August, 2004
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Mr John O'Donoghue, T. D. Minister for Arts, Sport and Tourism
Dear Minister
I have the honour, on behalf of the Tourism Action Plan Implementation Group, to submit to you the first report on the
implementation of the actions recommended by the Tourism Policy Review Group in its Report, New Horizons for Irish Tourism: An
Agenda for Action.
The Report has been completed in accordance with the terms of reference you provided to us.
Yours sincerely
John Travers Chairman
August 2004
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Chairman's Preface
These are challenging times for Irish tourism. For more than three years world tourism has failed to recover its former rates of rapid expansion as economic growth stagnated and threats
of global terrorism increased. At the same time the competitiveness and visitor perception of value for money of Irish tourism has deteriorated.
Many of the factors which have undermined the competitiveness of Irish tourism lie outside the direct control of the industry itself. For example, the general rate of inflation at a level
many times higher than that of countries with which Ireland competes for visitors has raised input costs for the tourist industry at a rate of increase well above that of its competitors.
These increases in input costs are inevitably reflected in the cost of tourism products and services.
But not all the factors which have undermined competitiveness and visitor perception of value for money are extraneous to the industry itself. Price escalation in tourism products
and services has contributed to the general high rates of inflation as part of an upward spiral of inflationary pressure. Other factors which determine competitiveness and value for money
also lie within the control of the industry itself. These include service quality, product innovation and the avoidance of aggressive, upward, opportunistic pricing at high-profile,
major visitor – attracting events which generates widespread, negative publicity for the industry generally.
All of these factors remain a continuing challenge for Irish tourism. And many parts of the industry have risen well to these challenges. This is reflected in the fact that in 2003 both
overseas visitor numbers and associated revenue increased by more than 4% compared with declines in world international tourism arrivals and receipts for the third successive year.
In 2004 to date visitor numbers and receipts from a number of markets are showing creditable performance. However, visitor numbers and receipts from the British market to date are
showing little or no growth and this is a cause for significant concern. In addition, it appears that a number of regions and sectors are missing out on the increases that are taking place.
As in 2003 occupancy levels and industry margins remain under pressure.
There are clearly no "quick fixes" to the significant challenges which Irish tourism faces at the present time. The industry itself has generally responded well to the more difficult
trading conditions and "special offers" which provide good value are widespread throughout the sector. The underlying extraneous factors which drive up costs and, thereby, prices in
tourism have started to ameliorate. A key task in driving forward the development of the industry lies in implementing the long-term strategy for the industry charted by the Tourism
Policy Review Group in their Report, New Horizons for Irish Tourism: An Agenda for Action.
The work of the Implementation Group outlined in this Report points to overall reasonable initial progress in the implementation of the strategy and Action Plan recommended by the
Review Group and which has been strongly supported by the industry itself and by the Government. But there are, as the Implementation Group points out, areas where further
progress is required and areas where the lack of progress represents a significant impediment to the achievement of the targets and potential for tourism growth in Ireland outlined in the
Report of the Tourism Policy Review Group. Much remains to be done if the intrinsic potential and the ambitious targets set for Irish tourism are to be achieved. The priority areas,
in this respect, are set out in this Report.
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I am pleased, on behalf of the Implementation Group, to bring forward this first Progress Report on the implementation of the new strategy and Action Plan for Irish tourism for the
consideration of the industry and that of the Minister for Arts, Sport and Tourism, John O'Donoghue T. D., who established the Implementation Group for this purpose.
John Travers Chairman
Tourism Action Plan Implementation Group
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TABLE OF CONTENTS
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Chairman's Letter to the Minister i
Chairman's Preface ii
1 The Importance of Tourism to National and Regional Economic and Social Development 1
2 Overview of Prospects for the Tourism Industry 3
3 The Work of the Implementation Group 9
4 Action Areas of Good Progress
. Government Commitment
. Industry Commitment
. Human Resource Development Strategy
. Tourism Information, Research and Intelligence
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5 Action Areas Requiring Further Progress
. Maintaining and Enhancing Ireland's Share of Outbound Tourism from
Britain and Other Overseas Markets through Marketing and Promotion . National Conference Centre
. Closing Gaps in Tourism Product
. National Roads Programme and Signposting
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6 Irish Tourism: Key Barriers to Development
. Value for Money
. Ireland-US Bilateral Air Agreement
. Dublin Airport Terminal Facilities
. Countryside Access
. Other Impediments to Tourism Development
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7 Overview of Progress and Next Steps 24
Appendix A – Terms of Reference
Appendix B – Members of the Implementation Group
Appendix C – Update (mid 2004) on the Actions Recommended in the Report of the Tourism Policy Review Group, New Horizons for Irish
Tourism: An Agenda for Action
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SECTION 1
The Importance of Tourism to National and Regional Economic and Social Development
Irish Tourism in Context– Contributing over €5 billion to Gross National Product 1.1 Tourism is a powerful instrument of national economic development. It is the largest
internationally traded services sector in Ireland. It embraces a wide range of diverse small and medium sized enterprises that are predominantly Irish-owned. In 2003
tourism generated export earnings of €4.1 billion, including Irish carrier receipts. Domestic trips are estimated to have generated an additional €1 billion, bringing total
tourism revenue to over €5 billion in 2003.
Irish Tourism in Context– a Significant Employer 1.2 Tourism is a major employer in Ireland. It is estimated that tourism supports, directly
and indirectly, some 140,000 jobs in Ireland, or 1 in 12 of all jobs in the economy. The first version of the Tourism Satellite Accounts tables for Ireland, expected to be
available later this year, will provide a more precise measure of tourism-related employment, as well as the broader economic contribution of the sector to the national
economy.
Regional Impact 1.3 Tourism has significant regional distributive effects because a great deal of tourism
activity takes place outside intensive industrial areas and "consumption" of tourism product and service takes place in the geographic locations where the product and
service is available.
Table 1: Regional Distribution of Overseas Visitors' Spend 1 , 2002 and 2003
Source: Fáilte Ireland Tourism Facts 2002 & 2003
1.4 Table 1 above sets out, by region, the level of overseas visitor spend in 2002 and 2003. Spending by overseas tourists increased by 4.5% in 2003. The four western regions–
including Shannon– accounted for 49% of total overseas visitor spending in 2003 compared to 45% in 2002. In the case of the Dublin region, which attracts most of the
urban break business to Ireland, its share of total overseas revenue fell from 36% in 2002 to 33% in 2003. When estimated revenue attributable to overseas holidaymakers
1 These revenue figures exclude Irish carrier receipts which amounted to €723m in 2002 and €678m in 2003.
2002 As a % of 2003 As a % of Change
€m 2002 revenue €m 2003 revenue 2003 on 2002 Dublin 1,103 36% 1,051 33% -5%
South West 537 17% 619 19% 15%
West 408 13% 457 14% 12%
Shannon 306 10% 334 10% 9%
Midlands/ East 329 11% 310 10% -6%
South East 260 8% 268 8% 3%
North West 144 5% 188 6% 31%
TOTAL 3,088 100% 3,228 100% 4.5%
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alone is examined, the regional distribution does not change significantly. Dublin and the South West combined continue to account for over 50% of overseas earnings.
1.5 Table 2 below compares the regional breakdown of revenue from the domestic market between 2002 and 2003, when total revenue increased by 14%. The four western
regions accounted for 65% of domestic tourism expenditure in 2003 compared to 63% a year earlier.
Table 2: Regional Distribution of Domestic Revenue
2002 As a % of 2003 As a % of Change
€m 2002 revenue €m 2003 revenue 2003 on 2002 South West 201 24% 232 24% 15%
West 174 20% 204 21% 17%
South East 132 16% 138 14% 5%
Shannon 99 12% 115 12% 16%
Dublin 105 12% 114 12% 9%
Midlands/ East 75 9% 91 9% 21%
North West 63 7% 77 8% 22%
TOTAL 849 100% 971 100% 14%
Source: Fáilte Ireland/ CSO
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SECTION 2
Overview of Prospects for the Tourism Industry
International Trends and Prospects 2.1 In 2003, for the third successive year, world tourism faced events that threatened tourist
confidence and led to a decline in both numbers of arrivals and international tourism receipts. The early months of 2003 saw the war in Iraq followed by the outbreak of
SARS impacting on already vulnerable tourism industries, and tourism arrivals throughout the year stagnated. The overall effect for the year was a worldwide decline
in both arrivals (down 1.2%) and receipts (down 2.2%) over 2002.
2.2 International holidaymaker behaviour has changed profoundly in recent years and this is inducing major changes in the structure of the tourism industry. In the area of leisure
travel, and notwithstanding the many incentives developed by tour operators to induce early purchase, consumers are maintaining recent patterns in terms of last-minute and
internet bookings. Low fare airlines continue to increase capacity and, in particular, to expand their regional coverage, reaching more and more destinations and triggering
intra-regional demand. An increasing proportion of international holidaymakers are taking shorter holidays but with increased frequency.
2.3 Looking forward, analysts expect that world tourism will return to growth, although the nature, sources and destinations of international trips will continue to change and
evolve over time. Long-term projections are for annual growth worldwide of 4% in visitor numbers, with visitors both to and within Europe expected to grow by 3%. This
indicates a continuous contraction in Europe's share of world tourism.
Trends in Ireland and Prospects for the Future 2.4 The year 2003 emerged as one of the more successful in recent times for Irish tourism;
overseas visitor numbers reached 6.2 million, 4.4% up on 2002 and just below the peak tourism year 2000. Revenue from overseas visitors, excluding Irish carrier receipts,
reached €3.23 billion, an increase of 4.5% on the previous year, compared to a world decline of 2.2%. Table 3 illustrates the trend since 1990.
