April 2002 1
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ESTABLISMENT OF A NEW TOURISM DEVELOPMENT AUTHORITY: REPORT OF IMPLEMENTATION GROUP
CONTENTS
EXECUTIVE SUMMARY I-V 1. INTRODUCTION
Establishment and Brief of Implementation Group 1
Membership of Group 1
Operational Arrangements by Group 1
Content of Report of Implementation Group 2

2. THE IRISH TOURISM INDUSTRY
Tourism Overview 3
Goals of Tourism Policy 4
Prospects for 2002 5

3. INSTITUTIONAL ARRANGEMENTS FOR THE DELIVERY OF TOURISM POLICY
Establishment of Tourism Ireland Limited 6
Role of Bord Fáilte 6
Role of CERT 7
The Need for a New Development Agency for the Tourism Industry 7

4. NATIONAL TOURISM DEVELOPMENT AUTHORITY
Vision for Irish Tourism 9
Mission Statement for new Authority 9
Functions, Powers and Activities of the new Authority 10
Name of the New Tourism Development Organisation 11
Regional Aspects 12
Links with Other Bodies 14
5. NATIONAL TOURISM DEVELOPMENT AUTHORITY: ORGANISATIONAL STRUCTURE REQUIRED
General Considerations 15
Organisational Structure 15
The Board 17
Committees of the Board 17
Chief Executive 18
Executive Committees 18

6. FILLING OF POSTS: APPROACH RECOMMENDED
General Considerations 19
Staff Development and Mobility 19

7. FINANCIAL FRAMEWORK
Financial Allocations 2000-2002 20
Future Financial Framework 20
8. IMPLEMENTATION -NEXT STEPS
Dissemination of Report 22
Interim Appointments 22
Liaison Arrangements with Staff 22
Communications Strategy 22
Legislation 22
Premises 23 Conclusion 23

APPENDICES 24 2
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I
EXECUTIVE SUMMARY
Establishment and Brief of Implementation Group
In November, 2001 the Government approved the creation of a National Tourism Development Authority to promote the development of sustainable tourist facilities and services, including the promotion of training, human resources and marketing skills, bringing together functions currently carried out by Bord Fáilte and CERT. On 16 January, 2002 the Minister for Tourism, Sport and Recreation established an Implementation Group to report back to him within three months with an implementation plan for the establishment of the new body.

Operational Arrangements by Group
The Group was chaired by an independent Chairperson, Mr John Travers, outgoing Chief Executive of Forfas, and included the chairpersons and chief executive officers of both Bord Fáilte and CERT and two officials from the Department of Tourism Sport and Recreation, one of whom acted as Secretary to the Group. The Group met on eight occasions and also commissioned a limited amount of expert consultancy advice to assist it in its work. It invited submissions from key interests in relation to the strategic aspects of its work.

Overview of Irish tourism
The Report provides a brief overview of Irish tourism, noting that it is a major and growing economic sector with foreign exchange earnings in 2001 of approximately €3.7 billion, domestic tourism earnings of over €1.2 billion and sustaining close to 140,000 in employment. It notes the domestic challenges tourism faces in the immediate future including pressures on the environment in "honeypot" areas; infrastructural deficits; the impact of staff shortages in a tightening labour market; and a general increase in the pace of life affecting the core brand values of Irish tourism. The report outlines also the changing international trends, the impact of information and communications technologies, the effect of increased international availability of low cost access transport and the continuing vagaries of the economic cycle.

Background to the establishment of the new Authority
The Report sets out the background to the establishment of the new Authority. It strongly supports the objectives of Government to have in place an appropriate institutional architecture and suite of policies that facilitate the continued development by the industry of a sustainable and spatially balanced tourism sector, embracing the all-island opportunities offered by the Good Friday agreement, against the framework of the policies set out in the National Development Plan, 2000-2006. The Group considers that future success is highly dependant on the quality, range and competitiveness of facilities and the quality and levels of service, supported by effective, consumer-led marketing programmes and the enhancement of the overall business capability of the industry. The report also argues that a compelling case exists for streamlining and integrating the delivery of the State's activities in
supporting and promoting product marketing and development, human resource development and training in the tourism industry. It notes the key importance of putting in place and maintaining the closest possible links, teamwork and working 3
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arrangements between the new tourism development agency and Tourism Ireland Limited.

A Vision for the Development of Tourism in Ireland
The Group proposes the following Vision for the development of tourism in Ireland.

Ireland will be a destination of choice for discerning international and domestic tourists which:
Has a range of high-quality, world-class, competitive products and services widely distributed throughout all the regions of the country;
Is a vibrant source of foreign and regional earnings throughout the year;
Respects the natural and physical environments and supports their conservation and enhancement;
Provides attractive career opportunities in tourism for people with a range of skills and employment needs;
Provides the opportunity for people working in tourism to enhance their skills through experience, training and life-long learning;
Respects and supports Irish culture in all its diversity; Provides a positive international profile of Ireland;
Provides a tourism experience that exceeds customer expectations in terms of friendliness, quality of environment, diversity and depth of culture.

Mission Statement
The Group puts forward the following draft mission statement for consideration by the new Body.
To foster sustainable and competitive tourism development by working in partnership with the industry and State bodies to achieve world-class standards of excellence in the products, services, and marketing of the sector, thereby contributing to wealth creation and employment in the economy of Ireland and its regions.

Functions, Powers and Activities
The Group noted that the Government have already agreed draft functions and powers for the new Authority as part of the General Scheme of legislation to establish the Authority. However, for reasons of clarity, the Group considers that certain of the functions should be reworded. The Report notes that the activities the body will undertake will encompass the areas of: product development, including encouragement of industry to fill identified product gaps; a strong environmental focus which is well integrated with the product development functions; product marketing in partnership with Tourism Ireland Limited; promoting and supporting the development of the business capability of tourism enterprises across the full range of business functions; maintaining standards and quality assurance; undertaking research and planning; and conducting a range of efficient and effective corporate
services. 4
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Name of Authority
The Report sets out the principles that should govern the adoption of a name for the new body and the Group identifies a range of names that the Authority might adopt, noting that the name is ultimately a matter for consideration and determination by the Minister.

Regional Aspects
The group considers that an urgent review of tourism promotion and development at regional and local levels should be undertaken with a view to its improvement and rationalisation. A set of key principles to be applied in undertaking this review is set out in the Report. The Group also considers that no new bodies should be established to promote the development of tourism at sub-national level and that no new funding schemes should be initiated, which are outside of the aegis of the existing agencies, pending the completion of the review recommended.

Links with other Bodies
The group considers that to help ensure close links between activities, immediately on establishment, memoranda of understanding should be drawn up between the new organisation and Tourism Ireland Limited and with other bodies including the RTAs. The Group also considers that a partnership approach to industry consultation should inform the operations of the new organisation.

Organisational Structure and Filling of Posts
The Group recognises that the organisational and management structures for the new body are ultimately the responsibility of the Board and CEO of that body, when appointed, to determine following appropriate consultation. The Report sets out an outline of key management posts, including that of the CEO and the proposed four second-level management positions, together with the roles and draft job descriptions it considers appropriate to these positions. It suggests that these posts should be filled by open competition for which the staff of Bord Fáilte and CERT should be encouraged to apply. Senior management will be required to draw up detailed specifications and job descriptions for posts at third level and below.

Staffing Development and Mobility Issues
The Group considers that the revised functions envisaged for the new body require to be matched by an appropriate skills base and that a programme of staff training should be put in place to meet this need. Given the need for a high degree of integration, teamwork and mutual understanding among the State agencies involved in the promotion and development of tourism, the new body should actively investigate and promote the possibilities for staff mobility between itself, Tourism Ireland Ltd and other relevant bodies.

Board
The Group considers that, given the close links between the two bodies and in line with current practice, it would be desirable for the Chairman and the Chief Executive of the new body to sit on the board of Tourism Ireland Ltd. The Chief Executive of the new body should also, ex-officio, be a member of the board. 5
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Chief Executive
The Group recommends that a chief executive designate of the Authority should be appointed by an interim Board on an open recruitment basis as soon as possible. The person appointed should follow through on the Implementation Plan recommended by the Group as endorsed by the Minister. This should be done under the direction of the Interim Board.

Board Committees
The Group has recommended that the Board should consider establishing a number of Committees including a Management Development & Remuneration Committee and an Audit Committee. It also considers that the Board of the new body should set down detailed terms of reference for such Committees, including conduct of meetings, reporting requirements and related matters.

Financial Framework
The Group noted that on the basis of allocations for Bord Failte and CERT in 2002, the amalgamated budget for the new Authority would be of the order of €70m. Annual budgets for the new Authority will be determined in the context of the Annual Estimates/ Budgetary cycle. Current annual pay provisions should be more than adequate to meet the anticipated staffing requirements of the new Body. It is expected that the anticipated savings in the existing levels of pay and overheads would be used to offset the costs of carrying out the additional enterprise development functions of the new body. To facilitate the early and smooth start up of the new body, the Group considers that a selective Voluntary Early Retirement (VER) Scheme should be put in
place by the management and Board of the body when appointed.

Consultations with Staff
The Group considers that a management/ staff liaison group should be established from within the existing staff in Bord Fáilte and CERT to facilitate an effective delivery of the implementation process. Consideration could be given to engaging an agreed facilitator to assist in this process. In addition, arrangements should also be put in place to ensure that wider staff interests in both Bord Fáilte and CERT are consulted and informed of progress on the establishment of the new body on an ongoing basis. The Group also considers that it is essential that representatives of the tourism industry should be consulted and kept informed of progress.

