Issues

Tourism policy overhauled

Slieve League on the Wild Atlantic Way Credit Greg Clarke

eolas outlines the key priorities in the Government’s 2015-2025 tourism strategy.

While tourism has remained a vital component of the economy (contributing a total of 9 per cent to GDP in 2014), the downturn between 2008 and 2010 illustrated the vulnerabilities of the sector. From 2011 onwards, the Government has emphasised that long-term support is essential.

The objective of the updated tourism policy, ‘People, place and policy – growing tourism to 2025’, is to maximise revenue from overseas visitors and, ultimately, tourism as a services export. The policy document sets out an annual target of 10 million overseas visits to Ireland by 2025, an increase of almost a third (31.6 per cent) on the 7.6 million visitors in 2014. At the same time, revenue targets are projected to rise by 42.9 per cent (from €3.5 billion to €5 billion) over the next decade. This demonstrates a shift in focus away from a previous preoccupation with visitor volume.

Overseas revenue marketing will be targeted towards markets with the highest economic potential, particularly long-haul destinations such as North America and the Far East. At the same time, the domestic tourism market will continue to be important, ensuring competitiveness and supporting the wider sector at times and in places where overseas visits are fewer.

Tourism Ireland’s Chief Executive, Niall Gibbons, commented: “We see long-haul markets gaining a greater percentage over the coming years and tourists from those destinations tend to stay longer and spend more money. The markets of China and India are still in the minority but they are growing in terms of number and volume and speed.”

The policy also anticipates the creation of an additional 50,000 jobs within the industry by 2025. This would bring the total workforce up to 250,000 employees. Any job creation will directly correlate with increases in visitor revenue and estimates indicate that this will require 5 per cent growth year-on-year.

Speaking at the policy launch in Kilkenny Castle, the Taoiseach outlined that the locally dispersed nature of tourism jobs has distinguished the industry’s role in economic recovery. Enda Kenny stated: “Every region in Ireland can realise its full potential as a tourism destination, particularly when it is driven by communities that know the values and qualities which make their own destination unique.” He added: “This strategy expands the scope of tourism activity that will be led by local authorities. Their role will now include support for destination development by communities, helping [the] developing destinations to learn from the more established places.”

A new emphasis will be placed on events which have the potential to generate additional overseas visits, yet fall outside of traditional tourist seasons or lack high media exposure. A mixture of occasions, such as festivals, sporting fixtures, business conferences, themed years and even a potential repeat of the 2013 Gathering, can all be used to boost visitor numbers. Tourism Minister Paschal Donohoe acknowledged that, while not primarily concerned with tourism, the decade of centenaries will provide “occasions to mark, to remember and to look forward to the continuing story of our people.”

Newly themed regional attractions, modelled on the west coast’s Wild Atlantic Way initiative, have been proposed to showcase the country’s multitude of spectacular, though lesser-known, scenic locations. Paschal Donohoe remarked: “We will use that as a single framework into which we can integrate all of the efforts of counties and communities in the South East.” In turn, it is intended that these projects will provide local communities with new opportunities, and complement regional economic development plans. For instance, Fáilte Ireland recently unveiled Ireland’s Ancient East, a new branding for the South East based on the region’s history, culture and scenery.

Donohoe also confirmed that capital investment for tourism will form part of the next medium-term exchequer framework for infrastructure and capital investment. Though conceding that tourism will have to compete for funding, Minister Donohoe maintained that projects offering a high quality visitor experience will be prioritised. Similarly, there is an emphasis on maintaining and building on competitiveness within the sector. The Minister restated that the sector’s unique 9 per cent VAT rate is entirely dependent on continued moderation in prices and value for visitors.

The updated policy also underscores the mutually beneficial relationship between cross-border co-operation and tourism. The tourism sector has been recognised as promoting peace and political partnership across Ireland. ‘People, place and policy’ reaffirms a commitment to an all-island approach to tourism as exemplified by the IRFU’s North/South bid to jointly host the 2023 Rugby World Cup.

In the immediate future, the Minister has pledged to establish a tourism leadership group which will draw up an initial tourism action plan for 2015-2018. Successive three-year action plans will be rolled out to deliver on the policy up to 2025.

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