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Table 3: Overseas Tourism Revenue and Numbers 1990-2003
1990 2000 2001 2002 2003
Increase 2003 on
2002
Revenue (€ m)
Overseas Revenue (excluding receipts to Irish
sea and air carriers)
1,112 2,681 2,952 3,088 3,228 4.5%
Visitor Numbers (000s) Britain 1,785 3,428 3,340 3,452 3,553 2.9%
Mainland Europe 744 1,436 1,336 1,378 1,484 7.7%
North America 443 1,056 903 844 892 5.7%
Other Overseas 124 261 261 245 249 1.6%
Total Overseas Visitors 3,096 6,181 5,840 5,919 6,178 4.4% Source: Fáilte Ireland/ CSO
2.5 The Central Statistics Office (CSO) has reported growth in the number of overseas visitors to Ireland for the first six months of 2004. It estimates that there were 2.97
million overseas arrivals during the period, an increase of 5.4% over the same period in 2003. However, there are significant variations in the performance of the different
markets. The recovery from long-haul markets (North America, up by 13% and the Rest of the World, up by 50%) is welcome but the increases experienced over the first
six months are expected to abate over the rest of the year. The aggregate performance of Mainland Europe, with a 7% increase for the first half of the year is encouraging.
Within this figure strong growth from Spain, Italy, Holland and Scandinavia is being offset by early declines from France and Germany. It is expected that France and
Germany will recover in the peak and shoulder season leaving Mainland Europe on track for good growth this year. More worryingly, the British market is showing little
or no growth to date with a decline in May offsetting earlier growth. This stagnation has occurred despite the fact that, in the year to June 2004, the value of the euro fell by
around 5.5% against sterling. This improved the competitiveness conditions for Irish enterprises and, other things being equal, should have made tourism goods and services
more attractive to British visitors and increased their purchasing power. Halting and reversing this deterioration in performance from Irish tourism's biggest overseas
market will require sustained efforts to improve the price competitiveness and value for money offered by the Irish tourism product.
2.6 While CSO data to date this year indicate increased inflows of foreign visitors, tourism enterprises report that these gains are not translating into increased business across the
country. The trend towards shorter holidays, combined with lower expenditure levels, is depressing tourism revenue, particularly outside Dublin. At the same time, operating
costs continue to increase. In consequence, many tourism enterprises are reporting difficult trading conditions, with margins being squeezed. Trading difficulties appear
to be most pronounced in traditional tourist destinations outside Dublin, particularly along the Western seaboard and among the smaller non-hotel accommodation
providers, caravan and camping sites, certain heritage and visitor attractions and regional car rental.
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2.7 The health of Ireland's tourism industry, and the scale of its contribution to national economic development, is determined ultimately by its performance in export markets.
In 2003, CSO statistics indicate that overseas visitors accounted for 67% of the 42 million bednights spent in paid accommodation in Ireland. While there has been a
welcome continuing growth in domestic tourism, particularly in the short breaks segment, domestic tourism does not necessarily represent a good substitute for overseas
tourism. For the greater part of domestic tourism, expenditure represents a reallocation of aggregate domestic spending while foreign tourism injects a new inflow of cash into
the Irish economy. The need to regain momentum in foreign markets is all the more pressing because of the additions to industry capacity in recent years. For example,
between 2000 and 2004, the stock of hotel rooms has increased by 7,800 or by almost 20%.
Short-Run Responses to Current Conditions 2.8 In the short-run, efforts must be concentrated on capitalising on improving economic
conditions in the principal overseas source markets for Irish tourism. This requires initiatives in four interdependent areas:
(i) Ensuring to the greatest extent possible, low-cost tourist access to Ireland by air and sea from a widening range of departure points;
(ii) Developing product packages that meet the needs of increasingly price-sensitive overseas visitors;
(iii) Intensifying the marketing effort on the most accessible market that is exhibiting robust economic growth -Britain; and
(iv) An enhanced emphasis on focusing the marketing effort specifically on 'promotable' market segments, including holidaymakers, conference travellers,
language study and incentive travellers.
2.9 On the basis of trends to date in 2004, the initial targets set for the year – 6.4 million overseas visitors generating associated tourism revenue of €3.36 billion excluding
carrier receipts – continue to be attainable.
The Challenges Facing Irish Tourism in the Medium-Term 2.10 Tourism is an internationally-traded service industry. It operates in the exposed sector
of the economy and, as a result, faces intense competition from competing tourism destinations. Market dynamics -including continuous reductions in air fares, the
opening up of new regional and national tourism destinations within Europe and the growing importance of the internet -will ensure that the extent of industry competition
will intensify in the years ahead. While there has been a welcome deceleration in Irish inflation over the past year, in absolute price terms Ireland is now an expensive tourism
destination. In European terms, the advent of the euro has lent transparency to the level of Irish prices for goods and services. In terms of the North American market, the
weakness of both the US and Canadian dollars against the euro has raised substantially the cost of holidaying in Ireland. In summary, the price competitiveness of the Irish
tourism product is gradually being eroded by the high level of Irish prices on the one hand and by the increasing availability of easily accessed cheaper holiday destinations
on the other.
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2.11 The extent to which the deterioration in the competitiveness of the Irish tourism product is affecting decision-making by the travelling public was charted in the Report of the
Tourism Policy Review Group. It noted the significant number of overseas visitors who expressed dissatisfaction with the value for money offered by Irish holidays. The
latest available feedback from the marketplace reinforces this picture of growing visitor dissatisfaction. The latest Fáilte Ireland Visitors Attitudes Survey found that 62% of
those surveyed in 2003 were not very satisfied that Ireland provided good all round value for money, up from 55% the previous year. The central challenge facing the Irish
tourism industry is clear. It must deliver improved price competitiveness and value for money.
Competitiveness and Value for Money 2.12 There is no easy method of regaining price competitiveness in Irish tourism. The
central reality is that while Irish tourism enterprises are operating in a highly competitive international environment, their costs -wages, insurance, materials,
professional fees, taxes -are set in Ireland. Since the industry sources almost all of its labour, raw materials and services at home, it must pay Irish prices for most of its
inputs. Thus, the cost base of the Irish tourist industry reflects the general level of prevailing Irish costs and prices -and the general level of Irish costs and prices is very
high by international standards. This is an inescapable conclusion but its impact can undoubtedly be ameliorated through specific initiatives targeted on reducing tourism-related
costs, prices and taxes. All of the main sectoral actors have a contribution to make.
2.13 Within a national economic environment where absolute costs and prices are high relative to competitor countries, emphasis must shift to improving value for money. In
short, to the extent that tourism prices reflect prevailing costs in the national economy, then tourism enterprises will have to offer more value for existing prices if they are to
prosper in the future. The sources of such additional value can include: .
a wider range of stronger, more attractive, tourism products; .
improved quality and integration of existing tourism products; and .
a higher level of service quality.
2.14 Restoring competitiveness continues to be the greatest challenge facing Irish tourism. Progress on measures required to address the deterioration in competitiveness on the
part of the industry itself, State Agencies and Government Departments is outlined in Appendix C of this Report.
Irish Tourism Competitiveness in an International Context 2.15 The flow of holidaymakers to Ireland is influenced by a number of key considerations:
(i) trends in personal disposable incomes in the major source markets for Irish tourism; (ii) tourism-related prices in Ireland -including the price of access transport, relative to
similar prices in competing destinations; and (iii) the range of destination choices available to potential holidaymakers and the extent to which they meet consumer
preferences.
2.16 In terms of the external environment, the relatively firm tone of economic growth in the US and Britain, together with the gradual revival of economic activity in Mainland
Europe, creates the conditions for stronger growth in Irish tourism. The extent to which these conditions can be realised depends both on domestic competitiveness and the
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intensity of competition from tourism destinations abroad. The advent of low fares airlines, the opening up of new national and regional tourist destinations within the
European Union and strong growth in travel to long-haul destinations have caused the international tourism marketplace to become intensely competitive.
The British Market 2.17 Despite global political uncertainties, robust economic growth in Britain has seen
continuing increases in the numbers of British tourists travelling abroad, with outbound visits exceeding 60 million in 2003. Britain remains the largest single overseas market
for Irish tourism. In 2003, 3.6 million British visitors travelled to Ireland, spending €1.3 billion. However, over the past five years, Ireland's share of the British outbound
market has declined from 6.5% in 1998 to 5.9% in 2003.
2.18 In 2003, British tourists accounted for 58% of all overseas visitors, but only 41% of all overseas tourism revenue. This divergence can largely be explained by:
. Length of Stay: the average length of stay by British visitors to Ireland has
declined by almost 30% over the last decade, declining from 7 days to 5 days in the process. Consequently, growth in bed-nights and expenditure generally has
not kept pace with the growth in British visitor numbers; .
Regional Distribution of Visitors: in recent years, growth in visits from Britain has been concentrated on the Eastern seaboard and reflect that air is the preferred
mode of travel. The relative decline in seaborne travel from Britain to Ireland, where visitors take their cars with a view to touring the country, accounts, in part,
both for the reduced length of stay and for the weaker regional impact of British tourism in recent years; and
. Mix of Visitors: an above-average proportion of visitors from Britain is
accounted for by visiting friends and relatives who tend to spend less on tourism-related products than pure holidaymakers.
2.19 Regaining Ireland's share of the British outbound market constitutes the immediate and pressing challenge facing Irish tourism. Tourism Ireland, in partnership with the
industry, is undertaking a fundamental reassessment of the British market. A key objective of this process will be to develop better insights into consumer behaviour and
on how best to increase the attractiveness and appeal of Irish tourism to a greater array of potential British holidaymakers. This process will need to embrace improving
competitiveness and value for money; developing new tourism products and integrating existing tourism products into more attractive packages; ensuring higher levels of
product and service quality; and improving regional access to Ireland, both by air and sea. Unless fundamental changes of this type are engineered in the national tourism
product and its constituent elements, returns from tourism marketing expenditures will diminish. The first phase of the review currently underway at Tourism Ireland will be
completed in September and the report and recommendations will be finalised by the end of the year.