Communications Strategy
The Implementation Group considers that, subject to final determination by the Minister, its report should be made available to the Boards, management and staff representatives of Bord Fáilte and CERT and Tourism Ireland Limited. It should also be posted on the websites of the Department of Tourism, Sport and Recreation and of these bodies.

Future Implementation Steps
The Group recommends that, subject to clarifying the legal position, an interim Board should be appointed by the Minister for Tourism, Sport and Recreation, on an informal basis, within a period of 1 month. This interim Board, to comprise a chairman and 6 ordinary members recruited primarily from among the current membership of the Boards of CERT and Bord Fáilte, would remain in place for a period of 1 year or until such time as the legislation for the new Authority is enacted. 6
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An essential first step for this interim board will be to appoint within a period of three months a CEO designate for the new body. The Group considers that the top management team should be in place and operational not later than October 2002.

Legislation
The Group considers it absolutely vital to progress, as a matter of great urgency, the legislation currently with the Office of the Parliamentary Counsel for the establishment of the new body.

Premises
The Group recommends that the Chief Executive and second level managers should be co-located from the start. Co-location of the remainder of staff may not be accomplished immediately but the Group considers that such co-location is essential and should be achieved within an agreed period of time. It recommends that the interim Board and CEO designate should conduct an immediate needs/ benefit study in relation to the accommodation requirements of the new body. 7
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CHAPTER 1
INTRODUCTION
Establishment and Brief of Implementation Group
1.1 The Government in July 2001 authorised the Minister for Tourism, Sport and Recreation to initiate high-level discussions with Bord Fáilte and CERT on the feasibility of bringing the two bodies together and to report back with an implementation strategy, as appropriate. The Boards of both bodies informed staff and notified the Minister of support for the proposed amalgamation. In November 2001 the Government approved the creation of a National Tourism Development Authority to promote the development of sustainable tourist facilities and services, including the promotion of training, human resources and marketing skills, bringing together functions currently carried out by Bord Fáilte and CERT.

1.2 On 16 January 2002 the Minister for Tourism, Sport and Recreation established an Implementation Group to report back to him within three months with an
implementation plan for the establishment of a new body (with the working title of National Tourism Development Authority). The fundamental functions of the new
body are to promote the development of sustainable tourist facilities and services, including the promotion of training, the development of human resources, marketing and other skills, in the tourism industry and encompassing the functions currently carried out by CERT and Bord Fáilte. The Implementation Group was requested to set down: a vision for the new Authority; an organisational structure to deliver on that vision; an outline of the mechanisms to involve staff in that
delivery process; and a communications strategy for ensuring a smooth transition to the new Authority by the 2003 season.

Membership of Group
1.3 The Group was chaired by an independent Chairperson, Mr John Travers, outgoing Chief Executive of Forfas, and included the chairpersons and chief executive officers of both Bord Fáilte and CERT and two officials from the Department of Tourism Sport and Recreation. The membership of the Group is set out at Appendix 1.

Operational Arrangements by Group
1.4 The Secretariat of the Group was provided by the Department of Tourism, Sport and Recreation. The Group also commissioned a limited amount of expert consultancy advice to assist it in its work. The Group met on eight occasions. It invited submissions from staff representatives of both CERT and Bord Fáilte and from the Irish Tourist Industry Confederation (ITIC) on the strategic elements of the Group's work. It also received a submission, through Bord Fáilte, from the Regional Tourism Managers and a submission from Tourism Ireland Limited following meetings of the Chairman of the Group with the Chairman and Chief Executive of that body.

Content of Report of Implementation Group
1.5 The Report of the Group: provides a brief overview of Irish tourism and the challenges it faces in the immediate future; details the background to the establishment of the new Authority; sets a vision for the tourism industry and puts 8
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forward a draft mission statement for the new body; discusses the principles that should govern the adoption of a name and a range of names that the Authority
might adopt; sets out the regional aspects and the Authority's links with other bodies; recommends an outline organisational structure; provides an outline of the
key management posts that the new body will require to operate effectively and makes recommendations on the best approach to the filling of these; sets out the
financial framework within which the new body will operate; describes the mechanisms that should be adopted to involve staff effectively in the delivery process; includes an outline communications strategy for ensuring a smooth transition to the new Authority by the 2003 season; and sets out the implementation steps that should be taken and the timetable that should follow the submission of the report by the Implementation Group. 9
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CHAPTER 2
THE IRISH TOURISM INDUSTRY
Tourism Overview
2.1 Irish tourism is a major and growing economic sector with foreign exchange earnings in 2001 of approximately €3.7 billion, domestic tourism earnings of over €1.2 billion and sustaining close to 140,000 in employment in all parts of the country. Recent years have seen the tourism industry in Ireland move to a more mature stage of development with an increasing range of well-marketed product offerings. However, the industry is still characterised by the dominance of individual, small to medium sized enterprises competing in an increasingly globalised international tourism marketplace.

2.2 Traditionally, the unique attraction of Ireland as a tourist destination has been the quality, level and depth of contact with the Irish people in a relaxed and clean
environment characterised by an unhurried pace of life and beautiful landscapes. More recently visitors have also travelled to Ireland to avail of the wide range of sporting and recreational facilities and events -e. g. golf, angling, walking, cycling, equestrian, cultural and heritage -expecting to find the highest standards of accommodation, food and hospitality in a pre-dominantly rural setting. Significant expansion in international access has enhanced the ability of the Irish tourist industry to attract business. Ireland's capital and main point of international access – Dublin – has also established itself as a vibrant destination in its own right, competing in particular for short-break business.

2.3 With Ireland's recent economic success – including that of tourism -have come new challenges. These include pressures on the environment in tourism "honeypot" areas; infrastructural deficits where development in supporting facilities has not kept pace with the expansion of our tourism product; a risk to the traditional nature and warmth of an Irish welcome as staff shortages arise in a tightening labour market; and a general increase in the pace of life leading to difficulty in differentiating the unique nature of the Irish tourism product. Inflationary pressures and exchange rate fluctuations also threaten the price competitiveness of Irish tourism.

2.4 Economic growth has led to a shift in the focus of Government policy from job creation to a growing emphasis on sustainable and spatially balanced development. This reflects a desire to ensure that the fruits of economic prosperity are shared throughout the country and that the negative effects of development on the environment are minimised. Enhanced North/ South co-operation arising from the Good Friday Agreement 1 also has particular implications for tourism. These arise from an enhanced international image of Ireland as a result of the Agreement, and the synergy arising from the co-ordinated promotion of a wider range and geographical spread of tourism products. There is now a major potential for the joint marketing of the island of

1 A multi-party agreement on the basis for peace and reconciliation between the two traditions in Northern Ireland (known as "The Good Friday Agreement") was signed on 10th April, 1998 10
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Ireland as a tourism destination with a more comprehensive range and depth of products and tourist experiences to the benefit of the industry North and South.

2.5 These changes in Ireland are taking place against the backdrop of significant changes in the international tourism market, with an increasingly discerning and
higher-spending international tourist seeking the highest standards of facilities and services coupled with a unique visitor experience. Developments in information and communications technologies are contributing to a significant change in the pattern of bookings and trends in holiday taking. Increased international availability of low cost access transport is opening up a wider range of holiday destinations. The continuing vagaries of the economic cycle in different countries and increasingly across countries in a more integrated international economic framework, together with random "shocks" such as those arising from the Foot and Mouth Disease crisis which emerged in Britain and Ireland in 2001 and the September 2001 terrorist attacks in the U. S., will continue to impact significantly on tourism demand in Ireland.

2.6 As the tourism sector in Ireland matures in a complex international and domestic environment of rapid economic and social change, the challenge facing
Government is to have in place an appropriate institutional architecture and suite of policies to facilitate the continued development by the industry of a sustainable and spatially balanced tourism sector. These policies should embrace the all-island opportunities offered by the Good Friday agreement, against the framework of the National Development Plan, 2000-2006.

Goals of Tourism Policy
2.7 The goals set for tourism policy in the 2001 Statement of Strategy for the Department of Tourism, Sport and Recreation are as follows:

"To facilitate continued development by the tourism industry of an economic and environmentally sustainable and spatially balanced tourism sector, through formulating, ongoing monitoring and review of a range of policies and programmes, in particular within the framework of the National Development Plan and North/ South Co-operation."

2.8 The achievement of these goals is highly dependant on a range of factors external to the industry itself such as: the maintenance of competitively-priced, regular access to and from our main overseas markets; provision of good roads and other infrastructure to support the use of visitor attractions and tourist areas;
development, and appropriate management, of a range of cultural and heritage activities capable of being well-marketed in Ireland and overseas; and pursuit of an environmental policy which accommodates the sensitive development and expansion of tourism. Such an expansion should provide opportunities for the enjoyment of an attractive built and cultural environment in urban areas, the development of rural tourism and the enjoyment of natural resources for tourism, sport and recreation. 11
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Prospects for 2002
2.9 The Irish tourism industry suffered its first major setback in a decade in 2001 with the impact of the Foot and Mouth crisis in Britain and Ireland in the Spring and the fall off of business arising from the 11th September terrorist attacks in the U. S. and subsequent responses of people and Governments around the world. It is estimated that the number of overseas visitors to Ireland has declined by about 7% in 2001 to 5.8 million visitors but expenditure by overseas visitors has held up well increasing by an estimated 4% to €3.7 billion. The reason for the divergence between numbers and revenue is unclear at this stage and needs further study, but price inflation may be a significant element. These top line figures mask significant variations between different sectors of the industry and between geographical regions and may not reflect actual experience on the ground at operator level. It is estimated that employment losses in the tourism and hospitality sector in 2001 were about 2,000 permanent jobs, with a drop of 6,000 in seasonal /occasional employment. There is little doubt but that 2002 will be a challenging year for Irish tourism. The most recent estimate from the tourism State Agencies is that the best-case scenario for 2002 is an increase of 4% on 2001 visitor number levels.

