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Tourism Industry.

Dáil Éireann Debate, Tuesday - 10 May 2005

Tuesday, 10 May 2005

Ceisteanna (21, 22, 23)

Fergus O'Dowd

Ceist:

67 Mr. O’Dowd asked the Minister for Arts, Sport and Tourism his views on recent CSO figures which show that the number of bed nights spent here by overseas visitors in 2004 fell by 1% compared to the 2003 figure; and if he will make a statement on the matter. [15068/05]

Amharc ar fhreagra

Eamon Ryan

Ceist:

82 Mr. Eamon Ryan asked the Minister for Arts, Sport and Tourism if he will report on the reduction in the average length of stay of overseas visitors to Ireland in 2004 compared to 2003; and if he will make a statement on the matter. [14963/05]

Amharc ar fhreagra

Brian O'Shea

Ceist:

111 Mr. O’Shea asked the Minister for Arts, Sport and Tourism the implications for tourism policy here of the figures on tourism and travel published by the CSO on 26 April 2005; and if he will make a statement on the matter. [15010/05]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 67, 82 and 111 together.

The year 2004 saw a record number of visitors to our shores, with overseas visitor numbers up over 3%. Numbers were up but revenue growth was soft, resulting in increased pressure on yields for tourism operators. The international tourism marketplace is challenging and is likely to become even more so.

If we are to secure future growth, there are a number of underlying issues to be addressed which both the industry and the tourism agencies have identified as critical. Of these, the British market is a key challenge. Tourism from Britain, which accounts for 58% of visitor numbers, declined by 1% last year following more than a decade of sustained growth. In response to the softness in the British market, Tourism Ireland, in consultation with industry leaders, undertook a root and branch review of the market. That review included very comprehensive and sophisticated research on the nature of the British consumer and emerging trends in consumer behaviour.

The whole process of reaching potential customers and how they choose and buy their holidays is undergoing dramatic change in the British and in other markets. The reality is that travellers are continually changing in terms of what they are seeking, how they make their choices, where they go, for how long and on what they are willing to spend their money. An environment of evolving consumer choices and needs is here to stay.

Informed by the results of the new consumer research in relation to the British market, I was in a position on 13 April to launch a new action plan for Tourism Ireland and the tourism industry for restoring growth from the British market. This incorporates a clear set of tangible and relevant responses to the shifting demand patterns and other challenges that this market is presenting and will continue to present over the medium to long term. Greater attention must be placed on product innovation. Ireland offers a wealth of special interest products, cultural activities and festivals. With the support of both Tourism Ireland and Fáilte Ireland, the industry needs to package these better and in a way that consumers can access them more easily.

On the length of stay issue, it is clear that there is an international trend towards more frequent and shorter breaks. Much of our growth in recent years has been driven by short break urban tourism into Dublin. On the domestic front also, people are taking a larger number of shorter breaks. If an increasing proportion of our business consists of shorter breaks, this obviously has an impact on bednights. Last year saw a decrease in bednights in the order of 0.5% but this disguises sharply varying trends between sectors, with a 4% increase in hotel bednights and a decrease of 7% in the guesthouse and bed and breakfast sector.

We are also operating in a more value-for-money conscious marketplace and resulting pressure on price must, inevitably, affect yield. In addition, the drop in the value of the dollar against the euro will have impacted on North American spend here over the last two years. The strong growth from emerging European markets and the sluggish performance of more traditional markets would favour the trend towards shorter break holiday business.

Both tourism agencies have sought to address the visitor stay issue in a number of ways. Stronger emphasis on the higher revenue segments, for example, the family market in Great Britain, the luxury segment in Europe and business tourism globally, is a key component of their marketing focus. Longer staying visitors, such as North American visitors and long haul markets, are also being prioritised. Overseas marketing programmes include specific campaigns targeting car touring visitors from Britain and leading European markets who, typically, stay longer and travel more widely throughout the island.

There is also a strong onus on the industry itself to put compelling packages together, particularly with a special interest element, which will encourage longer stay, higher yield visits. In its activity plans this year, Fáilte Ireland is placing particular emphasis on this type of innovative product clustering and marketing.

Ireland's core appeal is still as compelling as ever. Our tourism brand remains among the strongest in the world. Our tourism industry and our tourism agencies are top-class. Bolstered by an unprecedented level of Exchequer investment in tourism services this year of €125 million, representing a 13% increase on the 2004 outturn, both Tourism Ireland and Fáilte Ireland will be well positioned to take a strong lead in responding to the challenges and opportunities that lie ahead.

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