Widening the Regional Spread of Tourism Growth 2.20 Widening the regional spread of tourism growth remains a central objective of tourism
policy and many existing programmes and initiatives are aimed at promoting tourism development more widely around the country. In the meantime Tourism Ireland and
Fáilte Ireland are proceeding with strategies to develop regional tourism. The Irish Tourist Industry Confederation (ITIC) is commissioning a research project to identify
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the principal issues and to recommend strategies and actions that would lead to a greater regional dispersal of tourism expenditure.
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SECTION 3
The Work of the Implementation Group
Role of the Implementation Group 3.1 The Minister for Arts, Sport and Tourism established the Tourism Action Plan
Implementation Group in January 2004. The fundamental task of the Group is to monitor the implementation of the recommendations of the widely endorsed Tourism
Policy Review Group Report, published in September 2003, to assess progress and to report to the Minister and the industry on that progress and on how any constraints that
are found to be impeding that progress might be addressed. The terms of reference of the Group are set out in Appendix A and its membership in Appendix B.
How the Group Approached their Task 3.2 The Group held its first meeting on 5 February 2004 and has been meeting
subsequently at monthly intervals. In addition, sub-groups held a number of representative meetings with individual bodies critical to the development of tourism
both at Government and industry levels. The Group has consulted widely with key representative groups and enterprises associated with tourism in Ireland and with
Government Departments and State Agencies whose policies and actions have a significant impact on the development of tourism in Ireland including:
. Irish Tourist Industry Confederation . Department of Arts, Sport and Tourism .
Aer Lingus . Ryanair . Department of Communications, Marine and Natural Resources
. Irish Continental Group plc. .
Irish Hotels Federation . Department of the Environment, Heritage and Local Government . Dublin Port Company . Department of Finance
. Fáilte Ireland . Department of Transport .
Tourism Ireland
3.3 In meeting with the Irish Tourist Industry Confederation and the Tourism State Agencies, Fáilte Ireland and Tourism Ireland -to whom the majority of
recommendations of the Review Group were addressed -the Group explored the extent to which they had advanced the action points for which they hold lead responsibility
and, in particular, the strength of organisational commitment to the change agenda. The response of the industry representative bodies and the Tourism State Agencies has
been strongly supportive.
3.4 In its work, and in line with its terms of reference, the Group has concentrated on the actions recommended in the Report of the Tourism Policy Review Group. In doing so it
has:
. sought information on the scope and depth of commitment that has been made
towards the implementation of the Review Group's recommendations by each of the bodies responsible for the actions;
. identified the actions where implementation is well advanced, those where further
progress is required and those that represent key barriers to further development; and
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. drawn up, following its consultations, a list of the ten priority actions which
would most contribute to the continued successful development of the sector.
3.5 The Report of the Tourism Policy Review Group – New Horizon for Irish Tourism: An Agenda for Action -includes more than seventy recommended actions. These are
categorised under the nine key drivers 2 of the future development of tourism in Ireland. The rationale, responsibility and proposed timeframe for each action is clearly set out in
the Report. The current position on each action, on the basis of information provided by the bodies responsible, is summarised in Appendix C of this Report.
Priority Actions for the Tourism Sector 3.6 Arising out of its consultations with representatives of the tourism industry in Ireland
and its own analyses of current and recent regional, national and international trends data, the Implementation Group has identified ten key areas where actions
recommended in the Report of the Tourism Policy Review Group require to be prioritised at the present time. These ten priorities are:
. the restoration of greater competitiveness and value for money in Irish tourism;
. the immediate renegotiation of the Ireland-US Bilateral Air Agreement to open
up direct access to additional centres of population in the US by Irish based airlines serving the Irish market;
. the provision of additional, competitive, fast turnaround terminal facilities at
Dublin Airport to facilitate the development of more air services serving Irish tourism particularly from Mainland Europe;
. the acceleration of arrangements to provide a National Conference Centre in
Dublin;
. further investment to address gaps in the Irish tourism product including the
cultural infrastructure in Dublin and elsewhere;
. the development of a new human resource development strategy for tourism
including a strong management capability development programme for small and medium-sized (SMEs) tourism enterprises;
. a new action plan to maintain and enhance Ireland's share of outbound tourists
from Britain;
. greater commitment by Government Departments and State Agencies, other than
those with direct responsibility for tourism, to support the development of tourism as an instrument of national and regional development;
. the acceleration of arrangements to complete the National Roads Programme set
out in the National Development Plan and to improve road signage on national and non-national routes;
. further improvements in the information, research and intelligence available on
tourism as a basis for better decision-making in tourism policy and its implementation and for promoting and facilitating business investment in the
sector.
2 The nine key drivers of success for Irish tourism in the future are the business environment,
competitiveness and value for money, access transport, information and communication technologies, product development and innovation, marketing and promotion, the people in tourism, the
Government sector and information, intelligence and research.
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The successful implementation of many of these key action areas would make a significant contribution to achieving a wider regional spread of visitor numbers and
revenue in line with national policy objectives. The Implementation Group considers that the implementation of all of the recommendations of the Review Group relevant to
broadening the scope for the promotion and development of tourism at regional level are of particular importance.
3.7 The Implementation Group wishes to point out that additional finance may well be required to fully implement a number of the priority actions identified in this section of
the Report. However, any such additional funding should be viewed in the context of the wider economic returns from the further development of the tourism sector.
3.8 The following sections of this Report identify the key action areas, including the ten priority action areas outlined above, where good progress in their implementation has
been made, action areas where further progress is required and action areas where the level of progress achieved represents a significant barrier to the development of Irish
tourism and the achievement of the targets for the industry set out in the Report of the Tourism Policy Review Group.
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SECTION 4
Action Areas of Good Progress
4.1 There are four action areas where good initial progress has been made in the implementation of the recommendations of the Tourism Policy Review Group. These
are in the areas of: .
Government Commitment .
Industry Commitment .
Human Resource Development Strategy .
Tourism Information, Research and Intelligence.
Government Commitment 4.2 The Government, collectively, and through its Ministers, Departments and Agencies,
plays an essential and important role in the development of Irish tourism. It does this through its legislative, budgetary and regulatory activities which impact upon the entire
investment climate for the industry and through its more direct activities in tourism policy-making and tourism promotion.
4.3 Good progress has been made in the implementation of the Tourism Policy Review Group's recommendations in this area:
i The Government, collectively, and in particular through the Minister for Arts, Sport
and Tourism, have articulated a strong commitment to implementing the strategy and recommendations of the Review Group. This commitment is evident in the
decision to establish an independent Implementation Group to monitor and report on the implementation process;
i The Tourism Division of the Department of Arts, Sport and Tourism has been
restructured and strengthened to follow-through on the Review Group's Report and recommendations and to spearhead a wider and more effective Government
approach to the development of tourism policy; i
A special project team has been established in the Department of Arts, Sport and Tourism to capitalise on the opportunities for tourism development that exist in
promoting arts, sport and tourism as a cluster of mutually reinforcing activities; i
The Government have worked effectively to contribute to the reduction in inflation and insurance costs over the past twelve months– two of the areas of significance that
have eroded the competitiveness of Irish tourism in recent years; i
The Tourism State Agencies, Fáilte Ireland and Tourism Ireland, have incorporated the recommendations of the Review Group on strategy and associated actions firmly
within their business plans and have given strong support to the Implementation Group.
4.4 While good progress has been achieved in the area of Government commitment to the implementation of the Review Group's strategy and recommendations as outlined
above, there is no ground for undue complacency in this respect. It does not appear that the role of tourism as a major source of national and regional wealth-creation,
employment, foreign earnings and enterprise is as widely understood and acknowledged by Government Departments and Agencies generally, as is evidenced by
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recent official reports in the economic and enterprise areas. The rates of increase in local authority charges, at a pace many times greater than the rate of general inflation,
are a cause of concern because of their negative impact on the competitiveness of Irish tourism. The limited progress in addressing the problem of excise duties on alcoholic
drink, which are among the highest in the EU, and the incidence of VAT on conference business that places Ireland at a considerable disadvantage compared with Britain and
other countries, are further causes of concern.
Industry Commitment 4.5 Irish tourism is, demonstrably, the largest, indigenous, internationally-traded services
sector. The industry through its key representative bodies, including the Irish Tourist Industry Confederation, the Irish Hotels Federation, the Irish Tour Operators
Association, the Restaurants Association of Ireland and through many individual enterprises, has been strongly supportive of the strategy and recommendations of the
Review Group and the work of the Implementation Group. This support is manifest in:
. the provision of secretariat resources to the Implementation Group;
. the hiring of additional staff and consultants by the Irish Tourist Industry
Confederation and the Irish Hotels Federation to work on issues relating to the implementation of the strategy and recommendations of the Review Group;
. the engagement of both the Irish Tourist Industry Confederation and the Irish
Hotels Federation in a number of joint working groups with Fáilte Ireland and Tourism Ireland to progress the recommendations of the Review Group in areas
which include training, the promotion of e-commence, joint public-private marketing initiatives, managing insurance costs, product development and
information, research and development.
Human Resource Development Strategy 4.6 The ultimate determinant of the success of Irish tourism, as a key sector of enterprise
opportunity and of economic and regional development, is the quality, professionalism and productivity of the people who work in the industry at all levels across its many
segments.
4.7 The Review Group placed a particularly strong emphasis on the development of a comprehensive human resource development strategy including the establishment of a
national recruitment strategy and the management of cultural diversity in an industry that is increasingly dependent on the international base of both employees and
customers. Good initial progress has been achieved in implementing the recommendations of the Review Group in this area. In particular:
. Fáilte Ireland has identified the development of a human resource strategy for
promoting the development of the tourism industry as a priority for the new organisation. A Steering Group with strong industry and professional training
representation has been established to direct the preparation of the strategy with the objective of its completion by the end of 2004. Particular attention will be
placed by Fáilte Ireland on the development of management capability in the SME ( Small and Medium Enterprises) sector of the industry following its
consultations with the Implementation Group;
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. A Tourism Careers Promotion Group had been established by Fáilte Ireland and
chaired by the President of the Institute of Career Guidance Counsellors to prepare a national recruitment plan for the industry for completion in September
2004;
. Fáilte Ireland has also established a working group with representatives of the
industry to develop, industry-wide, a guidance programme on how to manage the increasing cultural diversity that characterises both the employee and customer
base of the tourism industry in Ireland.