2.10 A number of initiatives are underway in 2002 as part of the most radical shake up of tourism policy in recent decades to help the recovery process and to position the industry to meet future challenges. These include: the establishment of a new National Tourism Development Authority the arrangements for which are the subject matter of this report. This new body is to follow on from the operational start up of Tourism Ireland Ltd, the new North/ South body established to market the island of Ireland internationally under the framework of the Good Friday Agreement; the roll-out of robust and focused tourism marketing plans for 2002 together with a fundamental reappraisal by Tourism Ireland Limited of overseas marketing strategy in partnership with the industry and other tourism development bodies; ensuring the appropriate development of tourism products and facilities through the launch of a new Tourism Product Development Scheme. Under the terms of this scheme, which was launched in January 2002, some €130m of National Development Plan monies (including €55m from the European Regional Development Fund) will be invested in tourism projects designed to help broaden the spatial spread of tourism, relieve pressure in the highly developed areas and increase under-performing regions' share of overseas revenue; working to ensure that a broad and competitive network of access links by air and sea to Ireland is in place; and design and delivery by CERT of education and training programmes to address industry labour supply issues and improve competitiveness within the industry by focussing on productivity and performance.

2.11 This report of the Implementation Group addresses the first of these initiatives i. e. the establishment of a new tourism development body which will complement
the role of Tourism Ireland Limited in the international marketing of the tourism product on the island of Ireland. 12
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CHAPTER 3
INSTITUTIONAL ARRANGEMENTS FOR THE DELIVERY OF TOURISM POLICY

Establishment of Tourism Ireland Limited
3.1 As part of the Good Friday Agreement, tourism was designated as an area for co-operation under the North/ South Ministerial Council. In December 1998, the parties to the Agreement decided that a publicly-owned, limited company would be established jointly by the Northern Ireland Tourist Board and Bord Fáilte to carry out functions aimed at promoting tourism to the island of Ireland. The company, Tourism Ireland Ltd, was incorporated in December 2000 and has taken over responsibility for the international marketing of the island of Ireland as a tourist destination with effect from the 2002 season.

3.2 In exercising its responsibilities for international marketing, Tourism Ireland Limited is undertaking a number of functions previously carried out by Bord Fáilte including ownership and management of Tourism Brand Ireland, strategic all-island destination marketing in all markets outside the island of Ireland and responsibility for the entire overseas office network. The new company is also responsible for the international delivery of product/ regional marketing programmes on behalf of Bord Fáilte and the Northern Ireland Tourist Board. The underlying products will continue to be developed by Bord Fáilte and the Northern Ireland Tourist Board. These overall arrangements will be reviewed by the North South Ministerial Council in October 2003 in the light of the performance of the new company. Tourism Ireland will have a staff of around 150, made up of the transfer of some 100 existing staff from Bord Fáilte, some 30 from the Northern Ireland Tourist Board and the balance from new recruitment, which is currently ongoing.

3.3 In the Departmental Estimates for 2002, €16.2 million has been allocated by the South to meet the administration and general expenses of Tourism Ireland Ltd. In addition, the company will receive some €17.8m of the total €25.4m being allocated to the Tourism Marketing Fund under the Productive Sector Operational
Programme of the National Development Plan. This Fund finances the Irish Exchequer's contribution to the programme marketing spend of both Tourism Ireland Ltd. (€ 17.8m.) and Bord Fáilte (€ 7.6m.).

Role of Bord Fáilte
3.4 Following the establishment of Tourism Ireland Ltd., Bord Fáilte retains responsibility for: product development; marketing of domestic tourism on the island of Ireland; research and strategic planning; niche/ specialist product marketing and promotions; regional marketing; implementation of specific initiatives such as the Sports Tourism Initiative and the Festivals and Cultural Events Programme; 13
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statutory functions for the registration/ grading of certain tourist accommodation; co-ordination of activities of the Regional Tourism Authorities; and sustainable tourism.

These functions mainly relate to providing a range of supports to the tourism industry, including those concerned with building the business capability of the industry, improving the quality of product which the industry offers and enhancing its competitiveness. Bord Fáilte retains over 130 employees. Its Exchequer budget provision for 2002 is around €50 million, including around €16m in core administrative costs. The six Regional Tourism Authorities (RTAs) continue to operate under the aegis of Bord Fáilte.

Role of CERT
3.5 CERT -a company limited by guarantee – is a State agency which, at present, provides education, recruitment and training services for the tourism and hospitality industry. CERT which was established in 1963, has broadened its original role of training support for the hotel and catering sectors, to include business development support for all tourism and hospitality businesses. More recently, CERT has moved in the direction of a wider business development role, helping to build industry capability, focusing on human resource management and improving cost competitiveness. As far as labour supply is concerned, the focus has been on attracting and retaining school leavers, on adult returners to work, and on skills development for non-national workers, through development, provision and certification of a range of quality education and training programmes, together with innovative delivery methods, to meet the needs of industry. As far as competitiveness within the industry is concerned, the focus has been on enhancing productivity and performance, benchmarked against best international practice, through design and delivery of products such as the Best Practice Programme and Ireland's Best Service Excellence Award. Provision has been made under the Qualifications (Education and Training) Act, 1999 for the transfer of the certification functions, which CERT previously provided for training in the tourism industry, to the new National Qualifications Authority of Ireland. CERT has some 90 employees and its Exchequer budget provision for 2002 is €20.4 million, including around €8m in core administrative costs.

The Need for a New Development Agency for the Tourism Industry 3.6 Fundamental changes have occurred in the nature of the tourism industry both
globally and in Ireland over the past decade and more as the discussion at Chapter 2 of this report indicates. In the context of these changes there has, for example, been a growing realisation by the Irish tourism industry that levels and quality of tourist spend and seasonal distribution are more important for the industry's future than simply visitor numbers. Future success is highly dependant on the quality, range and competitiveness of facilities and the quality and levels of service, supported by effective, consumer-led marketing programmes and the enhancement of the overall business capability of the industry. Excellence in the physical design and quality of tourism products and good investment planning must be matched with equally good operational planning and delivery of services. If operational standards do not match the physical quality of facilities, then the market potential of these facilities, from both overseas and from within Ireland, will not be realised. 14
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3.7 A compelling case exists for streamlining and integrating the delivery of the State's activities in supporting and promoting product marketing and development, human resource development and training in the tourism industry. A new development agency will ensure that the Irish tourism industry can avail of support from a strong and well-resourced agency with a clear mandate to take whatever actions are appropriate to enhance the range, competitiveness and quality of products and services that will help the industry to sustain and increase its market share in well-defined market areas. Building a new tourism development agency on the extensive and proven range and depth of knowledge, skills and experience that exist within Bord Fáilte and CERT at present, and enhancing these as appropriate, provides an exciting prospect of a highly-effective, highly-regarded new body for the development of tourism in Ireland in the years ahead.

3.8 The integration and expansion of functions within the new agency will facilitate the delivery of a comprehensive, "one-stop-shop" service to industry with a wider
range of streamlined programmes and services to support the future development of the sector. Such a single dedicated tourism development agency is consistent with the earlier advice of the Arthur D. Little Consultants 2 in their review of Bord Fáilte and Ireland's tourist development needs. The Group also noted the strong
support for the principle of integration of the functions of Bord Fáilte and CERT contained in the submissions to the Group from ITIC and the trade unions. It will
be essential that the closest possible links, teamwork and working arrangements are put in place and maintained between the new tourism development agency and Tourism Ireland Limited. The Implementation Report addresses this issue in more detail in Chapters 4 and 8. Such linkage is seen as critical to keeping the Irish tourism product closely in line with international consumer demand, and with Tourism Ireland's marketing strategy and plans. Accordingly, the working and funding arrangements that exist at present between Bord Fáilte and Tourism Ireland Limited should be maintained and strengthened by the new body.

2 "Review of Role and Operations of Bord Failte Eireann" prepared by Arthur D Little Ltd. in July 1994. 15
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CHAPTER 4
NATIONAL TOURISM DEVELOPMENT AUTHORITY

Vision for Irish Tourism
4.1 The Implementation Group considers it important, as requested by the Minister and in the context of the establishment of new organisational arrangements for promoting the development of the tourism industry, to set out a proposed vision statement for the industry in a national development context and also a mission statement that would guide the Group in developing a broad organisational outline for the new body. In developing both the vision and mission, the Group took into account the views of: staff and unions of both Bord Fáilte and CERT; ITIC; and the Regional Tourism Managers.

