Innsight
Overhaul of Local Government Funding / Innovation in Marketing Needed / Conference Speakers

Pages 5-8
Members in the News / People On The Move / Innsight Interview

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Pages 1-4 / Pages 5-8 / Pages 9-12 / Calendar / Contents

OVERHAUL OF LOCAL GOVERNMENT FUNDING

Hoteliers Josephine Pepper, Frances Dempsey and Ladonna Tallon from Capitol Hotels pictured at the 67th annual IHF Conference.

Local authority rates continue to be the most regressive form of business taxation, and require an urgent overhaul by the Government in order to create a fairer business environment, delegates were told at the Irish Hotels Federation Annual Conference. The current system of rates, rising at an average of 6% per annum, places an unfair burden on the commercial sector, with 40% of the 3.4 billion required by local authorities annually contributed by commercial businesses.

The Federation believes it is time for the Government to introduce a more equitable system of funding Local Authorities and stop penalising businesses by calculating contributions based not on the profitability of the business, but on the size of its property.

Richard Bourke, President, IHF, states that the rates system should be abolished and replaced with a local income tax, which would entail increasing the current corporation tax rate from 10% to 12.25%. In addition, 2% from the current national standard income tax rate and 4% from the higher income tax rate should be ring fenced for local authority funding.

Specific measures proposed by the IHF are;

  • A local income tax based on profitability as opposed to property valuations to pay for the provision of community based services such as parks, libraries, street cleaning, local contribution to road maintenance
  • User charges for services for both businesses and households where the levels of use can be determined such as water provision, waste collection and planning fees
  • Central government funding for social services, specifically social housing, assistance to elderly and disabled people to adapt their houses.

The current system of rates involves a fixed charge, incurred annually, that is based on notional property values and bears no relationship to the size or scale of the business or its ability to pay. For example, a small accountancy or legal firm could generate over 1 million in fees from a small office, whereas a 40 bedroom hotel located in a much larger building might generate a similar income, but yet it will pay substantially more in rates. In addition the burden of rates is disproportional on businesses such as hotels and guesthouses where, in many cases, city or town centre locations are required, but where revenues per square metre are inferior to other businesses," said Mr. Bourke.

INNOVATION IN MARKETING NEEDED

Methods to attract tourists to Ireland must become more innovative and creative, as the Irish tourism industry enters a new era where travellers are more discerning. Delegates at the IHF Annual Conference heard that it will not be enough going forward to simply promote a region, or depend on traditional special deals of two nights B&B and one dinner to capture guests. More sophisticated marketing techniques focusing on exactly what an area has to offer for people's leisure and pursuit, will be required by tourism bodies and the industry itself.

According to Richard Bourke, President, IHF, the Irish tourism sector is entering a new testing period. "Ireland has an enormous wealth of reasons why people should choose our destination over others - the challenge will be how to communicate what makes Ireland special and different from other destinations," he said.

Worldwide tourist numbers are set to double over the next 20 years from 700 million international trips to 1.4 billion trips. "Our national tourism marketing strategies and individual tourism business efforts must refocus to take best advantage of this growth and deliver the experience that the 21st century traveller seeks," Mr. Bourke continued.

"The visitor trends are clear. With some 160 million spent by the industry alone each year in marketing, this must now be used in clever ways that specifically shows the range of activities that are available for people when they reach their destination in Ireland. We must make our marketing individual, specific and based on potential positive experiences to encourage people to choose our product offering over others in competing countries," Mr. Bourke concluded.

IHF President Richard Bourke.

CONFERENCE SPEAKERS

Richard Bourke, (2nd from right), President, IHF, with guest speakers from left, Professor Macy Marvel, Ecole hoteliere de Lausanne, Professor Colin Johnson, San Jose University, USA, Mr. James Wade, Managing Director of Wade and Co., and Hans van der Kooij, Sector Manager - Hotels, Royal Dutch Horeca Association at the 67th annual IHF conference.

Innsight
Overhaul of Local Government Funding / Innovation in Marketing Needed / Conference Speakers

Pages 5-8
Members in the News / People On The Move / Innsight Interview

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Pages 1-4 / Pages 5-8 / Pages 9-12 / Calendar / Contents

Members in the news...