4.8 The Implementation Group has noted that good initial progress has been made in the human resource development area. It notes that this progress, perhaps understandably
at this early stage of the implementation process, covers mainly the formulation stages of the appropriate programme of action. The real challenge will be in ensuring that the
programmes of specific actions now being formulated are well designed and adequately resourced to meet the practical needs and skill requirements of the different segments of
the industry.
Tourism Information, Research and Intelligence 4.9 Good information, research and intelligence are essential foundations for effective
policy formulation and implementation in tourism and in achieving adequate levels of private sector investment in the development of the industry.
4.10 In this area also good initial progress has been made in implementing the recommendations of the Review Group:
. Fáilte Ireland is nearing completion of the first stage in compiling a register of
research based on the work of the Tourism State Agencies. The second phase will be extended to include the education/ industry databank of research;
. The CSO is producing more extensive and timely tourism and travel related
statistics;
. The preparation of "tourism satellite accounts" which show the contribution of
tourism to national economic activity, in national account terms, is nearing completion and will be available later this year;
. The Department of Arts, Sport and Tourism will convene the proposed research
advisory and coordination group when the register of research is available.
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SECTION 5
Action Areas Requiring Further Progress
5.1 There are a number of key areas where progress has been made in the implementation of the strategy and recommendations of the Review Group but where the
Implementation Group believes that further progress is required or the timeframe originally envisaged for implementation has not been met. These areas include:
. Actions to maintain and enhance Ireland's share of outbound tourism from Britain
and other overseas markets;
. Actions to accelerate the provision of a National Conference Centre in Dublin;
. Actions to close gaps in the range and quality of the overall tourism product in
Ireland;
. Actions to accelerate and complete the National Roads and Signposting
Programmes.
Maintaining and Enhancing Ireland's Share of Outbound Tourism from Britain and Other Overseas Markets through Marketing and Promotion
5.2 The marketing and promotion activities of tourism enterprises and of the Tourism State Agencies, particularly Tourism Ireland and Fáilte Ireland, play a major role in
supporting employment and wealth-creation within the sector. Britain, the US, and Mainland Europe are the key overseas tourism markets for Ireland. British tourists, as
already noted, account for some fifty-eight per cent of overseas visitors and for forty-one per cent of foreign earnings from overseas tourists to Ireland. It is by far the most
important market for Irish tourism. Maintaining a strong presence and share in that market is absolutely fundamental to a profitable and expanding tourism industry in
Ireland and its regions.
5.3 Good initial progress has been made in the ten action areas recommended by the Review Group, under the marketing and promotion heading, including:
. The largest ever level of funding was allocated by the Minister for Arts, Sport and
Tourism for marketing purposes to Tourism Ireland and Fáilte Ireland for the year 2004. This level of commitment is matched by significant expenditure by
tourism enterprises on marketing activities; .
Sixty two per cent (62%) of the marketing budget of Tourism Ireland for 2004 has been allocated to the British and US markets. This includes funding for joint
cooperative marketing projects with tourism industry partners, including sea-carriers operating between Ireland and Britain to encourage tourists to bring their
own cars; .
A significant number of new Mainland European air routes were launched in 2004. Tourism Ireland has, through cooperative marketing arrangements,
supported those routes with good inbound tourism potential which are contributing to an overall increase of 17% in European seat capacity this summer;
. A fundamental review of marketing and promotion in key Mainland European
markets by Tourism Ireland is underway including consultation with industry on the appropriate strategic response to the initial findings;
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. A series of all-island (North-South) promotional programmes for 2004
encompassing clusters of complementary products are under way and more are planned by Tourism Ireland;
. Tourism Ireland has created a specialist e-Marketing Unit within its organisation
and has upgraded and extended significantly the e-marketing of Irish tourism in close cooperation with the industry -which, in addition, has benefited from a
range of e-commerce training courses provided by Fáilte Ireland; .
A great deal of data to facilitate market share analysis has been completed by Tourism Ireland and Fáilte Ireland and this analysis is being used in consultation
with the Department of Arts, Sport and Tourism to shape the business plans of the Agencies with the aim of maintaining and enhancing Ireland's share of outbound
tourism from its main overseas markets.
5.4 While satisfactory initial progress has been achieved in implementing the strategy and recommendations of the Review Group in the area of marketing and promotion, as
outlined above, it remains a cause of concern that, despite this effort, there has been little or no increase in visitors from the British market in the first half of 2004,
particularly in the case of those bringing their own cars -who are of major importance in achieving a good regional spread of tourism visitors and expenditure. For this
reason, the Implementation Group has adjudged overall marketing and promotional effort as only partially successful in terms of results achieved. In doing so, the
Implementation Group recognises that maintaining and enhancing Ireland's share of the British outbound tourist market is not simply a marketing and promotion issue. It is
also determined by a range of other issues including competitiveness, value for money, product innovation, the quality, frequency and price of air and sea access and other
factors that define the Irish tourism experience. Because the British market, which is so significant as a source market for Irish tourism, has been changing so fundamentally in
recent years, Tourism Ireland is undertaking a major review of the market, in partnership with the industry. The first phase of the review will be finalised in
September and the final report and recommendations will be completed by the end of 2004. The Implementation Group strongly commends this initiative.
National Conference Centre 5.5 The absence of a National Conference Centre in Dublin is a significant impediment to
the attraction of major conference events to Ireland with their potential to add significantly to visitor numbers and expenditure not alone in the Dublin area but more
widely in Ireland. The announcement in June, 2003 by the Minister for Arts, Sport and Tourism that the Government had agreed in principle to the provision of a National
Conference Centre by way of a leasing, or other, arrangement through an open competitive procurement process was a significant development towards realising one
of Ireland's long-standing national tourism objectives. The Implementation Group welcomes the Government commitment to providing such a centre in partnership with
the private sector.
5.6 The Implementation Group has been informed that much work has been done since the Government announcement in progressing the competitive procurement process, which
by its nature is necessarily complex and time-consuming. The closing date for receipt of expressions of interest was 21 st January, 2004 and four such expressions of interest
were received by that date, of which three have been short listed for further assessment.
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5.7 Because of the procedural requirements of the PPP (Public Private Partnership) process and the development of the detailed design and contract documentation, the successful
private sector partner is not now likely to be chosen before the end of 2004 -more than 6 months later than had been originally anticipated by the Review Group. While
welcoming the overall progress made, the Implementation Group has concerns that momentum should not be lost at this point in relation to an essential tourism
infrastructure project that has been under consideration for many years. It therefore is strongly of the view that the procurement process currently under way between the
Government and private sector interests should be completed as early as possible.
Closing Gaps in Tourism Product 5.8 Ireland's overall tourism product is based on the three pillar concepts of people, place
and culture. The product offering to tourists in each of these three areas requires constant renewal, upgrading and innovation to maintain the overall competitiveness of
the sector with that of alternative locations in other countries. Sustaining high levels of environmental sensitivity in relation to the tourism product is also required. The
Implementation Group has been informed of, and supports the proposal by Fáilte Ireland to undertake in the autumn a strategic review of the existing tourism product
portfolio in order to guide future development. The Tourism Policy Review Group identified some fifteen action areas to address these issues. Progress in the
implementation of these recommendations has been mixed with good progress on some and unsatisfactory progress on others.
5.9 Key areas where good progress has been made include:
. The closing date for the availability of tax incentives for investment in hotels in
the course of development has been extended to 2006 providing the industry with a generous transitional period to get investment projects in place;
. The commitment to discussions between tourism industry interests and the
Revenue Commissioners to establish the extent to which expenditure in existing premises will qualify for write– off/ depreciation over an eight year period for tax
purposes;
. Fáilte Ireland is in the process of developing a new scheme to support the
undertaking of feasibility studies by enterprises into innovative tourism products. Such a scheme is being piloted at present, in the Mid-West Region, by Shannon
Development. This scheme requires to be fast-tracked to finalisation and operation;
. Two pilot schemes on the promotion of product clusters in North Clare/ East
Galway and East Cork/ Waterford are being developed by the Irish Tour Operators Association (ITOA) in conjunction with Fáilte Ireland and the Regional
Tourism Authorities (RTAs);
. Since November 2003, the Tourism Product Management Board has approved
funding of more than €25 million for some thirty tourism projects, encompassing Major Attractors, Clusters of Existing Attractions, and Special Interest Pursuits,
and involving a total proposed investment of €50 million;
. Discussions are underway with UNESCO to identify further sites for designation
as UNESCO world heritage sites.
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24
5.10 Progress is less satisfactory in the following areas:
. While some progress has been made in advancing the recommendation for a new
and mandatory classification system for hotels and guesthouses, including the competitor benchmarking of alternative classification systems and discussions
with the Irish Hotels Federation, more needs to be done. The current system was designed over twelve years ago. Since then significant changes have taken place
in tourism investment in Ireland and internationally which require to be reflected in a new classification system. A new system can make a major contribution to
upgrading the quality of product and services in Irish hotels and guesthouses. However, the process of finalising a scheme, which undoubtedly involves
complex issues, appears unduly long and should be accelerated jointly by Fáilte Ireland and the Irish Hotels Federation;
. Actions to narrow the gap in cultural and artistic infrastructure between Dublin
and other capital cities include the redevelopment of the Abbey Theatre and the relocation/ redevelopment of the National Concert Hall. The Implementation
Group has been informed by the Department of Arts, Sport and Tourism that the issues involved are far from straightforward and the costs involved are significant
. It has been advised that the Department is currently giving priority consideration to a range of options in relation to the development of these projects with a view
to obtaining Government decisions on both projects at an early date. The Implementation Group urges the Department to bring its work to finalisation with
a view to filling these important infrastructural gaps at the earliest possible date;
. The Review Group proposed that clear guidelines and codes of practice on rights
of access for visitors to the countryside be developed and that the legal position in relation to public liability relating to such access be clarified by the start of the
main tourism season in 2004. This is also a complex area that is being examined by the Department of Community, Rural and Gaeltacht Affairs. However,
uncertainty about these matters is an increasing problem in promoting countryside based recreational tourism, for both domestic and overseas holidaymakers. The
progress achieved to date in addressing the issues involved is unsatisfactory.
