Ireland’s tourist industry attracted a record number of overseas visitors in 2004, once again proving its importance to the economy. Some 6.4 million people travelled here in 2004, exceeding the previous record of 6.18 million in 2000 by 2.6%. Foreign exchange earnings of €4.2 billion were generated, which, when combined with revenue from domestic tourism, means that €5.2 billion was achieved in total tourism earnings for the year. The latest available research from Fáilte Ireland’s Visitor Attitude Survey also reveals that 97% of visitors to Ireland say they would recommend a holiday here, while almost two-thirds now rate Ireland as ‘easy to get to’ compared to under half of visitors to Ireland in 2001.

Minister for Arts, Sport and Tourism, John O’Donoghue, TD, described the increase in visitor numbers as “a considerable achievement”, however he warned that there are a variety of trends emerging from a deeper analysis of the figures. These trends, he said, will require particular attention from the industry and the tourism agencies, if Ireland is to achieve the type of growth envisaged for the sector in the Report of the Tourism Policy Review Group - New Horizons for Irish Tourism, published in 2003.

The Irish Hotels Federation (IHF) welcomed the increase in overseas visitors, however it voiced concern at the uneven spread of visitors around the country, despite increased access, and urged the Government and tourism interests to place an important focus on remedying that situation in 2005.

IHF President, Richard Bourke, commented, “according to Fáilte Ireland, in 2004 hotel occupancy rates in Dublin were 70% compared with a national average of 62% and just 56% in the hard hit northwest region. The recent announcement by Ryanair of its plans for Shannon airport has created optimism, but much more needs to be done to ensure that visitors to Dublin can easily travel to other parts of the country.”

Of positive note in 2004 was the strong recovery in the North American market, with visitor numbers up 7% on 2003. 2004 also witnessed an unprecedented level of interest in Ireland from countries such as Italy, Spain, Norway, Denmark, Sweden and Finland, where it is expected that double digit growth is likely to be achieved again this year. Long haul markets such as Australia also bounced back from the poor performances recorded in 2003 when SARS was a strong impediment to long distance travel. Closer to home, the domestic market, which provides good year round business, was buoyant with an increase of 6%.

The official opening of the vast Chinese tourism market to Ireland also took place in 2004, with the signing of an historic agreement between Ireland and China in Dublin Castle in May.

From a policy perspective, 2004 saw a number of important developments. Published in September, the first progress report by the Implementation Group, set up to drive forward the agenda of the New Horizons Report, was broadly positive on the implementation of the 70 plus actions recommended in that report. The restoration of Ireland's competitive edge remains the most important and the most challenging priority.

The provision of a National Conference Centre in Dublin was also identified as a priority. The IHF is heartened that some progress has been made on the detailed arrangements for a Public Private Partnership to deliver this vital element in Ireland's tourism infrastructure. It is expected that a preferred tenderer will be selected by mid 2005. Richard Bourke described the tender as a step in the right direction, but urged the Government to ensure that construction is completed speedily. Ireland, he said, can expect to benefit from 50,000 additional conference visitors each year, boosting the national economy by up to €60 million.

(See Outlook for 2005, pg 3)

The Irish hospitality and tourist industry was deeply saddened to learn of the tragic and untimely death of Gerry O’Connor on 3rd January 2005 during a walking outing at Carrauntoohill in Kerry. A highly regarded member of the IHF National Council and a former President of the Federation, Mr. O’Connor was a friend and colleague to all in the Irish hotel industry. During his career, he was pivotal and deeply involved in all major developments within the industry and indeed in the progressive development of the IHF over the past decade.Continued on Pg 2

The IHF has described as a “significant historic milestone” the news that American Airlines will begin nonstop flights on two key routes between the Republic of Ireland and the United States; Shannon- Boston and Dublin-Chicago from May next. IHF President Richard Bourke is confident that the flights will assist grow the important US tourist market and provide expanded air travel options for the estimated one million US visitors to Ireland annually.

The Federation stated that the announcement placed further priority on the speedy renegotiation of the current US Ireland air bilateral agreement, to remove the current constraints on US route access to/from Ireland and facilitate additional access into the country.