4.2 Having considered the views submitted, the Group set down what it considers is an appropriate vision for Irish Tourism as follows:

A Vision for the Development of Tourism in Ireland "Ireland will be a destination of choice for discerning international and domestic tourists which: Has a range of high-quality, world-class, competitive products and services widely distributed throughout all the regions of the country; Is a vibrant source of foreign and regional earnings throughout the year; Respects the natural and physical environments and supports their conservation and enhancement; Provides attractive career opportunities in tourism for people with a range of skills and employment needs; Provides the opportunity for people working in tourism to enhance their skills through experience, training and life-long learning; Respects and supports Irish culture in all its diversity; Provides a positive international profile of Ireland; Provides a tourism experience that exceeds customer expectations in terms of friendliness, quality of environment, diversity and depth of culture.

Mission Statement for new Authority
4.3 The Group also proposes the following as a draft Mission Statement for the new Authority:

Mission Statement
To foster sustainable and competitive tourism development by working in partnership with the industry and State bodies to achieve world-class standards of excellence in the products, services, and marketing of the sector, thereby contributing to wealth creation and employment in the economy of Ireland and its regions.

4.4 Ultimately, the vision for the development of tourism in Ireland is a matter for the Minister for Tourism, Sport and Recreation to determine in partnership with the 16
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industry itself. The Mission Statement for the new Authority will be a matter for the Board of that Authority when established.

Functions, Powers and Activities of the new Authority.
4.5 The Group noted that the Government have already agreed draft functions and powers for the new Authority as part of the General Scheme of legislation to establish the Authority. The draft functions agreed by Government are as follows:
"For the purposes of contributing to the development of tourist traffic in and to the State, the Authority shall have the following functions:

(a) to encourage the promotion and development of sustainable tourist facilities and services in the State;
(b) to encourage and promote training, human resource and marketing skills development either directly or in cooperation with the tourism industry for the effective and efficient operation of tourist facilities and services;
(c) arranging for inspection, registration, grading, and listing of tourist accommodation and facilities in accordance with the Tourist Traffic Acts;

(d) to initiate, encourage and engage directly or in co-operation with other bodies in research and planning in connection with any of the foregoing functions;
(e) to assist and collaborate with any body or bodies established by the Authority, with the approval of the Minister, for the purpose of developing tourist traffic in and to the State."

4.6 The Group considers that for reasons of clarity, the first two functions listed above should be reworded as follows:
(a) "to encourage, promote and support the marketing and development of sustainable tourist facilities and services within the State;"
(b) "to encourage, promote and support the development of human resource capability as required by an internationally competitive tourism industry, either directly or in cooperation with the industry itself."

4.7 The Group also considered the draft powers that the Government have agreed should be included in the legislation for the establishment of the Authority. These are listed at Appendix 2. The Group is of the view that the powers of the Authority should be articulated in widely enabling terms rather than attempt to draw them too tightly. By doing so, the ability of the Authority to engage in a wide range of activities to implement its functions will be facilitated rather than constrained as it responds immediately, and in future, to the reality of a rapidly changing international tourism market-place. In that context the Group considers that the draft powers which are to be included in the Authority's legislation and set out in Appendix 2 are appropriate. 17
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11
4.8 The Group considers it appropriate that the new Authority be involved in undertaking a wide range of activities in pursuit of the substantive developmental functions for the tourism industry for which it is to be responsible. These will be a matter for the Board and management of the body to determine in line with the
substantive remit which it will undertake. The activities which it will undertake will encompass the areas of: product development, including encouragement of
industry to fill identified product gaps; a strong environmental focus which is well integrated with the product development functions; product marketing in partnership with Tourism Ireland Limited; promoting and supporting the development of the business capability of tourism enterprises across the full range of business functions; maintaining standards and quality assurance; undertaking research and planning; and conducting a range of efficient and effective corporate services. An illustrative list of activities that the new Authority may be expected to undertake is set out in Appendix 3.

Name of the New Tourism Development Organisation
4.9 The name of the new tourism development organisation will be an important feature of the new organisational arrangements. The new name should meet a number of important requirements. It should:
Have a modern resonance; Signify a new beginning;
Conjure up positive associations for the development of the tourism industry; Be descriptive of the core functions of the new organisation;
Be short, memorable and easily spoken; Be available as a web address (. ie, .com, .org), for company registration purposes and as a trademark; Resonate positively with tourists, tourism enterprises, the staff of the new organisation and other tourism development bodies.

4.10. The Group commissioned limited consultancy support 3 to work with it on developing a range of options for the name of the new organisation. At the outset
the Group decided to recommend against using the working title for the new body (viz The National Tourism Development Authority) as the substantive name of the body. This is because it is considered that such a name is too long and cumbersome, and would have poor resonance with tourists, with the industry itself, staff, other tourism bodies and the general public.

4.11 The consultants interviewed members of the Group, sought ideas or suggestions from trade union and staff bodies, ITIC, and the Regional Tourism Authorities
and reviewed communications material available from Tourism Ireland, Bord Fáilte, CERT and the NITB.

4.12 In conjunction with the consultants, the Group identified a number of options for the consideration of the Minister for Tourism, Sport and Recreation. These are as follows:
Tourism Development
Tourism Development Ireland
Fáilte Ireland

3 Consultancy support was provided by EnterpriseIG. 18
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12
Welcome Ireland

4.13 The Group considers that each of these names carries merit. It noted that the ultimate choice will carry with it some degree of subjectivity. The Group noted
also that once a name is chosen and associated with a strong marketing campaign including the development of a logo and "descriptor " it will develop its own market presence and acceptability. This will require a strong promotional campaign from the time the new organisation is launched. The Group leans towards the name Tourism Development Ireland but acknowledges its own subjectivity and is satisfied to leave the ultimate name for the consideration of the Minister.

4.14 The Group considers that the choice of "descriptor " will depend on the name of the new organisation. It considered a number of "descriptors " and puts these
forward for consideration as follows:
Shaping the Future of Irish Tourism
Creating Excellence in Tourism Creating Tourism Excellence
Driving Excellence in Tourism Tourism Excellence
Developing Tourism in Ireland Building Sustainable Tourism

4.15 While leaning towards any of the first three of the "descriptors" listed, the Group again acknowledged the degree of subjectivity involved and the need to decide on the "descriptor " at the same time as the name of the new organisation is being determined.

Regional Aspects
4.16 As the body with the primary responsibility for the development of the tourism industry in Ireland the new organisation will have a critical regional remit. The Group noted the obvious point that the tourism product is geographically dispersed, is ultimately located at local level and involves a multiplicity of activities, services and experiences not realistically comprehended within the single promotional remit of any one particular State body or agency. This is clear when it is considered that the tourism product encompasses widely divergent activities (including boating, climbing, cultural interactions, dining, fishing, golfing, education, hiking, ornithology, sight-seeing and walking) together with the fundamental infrastructure that facilitates tourist access to these activities and the value that tourists attribute to the experiences and services they receive. Accordingly, the promotion of tourism at regional and local levels involves a complex set of relationships. Managing these relationships effectively will pose a particularly difficult challenge for the new organisation that it will require to address in the early stages of its development.

4.17 The Implementation Group arrived at certain conclusions in relation to the regional issues involved in tourism development based on a number of independent analyses and the knowledge and experience of its members. The key conclusions drawn by the Group are as follows: the tourism product is complex, diverse and many-sided; 19
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tourism promotion and development requires knowledge of widely diversified customer needs in a wide range of markets and the inputs of many bodies from
both the private and public sectors; at present there is a multiplicity of bodies involved in tourism promotion and development at regional and local levels; there is evidence of overlap, duplication and lack of coherence between the activities undertaken by the wide range of bodies involved, a point that generally finds support in the industry at large. (A list of the range of bodies involved in tourism promotion and development at regional and local levels and their activities, which was completed by CHL Consulting on behalf of the RTAs, is attached at Appendix 4); the proliferation of organisations and funding programmes has contributed to a
blurring of responsibilities and a high risk of displacement, deadweight and sub-optimisation of tourism promotion and development activities at regional and local levels; and the RTAs have an important potential role in driving and co-ordinating the promotion and development of tourism at regional and local levels. This role is not fully exploited at present. (A more detailed description of the RTAs as currently constituted is set out at Appendix 5).

4.18 The Implementation Group considers that, in the context of the establishment of the new organisation for the development of tourism in Ireland, an urgent review of tourism promotion and development at regional and local levels should be undertaken with a view to its improvement and rationalisation. The key principles to be applied in undertaking this review should encompass the following: a clear definition of the roles and functions of different bodies involved in the promotion and development of tourism at regional and local levels should be set down; existing areas of overlap and duplication should be clearly identified together with the actions required to remove such overlap and duplication; a coherent framework, most likely in the form of regional tourism plans, should be established within which the roles and functions and specific actions of the different bodies are articulated and co-ordinated; and a forum and organisational structure should be put in place to develop the coherent framework required at regional and local tourism development level, to monitor its implementation and to co-ordinate effectively the range of activities undertaken by different bodies.

4.19 The Group considers that, given the primary responsibility of the Department of Tourism, Sport and Recreation at Government level for tourism policy and its
implementation through its main executive agencies (now Tourism Ireland Limited and the new tourism development body), the Department should take the initiative in having the review of tourism promotion and development at regional level undertaken and brought to Government, if appropriate, for any necessary action. The Group also considers that no new bodies should be established to promote the development of tourism at sub-national level and that no new funding schemes should be initiated, which are outside of the aegis of the existing agencies, pending the completion of the review recommended. 20
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Links with Other Bodies
4.20 Because of the complex and multi-faceted nature of tourism the relationships between the new organisation and other bodies in the public and private sector with a role in tourism promotion and development are critical. Key relationships will include those with the Department of Tourism, Sport and Recreation, the Department of Education and Science, Tourism Ireland Limited, ITIC, the RTAs, and the National Qualifications Authority of Ireland.