National Roads Programme and Signposting 5.11 The national, regional and local roads network is of fundamental importance in
providing access for visitors, from home and abroad, to Ireland's diverse tourism product and in facilitating a balanced spread of tourism visitors and revenue, together
with their associated employment and development opportunities. In addition, signposting has been identified in successive Visitor Attitudes Surveys as an area of
dissatisfaction for visitors.
5.12 The roads investment programme set out in the National Development Plan 2000– 2006 is comprehensive and ambitious. Its early completion is of major importance to
tourism as it is to other sectors of the economy. In formulating the programme, the priorities identified by the Department of Arts, Sport and Tourism, and the Tourism
State Agencies were acknowledged. Clearly, a significant upgrading of the roads system has taken place since the programme was introduced, with good progress on key
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25
inter-urban routes including Dublin – Belfast and Dublin – Cork. But this progress requires to be measured against need, plan and budget. The programme has fallen
behind in meeting overall completion targets for a number of reasons including planning objections and delays, the "learning curve" that applied to the National Roads
Authority and the Local Authorities in rolling out an unprecedented level of investment in roads and cost escalation. Nevertheless, the slippage that has occurred in the
implementation of the National Roads Programme is a significant negative factor in promoting tourism at national and regional levels. As regards signposting, a new 5-
year Signposting Programme for Non-National Roads commenced in 2003 and, within this Programme, tourism routes need to be prioritised. Efforts should also be intensified
to ensure that tourism priorities are adequately reflected in the non-national roads programme.
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SECTION 6
Irish Tourism: Key Barriers to Development
6.1 The international competitive environment for tourism has been difficult since 2000. The downturn has coincided with a period of high inflation in Ireland generally,
including in the tourism sector, which has exacerbated the difficult market conditions. Unlike other internationally-traded sectors in Ireland, however, cost escalation in the
tourism industry has not, to any significant extent, been offset by productivity increases so that the price competitiveness of the industry has deteriorated at the same time as
market conditions have worsened. This combination of factors means that the impact of issues which constrain the development of Irish tourism or reduce its potential for
growth are magnified. In this section of the Report a number of such constraining issues are identified.
6.2 At the present time, the most serious barriers or impediments to the development of Irish tourism include:
. the competitiveness and value for money of Ireland's tourism products and
reports from the industry of only marginal improvement in profitability -and none in some sectors;
. slow progress in the renegotiation of the Ireland-US Bilateral Air Agreement;
. the lack of progress in the provision of additional, competitive, fast
turnaround terminal facilities at Dublin Airport;
. slow progress in removing the increasing uncertainty about access to the
countryside and the development of national guidelines and a code of practice on such access;
. the absence of a National Conference Centre in Dublin;
. the redevelopment of the Abbey Theatre and the National Concert Hall to
narrow the gap in cultural and artistic infrastructure between Dublin and other capital cities in Europe;
. changing consumer and market trends and associated loss in share of the
British outbound market in recent years which make the attraction of increased visitor numbers to Ireland more challenging.
Value for Money 6.3 Value for money is an essential foundation for all international competing industries
seeking to hold and expand their share of the markets in which they compete. It is particularly important in tourism where repeat business on the basis of "brand loyalty"
is not a strong, widespread feature of the industry. Any deficiencies in value for money in the industry is increasingly transparent through the direct experience of both
domestic and overseas customers, through the increasing availability to tourists of comparative data on prices and value for money from the internet and other sources and
through the increasing pro-active commentary of consumer groups and the media on these issues.
6.4 The Review Group highlighted a wide range of actions required to address the clear deterioration in the customer perception of the value for money available within Irish
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tourism in recent years. The detailed Progress Report on the implementation of the recommended actions to date is set out at Appendix C. It indicates a good deal of
positive progress on a range of relevant actions. These include a widespread acknowledgement by the tourism industry itself of the challenge it faces in restoring
competitiveness and the positive steps being taken by many tourist enterprises to offer better value for money, the success in reducing both inflation and the rate of increase in
insurance premia and the many other steps which have been taken by the industry and by the Government to contain the cost base facing tourism enterprises.
6.5 Strong areas of concern remain, however, in relation to the competitiveness and value for money available in wide segments of Irish tourism. Customer perception of any
progress in this area remains low. The latest Fáilte Ireland Visitor Attitudes Survey has confirmed the increasing rates of dissatisfaction with all round value for money. In
2003 some 62% of overseas visitors were not very satisfied with the value for money they obtained. This is up from the 55% who expressed dissatisfaction the previous
year. Such poor customer perceptions are not helped by opportunistic price increases by certain elements of the tourism and hospitality industry during special sporting and
other entertainment events that attract high visitor numbers.
6.6 The underlying causes of the deterioration in competitiveness and value for money in Irish tourism will not be rectified overnight. Negative customer perceptions, once they
become ingrained, take time and sustained effort to change, even beyond the rectification of the underlying factors themselves. Many of these factors such as
general national high price levels, high relative rates of inflation, high real estate costs, high -even abnormal -escalation of costs facing tourism enterprises in areas such as
insurance and high rates of increase in local Government charges, lie outside the direct control of the tourism industry itself. But many such factors remain within its control.
Sustained efforts to address the issues that have undermined competitiveness within both the industry itself and within the Government sector, along the lines of the Review
Group's recommended actions, are essential. In the meantime, the current perception of competitiveness and value for money in Irish tourism remains a significant barrier to its
further development and expansion.
6.7 Recent reports from the tourism industry on performance, such as the Tourism Barometer compiled by Fáilte Ireland, have reported little or no growth in business in
many regions outside the established tourist areas and in certain sectors and, for example, the hotel industry reported only marginal improvement in profitability in
2003. For a developed economy like Ireland, productivity improvements are the key to future growth potential. Generally speaking, improvements in productivity are realised
at individual enterprise level and the compilation of data to accurately assess productivity trends could have a positive effect on enabling tourism enterprises to
achieve higher productivity growth.
Ireland– US Bilateral Air Agreement 6.8 Direct access for Irish-based airlines to additional airports strategically serving large
areas of population in the US would provide a powerful stimulus to increasing tourist numbers from the US to Ireland. This requires the renegotiation of the current Ireland-US
Bilateral Air Agreement. The Department of Transport fully understands and is supportive of the needs of tourism in this area. However, lack of progress in achieving
a new Ireland-US Bilateral Air Agreement this year represents a missed opportunity for stimulating immediate and significant tourism growth from a market source with
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28
proven potential for Ireland. It has not been helped by the failure to make progress in recent months on a new EU– US "Open Skies" aviation agreement. The Implementation
Group understands that within such a framework agreement, acceptable bilateral arrangements in respect of the phasing out of the Shannon stop requirement, coupled
with the opening up of new U. S. gateways, could have been negotiated The lack of progress in these areas remains a major concern and a serious barrier to achieving the
full potential for growth of US tourists to Ireland.
Dublin Airport Terminal Facilities 6.9 The tourism industry requires additional, competitive, fast turnaround terminal facilities
at Dublin Airport. This essential infrastructure is required to facilitate a faster turnaround of aircraft and to enhance the capacity of the airport to secure an increase in
the number of visitors, particularly from Mainland Europe. There is widespread consensus that clear plans and timeframes for these facilities are urgently needed if the
ambitious targets for growth in Irish tourism, set by the Review Group, are to be achieved. However, progress in putting them into place has been delayed pending
progress on the proposed restructuring of Aer Rianta, which is designed to develop the potential for additional services to and from Shannon and Cork Airports. This delay is
a serious barrier to the development of tourism. While the issues that require to be addressed in such a restructuring are clearly complex these should not, in themselves,
be allowed to delay further essential decisions on the capital investments required at Dublin Airport to meet the needs of airlines in a position to develop the tourism
potential of European markets, building on the significant development of new routes in recent years.
Countryside Access 6.10 The beauty and diversity of the Irish countryside is a major attraction for both domestic
and overseas tourists. Traditionally, access to the countryside for visitors has not been a difficulty. This has changed in recent years with increased levels of visitor numbers,
some failures on the part of visitors to respect good practice in undertaking leisure use in the countryside, changes in traditional methods of farming and uncertainty in relation
to the public liability position of visitors and land-owners. The closure of certain traditional areas of access and a number of confrontations between landowners and
leisure– use visitors to the countryside have been highlighted in the media. Negative publicity and perceptions have been generated in relation to the traditionally strong
components of Ireland's overall tourism product -beautiful countryside with ease of access, friendly people and a relaxed pace of life. The negative impact extends beyond
those visitors or potential visitors who wish to avail of access to the countryside. The issues involved are complex and are under consideration by the Department of
Community, Rural and Gaeltacht Affairs. However, a resolution to the current difficulties has yet to be identified and they remain a further barrier to the development
of Irish tourism.
Other Impediments to Tourism Development 6.11 A number of other impediments to the development of Irish tourism are discussed in
the section of this Report dealing with areas requiring further progress in advancing the implementation of the recommendations of the Review Group. These include:
. the absence of a National Conference Centre in Dublin;
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. the redevelopment of the Abbey Theatre and the National Concert Hall to narrow
the gap in cultural and artistic infrastructure between Dublin and other capital cities of Europe, and;
. changing consumer and market trends and associated loss in share of the British
outbound market in recent years which, if it becomes ingrained, will have major long-term, negative implications for Irish tourism.