According to Richard Bourke, the North American market is extremely valuable to Ireland as it yields high spending visitors who stay an average of 10 nights in Ireland. A revised US Ireland air bilateral agreement could facilitate a doubling of the current direct air routes from the US, equating to an increase of up to 25% in the number of US visitors to Ireland. This would translate into generating in excess of €200m extra revenue to the Irish economy each year. At present, 15% of all overseas visitors to Ireland are from the USA, and this could increase to nearer 20%, generating an extra one million visitors per annum within the next five years.

On a recent Tourism Ireland promotional visit to Dallas, Texas, Minister for Arts, Sport & Tourism, John O’Donoghue, TD, made a presentation to American Airlines as a symbol of gratitude for the airline’s continuing support of the island of Ireland as a destination. Pictured are (l-r): Mr. Paul O’Toole, Chief Executive, Tourism Ireland, Mr. David Cush, Vice President and General Sales Manager American Airlines Inc., and Minister John O’Donoghue, TD.

Following the devastating tsunami that hit South East Asia over the Christmas period, the IHF joined the nationwide fundraising efforts that quickly got underway, by pledging a €5,000 donation to the Irish Red Cross South East Asia Relief Fund. The Federation’s 1,000 hotel and guesthouse members throughout the country participated in the Garda Síochána’s co-ordinated effort to raise funds to assist provide food, sanitation and shelter for the victims of the tidal wave disaster.

This effort, which also involved the VFI and LVA members, succeeded in raising over €1.08 million in just over one week. According to Richard Bourke, President of the IHF, the hotel industry welcomes the opportunity to play its part in supporting the hundreds of thousands of people affected by this major tragedy: “the rationale behind the initiative was to make it as easy as possible for Irish people who wish to make a donation to do so and we hope that people will continue to give what they can in an effort to ease the plight of the people of South East Asia.”

Pictured at the presentation of the €1.08m cheque to the Irish Red Cross are (l-r) Donall O’Keeffe, Chief Executive, LVA, Richard Bourke, President, IHF, Tadg O’Sullivan, Chief Executive, VFI, Noel Conroy, Garda Commissioner, and David Andrews, Chairman, Irish Red Cross.

The IHF’s President Richard Bourke paid tribute to Gerry O’Connor’s enormous integrity and professionalism. He extended deepest sympathies to Gerry’s wife Elizabeth, his three sons Brian, Daniel and James, and all his relatives, on behalf of the IHF and the hotel industry as a whole.

A graduate of what is now GMIT, Gerry commenced his career in the famous Paddy Fitzpatrick Management Development Programme in Killiney Castle. He honed his abilities in fine hotels from Seattle to Berlin before returning to Ireland to take up a management position with the then, Forte Hotel Group Plc. and was appointed General Manager of Actons Hotel, Kinsale by Forte in 1984. He had remarkable success in Kinsale and more importantly was to meet his dear wife Elizabeth who was a member of the management team at Actons. He was next appointed General Manager of the Blarney Park Hotel, which he turned into a significant short break and family holiday resort. With further investment in Blarney Park, Gerry became a partner and Managing Director of the Hotel.

Gerry was always involved in local community development, nowhere more so than Blarney. He was a former Chairman and leading member of the Cork Branch of the Irish Hotels Federation. He served on National Council and was a Committee Chairman from 1986. He was elected National President of the Federation in 1994.

He was described by a young colleague as a “beacon” for a new generation of hotel managers coming into the industry. He had a vision for the industry and, ever the marketeer, was instrumental in the development of the Be Our Guest Guide, the foremost accommodation guide in Ireland. He was pivotal in the rollout of the Operational Programme for Tourism 1994-99, the development of the Classification System for hotels and guesthouses and the Overseas Tourism Marketing Initiative. These initiatives, along with his shining example as an hotelier and industry leader, are a significant part of his legacy to the Irish tourism industry.

Gerry embarked on a new career in hotel and leisure development consultancy in 2002 and established the consultancy company, Bottomline Solutions.

Gerry was a wonderful mentor and great friend to those who worked with him and to his colleagues in the industry. We will all remember his sense of fun and his wonderful laughter. He had enormous integrity and a steadfast desire for fair play. He espoused the cause of the disadvantaged and was a voice for the small operator in the hotel industry.