4.21 At present, a Memorandum of Understanding (MOU) sets out the broad relationship between Tourism Ireland Limited and Bord Fáilte and the Northern
Ireland Tourist Board and helps to ensure complementarities between the activities of these bodies (see Appendix 6). Immediately on establishment, a similar MOU should be drawn up between the new organisation and Tourism Ireland Limited in close consultation with the Department of Tourism, Sport and Recreation and the Department of Enterprise, Trade and Investment in Northern Ireland. Similar Memoranda of Understanding should be drawn up with other bodies including the RTAs. It is important that all such Memoranda be subject to review at periodic intervals in the light of operational experience. In this way they will become flexible and enabling instruments of co-operation, action and synergy creation, rather than organisational strait-jackets which limit capability of organisations to meet customer needs in the dynamic tourism market on the island of Ireland and overseas.

4.22 The Group also noted that particular importance has been attached in tourism policy to the partnership approach with industry. This is operated, in particular
through the Tourism Marketing Partnership structures operating, at present, under the aegis of Tourism Ireland and Bord Fáilte. These partnerships involve the development of complementary strategies and plans for the optimum deployment of international tourism marketing funds through the pooling of expertise, knowledge and experience of the State agencies and the tourism industry. The Group considers that a similar approach to industry consultation should inform the operations of the new organisation. 21
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CHAPTER 5
NATIONAL TOURISM DEVELOPMENT AUTHORITY: ORGANISATIONAL STRUCTURE REQUIRED

General Considerations
5.1 An important objective of the report of the Implementation Group is to set out a broad organisational structure through which the objectives, powers, functions and activities of the new body can be delivered effectively and efficiently. The Group recognises that the organisational and management structures for the new body are ultimately the responsibility of the Board and CEO of that body, when appointed, to determine in consultation with the Department of Tourism, Sport and Recreation and the Department of Finance. The Group was invited, however to bring forward its recommendations on these issues in order to facilitate the early establishment and operational effectiveness of the new body.

5.2 The Implementation Group noted that any new structures would require to take account of the numbers and grades of staff currently serving in CERT and Bord
Fáilte following the creation of Tourism Ireland Ltd. It also noted the commitments given by Government that the terms and conditions of the staff of Bord Fáilte and CERT would not diminish on transfer to the new organisation. The Group considers that the enhanced role that the new organisation will play in the promotion and development of tourism will provide the opportunity for that body to become a highly effective, high-profile, tourism development agency of significant importance to national and regional development. The new organisation will provide significant opportunities for its staff to achieve careers
of considerable job satisfaction and substance.

5.3 The Group was supported by an independent expert 4 in developing a recommended organisational structure for the new body based on these factors, the proposed vision for Irish tourism and the draft mission statement set out earlier.

Organisational Structure
5.4 An outline of an organisational structure, together with the suggested roles of the CEO and the proposed four second-level management positions are set out in the following diagram. Draft job descriptions for these key management posts are set out in Appendices 7 to 11 attached.

4 John Kerrigan Business Resource 22
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National Tourism Development Authority Proposed Organisational Structure Board, Committees, Top and Divisional Management Board

Board Committees
Management Development and Remuneration Audit

Executive Committees

Executive Management Industry Liaison

Chief Executive

To lead and develop a new organisation which will utilise effectively all the available resources in the successful pursuit of the Vision and Mission of the new body. Director Marketing, Promotions & Market Development:
Director Education, Training &Enterprise Development

Director Strategic & Corporate Planning

Director Resources

Within the organisation's mandate and in co-operation with Tourism Ireland Limited and the regional tourism bodies, to lead, direct and develop marketing and promotion activities so as to maximise the contribution of tourism to national, regional and local economic and social goals. A job description for this position is attached at Appendix 8.

To lead, direct and develop programmes to stimulate sustainable product development, and to foster world class service in tourism and hospitality undertakings through building capability at individual and enterprise level. A job description for this position is attached at Appendix 9.

To lead and direct research on, and assessment and creation of responses to, factors and developments affecting the tourism sector in Ireland; to develop, monitor and report on progress of Corporate Plans; to ensure effective communication with the parent Department, media and public; and to ensure the provision of effective secretariat, internal audit and legal functions. A job description for this position is attached at Appendix 10.

To ensure prompt, innovative, energetic and focused implementation of corporate objectives and plans through responsive allocation of appropriate resources; to ensure the development, implementation and maintenance of best practice approaches throughout the organisation in the areas of human resources, finance and information and communication technologies A job description for this position is attached at Appendix 11.

16 23
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The Board
5.5 The Group noted that the draft legislation approved by Government for the establishment of the new body provides that the Board is to be appointed by the Minister for Tourism, Sport and Recreation and will consist of a chairperson and up to 12 ordinary members who, in the Minister's opinion, have experience in afield of expertise relevant to the Authority's functions. The period of office of a member is not to exceed five years and in so far as practicable and having regard to relevant experience, an equitable balance between men and women in the composition of the Authority is required.

5.6 The Group recommends that the initial terms of membership should be adjusted to allow for approximately one-third of members to retire each year with the first
such retirements to take place at the end of the second year following the establishment of the new body. Given the close links between the two bodies and in line with current practice, the Group considers that it would be desirable for the Chairman and the Chief Executive of the new body to sit on the board of Tourism Ireland Ltd. and for the Chief Executive of Tourism Ireland to be a member, ex-officio, of the board of the new body.

Committees of the Board
5.7 The Group noted that the draft legislation underpinning the new body provides that the Board may appoint Committees to assist and advise it in relation to the performance of its functions, and that such Committees may include persons who are not members of the Authority or its staff. The Group recommends that the new organisation should consider establishing the following Committees:

Management Development & Remuneration Committee: This Committee should consist of at least three Board members. Its role would include a responsibility to oversee management performance, design and allocation of performance incentives, succession planning, top management recruitment and related matters.
Audit Committee: The role of the Audit Committee is a key one as an instrument of effective Corporate Governance. The Committee should consist of three Board members and the Secretary to the Board. The Chief Executive should normally be in attendance at the invitation and discretion of the Committee. The Financial Controller would normally attend also at the invitation of the Committee and the Internal Auditor would present reports. The Committee should agree a multi-annual Internal Audit Work Programme with the Secretary of the Board and the Internal Auditor. The Programme should ensure coverage of all risk areas over a defined period. The Audit Committee should review procedures and control systems from time to time and, on establishment of the new organisation, should approve relevant initial financial controls, procedures and authorisations.
Other Board Committees: From time to time, the Board may decide to establish other Committees, either for specific projects or in response to developing corporate governance requirements. The Board should set down detailed terms of reference for such Committees, including conduct of meetings, reporting requirements and related matters. 24
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Chief Executive
5.8 In order to quickly and efficiently drive forward the establishment of the new organisation and to facilitate co-ordination and common purpose during the planning and transition period for the establishment of the new body, the Group recommends that a chief executive designate of the Authority should be appointed by an interim Board on an open recruitment basis as soon as possible. The person appointed should follow through on the Implementation Plan recommended by the Group as endorsed by the Minister. This should be done under the direction of the Interim Board. (A recommended job description for the CEO post is attached at Appendix 7).

Executive Committees 5.9 The Group has listed, in the organisational diagram following paragraph 5.4 above, some suggestions for Executive Committees. The aim is to make the establishment of such Committees an agenda item for the Board and CEO of the new organisation when appointed, rather than put forward definitive recommendations on what Executive Committees should be put in place by the new Board. The appropriate considerations and decisions will be a matter for the Board of the new organisation when appointed. 25
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CHAPTER 6
FILLING OF POSTS: APPROACH RECOMMENDED

General Considerations
6.1 In the context of putting new organisational structures in place, the Group noted that the draft legislation to underpin the new body includes a provision that staff transferring from Bord Fáilte and CERT to the new body shall do so on terms and conditions not less favourable than those applicable to them immediately before the transfer, except in accordance with a collective agreement negotiated with a recognised trade union.

6.2 The Group considers that given the redefinition of functions involved, the posts of Chief Executive and the four Director/ Head of Function posts should be filled by open competition for which the staff of Bord Fáilte and CERT should be encouraged to apply. In relation to posts below that of Director, a first critical task for the CEO and Directors of the new organisation will be to establish detailed specifications and job descriptions for these posts. It is to be expected that the large majority of these posts will be filled through the deployment of the staff of Bord Fáilte and CERT. In some cases the specification of posts in the new organisation may require the recruitment of people other than those employed at present by Bord Fáilte and CERT to adequately meet the specifications required. Such recruitment should be by open competition.

Staff Development and Mobility
6.3 The Group considers that the revised functions envisaged for the new body require to be matched by an appropriate skills base and that a programme of staff training should be put in place to meet this need.