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SECTION 7
Overview of Progress and Next Steps
Overview of Progress 7.1 This is the first Report of the Implementation Group established by the Minister for
Arts, Sport and Tourism to consider and report on progress in the implementation of the strategy and actions recommended by the Tourism Policy Review Group in their
Report, New Horizon for Irish Tourism: An Agenda for Action.
7.2 Overall the initial progress in the implementation process has been good with strong commitment and support from the tourism industry and the Government to the strategy
and recommendations of the Review Group. Inevitably, progress in advancing some of the recommended actions has been more or less satisfactory than others -as highlighted
in Sections 4, 5 and 6 of this Report. They are described in more detail in the schedule at Appendix C which sets out progress achieved up to mid-2004. In general, it can be
said that the areas where progress is most advanced lie in those relating to administrative and coordinating activities as the key actors gear up to implement the
new strategy. The areas where progress is least advanced lie in the more specific areas of what can be termed the "real economy". Significant barriers to the development of
Irish tourism remain as outlined in Section 6. Progress in removing these barriers is essential if the ambitious targets set by the Review Group for the development and
growth of the industry are to be achieved.
Next Steps 7.3 The Implementation Group will continue its work over the remainder of the period of
the initial Action Plan. It will continue over the next six months to meet at monthly intervals and to encourage, through regular consultations, the relevant Government
Departments, State Agencies and industry representative groups to progress the implementation of the recommended actions in the Report of the Review Group. The
Group will also monitor the work of the independent steering group established by Fáilte Ireland to develop a human resource development strategy for the tourism
industry.
7.4 In November 2004 the Implementation Group will convene a Forum, in conjunction with the Department of Arts, Sport and Tourism, Fáilte Ireland and Tourism Ireland, to
report progress on the implementation of the strategy and recommendations of the Review Group some twelve months after its report was published and disseminated.
The Forum will provide an opportunity for the tourism industry itself to reflect and put forward its views on the progress made in advancing the development of the industry
over the previous year. It will also help to identify the actions that require to be prioritised by both the industry itself and by the Government, in order to underpin the
future development of an industry that has been a major sector of enterprise, employment and wealth-creation for Ireland and its regions.
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Appendix A Terms of Reference for the
Tourism Action Plan Implementation Group
Having regard to the new strategy for Irish tourism over the period 2003 to 2012, as set out in New Horizons for Irish Tourism; An Agenda for Action (September 2003) and in order
to drive forward and give best effect to the implementation of the first rolling action plan, the terms of reference for the Implementation Group are
. to advise the Minister for Arts, Sport and Tourism, John O'Donoghue, T. D., on the
implementation on the Tourism Action Plan 2003-2005
. to publish a report on its work, results and deliberations at six-monthly intervals
. to sit for a period up to the end of 2005
and, in that context,
capitalise on the current impetus for change and modernisation within both the public and private sectors, ensuring that the Action Plan is seen as an integrated set of
actions requiring a co-ordinated and partnership approach, across Departments, agencies and industry, towards implementation
discuss with lead actors their operational plans for, and commitments to, the implementation of actions falling within their remit including effectiveness indicators
against which performance will be measured
highlight any constraints to progress and recommend how they might be addressed and by whom
recommend any changes that should be made to the Action Plan in the light of experience as it is rolled out
and also
. to contribute to the evaluation of the tourism strategy in autumn 2005 (or earlier if the
tourism environment proves to be more volatile than anticipated) – this step to be a major milestone in the ongoing review process which will be an inherent element of
the development process for the industry going forward.
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Appendix B Members of the Implementation Group
The membership of the Implementation Group is as follows:
John Travers (Chairman) former Chief Executive of Forfás, also chaired the Interim Board of the National Tourism Development Authority
and the Tourism Policy Review Group
Philip Furlong Secretary General, Department of Arts, Sport and Tourism
Jim Murphy Managing Director, Prem Group and former President of the Irish Hotels Federation
Michael O'Donoghue Managing Director, O'Donoghue/ Ring Hotels
Eileen O'Mara Walsh O'Mara Travel and former Chairperson of the Irish Tourist Industry Confederation
Raymond Rooney Managing Director, Rooney Auctioneers Ltd
Paul Tansey Economist
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Strategic
Success
Driver
1
Business
Environment
Objective
To
facilitate
the
development
of
the
tourism
industry
through
a
range
of
tourism-supportive
Government
macroeconomic
and
other
policies
that
enhance
the
business
environment
and
encourage
investment
Rationale
The
ultimate
determinant
of
success
in
Irish
tourism
will
be
an
energetic,
innovative
and
profitable
private
sector
operating
within
a
domestic
environment
where
Government
policies
and
actions
are
supportive
of
business
investment
in
tourism.
Actions
Milestones/ Timeframe
Update
(mid
2004)
on
Actions
Recommended
1.1
Government
Commitment:
Strengthen
Government
commitment
to
creating
and
maintaining
a
positive
legislative,
budgetary
and
regulatory
environment
for
tourism
investment
and
development
by
.
a
stronger
and
more
frequent
acknowledgement
of
tourism
as
an
important,
highly-valued
instrument
of
national
and
regional
development
policy
.
a
redefinition
of
tourism
policy
to
encompass
not
only
the
traditional
role
and
functions
of
the
"Department
of
Tourism"
and
the
Tourism
State
Agencies
but,
in
addition,
all
areas
of
Government
policy
and
actions
that
impact
in
a
significant
manner
on
the
development
of
tourism
.
establishing
a
stronger
analytical
and
resource
base
within
the
Department
of
Arts,
Sport
and
Tourism,
to
monitor,
influence
and
shape
developments,
in
conjunction
with
the
Tourism
State
Agencies,
across
the
wider
arena
of
Government
policy
that
significantly
affects
tourism.
Lead Role
Government/ Department
of
Arts,
Sport
and
Tourism
Immediate
and
ongoing
The
Report
of
the
Tourism
Policy
Review
Group
was
well
received
by
Government
and
was
launched
publicly
by
the
Minister
for
Arts,
Sport
and
Tourism
on
30
September
2003.
The
Government
agreed
that
individual
Departments
should
engage
in
consultations
on
the
actions
recommended
by
the
Review
Group
that
have
implications
for
them.
The
Minister
for
Arts,
Sport
and
Tourism
appointed
a
high-
level
Group
in
January
2004
to
oversee
the
implementation
of
the
first
two-
year
Tourism
Action
Plan.
The
Tourism
Division
of
the
Department
has
been
re-structured
with
the
establishment
and
resourcing
of
a
new
Impact
Assessment
Unit
which
is
providing
the
secretariat
to
the
Implementation
Group
with
the
support
of
the
Tourism
State
Agencies
and
the
Irish
Tourist
Industry
Confederation
(ITIC).
The
Department
of
Arts,
Sport
and
Tourism
is
using
the
Implementation
Group
consultation
process,
together
with
its
own
membership
of
inter-
Departmental
Working
Groups
and
consultative
fora,
as
a
mechanism
for
more
effective
interaction
with
other
Departments
whose
policies
impact
on
tourism.
This
process
has
started
well
with
a
particularly
productive
dialogue
developing
with
the
Departments
of
Transport
and
Finance
during
the
first
six
months
of
the
Plan.
The
Department
of
Arts,
Sport
and
Tourism
has
also
made
a
number
of
contributions
to
draft
submissions
to
Government
on
issues
that
impact
on
tourism
(e. g.
White
Paper
on
Regulation,
insurance
reform,
waste
management,
housing
guidelines,
the
transport
reform
agenda)
with
a
view
to
influencing
the
wider
agenda
in
favour
of
tourism
development.
It
has
also
been
A p p e n d i x C
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32
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34
agreed
that
the
Department
of
Arts,
Sport
and
Tourism
will
attend
and
participate
at
future
meetings
of
the
National
Competitiveness
Council.
Following
submissions
by
the
Department
and
the
tourism
industry,
the
Enterprise
Strategy
Group,
in
its
report
"Ahead
of
the
Curve",
published
in
July
2004,
confirmed
tourism
as
a
sector
of
enterprise
of
specific
opportunity
for
Ireland
and
endorsed
the
new
tourism
strategy
as
recommended
in
the
Report
of
the
Tourism
Policy
Review
Group.
In
a
further
initiative
to
heighten
awareness
of
the
importance
of
Irish
tourism,
the
Department
agreed
to
undergo
a
written
and
oral
review
process
by
the
OECD
Tourism
Committee
of
Ireland's
tourism
policy,
in
June
2004.
The
Committee
endorsed
the
new
strategy
for
tourism
development
set
out
in
the
Report
of
the
Tourism
Policy
Review
Group.
It
regarded
the
efforts
to
promote
and
support
the
provision
of
a
"tourism
experience"
that
exceeds
customer
expectations
as
"an
exemplary
approach"
to
rejuvenate
Irish
tourism
business
models.
The
Committee
urged
Ireland
to
keep
up
its
efforts
for
the
recovery
of
competitiveness,
continue
to
recognise
the
importance
of
human
resources
development,
training
and
education
in
acquiring
competitive
edge,
increase
research
work
on
tourism
economics
and
further
support
the
building
of
networks/ clusters.
1.2
Competition
:
Strongly
support
competition,
or
pro-competition
regulation
where
market
competition
does
not
operate,
in
the
case
of
both
private
and
public
sector
activities
that
affect
tourism
-
including
the
hospitality
sector,
access
transport
carriers
and
infrastructure
(ports
and
airports)
and
internal
transport
services.
Lead Role
Department
of
Arts,
Sport
and
Tourism/ Tourism
Industry
Representative
Bodies
Immediate
and
ongoing
The
Department
of
Arts,
Sport
and
Tourism
has
been
strongly
supporting
Government
measures
to
introduce
a
greater
level
of
competition
in
the
provision
of
private
and
public
services,
in
particular
in
the
case
of
those
that
impact
on
tourism.