He was passionate about sport; supporting Manchester United and of course, his home county of Meath. More recently he developed a passion for hill walking and mountain climbing where he had considerable achievements in scaling peaks including Kilimanjaro, Aconcagua and, in November 2004, Island Peak (Imja Tse) in the Himalayas.

Ever the family man, Gerry was held in great esteem and love by his parents, Kevin and Mary, his brothers and sisters and all his extended family. He was devoted to wife Elizabeth and their boys, Brian, Dan and James. Their loss is indescribable.

We, his colleagues in the industry, grieve with them all in this great loss. Gerry will be so sadly missed by all of us and he will always remain in our memories.

Tourism Ireland and Failte Ireland recently announced details of their marketing strategy and plans for 2005 to the tourism industry. Tourism Ireland's three year EUR200m marketing programme aims to increase overseas visitor numbers to the island of Ireland to nine million by 2008. Meanwhile, Failte Ireland unveiled a range of tourism business tools and a new action plan for promoting domestic tourism, including a new advertising campaign.

At the launch, Minister John O'Donoghue, TD, commented that the British market remains a key challenge for the industry, as are the traditional markets of mainland Europe. France and Germany in particular proved challenging to grow in 2004.

Tourism Ireland is allocating 36% of its total marketing budget to Britain. In addition, in consultation with the industry, Tourism Ireland has undertaken radical re-appraisals of both the British and Mainland European markets and their research findings will inform future strategy in the years ahead.

Bolstered by an unprecedented level of Exchequer investment in tourism services of over EUR123m next year, representing an 8% increase on 2004, both Tourism Ireland and Failte Ireland have developed a comprehensive set of plans and programmes aimed at assisting the industry to respond to the key challenges ahead.

Tourism Ireland will focus on six key elements in its marketing plans for 2005:

• Reinvigorating the British market
• Encouraging the spread of overseas visitors to all the regions of Ireland
• Access development

• E-marketing
• Business tourism
• Helping the Northern Ireland tourism industry to reach its potential

"Ultimately, we are aiming to grow tourism to the island of Ireland by 5% in 2005," said Paul O'Toole, Chief Executive, Tourism Ireland.

Meanwhile Failte Ireland unveiled a range of tourism business tools and a new action plan for promoting domestic tourism, including a new advertising campaign. Failte Ireland announced its plans for product development and enterprise support. It announced a 15% increase in marketing spend targeting the domestic market in 2005 to EUR4 million.

Failte Ireland Chairwoman, Gillian Bowler warned that movement on a number of critical pieces of infrastructure is essential if the Government is to achieve the double visitor numbers and tourism earnings by 2012, as it hopes. Amongst those are the development of a second, quick turnaround terminal at Dublin Airport and the development of a Western Corridor to increase the spread of visitors more equally amongst urban and rural areas throughout the country.

According to the Minister, Failte Ireland's priorities for 2005 are to:

• Develop and support regional tourism
• Develop the business tourism sector
• Improve enterprise competitiveness

• Encourage innovation and investment in new and existing products
• Promote sustainable development
• Champion "tourism sensitive" public policies

On the regional front, a new home holiday marketing campaign, joint marketing initiatives with Tourism Ireland, funding of regional festivals and events, promotion of special interest tourism and supporting the activities of the Regional Tourism Authorities, will be the key areas of activity. For business tourism, the establishment of a new Business Tourism Forum by Failte Ireland will provide an opportunity to develop propositions to maximise the significant potential of the different business tourism segments.

The speaker line up for the IHF 2005 Conference has been confirmed and includes several high profile international speakers. The conference, taking place in the Silver Springs Moran Hotel in Cork from 6th - 8th March, will focus on how to create the hospitality industry of the future. With intense competition in the fast changing tourism market now an ongoing reality, the conference will highlight the need for innovation in the hotel business.