A look at what hotels and guesthouses have been up to in the last month

GOLD FOR GALWAY CHEF

Jane Mulholland, Commis Chef at the Ardilaun House Hotel, Galway swept the board at the Chef Ireland 2005 competition at the RDS. Entering in eight different categories at both junior and senior level, Jane won six gold medals and two silver medals, including the coveted prize of Junior Grand Prix, which earns her the title of Best Junior Competitor.

The Chef Ireland competition takes place every two years. This years contest attracted almost 600 chefs who competed in a variety of categories during the prestigious four day event.

John Kelly, Head Chef, Ardilaun House Hotel, pictured with Jane Mulholland, Junior Grand Prix Winner and John Ryan, Managing Director, Ardilaun House Hotel.

DOUBLE GLORY FOR CLONTARF CASTLE

Clontarf Castle Hotel, Dublin.

Clontarf Castle Hotel, Dublin has been announced as one of the 50 Best Companies to Work For in Ireland, according to a detailed assessment by the Great Place to Work Institute Ireland. Employees at the four star hotel were also honored with the Outstanding Achievement in Camaraderie Award at a recent ceremony attended by Micheál Martin, TD, Minister for Enterprise, Trade and Employment.

DUNRAVEN ARMS RACE NIGHT

The Dunraven Arms Hotel, Adare, Co. Limerick, recently hosted its annual Pre-Cheltenham evening in conjunction with BETDAQ, the Irish betting exchange, and the Southern Region Irish Thoroughbred Breeders Association in aid of the Tsunami Relief Fund.

An Open Forum was organised with a host of well known racing personalities including Philip Hobbs, Nigel Twiston Davies, Alan King, Richard Pitman, Edward O’Grady, Jessica Harrington, Paul Carberry and Justin Carty. BETDAQ donated a €100 charity bet to each panellist and a charity auction also took place. All proceeds from the fund raising event were donated to the Tsunami Relief Fund.

Louis Murphy, Dunraven Arms Hotel is pictured (l-r) with racing personalities; Tom O’Ryan, Jessica Harrington, Nigel Twistan Davies, Philip Hobbs, Alan King, Paul Carberry, Edward O’Grady and Richard Pitman.

PRESTIGE FOR VIRGINIA’S GUESTHOUSE

Virginia’s Guesthouse, Kenmare has been selected to feature in two prestigious hotel guides, the Good Hotel Guide 2005 and Alistair Sawday’s Special Places to Stay Guide 2005. The three star guesthouse was selected to feature in these guides on the basis of its outstanding service, friendly welcome and excellent cuisine.

Virginia’s Guesthouse, Kenmare.

CHOICE HOTELS
EXPANDING FOR COMFORT!

Choice Hotels has announced a nationwide €115 million expansion scheme to include the development of five new hotels. The group is planning to open five Comfort Inn Hotels throughout Ireland at the following locations:

  • 125 room hotel in Cork City Centre
  • 114 room hotel in Limerick City Centre
  • 90 room hotel in Portlaoise
  • 120 room hotel in Kingswood, Dublin City West
  • 93 room hotel in Smithfield, Dublin

Pictured from (l-r) is Adrian Sherry, Sales and Marketing Manger, Quality Hotels Ireland, and Peter Brennan, Group Operations Manager, Choice Hotels Ireland.

These new developments, together with existing properties, will bring a total of over 700 rooms available in Comfort Inn Hotels nationwide. Choice Hotels Ireland’s portfolio will now include up to 4,000 bedrooms throughout the country between the Clarion, Quality and Comfort Inn brands. The group expects turnover for 2005 to exceed €100 million.

ROSETTE FOR STILLORGAN PARK

The Purple Sage Restaurant at the four star Stillorgan Park Hotel, Dublin has been awarded an AA Rosette grading following the hotel’s latest AA inspection. The AA Rosettes are awarded for the quality of food and service in an establishment. The accolade also recognises the high standard of décor and ambience of the restaurant.

