ourselves for granted. Nobody knows this better than Senator Mooney, whose dad, God be good to him, played a major role in that regard. We take things a little for granted. Such events need formalisation. Perhaps this is something Fáilte Ireland should consider, as there are opportunities available.

I congratulate Tourism Ireland on its achievements. The country should be proud of what it is doing.

I am not speaking as a member of the committee but I came to the meeting to hear about tourism from the point of view of creating employment and acting as a driver of the economy.

I commend Tourism Ireland on the optimism shown in its presentation, despite the backdrop of the decline in the value of the dollar against the euro. If 60% of our revenue and 60% of our visitors are coming from two jurisdictions whose currencies have been devalued, that is difficult. Sterling has effectively been devalued by 30%. Everybody has been talking about our great assets. We all know this. However, it is difficult to sell the wonderful product we have against the backdrop of our lack of competitiveness. It is difficult for Tourism Ireland, but I commend its representatives on their determination to keep going in spite of this. While we have everything to offer, we are not competing well with other countries. There is no point in codding ourselves. I feel sorry for those who are providing the product. It is all very fine saying those running restaurants should tailor meals to make them cheaper, but the cost of staff in restaurants and hotels is considerable. Bad decisions — impulsive decisions — were made and too many hotels were provided.

I will not waste time talking about our tremendous assets. Ireland is the most beautiful country in the world. We have everything — history, monastic trails and so on. Last summer my husband and I spent time in Corca Dhuibhne. One could not have been in a more deep-rooted historical place, but there was nobody around. It is too expensive for people. The bulk of our market is sterling from the UK, but we are priced out of the market.

I want to ask about employment. As was stated, indigenous industry will be a driver in getting the country out of this serious mess. We have a product, but people need to hold onto jobs and more employment must be created. What are our guests' opinions on the employment situation and the decline? There is potential, but how many people are working in that sector, how can we hold onto those jobs and how can we generate more jobs?

I have a thing about the Skellig Rocks. Two people were killed, but the response of the OPW was appalling, in that it was not prepared to erect a barrier to prevent people falling. This issue is read about abroad. The Skellig Rocks feature on the BBC in terms of historical programmes about the beginning of habitation, but here we are. I do not know whether there has been any change in the situation, but the last response I read was that the OPW would not provide a barrier. I would love to visit the Skelligs, but my husband told me that I could not because I would fall over. This is a matter of sticking one's head in the sand about a world tourism site at which two people have been killed. I am making an important point.

I congratulate both guests and wish them the best of luck against a backdrop of a serious lack of competitiveness in our two main markets. We need to get ourselves right. I do not want to be too dramatic, but many of our major international industries will run into serious problems in the next two or three years because we are not competitive. Yesterday's newspapers outlined how Intel is considering Ireland and Israel. Everyone should read about it. Intel will make a decision at the end of March, which will tell much about the future of the Irish IT industry. It is a serious matter that will spell out the situation for every other industry, namely, that we have lost our competitiveness in the past eight years. I am sorry for being pessimistic, but it is how I feel about the economy. Both of our guests are optimistic and, like me, believe in our product. I will not go on. They know my point and I am interested in finding out about employment numbers, job losses and job regeneration.

I thank Mr. Gibbons and Mr. Henry. As they can see, our wide-ranging discussion reflects the priority we attach to this sector in turning the economy around. It is our overriding concern. There is no argument about Ireland's fantastic product, which is in a better state thanks to the good times. Let us be honest — the convention centre is nearly complete and there are many new places across the country to visit. I ask Mr. Gibbons and Mr. Henry to do their best to reply to as many of the committee's comments and queries as they can.

Mr. Niall Gibbons

Reverting to my starting point, the London Olympics provide an opportunity for Ireland. I sit on two groups, one of which is based in Dublin while the other is based in Northern Ireland, that are looking for the opportunities that will emerge from the Olympic Games. There is business to be won, but its scale needs to be quantified. We must recognise the fact that, at the time, there will be a large focus on London in the international media. We will need something that will capture the public's imagination and make us stand out in terms of, for example, where the torch will travel. It has several days in Northern Ireland, so there could be a hands across the Border initiative and so on. Something special will be required to capture the media's attention.