Speakers will include:

• John O'Donoghue, TD, Minister for Arts, Sport and Tourism;
• Alfie Lydon, Managing Director of Coca Cola Bottlers Ireland & Coca Cola Bottlers Ulster Ltd.;
• Colin Johnson, Professor and Chair of the Department of Hospitality Management, San Jose State University, California;
• James 'Woody' Wade, Managing Director of Wade an Co., a Swiss based consulting firm;
• Hans van der Kooij, Sector Manager, Royal Dutch Horeca Association;
• John Brennan, General Manager, Park Hotel Kenmare;
• William J Reckmeyer, Professor of Leadership and Systems, San Jose State University, California

Conference brochures have been distributed to all IHF members with full conference programme details. Information is also available at www.ihf.ie/conference/

Up to 1,000 new tourism related jobs are expected to be created in Kinsale, Co. Cork with the development of a new five star holiday resort. International property development consortium, Xces projects, hotel chain Hyatt International and the Golf Management company of the Professional Golfers’ Association (PGA) have come together to develop a five star hotel and health spa, an 18-hole championship golf course and golf academy, an equestrian centre and conference facilities on the 650 acre site.

Xces plans to spend €200m developing the resort, with the construction phase alone expected to cost €160m, and providing initial employment for 300 people. It also anticipates that a further 800 full time jobs will be created both directly and indirectly once the resort opens. Construction is expected to be completed within two years of planning permission being granted.

Hoteliers recently paid tribute to a long serving member of the hotel industry, Michael Governey, on the occasion of his retirement. Members of the industry gathered at the Merrion Hotel to celebrate Michael’s career as an hotelier and to wish him well in his retirement. Michael has been involved with the IHF for many years, as Chairman of the Dublin Branch from 1994-1995 and a Council member from 1991-1995.

IHF President Richard Bourke commented, “through all of his great career, what shines through is a consummate hotelier for whom the devil was in the detail, a man of integrity who did not believe in making it easy but was always fair.” Mr. Bourke also thanked Michael’s wife Elizabeth for her contribution, describing the pair as “two wonderful individuals, as a team, unstoppable, irrepressible.”

Michael’s career started at the Metropole in Cork, and he then went on to join the Royal Hibernian Hotel on Dawson Street, Dublin where he worked for many years. He became General Manager in 1970. Following that he moved to the Berkeley Court Hotel, a brand new five star hotel at the time, where he took up the role of General Manager.

After ten years at the Berkeley Court, Michael decided to take a well deserved break and undertake some consultancy work. It was as a consultant that he came into contact with Conrad Hotels who were developing a world class business hotel at Dublin’s Earlsfort Terrace. Michael was brought on board as General Manager and later became Vice President Development Ireland, staying with the hotel group until his recent retirement.

John O'Donoghue, TD, Minister for Arts, Sport and Tourism, has announced grant assistance of €1,808,000 for a number of festivals and cultural events taking place during 2005.

The grants will be administered by Fáilte Ireland, in respect of the Festivals and Cultural Events Initiative 2005, to support the following:

St. Patrick's Festival, Dublin €1,150,000

Tall Ships Race Waterford 2005 €240,000

Kilkenny Arts Festival €78,000

Killarney Summerfest €250,000

Cork St. Patrick's Festival €90,000

Minister O'Donoghue said, “I am delighted to be able to announce this substantial injection of funds in a variety of events for 2005. The provision of funding for festival and cultural events permits us to develop and expand their role as an attraction for international tourists, allowing visitors to experience what we have to offer while, at the same time, affording an opportunity for local people to enjoy the benefits.”

Some 3,500 kilos of fireworks, 800,000 watts of lighting, 14 sound towers, 6 confetti cannons, hundreds of performers, 10 stages in the City centre, a 600 metre serpent rising from the River Lee, all this and more signaled the start of Cork’s tenure as European Capital of Culture 2005.

The President Mary McAleese officially declared Cork as European Capital of Culture 2005 at a special civic reception in City Hall, where Cork 2005 came to life with the premiere of a specially commissioned theatrical production, ‘The Red Sun’ written by Ray Scannell.

The President Mary McAleese officially declares Cork European Capital of Culture 2005.

Throughout this historic day for Cork, hundreds of street performers from all over the world brought the streets of Cork City to life with the sound of samba music, fire eaters, circus acts and giant puppeteers. With 10 individual carnival stages located throughout Patrick Street, Grand Parade and South Mall, the Cork 2005 Carnival took over the city. Acts included rock and roll, comedy, percussion groups, John Spillane and Cara O’Sullivan, a giant robot, Bui Bolg’s Hillbilly giants and giant spiders and caterpillars.

For further information on any of the events in the Cork 2005 programme log on to www.cork2005.ie (See Innsight Interview, pg 8)

A fireworks display over the River Lee to celebrate Cork 2005