6.4 The Group considers that given the need for a high degree of integration, teamwork and mutual understanding among the State agencies involved in the promotion and development of tourism, the new body should actively investigate the possibilities for staff mobility between itself, Tourism Ireland Ltd and other relevant bodies. Such mobility would help to increase the effectiveness and efficiency of the overall promotion and development activities, would provide a larger pool of talented staff for promotion purposes and would greatly enhance the career opportunities and experience of staff. 26
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CHAPTER 7
FINANCIAL FRAMEWORK

Financial Allocations 2000-2002
7.1 The Exchequer financial allocations in respect of Bord Fáilte and CERT over the three years 2000-2002 are set out in the following Table (Tourism Ireland Ltd. allocations from the Irish Exchequer are included for purposes of information).

Table 7.1 Estimates, 2000-2002
Estimates Sub-head 2000 € m 2001 € m 2002 € m
B. 1 Bord Fáilte (administration and general expenses) 36.9 59.5 41.7
B. 2 Bord Fáilte (capital works) 4.2 1.1 1.0
B. 3 Tourism Ireland Ltd. (administration and general expenses) -1.6 16.2
B. 6 CERT (general administration expenses and training) 19.1 21.2 20.4
B. 7 Tourism Marketing Fund 18.4 23.2 25.4
B. 8 Tourism Product Development --1.3

Notes
(1) The B. 1 allocation for 2002 is after full account is taken of the operational start up of Tourism Ireland on 1 st January and reflects the transfer of appropriate budgets for staffing and overheads to the new Body.
(2) The Tourism Marketing Fund is provisionally allocated on the following basis for 2002, €17. 8m to Tourism Ireland Ltd. for destination marketing and €7. 6m to Bord Fáilte for niche/ product marketing.
( 3) Of the B. 1 budget of €41.7m for 2002, €14m is made up of provisions for the Sports Tourism and Festival/ Cultural Events Initiatives. (4) The Northern Ireland contribution to Tourism Ireland Ltd. in 2002 amounts to €13.8m and is not included in the above table.

7.2 Taking the 2002 allocations, the amalgamated budget for the new Authority is of the order of €70m, of which pay is €16.4m, administration €6.3m, marketing/ promotion €35.3m, training €10.7m and capital €2.3m. Annual budgets for the new Authority will be determined in the context of the Annual Estimates/ Budgetary cycle.

Future Financial Framework
7.3 Under the framework of the National Development Plan and associated Operational Programmes, the financial projections set out in the following Table have been included for future years in relation to tourism marketing, product development and training. Such allocations, in particular those which are non EU co-financed, are subject to the Government's Annual Estimates/ Budgetary process and thereby require annual confirmation and/ or readjustment. 27
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Table 7.2 Public Sector Funding for Tourism
2003 €m 2004 €m 2005 €m 2006 €m Total

Marketing (Productive Sector Operational Programme) 33.8 34.3 34.2 35.1 137.4
Product Development (Regional Operational Programmes) 34.5 22.4 19.2 18.3 94.4
Training/ Human Resource Development (Employment and Human Resource Operational Programme) 23.1 23.6 24.0 24.5 95.3

Total 91.4 80.3 77.4 77.9 327.1

Note: The marketing allocations above include the projected annual allocation by the Irish Exchequer to Tourism Ireland Ltd. for destination marketing.

7.4 The Implementation Group has been informed that in submissions to Government in relation to the establishment of the new body, the expectation has been that the pay and administration costs should be adequately financed on the basis of the existing combined allocations for CERT and Bord Fáilte. Current annual pay provisions should be more than adequate to meet the anticipated staffing requirements of the new Body, which the Group considers will require some reduction in overall staff numbers. It is expected that the anticipated savings in the existing levels of overhead and associated staffing costs of the existing bodies can be used to offset the costs of carrying out the additional enterprise development functions of the new body.

7.5 To facilitate the early and smooth start up of the new body, the Group is strongly of the view that a selective Voluntary Early Retirement (VER) Scheme should be put in place by the management and Board of the body when appointed. It noted that in the case of a number of other organisational restructurings in the public and private sectors in recent years such schemes have been deployed. While the cost of such a scheme requires to be determined in the context of the final organisational structure which emerges for the new body, the Group considers that the savings arising from the rationalisation of overhead costs and an overall reduction in the number of employees required in the new, integrated, agency should largely finance the costs of such a scheme. The Group noted that no financial provision has been made for such a scheme or for any possible once-off costs associated with the establishment of the new Body. 28
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CHAPTER 8
IMPLEMENTATION -NEXT STEPS

Dissemination of Report
8.1 The Implementation Group considers that, subject to final determination by the Minister, its report should be made available to the Boards, management and staff representatives of Bord Fáilte and CERT and Tourism Ireland Limited. It should also be posted on the websites of the Department of Tourism, Sport and Recreation and of these bodies.

Interim Appointments
8.2 The Group recommends that, subject to clarifying the legal position, an interim Board should be appointed by the Minister for Tourism, Sport and Recreation, on an informal basis, within a period of 1 month. This interim Board, to comprise a chairman and 6 ordinary members recruited primarily from among the current membership of the Boards of CERT and Bord Fáilte, would remain in place for a period of 1 year or until such time as the legislation for the new Authority is enacted. It would be charged with taking this Implementation Plan forward. An essential first step for this interim board will be to appoint within a period of three months a CEO designate for the new body. The Group considers that the top management team should be in place and operational not later than October 2002.

Liaison Arrangements with Staff
8.3 The Group considers that a management/ staff liaison group should be established from within the existing staff in Bord Fáilte and CERT to facilitate an effective delivery of the implementation process which requires to be rapidly moved forward. Consideration could be given to engaging an agreed facilitator to assist in this process.

Communications Strategy
8.4 In addition to the management/ staff liaison group recommended above, arrangements should also be put in place to ensure that wider staff interests in both Bord Fáilte and CERT are consulted and informed of progress on the establishment of the new body on an ongoing basis. The Group also considers that it is essential that representatives of the tourism industry should also be consulted and kept informed of progress.

Legislation
8.5 The Group considers it absolutely vital to progress the legislation for the establishment of the new body currently with the Office of the Parliamentary Counsel to the Government as a matter of great urgency. The Group considers that the early enactment of the legislation to underpin the new body will clearly signal the Government's commitment to the new institutional arrangements. It considers that if the legislation is not enacted in time to have the body in place for the 2003 season, the consequential organisational drift, lack of focus and uncertainty among staff and industry interests would be detrimental to the development of the tourism industry, to the credibility of the new body and to confidence in the efficiency of Government tourism policy and organisational process. 29
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Premises
8.6 The Group is strongly of the view that it is essential that the Chief Executive and Directors/ Heads of Function are co-located from the start. While for practical and operational reasons the co-location of the remainder of staff may not be accomplished immediately, the Group considers that such co-location is essential and should be achieved within an agreed period of time. It recommends that the interim Board and CEO designate should conduct an immediate needs/ benefit study in relation to the accommodation requirements of the new body, taking into account the existing facilities available and associated cost implications.

Conclusion
8.7 The Implementation Group considers that the tourism industry has made an immense contribution to national and regional development over the past decade and more. It believes that the industry has the potential to contribute even more in the years ahead but that it is at an important turning point in its development.

8.8 The period immediately ahead is likely to be a difficult one for tourism in Ireland in the context of major uncertainties in the international market and increasing
competition from traditional and new emerging tourist destinations and products in Europe and beyond. Responding effectively to these challenges is, in the first
place, a task for the Irish tourist industry itself, acting through individual enterprise initiatives and through partnership arrangements. But the Government also has a key role to play as is evident from the National Development Plan 2000-2006 published in 1999 and its associated Operational Programmes. Clarity of purpose, resources and action in organisational terms is an essential measure of Government commitment and competence in this area. The Government have
already provided a blueprint on how it wishes to proceed. The Group hopes that this Report will provide some assistance to the Government, Minister for Tourism, Sport and Recreation, the Department of Tourism, Sport and Recreation and to the new body, when established, for the future successful development of tourism in Ireland. 30
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List of Appendices

Appendix
1. Membership of the Implementation Group
2. Powers of Authority
3. List of Proposed Activities of the New Authority
4. Extract from "Fragmentation of Public Sector Responsibilities and Support Services for the Tourism Sector" completed by CHL Consulting Company Ltd. for the Regional Tourism Authorities in October 2000.
5. Role of the Regional Tourism Authorities
6. Memorandum of Understanding on the North/ South Tourism Company
7. Indicative Job Description – Chief Executive Officer
8. Indicative Job Description – Director Marketing, Promotions and Market Development
9. Indicative Job Description – Director Education, Training and Enterprise Development
10. Indicative Job Description – Director Strategic and Corporate Planning
11. Indicative Job Description – Director Resources 31
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Appendix 1 Membership of the Implementation Group
Chairman Mr John Travers Chief Executive of Forfás
Mr Noel McGinley Chairman of Bord Fáilte
Mr Eamonn McKeon Chairman of CERT
Mr Niall Reddy Acting Chief Executive of Bord Fáilte
Mr Shaun Quinn Chief Executive of CERT
Mr Paul Bates Assistant Secretary, Department of Tourism, Sport and Recreation

Secretary Mr Kieran Sheedy Assistant Principal, Department of Tourism, Sport and Recreation 32
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Appendix 2
Powers of Authority

(a) The Authority shall have all powers necessary for, or incidental to, the performance of its functions.