Enda Dunne, Head Chef, Stillorgan Park Hotel, presenting his AA Rosette Award Winning Cuisine at The Purple Sage Restaurant.

Innsight
Overhaul of Local Government Funding / Innovation in Marketing Needed / Conference Speakers

Pages 5-8
Members in the News / People On The Move / Innsight Interview

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Pages 1-4 / Pages 5-8 / Pages 9-12 / Calendar / Contents

PREM GROUP UNVEIL NEW HOTEL SAFES

Hotel management specialists PREM Group have acquired the distribution rights for Safemark Security Systems in Ireland and the UK. The Safemark Security System is designed to provide hotel guests with an individual safe to use in the privacy of their hotel room. The PREM Group expects to install 10,000 safes in Ireland and the UK within the next two years.

Safemark currently has over 300,000 safes installed in hotel rooms across America, Canada and South America. The system has been a success to date due to the new revenue and profit stream it provides to hotels without the necessity for any capital investment. Safemark Security Systems was established in the US in 1983.

Jim Murphy, Managing Director, PREM Group and George Oelshcig, President of Safemark Security Systems.

MARYBOROUGH HOUSE OPTIMUS

The Maryborough House Hotel, Cork has recently been awarded the Fáilte Ireland Optimus standard of best practice. The hotel was presented with the Optimus symbol following an intense period of upgrading its daily operations.

The Optimus system was developed to support tourism businesses in becoming more efficient and more competitive. The Optimus symbol is designed to guarantee superior service and value for money to all potential hotel guests. Hotels and guesthouses can progress through three levels of improvement under the Optimus system; Ireland’s Best Award for Service Excellence, the Mark of Best Practice, and the highest accolade being the Award of Excellence. Qualification under the system is independently assessed by Excellence Ireland Quality Association and awards are approved by a body of national and international professionals.

To date a small number of Irish hotels have been awarded under the Optimus scheme. Fáilte Ireland estimates that by 2007 more than 350 Irish hotels will be working towards achieving the Optimus symbol.

Staff and management at the Maryborough House Hotel, Cork being presented with the Optimus standard.

NEW €20M HOTEL FOR CARLOW
The Pettitt Group have announced the opening of a new €20 million hotel in Carlow. The Dome will comprise of 90 bedrooms as well as extensive conference and banqueting facilities for 500 delegates. It incorporates a leisure centre with a 20 metre swimming pool, a gymnasium and a health spa. The €20 million development will commence in April 2005 and the hotel is scheduled for completion in April 2006.

€20M EXTENSION FOR HODSON BAY

The Hodson Bay Hotel, Athlone is currently undergoing a €20 million expansion scheme. The upgraded hotel facilities will include the development of a health and fitness complex, extensive spa treatment facility and 53 additional guest bedrooms. The extension has been designed as a new pavilion, separate to the existing hotel, and will be linked by a glazed two storey conservatory.

The new health spa will offer a range of services and therapeutic treatments to guests. The leisure complex will feature a 20 metre swimming pool with hydrotherapy features, Jacuzzis, a plunge pool and a fully equipped gymnasium. A hair and beauty salon is also planned for the multimillion euro extension.

Hodson Bay Hotel, Athlone.

People on the Move

Ciara O’Mahony has been appointed Tourism Officer for Galway County by Ireland West Tourism, the Regional Tourism Authority for the West of Ireland. Ms. O’Mahony was previously Co-ordinator of Global Publicity and Media for Tourism Ireland, based in the Dublin office. Ms. O’Mahony began her career in the hospitality industry with the Ritz-Carlton Hotel in Boston. She has held a number of marketing and management positions with Bord Fáilte and Tourism Ireland in Milan and New York. Ms. O’Mahony holds a Bachelor of Arts Degree from University College Dublin and has a Masters Degree in International Business.

Aoife Hickey has joined the Killarney Park Hotel as Sales and Marketing Manager. Ms. Hickey previously held the position of Sales and Marketing Manager at the Sheen Falls Lodge since 2003. Ms. Hickey is a graduate of Dublin Institute of Technology, Cathal Brugha Street and Trinity College Dublin. She also holds a Higher Diploma in Hotel and Catering Management and is a graduate and member of the Marketing Institute of Ireland.