I have spoken with my counterpart in VisitBritain, which has agreed to co-operate with us. A large number of members of the unaccredited media will be in London and we would like to try to bring as many of them to Ireland during the Olympic period as possible. Many people might be interested in not being in London around the time of the Olympics, which is a tendency elsewhere. We have ideas in the pipeline as to how we will deal with the situation and I am happy that we will give it our best shot in 2012.

The 2010 World Expo was mentioned. Showcases like film and music events and so on are terrific. Recently, we met the Taoiseach's office. Between 70 million and 100 million people will visit this year's World Expo. The Irish pavilion will have a significant audience, but I cannot remember the exact figure. We have been plugged into the programme and the pavilion is almost complete. We will be sharing some photography and experiences. We hope that Northern Ireland, which I will discuss later, will have a Titanic exhibition at the World Expo in Shanghai, given the anniversary coming up in two years time. The expo presents a considerable opportunity for Belfast, Cork and all of Ireland.

The common visa was mentioned. We will give it our greatest push, but a common tourist visa between the UK and Ireland is never an easy win. However, it is a low-cost win that could win us business from Asia that we cannot otherwise get.

The issue of trails has been raised several times. They are exactly the type of thing we need. Someone mentioned that they attended Showcase Ireland, the crafts fair in the RDS. The week beforehand, we met the Crafts Council of Ireland. It will plug into us in our overseas platforms to try to attract people who are on quirky trails, for example, wood turners, cheese makers and so on. I told the council that it is not in the crafts business, but in the tourism business and should be showcased at some of our overseas events to give Ireland the quirky feel that makes it a little bit different.

We are joining up the dots better, but we still have a way to go. A number of years ago, we did a popular trails programme called Follow the Rainbow. We have also examined the areas of food and walking. These are natural themes, the great advantage of which is that they bring people into the regions and the undiscovered parts of Ireland. This fits in nicely with our brand, namely, "Go where Ireland takes you". The committee is singing our song when it discusses trails, although more is to be done.

Regarding the Swiss model, I have not visited Switzerland, but we have room to improve where signage is concerned. Perhaps it is our characteristic nature that we are not always as organised as the Swiss, but how long a walk will take should be known. No one comes to Ireland for the weather, so people know to bring gear and so on. It would open up a market that will grow in the current economic climate. The idea of outdoor Ireland would resonate positively, particularly in European markets. There is a market for the idea.

In terms of marketing co-ordination, I am happy that we work closely with Fáilte Ireland and the Northern Ireland Tourist Board, but there is always room for improvement. We are concerned with motivating people overseas who have many choices. Our No. 1 focus must be on the customer. There are many motivators, the greatest of which is our culture. It is an expression of ourselves that sets us apart from other people. Our role is to put in place a sophisticated marketing campaign that will make people choose Ireland over another destination. If I asked people two years ago about what they were doing for their holidays, they would probably have told me that they were taking a two-week break in X country and a couple of short breaks. Now, they would probably tell me that they do not know whether they will take holidays this year. We must ensure that our culture is to the fore and that we are fun, spontaneous and engaging as a destination. This is what our campaigns are designed to do.

Regional airports and regional access are vital. We have regular communications with the former. Where a new route opens up from the UK to Galway, Shannon or Kerry, we would aim to undertake a co-operative campaign. We have done so previously and will continue to do so, since direct access is vital from a regional tourism perspective.

I accept the points regarding north-west tourism. We visited the north west a number of months ago. In general, last year was tough for the western seaboard, as it was for the whole of the island. Regarding access figures into Shannon, this winter saw 50% fewer seats from North America, a valuable market for the west. This is a reality with which we must deal. We must work harder than ever with carriers to ensure that take-up of current capacity is maximised by undertaking co-operative campaigns, mainly driven on value. In all our markets, the key message is value. That will change in due course.

The issue has been raised by many industry bodies that the comparative cost of doing business here is high compared to other destinations and that is reflected in price. It would be wrong for me to say to those in our industry that they need to reduce their prices, as a great many people in businesses are hanging on by their finger nails, particularly in the restaurant sector. On the hotel sector, we co-operated with Peter Bacon and the IHF on the publication of that report. There is a supply issue, but there will not be a significant upswing in demand to match supply. There is a significant amount of debt hanging over the industry that questions the sustainability of the sector, which will have to be recycled to somewhere, but I do not have the answer to solving that issue.