(b) The Authority may provide financial assistance to any person or body (including a public authority) in respect of any matter related to the performance of its
functions, as it considers appropriate.
(c) The Authority may accept gifts of money, land or other property, on such trusts, terms and conditions (if any) as may be specified by the donor, so long as such trust or conditions attached to the gift are not inconsistent with the functions of the Authority and are consistent with government accounting procedures.

(d) The Authority and its agents may enter land for the purpose of the exercise of any of the powers or the performance of any duties or functions conferred or imposed on it.
(e) The Authority may make such charges as it considers appropriate, to any person or body [other than the Minister], in consideration of the performance of its
functions, for services rendered, and activities undertaken, by it in carrying out its functions and shall record in its accounts receipts from such charges as income.
(f) The Authority may recover, as a simple contract debt in any court of competent jurisdiction, from the person by whom it is payable any amount due and owing
to it under the above.
(g) The Authority may engage consultants or advisors subject to any directives which may be given to it by the Minister from time to time.

(h) The Authority may enter into agreements to contract out certain functions. 33
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Appendix 3

List of Proposed Activities of the new Authority

Marketing, Promotions& Market Development
Training & Enterprises Development

Strategic and Corporate Planning

Resources Product Promotion and Marketing

General Promotion and Marketing

Business & Capability Development

People Development

Standards and Quality Assurance
Research and Planning

Corporate Services

Niche/ Specialist Product
Marketing Sports Tourism Initiative Ryder Cup 2006
Festivals and Cultural Events Programme

Promotion of the Domestic Market in Ireland and in Northern Ireland
Trade and Consumer Promotions and Support Publicity/
Familiarisation Trips Ireland of the Welcomes magazine. Regional Marketing Coordination of Regional Tourism Authorities TIL Link (Marketing) NITB Link (Marketing) Print and Photography

To assist individual enterprises to improve business performance through the identification, promotion and adoption of principles of best practice e. g. Services

to Industry;
Small to Medium Enterprise Programme
Benchmarking Industry Best Practice
Product Grant applications appraisal
Encouragement of innovation Development of new or changed products (jointly with Marketing, Promotions & Market Development)
Sustainable Tourism/ Environment
Recruitment/ Targeting of Students and Adults.
To arrange for the implementation of education and training programmes in accordance with industry needs e. g. Hospitality SkillsTraining, Tourism and Hospitality Education Programmes.
To contribute to the development of recruitment, education and training programmes and policies as they relate to tourism
To establish and develop standards of knowledge, skills or competence
Link Curriculum Development.

To arrange for the monitoring of quality standards within the industry.
To arrange for the inspection, registration, classification and listing of tourist accommodation and facilities in accordance with the Tourist Traffic Acts.
Business Excellence Accreditation. Awards
Strategic Research and Monitoring Planning Policy formulation Statistics & reporting
Performance
Reporting
TIL
Link (Strategy) Secretariat, Internal Audit FOI Corporate Planing Internet -BFE

Finance, Human Resources, IT, Organisational Services, Administering and issuing grants

27 34
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Public/ Community Bodies -Involvement in Tourism Activity 5
Appendix 4
5 Extract from "Fragmentation of Public Sector Responsibilities and Support Services for the Tourism Sector" completed by CHL Consulting Company Ltd. for the Regional Tourism Authorities in October 2000. Body Organisation Tourism Product Dev. Visitor Servicing Tourism Marketing Tourism Promotion Tourism Training Tourism Policy Dev. Tourism Pol. Implem. Tourism Product Fund. Tourism Mktg. Fund. Tourism Train. Fund
Dept. of Tourism Sport & Recreation

Bord Failte Regional Tourism
Authorities
SFADCO
CERT
County Tourism Committees
Dept. of Agriculture,
Food and Forestry
The Western
Development Commission

TEAGASC
LEADER Groups
Dept. of the Marine and Natural Resources
The Marine Institute Central & Regional
Fisheries Boards
Coillte
ESB Dept. of Arts Heritage Gaeltacht and the Islands

Udaras na Gaeltachta
Duchas

The Heritage Council
Dept. of Enterprise,
Trade and Employment
City/ County Enterprise Boards
Dept. of the Env. And Local Government
Local Authorities
Other Local Administration and Tourism Bodies

ADM
Partnership Companies
County/ Sub-County Area Tourism Bodies
New Cross Border Implementation Bodies
Funding Bodies for the
Border Region
IFI
Interreg

Peace & Reconciliation 35
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Appendix 5 Role of the Regional Tourism Authorities
The Regional Tourism Authorities (RTAs) are structured as companies limited by guarantee with no share capital and owned by their membership. Membership consists of representatives from a range of county and regional bodies involved directly or indirectly with local tourism. The RTAs now comprise: Dublin (Dublin City and County) Midlands-East (Kildare, Meath, Louth, Longford, Laois, East Offaly, Westmeath, Wicklow); South-East (Waterford, Wexford, Carlow, Kilkenny, Tipperary South); South-West (Cork, South Kerry) West (Galway, Mayo, Roscommon); North-West (Donegal, Sligo, Leitrim, Cavan, Monaghan). The Mid West RTA was abolished in 1987 and its role was taken over by Shannon Development, which is now responsible for Clare, Limerick, North Kerry, South Offaly andNorth Tipperary.

The RTA relationship with Bord Fáilte is governed by an annual contract, which sets out the basis on which Bord Fáilte provides funding to the RTA. The annual contract system has been in operation for about 2 years and is an outcome of the Review of the RTAs carried out by Bord Failte at the request of the Minister for Tourism, Sport and Recreation. The objectives of the RTAs, as defined in the annual contract, include: to provide an efficient visitor information network in the region; to encourage and guide tourist operators in the region to avail of opportunities to promote and develop their products and standards of customer care; to work with Bord Failte in achieving the objectives of the National Development Plan by identifying the development needs of the region and encouraging the necessary investment; to co-ordinate the development of an economically and environmentally sustainable tourism industry in the region – particularly in co-operation with local authorities and other relevant regionally based State agencies; and to engage in regional marketing to assist Bord Failte achieve the objectives and the targets set out in the National Development Plan. 36
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Appendix 6 MEMORANDUM OF UNDERSTANDING ON THE NORTH/ SOUTH TOURISM COMPANY
1. This paper sets out the shared understanding between the Department of Enterprise, Trade and Investment (DETI) and the Department of Tourism, Sport and Recreation (DTSR) on the remit of the new North/ South Tourism Company (NSCO) and its relationship with the Northern Ireland Tourist Board (NITB) and Bord Fáilte (BFE). It is consistent with the Memorandum and Articles of Association to be agreed by the North/ South Ministerial Council (NSMC).

2. The basic premises are:-(i) NSCO will own and manage Tourism Brand Ireland (TBI) and it's associated communications material and may licence the use of the brand and/ or its material to NITB/ BFE and others. NSCO will act as effective "gate-keeper" for TBI. (ii) NSCO will carry out strategic All-Ireland destination marketing in all markets outside the island of Ireland, including developing relationships with the trade and international carriers for that purpose.
(iii) NITB and BFE will have primary responsibility for promoting the development of tourism products and regions in all markets. NSCO will carry out regional and product marketing and promotion activity for the two tourist boards in all markets outside the island of Ireland, including implementing promotional proposals for regions and products and ensuring the consistency and complementarity of the boards' promotional content with TBI, in co-operation and agreement with BFE and NITB. (iv) NSCO will establish overseas offices, based in the immediate term on the existing office network of BFE and NITB currently operating outside the island of Ireland.

3. Final arrangements for implementing marketing and promotion for BFE and NITB outside the island of Ireland in the context of the boards' regional and product marketing role, and the timeframe for incorporation into NSCO, as soon as is practicable, of the office network of the two tourist boards outside the island of Ireland will be presented to the NSMC at its next tourism sectoral meeting in January 2001. The intention is that the NSCO would be in a position to take over responsibility for the 2002 tourism season.

4. The future structures and operational arrangements will require a positive attitude and a willingness to co-operate at board and senior executive levels in NSCO, NITB and BFE and this will be assisted by the interlocking relationships being put in place through the legal establishment of the company.

5. It is recognised, in particular, that the functional division of responsibility will require a high degree of co-operation between the two tourist boards and their jointly owned overseas marketing company in relation to regional and product marketing and the development of trade relationships.

October, 2000. 37
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Appendix 7 Indicative Job Description – Chief Executive
Job Purpose:
To lead and develop a new organisation and to utilise effectively all available resources in the successful pursuit of the Vision and Mission proposed for the NTDA.

Reports to: Board of the new organisation (to be appointed by the Minister for Tourism, Sport & Recreation). During the interim period, the Chief Executive may be required to work closely with the Board/ Council, Chief Executives and management teams of the existing agencies, to ensure continuity of operations and a smooth transition without service interruption.
Job Description:
. Establish interim operating arrangements and structures, pending legislation. . Select and empower Directors and a management team.

. Ensure fair and equitable procedures for staffing of the new organisation, in line with commitments to the staff of both existing agencies.
. Finalise an organisation structure and a transition plan. . Ensure the preparation of a Corporate Plan for the organisation.

. Propose a Strategic Plan to the Board( s) which will realise the Vision and Mission set down by the Implementation Group and which will integrate as necessary the separate, existing Strategy Statements of both agencies.
. When approved by Board( s), allocate responsibilities for implementation of the Strategic Plan and establish arrangements for performance monitoring and reporting.