 

Sue Palmer has been appointed Sales and Marketing Manager at the Ramada Viking Hotel, Waterford. Ms. Palmer joins the hotel from the Springhill Court Hotel, Kilkenny where she held the position of Sales and Marketing Manager since 2001. Ms. Palmer is a graduate of Dublin City University and holds an honours degree in Business Studies specialising in Sales and Marketing.

Innsight
Overhaul of Local Government Funding / Innovation in Marketing Needed / Conference Speakers

Pages 5-8
Members in the News / People On The Move / Innsight Interview

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Innsight interview

Jeanne McGann, Marketing Director, Nissan Irish Open.
Ms. McGann is a graduate of UCD and has worked with Nissan Ireland for the past ten years.

As county Kildare prepares to host the Nissan Irish Open next month, Innsight caught up with Nissan’s Marketing Manger, Jeanne McGann to take a look at the potential of Ireland’s burgeoning Golf Tourism Market.

County Kildare may not boast quite the same natural charms that have made Wicklow, Cork, Kerry, Donegal and some other counties famous the world over. It is no surprise therefore that the county is not viewed as a tourism oasis. But its proximity to the Capital and Dublin’s air and seaports means that the county’s tourism business is ideally placed to capitalise on the many major events that take place in the Greater Dublin region.

Kildare this year is unique in that it will host Ireland’s two premier and only European Tour golfing events. The European Open returns to the K Club at the end of June and the county will also break ground when it hosts the €2m Nissan Irish Open for the first time (May 19-22). The venue will be the magnificent Montgomerie course on the Carton House estate near Maynooth.

This event has moved from its traditional mid summer date which had been chosen in the hope of picking up visiting US professionals either on their way to or from the British Open. However, fewer Americans (and hardly any of the top players) are now prepared to pass up on the amazing prize money being offered in US tour events to compete in Europe, save to play in the Open.

So Nissan and the European Tour chose to move the Irish Open forward to what ought to be a very good slot just ahead of the €4m BMW Tour event in Wentworth. It is also probably better for local tourism in Kildare that the two big golfing events are six weeks apart.

Golfing is an activity that has rapidly grown in importance to tourism nationwide, as well as for County Kildare. The touring professionals will be housed in a range of local hotels such as Moyglare Manor, Barberstown Castle, the Clarion at Liffey Valley and the Glen Royal in Maynooth.

But with the event expected to attract upwards of 100,000 enthusiasts over its five days, the spin offs for other local tourism facilities – hotels, restaurants, golf courses and so on – will be considerable. The TV and preevent promotional exposure can only be beneficial for the development of the local industry.

Some 290 million golf fans around the world will see pictures of the on-course action at the golf course and the Carton Estate and the event will be beamed into some 16.5 million homes around Europe, according to Jeanne McGann, Director of Marketing at Nissan Ireland. “This is a great chance for local Kildare tourism to get to a massive domestic and international audience,” she suggests.

The Nissan Irish Open is being shown across eight European countries – all of them important in terms of visitors to this country. Eleven different TV stations will also be broadcasting live coverage.

This country itself has some 250,000 golfers and attracts a further 240,000 annually from across the globe. Between them they spent an estimated €126m in 2003 and this is a figure that is bound to rise as the 2006 Ryder Cup in the K Club comes more into people’s focus.

Almost one in four visitors stay in local hotels and a further 21% in guesthouses, making golf a very important market for counties like Kildare.

Nissan Ireland took over the mantle of sponsor from Murphys for a three year stint that ends at Carton. Ms. McGann is non committal on whether the relationship will roll on post Carton but she says, “we’re exceptionally happy with the way this sponsorship has gone for Nissan Ireland”. She adds that Nissan signed up for three years. “There won’t be a decision until after this year’s event when we’ll sit down with the Tour”.

(Continued on Page 9)

Innsight
Overhaul of Local Government Funding / Innovation in Marketing Needed / Conference Speakers

Pages 5-8
Members in the News / People On The Move / Innsight Interview

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Pages 1-4 / Pages 5-8 / Pages 9-12 / Calendar / Contents