Senator Mary White spoke about the Skelligs, which is a world heritage site. It is one of our icons and we use it extensively in advertising. I have not been in touch with the OPW, but I will bring the Senator's comments to the attention of Fáilte Ireland which is involved in those issues on the ground.

A member mentioned the Lonely Planet reference to Cork, which has presented us with a great opportunity to promote it. We have written to the Lord Mayor of Cork who will be seeking to bring in additional journalists to the country this year.

Our publicity programme is one of our hidden gems. We spend approximately €3 million per annum on it. We work with Fáilte Ireland which prepares the itineraries for the journalists and we bring them in from overseas. We bring in between 1,000 and 2,000 journalists per annum. Between the two organisations, this programme costs approximately €3 million last year. The estimated independent advertising of that promotion of Ireland, for example, if we had to pay for advertisements in The Sunday Times or the USA Today , would have cost €197 million. That cost has been independently valued. A good example of such promotion was the “NBC Today Show” broadcast from Ireland during March last year, following the tragedies in Northern Ireland when two soldiers and a policeman were shot. The reassuring message Miriam O’Callaghan was able to bring to the audience of 10 million who watched that programme was invaluable because Americans are hugely sensitive about security issues.

The air travel tax was mentioned and it has received considerable coverage in the media. I am conscious it is a matter for the Government; it is not a matter for Tourism Ireland to get involved in taxation policy. I was a member of the Tourism Renewal Group chaired by Maurice Pratt, which recommended the abolition of travel tax, but that it is a matter for the Department of Finance. My personal view is that measures that reduce the cost of doing business are generally good but I am conscious of the current economic climate. Ryanair, Aer Lingus and CityJet commissioned a study carried out by a Dutch consultant towards the end of the year and it was submitted to the Department of Finance.

I might speak a little about Northern Ireland, which did not get an airing today. Northern Ireland has the legacy of the Troubles. It had a very low accommodation base. Very few tourists to Ireland would visit both jurisdictions. Perceptions of safety and security linger in the minds of the international traveller. We have an enormous job still to do in respect of Northern Ireland. We have developed relationships that we could not have developed in years gone by. There is a bigger investment in the accommodation base in Northern Ireland and new hotels have been opened in Belfast. Northern Ireland has a very good strategy for the development of its product, which is good news, but these things take time. The year 2012 will be quite a good one for Northern Ireland. It will probably get a bigger bounce out of the Olympic Games than the Republic of Ireland, just having the representation on the London group.

The anniversary of the sinking of the Titanic presents us with a significant opportunity to do something very big. We do not have many world icons such as the Eiffel Tower, but the Titanic is a great story. That is what the Northern Ireland story is all about, uncovering stories.

There is the Scots-Irish story in the United States. The US census records show that some 4 million people ticked their ancestry as being Ulster Scots or Scots-Irish. That provides us with an opportunity to promote an untold story that got buried in the times of the Troubles. It is one of looking at our ancestry, of a group of people on this island that emigrated 100 years before the Famine emigrants. We have lost touch with that story. We need to work on that and to become more aware that it is part of the heritage of this island. We need to work closely with others on that and we continue to do that.

July has been a very difficult month for Northern Ireland for obvious reasons. Relations have developed in the last number of years. The Grand Orange Lodge of Ireland will travel to our offices next Monday to continue what has been a five year dialogue in how we deal with the month of July. Unfortunately, it has had the most negative of connotations in terms of international media, but there are some people who are progressive, full of goodwill and willing to work on what is another all-island body to try to improve the perception of Northern Ireland around that time.

I thank the members for their comments about the ambitions of our programme. There is a lack of confidence in Ireland at present. The economic situation is very difficult. More than 200,000 people are employed in this sector and that number is declining. We need to get out and sell Ireland in a way that we have not done before. The chips are all against us at the moment. Economic forecasters are all telling us that tourism will decline by 2%. Tourism is our most important export sector, as far as we are concerned, although that is not to deny the importance of Intel and such like. Essentially, we are selling our personality and Tourism Ireland can only do so much. I know this is a sensitive area but I will stick my neck out and say that I hope Ministers will travel with us when we go abroad for St. Patrick's Day. We have a significant number of trade and media events already lined up. We are undertaking our biggest ever promotion of Ireland. Other countries are, pardon the pun, green with envy at the platform we have on 17 March.

