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Tourism Policy

Dáil Éireann Debate, Tuesday - 24 April 2018

Tuesday, 24 April 2018

Ceisteanna (28)

Joe Carey

Ceist:

28. Deputy Joe Carey asked the Minister for Transport, Tourism and Sport his plans to sustain visitor numbers from the US market. [17772/18]

Amharc ar fhreagra

Freagraí ó Béal (27 píosaí cainte)

I ask the Minister for Transport, Tourism and Sport his plans to sustain visitor numbers from the US market.

I thank Deputy Carey. My Department's role on tourism lies in the area of national tourism policy while the tourism agencies have operational responsibility for the implementation of this policy.

The United States continues to be one of Ireland's strongest performing markets, delivering visitors who stay longer and spend more than average. In the period since 2010, visitor numbers from the United States have more than doubled. For 2018, Tourism Ireland already has a busy programme of targeted promotional activity under way in North America. In addition, Tourism Ireland recently undertook a market review of the US which I was happy to launch in January. The new strategy is the result of a comprehensive review and is designed to build on recent record levels of visitor growth, and identify the key opportunities and challenges ahead. As part of the review, new research was undertaken to deepen and enrich the understanding of the journey prospective US visitors take when choosing their holiday - either on the island of Ireland or competing destinations - and to help to map their "path to purchase". This analysis has generated new insights that informed the business plans of the tourism agencies for 2018 and will receive further input in future years.

The strategy presents an overview of seven key strategic imperatives that need focus, resource and action in order to deliver upon future ambition and growth targets. The majority of recommendations outlined in the strategy are aimed at the coming four-year period. However, given the need to ensure the development of new products and experiences that meet the interests of the US traveller, the broader strategy has been developed with an eight-year horizon to 2025 to allow for longer-term planning and capital investments to be made.

I have one piece of very good news on which we can all reflect. Since 2010, the number of visitors from the US to Ireland has increased from just over 800,000 to 1.8 million, meaning that we have seen an extra 1 million visitors from the US to Ireland over that seven-year period. It is a remarkable improvement in US visitor numbers. As I mentioned earlier, they are high-spend and long-stay visitors. That tourism market is very lucrative. We want to increase it further and build on that success.

I thank the Minister of State. The US tourism market is of huge importance to Ireland, to the west of Ireland and to County Clare. The availability of direct year-round flights to and from Shannon Airport is an essential component in growing our tourism industry. This year Shannon is set to operate its largest transatlantic offering in 17 years with eight transatlantic services operated by six carriers across seven destinations.

I welcome Aer Lingus's recent announcement that it is set to operate a year-round New York to Shannon service in 2019. I also welcome the expansion of Norwegian Air's New York to Shannon service. We will have two direct services between New York and Shannon.

This is extremely important from a tourism perspective.

It is important from a foreign direct investment perspective.

I just want to ask this question, a Chathaoirligh.

No. The Deputy has gone over time. I will come back to him and he will have a minute.

I just want to ask a question.

No. There will not be enough time. I ask the Minister of State to stand up.

We have lost the year-round Chicago route.

What efforts is the Minister of State making to restore that?

The Deputy will have a second chance to come in.

Not only are Tourism Ireland and the Department constantly engaging with airlines to try to develop as many services as we can into and out of the country, but we also work with them on marketing programmes and trying to support routes when they are put in place. It is one thing to secure a route, but without a collaborative approach in supporting those routes when they are there, they are very difficult to sustain. We are working on that. My engagement with Tourism Ireland over the past ten months or so has been very positive. It has been very impressive to watch it at work because it works very closely with the airlines, as does Fáilte Ireland. Having such an increase in the services into and out of the country in the past seven or eight years has led to the success story. The scrapping of the airport tax is a help as is the 9% VAT rate.

Last year, 2017, was another record year when we again had huge growth. In the US market specifically, we increased by 16.3% on the previous year.

It is a very strong market.

We are continuing to invest in that market because it is providing a good return for us.

United Airlines had been offering a year-round direct Shannon to Chicago service. Last year, it made a decision to discontinue its year-round service. I welcome the Minister of State's comments. I acknowledge the work of Tourism Ireland, the Minister of State and the Minister, Deputy Ross. I encourage the Minister of State to redouble his efforts to try to restore this route. It is essential for the west of Ireland. As he stated in his earlier reply, American visitors stay longer and spend more. They come straight into the west of Ireland when they fly into Shannon. It is essential to restore this year-round service.

We will redouble efforts on that specific route. I will take up the matter directly with officials in the Department. I will discuss it further with the Minister, Deputy Ross, and Tourism Ireland to see if we can restore it. I absolutely appreciate its importance for the entire western seaboard. As someone who comes from County Kerry, we fully acknowledge the importance of transatlantic flights into Shannon. We also acknowledge the new services into and out of Cork Airport. It is critical in terms of the regionality of the industry to have Shannon as a vibrant hub for North American activity.

So far this year, the results for visitors from the US are very positive, with a 4.2% increase over the first two months of last year. We hope to have the March figures very shortly. That is a very good environment for United Airlines or any other airline to consider offering a year-round Shannon to Chicago service.

Certainly, the outlook is very positive.

Hopefully the environment will be conducive to the restoration of a year-round service.

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