Specific
areas
include
the
insurance
reform
agenda
which
seeks
to
lower
premiums
and
the
transport
reform
agenda
which
is
designed
to
bring
about
more
competition
in
the
provision
of
airport
infrastructure,
air
services,
internal
transport
services
and
taxis.
33
33
Page 34
35
1.3
Inflation
:
Take
resolute
action
to
maintain
recent
progress
to
bring
inflation
and
tourism
prices
down
to
the
eurozone
average
and
below
through . the full implementation
by
all
the
social
partners
of
the
provisions
relating
to
pay,
productivity
and
the
facilitation
of
change
in
the
workplace
contained
in
the
Social
Partnership
Agreement
2003-
2005
–-
Sustaining
Progress,
as
well
as
the
Agreement's
anti-
inflation
initiative
.
Government
commitment
to
an
inflation
target
benchmarked
to
the
eurozone
average
rate
.
maintaining
any
increases
in
charges
for
Government
services
below
the
general
rate
of
inflation
.
avoiding
further
increases
in
excise
duties
and
VAT
in
Budget
2004.
Lead
Role
Government/ Department
of
Finance
Immediate
and
ongoing
There
has
been
a
significant
improvement
in
Ireland's
overall
inflation
rate.
Averaging
3.5%
in
2003,
the
annual
inflation
rate
fell
to
1.3%
in
March
2004– the
lowest
level
since
the
beginning
of
monetary
union– before
rising
again
over
the
following
four
months
to
reach
2.7%
in
July
2004.
The
annual
rate
of
inflation
for
Services
was
4%
in
July
2004.
Ireland's
inflation
rate,
which
was
at
the
top
of
the
eurozone
league
in
2003,
is
now
only
slightly
above
the
eurozone
average.
While
the
reduction
in
the
inflation
rate
is
to
be
welcomed,
the
overall
level
of
prices
and
costs
in
Ireland
remains
high
as
evidenced
in
many
international
surveys
and
statistics.
In
2003,
Ireland's
labour
competitiveness
position
worsened
as
wages
and
salaries
per
head
increased
by
5.1%
compared
with
2.6%
in
the
eurozone
area.
Prices
for
certain
Government
and
Local
Government
services
have
also
increased
well
ahead
of
general
inflation
rates.
This
continues
to
highlight
the
need
to
moderate
costs
and
prices
in
order
to
address
concerns
relating
to
competitiveness
and
value
for
money
for
tourism
services.
The
Anti-Inflation
Initiative
Group
is
co-
ordinating
activities
in
line
with
the
"Sustaining
Progress"
commitment,
on
public
sector
modernisation
and
expenditure
controls,
increasing
competition,
support
for
small
businesses,
fiscal
and
budgetary
policy
and
consumer
price
awareness.
The
Group
submitted
its
first
formal
report
to
Government
in
November
2003.
Recent
action
on
foot
of
the
report
includes
the
major
Government-funded
campaign–
"Price
Awareness
Pays"–
overseen
by
the
Office
of
the
Director
of
Consumer
Affairs.
There
were
limited
changes
to
indirect
taxes
in
Budget
2004
and
systems
are
in
place,
as
set
out
below,
to
ensure
that
tourism
concerns
are
taken
into
account
in
the
budgetary
process.
34
34
Page 35
36
1.4
Taxation:
While
company
and
personal
taxation
rates
in
Ireland
are
generally
competitive
and
the
narrow
base
of
taxation
in
Ireland
and
EU
State
Aid
Rules
constrain
Government
action
in
this
area,
nevertheless,
within
that
framework
a
number
of
actions
should
be
taken . promote
reinvestment
in
maintaining
the
capital
stock
in
Irish
tourism
at
high
standards
through
use
of
the
accelerated
write-
offs
already
available
for
plant
and
machinery
.
establish
and
publish
annually
information
on
investment
in
tourism
facilities
undertaken
with
the
aid
of
capital
allowances
and
other
tax
reliefs
in
order
to
monitor
and
assess
investment
in
maintaining
the
quality
of
Ireland's
tourism
stock
.
bring
indirect
taxation
levels
on
key
tourism-related
consumables
down
to
average
eurozone
levels
–
focussing
initially
on
the
high
excise
duties
on
wine.
Lead Role
Fáilte
Ireland/ Revenue
Commissioners/ Tourism
Industry
Representative
Bodies/ Department
of
Finance
Immediate
and
ongoing
First
Investment
Report
published
in
2004
From
Budget
2004
and
ongoing
The
tourism
accommodation
sector
has
benefited
in
the
past
from
generous
tax
incentives,
in
particular
favourable
treatment
in
respect
of
capital
allowances.
The
7-
year
capital
allowance
regime
for
investment
in
hotel
projects
as
well
as
a
number
of
other
property-
based
reliefs
were
ended
as
a
result
of
Budget
2003,
as
part
of
the
policy
of
widening
the
tax
base
while
keeping
direct
tax
rates
low.
In
response
to
concerns
expressed
by
the
industry,
generous
transitional
arrangements,
for
the
relief
to
apply
in
full,
have
been
put
in
place
for
certain
projects
in
the
course
of
development
provided
expenditure
is
completed
by
end
July
2006.
Thereafter
the
annual
write-off
for
hotels
will
be
4%
per
annum
for
25
years– in
line
with
that
for
industrial
buildings. Under
general
taxation
rules,
expenditure
that
qualifies
as
current
expenditure
is
tax
deductible
in
the
current
year,
whereas
plant
and
machinery
qualifies
for
8
year
capital
allowances.
Much
expenditure
in
existing
premises
should
be
able
to
qualify
under
these
categories.
The
tourism
industry
associations
will
be
meeting
the
Revenue
Commissioners
to
clarify
the
position
in
relation
to
various
expenditure
items.
The
Minister
for
Finance
announced
in
May
2004
that
revenue
tax
returns
would
be
amended
to
allow
for
the
collection
of
certain
data
in
respect
of
the
tax
foregone
under
particular
schemes– the
information
to
be
available
in
2006.
Fáilte
Ireland
has
commissioned
consultants
to
report,
in
the
autumn,
on
investment
data
in
tourism
facilities.
The
Irish
Tourist
Industry
Confederation
(ITIC),
the
Irish
Hotels
Federation
(IHF)
and
the
Irish
Tour
Operators
Association
(ITOA)
have
commissioned
consultants
to
examine
the
case
for
a
range
of
tax-related
issues.
These
include
a
reduction
in
VAT
rates
on
tourism
services
and
allowing
the
refund
of
VAT
on
corporate
hotel
and
restaurant
expenses
in
order
to
promote
business
and
conference
tourism
and
improve
our
competitive
position
with
other
European
countries
in
this
important
market
niche.
There
were
limited
changes
to
indirect
taxes
in
Budget
2004.
Systems
have
been
put
in
place
to
ensure
that
tourism
concerns
are
taken
into
account
in
the
budgetary
process
through
the
Tax
Strategy
Group
and
in
bilateral
consultations
with
officials
in
the
Department
of
Finance.
There
was
no
increase
in
VAT
or
excise
duties
on
alcohol
in
Budget
2004.
35
35
Page 36
37
The
Department
of
Finance
has
pointed
out
that
there
has
been
no
increase
in
excise
duties
on
wine
or
beer
since
1994
and,
as
a
flat
rate
tax,
its
real
value
has
declined
significantly
as
a
percentage
of
sales
prices
in
recent
years.
The
absence
of
tax
increases
on
alcohol
in
Budget
2004and
the
increased
awareness
on
the
part
of
the
Department
of
Finance
of
the
potential
adverse
impact
on
tourism
of
any
upward
adjustment
in
such
rates
is
welcomed
by
the
Implementation
Group.
However,
there
is
still
concern,
in
the
tourism
sector,
about
the
high
levels
of
taxation
on
the
cost
of
eating
out
and
drink
prices
in
Ireland
compared
with
other
European
countries.
Ireland
has
the
highest
rate
of
excise
duty
on
wine
and
virtually
the
highest
rate
on
spirits
among
the
original
15
EU
Member
States.
1.5
Insurance :
Address
the
factors
generating
the
high
absolute
levels
of,
and
high
rates
of
increase
in,
insurance
costs
for
tourism
enterprises
through
.
the
acceleration
of
the
Government's
Insurance
Reform
Programme,
in
particular
the
establishment
of
the
Personal
Injuries
Assessment
Board
on
a
statutory
basis
.
the
consideration
of
the
particular
impact
on
tourism
of
insurance
increases
in
the
analysis/ report
on
the
insurance
sector
being
prepared
at
present
by
the
Competition
Authority
.
the
consideration
of
the
scope
for
co-operative
action
by
the
tourism
industry
in
areas
such
as
the
management
of
claims,
health
and
safety
measures
and
self-insurance.
Lead Role
Department
of
Enterprise,
Trade
and
Employment/ Competition
Authority/
Tourism
Industry
Representative
Bodies
Reduction
in
insurance
charges
levied
from
2004
By
end
2003
Immediate
Good
progress
is
being
made
in
implementing
the
Government's
Insurance
Reform
Programme
and
there
has
already
been
some
downward
movement
in
motor
insurance
premia
in
the
order
of
10%
to
15%,
with
more
reductions
in
the
pipeline.
Tourism
industry
groups
are
also
reporting
evidence
of
reductions
in
insurance
premia
for
employer's
liability
and
public
liability
insurance. In June 2004,
the
Personal
Injuries
Assessment
Board
(PIAB),
which
has
been
established
on
a
statutory
basis,
began
to
deal
with
employer
liability
cases.
From
the
end
of
July,
all
personal
injury
claims
(including
those
arising
from
public
liability
and
motor
accidents)
must
be
referred
to
PIAB
before
legal
proceedings
are
initiated.