. Ensure the design, implementation and development of Best Practice procedures and systems in all aspects of the organisation's activities.
. Oversee implementation of the transition plan to ensure smooth integration of the two agencies and the development of a new culture conducive to the achievement of the Mission and which provides a nurturing, progressive, stimulating and performance-oriented working environment.
. Ensure continuous focus on the creation and implementation of strategies and policies which will drive the development of the Tourism Industry in Ireland to World Class standards, with the objective of maximum contribution to national and regional economic and social goals, in line with the National Development Plan.

. Ensure optimum arrangements for on-going communication and interaction with all elements of the Tourism Industry, so that the organisation's strategies, policies, plans and activities are based on a continuously updated appreciation of the industry's real needs.
. Establish and operate communication and information flows to the Minister and the Department in line with statutory requirements and day-to-day needs.

. Ensure effective arrangements for meeting statutory requirements under the Freedom of Information Act and other relevant legislation.
. Establish and operate reporting structures to ensure timely, accurate and comprehensive information flows to the Board and its Committees such as will support them in the discharge of their Corporate Governance responsibilities.
. Chair the Executive Committee. . Represent the organisation and ensure its credibility and acceptance in Government, Political and
Public Service circles; in the Industry and with Industry organisations, with ICTU and Trades Unions, with IBEC and ITIC, in commercial and industrial circles generally and in the Social Partnership.
. Represent the organisation, and Ireland as a world class tourist destination, amongst international colleagues, in the EU and internationally as appropriate. 38
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Appendix 8
Indicative Job Description – Director Marketing, Promotions & Market Development,

Job Purpose: Within the organisation's mandate and in co-operation with Tourism Ireland Limited and the regional tourism bodies, to lead, direct and develop the marketing and promotion of Ireland as a Tourist destination (including for specific tourism categories) so as to maximise the contribution of tourism to national, regional and local economic and social goals.

Reports to: Chief Executive

Job Description:
. As a member of the Executive, contribute to the overall direction and development of the organisation.

. Chair the Industry Liaison Committee. . Lead and direct the work of the following areas

o General Promotions, Marketing, Publications and Events o Product Marketing and Sports Tourism
o Regional Marketing and Co-ordination of the regional tourism bodies . Ensure contributions from the Directorate to the continuous review and development of strategies and policies of the organisation, especially those relevant to the Directorate's areas of responsibility.

. Participate in the development of the Corporate Plan for the organisation, especially in relation to the Divisions of the Directorate, but also for other areas.
. Ensure that corporate objectives are understood throughout the Directorate and that responsibilities are allocated for achievement of objectives entrusted to the Directorate.
. Monitor performance of the Directorate in the achievement of objectives and report thereon to the Chief Executive and the Board as required.
. Take corrective action in relation to any deviation from required performance standards in the Directorate, working with and through the Divisional Managers.
. Ensure good communication flows in the Directorate and bring to the notice of the Executive Committee any adverse trends in communications or morale in the Directorate, which might have implications for the wider organisation.
. Provide leadership and support for reporting Divisional Managers and encourage them to do likewise in their Divisions.

. Ensure that corporate Human Resources management and development policies and priorities are actively implemented in the Directorate.
. Support the Chief Executive as required in positioning the organisation positively and in representing it in Ireland and abroad.
. Participate in other activities as required from time to time by the Chief Executive. 39
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Appendix 9
Indicative Job Description – Director Education, Training & Enterprise Development

Job Purpose: To lead, direct and develop programmes to stimulate sustainable product development and to foster world class service in tourism and hospitality undertakings through building capability at individual and enterprise level.

Reports to: Chief Executive

Job Description:
. Identify the development needs of Tourism and Hospitality enterprises in order for them to operate at world class levels, in line with Best Practice principles.

. Identify the people needs of the industry, in terms of numbers, skill categories, seasonal availability, and continuous development.
. Ensure the development, promotion and implementation of programmes to meet the identified needs, including product development programmes.
. Lead and direct the work of the following areas:
o Product Development o Education and Training

o Enterprise Development o Sustainability and Environment
o Quality Assurance & Standards. . As a member of the Executive, contribute to the overall direction and development of the organisation.
. Chair the Awards Committee. . Ensure contributions from the Directorate to the continuous review and development of strategies
and policies of the organisation, especially those relevant to the Directorate's areas of responsibility.
. Participate in the development of the Corporate Plan for the organisation, especially in relation to the Divisions of the Directorate, but also for other areas.
. Ensure that corporate objectives are understood throughout the Directorate and that responsibilities are allocated for achievement of objectives entrusted to the Directorate.
. Monitor performance of the Directorate in the achievement of objectives and report thereon to the Chief Executive and the Board as required.
. Take corrective action in relation to any deviation from required performance standards in the Directorate, working with and through the Divisional Managers.
. Ensure good communication flows in the Directorate and bring to the notice of the Executive Committee any adverse trends in communications or morale in the Directorate, which might have implications for the wider organisation.
. Provide leadership and support for reporting Divisional Managers and encourage them to do likewise in their Divisions.

. Ensure that corporate Human Resources management and development policies and priorities are actively implemented in the Directorate.
. Support the Chief Executive as required in positioning the organisation positively and in representing it in Ireland and abroad.
. Participate in other activities as required from time to time by the Chief Executive. 40
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Appendix 10
Job Description – Director Strategic & Corporate Planning

Job Purpose: To lead and direct research on, and assessment and creation of responses to, factors and developments affecting the Tourism sector in Ireland; to develop, monitor and report on progress of annual Corporate Plans; to ensure effective communication with the parent Department, media and public; and to ensure
the provision of effective secretariat, internal audit and legal functions.

Reports to: Chief Executive

Job Description:
. Identify the appropriate structure and staffing needs for a strategic policy & research capability in the organisation and put that capability in place.

. Lead and direct research and policy formulation activities to ensure a flow of innovative and focused reports and proposals aimed at optimisation of Tourism Industry economic and social contribution.
. Lead and direct the work of the following areas:

o Strategic Policy and Research o Secretariat, Information and Corporate Affairs

. As a member of the Executive, contribute to the overall direction and development of the organisation.

. Lead the Strategic Planning process for the Tourism Industry and ensure the publication and updating of a Strategic Plan for the industry which sets out performance objectives in detail together with the organisation's commitments in relation to services and supports.
. In addition to the Directorate's corporate responsibility for the continuous review and development of strategies and policies of the organisation, ensure the continuous review and updating of strategies and policies relevant to the Directorate's areas of direct responsibility.
. Lead the development of the Corporate Plan for the organisation, especially in relation to the Divisions of the Directorate, but also for other areas.

. Ensure effective information flows to the Board, parent Department, media and public. . Ensure that corporate objectives are understood throughout the Directorate and that responsibilities are allocated for achievement of objectives entrusted to the Directorate.
. Monitor performance of the Directorate in the achievement of objectives and report thereon to the Chief Executive and the Board as required.

. Take corrective action in relation to any deviation from required performance standards in the Directorate, working with and through the Divisional Managers.
. Ensure good communication flows in the Directorate and bring to the notice of the Executive Committee any adverse trends in communications or morale in the Directorate, which might have implications for the wider organisation.
. Provide leadership and support for reporting Divisional Managers and encourage them to do likewise in their Divisions.

. Ensure that corporate Human Resources management and development policies and priorities are actively implemented in the Directorate.
. Ensure that the organisation is alerted to major strategic issues which might affect Tourism performance and propose appropriate actions.
. Ensure that the organisation is alerted to new opportunities which have the potential to enhance Tourism performance and propose appropriate actions.
. Support the Chief Executive as required in positioning the organisation positively and in representing it in Ireland and abroad.
. Participate in other activities as required from time to time by the Chief Executive. 41
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Appendix 11
Job Description – Director Resources

Job Purpose: To ensure prompt, innovative, energetic and focused implementation of corporate objectives and plans through responsive allocation of appropriate resources; to ensure the development, implementation and maintenance of Best Practice approaches throughout the organisation in the areas of Human Resources, Finance and ICT.

Reports to: Chief Executive

Job Description:
. Ensure that the organisation is adaptable and that it changes with agility in the light of current needs.

. Allocate resources, within agreed overall limits, to ensure optimum organisation performance. . Lead and direct the work of the following areas:

o Human Resources and Services o Finance
o Information and Communications Technology . As a member of the Executive, contribute to the overall direction and development of the organisation.
. Ensure contributions from the Directorate to the continuous review and development of strategies and policies of the organisation, especially those relevant to the Directorate's areas of responsibility.
. Participate in the development of the Corporate Plan for the organisation, especially in relation to the Divisions of the Directorate, but also for other areas.

. Ensure that corporate objectives are understood throughout the Directorate and that responsibilities are allocated for achievement of objectives entrusted to the Directorate.
. Monitor performance of the Directorate in the achievement of objectives and report thereon to the Chief Executive and the Board as required.
. Take corrective action in relation to any deviation from required performance standards in the Directorate, working with and through the Divisional Managers.
. Ensure good communication flows in the Directorate and bring to the notice of the Executive Committee any adverse trends in communications or morale in the Directorate, which might have implications for the wider organisation.
. Provide leadership and support for reporting Divisional Managers and encourage them to do likewise in their Divisions.

. Ensure that corporate Human Resources management and development policies and priorities are actively implemented in the Directorate.
. Support the Chief Executive as required in positioning the organisation positively and in representing it in Ireland and abroad.
. Participate in other activities as required from time to time by the Chief Executive. 42

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