We are very friendly with our colleagues in VisitBritain, but on St. Andrew's Day, St. David's Day, or St. George's Day our nearest neighbours have nothing like the platform we have on St. Patrick's Day. That platform is unparalleled and unrivalled. I know times are tough and this is a difficult and controversial issue, but I hope we get the maximum backing and that Ministers will be able to travel with us. if we do not get our product on the shelf, other destinations will come in and take our place. There is no point in wondering in five years' time why did that all happen. We have to go out and promote ourselves in a way that we have not done before and this is the year to do it. There are some things that we need to turn in our favour. We have no control over currency nor over the airlines, but if we can start to generate demand, those airlines will come back here. The only way to do that is by using shoe leather, sophisticated marketing and getting Ireland's name out there in a very strong manner. I thank the members for this opportunity to address them.

Mr. Mark Henry

I will respond to a few points. The Chairman spoke about arts events, Deputy Connick spoke about festivals and Deputy Kennedy spoke about concert events. We promote hundreds of events every year. We select a range of them that we believe are of sufficient media appeal overseas. We talk about them and promote them to consumers, which hopefully, at least, will generate press interest and, ideally, visits. Within that range we select around a dozen events every year that we believe will be key for the year ahead and we invest in promoting them, using communications, highlighting other websites and advertising where appropriate. They span all that was talked about. In the arts field the Galway Arts Festival, the Waterford Spraoi, the Kilkenny Arts Festival, Electric Picnic, the Wexford Opera Festival, the Cork Jazz Festival will feature in our programme for the year. Food festivals are also promoted, namely, a Taste of West Cork and the Galway Oyster Festival. Sporting events will also feature, the Irish Open in golf, the Tour of Ireland in cycling and the St. Patrick's Day Festival. We work with a range of key members of the industry such as festival organisers to promote these events and with those who have packages to sell around them, and we would provide a platform to promote those particular programmes. We are very focused on that and any suggestions members have for any improvements would be welcome.

Senators Buttimer and Ó Murchú asked about what the research has done with regard to people's experiences of their visit to this country. There is a good track record of such research because Fáilte Ireland — and prior to it Bord Fáilte — conducts annual surveys with international visitors while they are here or when they are on their way home to ascertain their experiences. I will summarise the findings of this research. Generally speaking, people's experiences are very good and they remain very good. During the past ten years when people were asked what were the top three attractions Ireland has to offer as a holiday destination compared to anywhere else, they have said the same three attractions. The number one attraction is the people and their interaction and experience with Irish people. The second attraction is the quality of the landscape and all that is in it. The third attraction is Irish culture. While they remain our top three attractions, the attraction of our people has slipped a little during the past decade. The number who say our people are our top attraction has dropped from eight in ten to six in ten. In Tourism Ireland we have put together a programme with Fáilte Ireland called SHINE, which is aimed at the frontline industry employees in hotels, bars and restaurants but not only in tourism, to remind them about the core behaviours that will deliver that welcome and that positive experience for visitors to reinforce and shore up that key strength that we still have.

Deputy Connick asked about social media, which I forgot to cover as part of our e-marketing strategy. We have a great deal of new thinking here. For example, we no longer rely on consumers picking up a telephone and calling us with a query from overseas as we have trained our contact centre staff to be on Facebook, Twitter and Tripadvisor answering questions whenever consumers ask about Ireland and what they should do when they get here. We are present on all of those and I look forward to seeing the Deputy as a fan on Facebook later today.

On behalf of the committee I thank Mr. Gibbons and Mr. Henry for attending. We are very impressed with the focus and commitment they have for the tasks ahead of them and the programme of work presented today. We wish them well in that regard. I agree with those who have spoken on the importance of St. Patrick's Day and although there will be criticism, I suggest we get on with it and encourage the Government to do as it has always done. It should be focused and the work done with the likes of Tourism Ireland is productive. It is a busy time. There will be criticism and we are in public life, unlike others in the media who might get an easier time. I will say no more than that other than to thank the witnesses.

The joint committee went into private session at 3.50 p.m. and adjourned at 4.15 p.m. until 2 p.m. on Wednesday, 17 February 2010.
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