The
Civil
Liability
and
Courts
legislation,
enacted
at
the
end
of
July
2004,
has
been
designed
to
reduce
the
time
taken
and
the
costs
involved
in
personal
injuries
cases.
It
should
lead
to
a
clamp
down
on
fraudulent
claims
and
result
in
an
easing
of
the
insurance
burden
on
the
business
sector. The Competition
Authority
published
a
preliminary
report
and
consultation
document
on
competition
issues
in
the
non-life
insurance
market
in
February
2004.
A
final
report
containing
recommendations
resulting
from
its
findings
will
be
published
later.
36
36
Page 37
38
The
Fáilte
Ireland/ Irish
Hotels
Federation/ Marsh
Initiative
has
been
underway
since
October
2003
with
a
view
to
identifying
the
scope
for
reduced
premia
through
group
business
and
greater
pooled
information
on
claims
experience.
A
number
of
other
industry
representative
groups
are
taking
their
own
initiatives
and
actions
to
address
the
high
cost
of
insurance.
1.6
Infrastructure :
Accelerate
the
completion
of
key
elements
of
tourism
related
infrastructure
including
.
National
Conference
Centre
(Strategic
Success
Driver
5
also
refers) . National
Sports
Stadium
(Strategic
Success
Driver
5
also
refers)
.
National
Roads
Programme,
in
particular
the
early
completion
of
the
Dublin
M50
orbital
route
and
the
route
network
around
international
air
and
sea
access
points
and
routes/ centres
of
high
tourism
demand
(e. g.
Kerry,
Connemara
and
the
mid-
West)
including
regional
and
inter-regional
access
to
Shannon
Airport
(Strategic
Success
Driver
3
also
refers)
.
National
and
Regional
Road
Signposting
Programmes
(Strategic
Success
Driver
3
also
refers).
Lead Role
Department
of
Arts,
Sport
and
Tourism/ Department
of
Transport/ Department
of
Environment,
Heritage
and
Local
Government
See
later
Actions
for
details
Details
of
progress
in
implementing
the
key
elements
of
tourism-related
infrastructure
are
set
out
later
in
this
Appendix.
1.7
Regional
Infrastructural
Priorities:
Update
the
audit
of
the
tourism-
related
infrastructural
needs
of
each
of
the
regional
tourism
authority
areas
and
prioritise
the
key
actions
required
to
bridge
the
gaps
for
submission
to
the
relevant
Department/ agency.
Lead
Role
Regional
Tourism
Authorities/
Fáilte
Ireland
Immediate
and
ongoing
The
Regional
Tourism
Authorities
have
been
asked
to
undertake
an
audit
of
tourist
related
infrastructure
needs,
in
particular
in
the
roads
and
signposting
areas,
in
order
to
help
prioritise
key
actions
needed.
These
will
be
available
as
an
input
to
infrastructural
expenditure
planning
for
2005.
37
37
Page 38
39
1.8
Tourism
State
Agencies
–
Business
Plans:
In
order
to
facilitate
investment
in
tourism
and
tourism
related
bodies
from
a
number
of
sources
in
the
private
and
public
sectors,
Fáilte
Ireland
and
Tourism
Ireland
to
prepare
and
publish
annually
business
development
plans
which
establish
key
targets
of
performance
in
the
development,
promotion
and
marketing
of
tourism
at
national
and
regional
levels
within
a
clear
policy
framework
articulated
by
the
Department
of
Arts,
Sport
and
Tourism
and
set
out
in
the
plans.
Lead Role
Fáilte
Ireland/ Tourism
Ireland
/Department
of
Arts,
Sport
and
Tourism
For
2004
and
ongoing
In
December
2003,
Tourism
Ireland,
following
extensive
consultation
with
industry
interests,
published
its
Marketing
Strategy
for
2004-2006,
together
with
detailed
marketing
operational
plans
for
2004.
These
plans
included
performance
targets
for
visitor
numbers
and
promotable
visitors
to
the
island
of
Ireland
for
the
next
three
years.
In
July
2004,
Tourism
Ireland
submitted
its
draft
2005-2007
Corporate
Plan
to
its
sponsor
Government
Departments,
North
and
South,
which
takes
into
account
the
appropriate
recommendations
in
the
Report
of
the
Tourism
Policy
Review
Group.
The
Corporate
Plan
will
be
finalised
later
this
year
and
will
include
objectives,
targets
and
resource
requirements
for
the
period
2005-
2007.
Details
of
Fáilte
Ireland's
Operational
Plan
for
2004
were
published
in
December
2003
and
included
an
outline
of
its
programmes
in
the
marketing,
training,
enterprise
development,
product
development
and
research
areas.
Fáilte
Ireland's
Corporate
Strategy
for
2005
to
2008
is
being
prepared,
in
consultation
with
industry
interests
and
taking
into
account
the
new
policy
agenda
set
out
in
the
Tourism
Review.
It
is
expected
to
be
completed
in
the
Autumn.
Regional
Tourism
Strategies
are
also
under
preparation
for
the
same
period.
1.9
Proposed
Smoking
Ban
in
the
Workplace:
While
supporting
action
to
reduce
the
adverse
impact
on
public
health
of
smoking
in
the
workplace
and
in
the
light
of
the
overall
assessment
by
Tourism
Ireland
that
the
proposed
ban
will
not
have
a
dramatic
effect
on
visitor
numbers,
discussions
should
continue
between
the
Department
of
Health
and
Children
and
the
tourism
sector
on
the
detailed
arrangements
for
the
introduction
of
the
new
measures
to
help
minimise
any
adverse
impact
on
the
sector.
Lead Role
Department
of
Health
and
Children/ Tourism
Industry
Representative
Bodies
Immediate
The
health-related
tobacco
smoking
ban
in
the
workplace
came
into
effect
in
March
2004
and
has
been
well
received
by
the
public,
with
virtually
100%
compliance.
Following
concerns
expressed
by
tourism
accommodation
providers,
the
Minister
for
Health
and
Children
published
the
Tobacco
Smoking
(Prohibition)
(Amendment)
(No. 2)
Regulations
which
exempted,
from
the
ban,
bedrooms
in
tourism
accommodation
registered
under
the
Tourist
Traffic
Acts.
The
impact
of
the
smoking
ban
on
the
tourism
sector
is
being
monitored
by
the
Tourism
State
Agencies.
38
38
Page 39
40
Strategic
Success
Driver
2
Competitiveness
and
Value
for
Money
Objective
To
address
the
deterioration
in
the
competitiveness
of
Irish
tourism
in
recent
years
Rationale
The
competitiveness
of
Irish
tourism
is
a
function
of
the
total
visitor
experience
relative
to
other
locations.
Restoring
competitiveness
is
a
major
challenge
for
Irish
tourism.
It
is
not
just
a
pricing
issue,
it
is
about
wider
value
for
money.
It
encompasses
the
experience
for
customers
from
the
initial
point
of
contact
with
Ireland
as
a
potential
tourist
destination,
through
the
transport
services
used
in
getting
to
and
from
Ireland,
travel
experience
within
the
country,
the
price
and
quality
of
products
and
services,
and
a
host
of
intangible
factors
that
influence
the
perception
of
customers
of
the
Irish
tourist
product.
Accordingly,
the
competitiveness
of
Irish
tourism
is
influenced
by
the
full
range
of
factors
and
actions
set
out
in
this
Chapter.
There
is,
however,
a
need
to
focus
on
a
number
of
issues
in
this
section
that
have
a
more
direct
impact
on
competitiveness. Actions Milestones/
Timeframe
Update
(mid
2004)
on
Actions
Recommended
2.1
Tourism
Industry
to
Acknowledge
Primary
Responsibility
for
Restoring
Competitiveness:
The
Irish
tourism
industry
should
acknowledge
through
its
representative
bodies
and
through
individual
enterprises
that
.
in
recent
years
it
has
lost
competitiveness
and
that
a
high
and
increasing
proportion
of
customers
have
expressed
concerns
about
value
for
money
.
primary
responsibility
for
restoring
competitiveness
and
better
value
for
money
rests
with
the
industry
itself.
Lead Role
Tourism
Industry
Representative
Bodies
and
tourism
enterprises
Immediate
and
ongoing
The
Report
of
the
Tourism
Policy
Review
Group
highlighted
the
growing
and
significant
number
of
overseas
visitors
who
have
expressed
dissatisfaction
with
the
value
for
money
of
the
Irish
Tourism
experience.
Indeed
the
situation
has
deteriorated
even
further
since
then
–
the
latest
Fáilte
Ireland
visitor
attitudes
survey
found
that
62%
of
those
surveyed
in
2003
considered
that
Ireland
did
not
provide
good
value
for
money.
Given
the
dependence
of
certain
segments
of
the
industry
on
domestic
business,
it
is
equally
important
to
combat
Irish
perceptions
of
declining
value
for
money,
given
the
variety
of
alternative
holiday
options
available
internationally. The Irish Tourist Industry Confederation
(ITIC)
has
informed
the
Implementation
Group
that
it
does
not
accept
that
the
tourism
industry
has
primary
responsibility
for
restoring
competitiveness
as
it
argues
that
most
of
the
influencing
factors
are
outside
its
control.
Through
its
representation
on
Social
Partnership,
ITIC
will
continue
to
raise
awareness
of
the
importance
of
industry
costs
on
the
sector's
competitiveness.
Through
its
own
direct
marketing
activity
and
cooperative
joint
promotion
programmes
with
Fáilte
Ireland
and
Tourism
Ireland,
the
industry
publishes
tactical
promotional
offers
from
air
and
sea
carriers,
accommodation
providers,
tour
operators
and
other
product
segments.
Many
discounted
special
offers
are
available,
particularly
this
year.
The
Restaurants'
Association
of
Ireland
(RAI)
and
the
Irish
Hotels
Federation
(IHF),
with
the
support
of
Fáilte
Ireland,
re-
launched
the
value
menu
initiative
in
August
2004.
The
pricing
levels
for
2004/ 5 <