GOVERNMENT TO EXAMINE VAT REFUND

The IHF has welcomed the announcement by Taoiseach Bertie Ahern, TD, that the Government will try to address the issue of VAT refunds for visitors attending business conferences in Ireland. Addressing the 68th IHF Annual Conference in Dublin, Mr Ahern said the Government was conscious of the importance of the issue and stated, “Although this issue is not as simple as it might appear, if an acceptable solution can be found, we will try to find it in the context of the next Budget.”

Mr Ahern noted the need to secure a greater slice of the global conference market, which is estimated to be worth up to €40 billion per annum. He stated, “Another key development, which has the potential to have a major impact on tourism, especially business tourism, is the National Conference Centre. The process in relation to the provision of this facility is now well advanced and I look forward to current negotiations being concluded successfully so that the Centre will be up and running as soon as possible.”

Addressing the disparity in performance between rural and urban areas, Mr Ahern stated, “Adequate infrastructure and adequate access have, of course, a key role to play in spreading economic and tourism growth across the regions. Changing international consumer tastes have led to a preference for shorter breaks, usually in cities. Equally, the decline in the own-car business has a significant impact on rural areas. These present real challenges for the industry going forward.”

An Taoiseach, Bertie Ahern, TD, addresses the 68th IHF Annual Conference in Dublin.

“The aim now is to focus on better growth across the regions, especially in regions where we have some of our finest attractions and where tourism plays a very important role in the local community. This aim is reinforced through the Government's National Spatial Strategy, and in particular through the emphasis on regional gateways and hubs as drivers of local and regional development.”

Mr Ahern also highlighted the important role of regional airports in promoting regional integration and encouraging inward investment in tourism and noted that, Under Transport 21, a total of €100 million will be available towards safety related infrastructure and development projects at the regional airports.

Continued on pg 3

Richard Bourke, outgoing IHF President; Annette Devine, new IHF President, and John Power, Chief Executive, IHF, pictured following the handover of the official chain of office at the IHF’s Annual Conference in Dublin in March.

See page 8 for Innsight interview with Annette Devine.

Addressing the IHF’s Annual Conference in March at Dublin’s Burlington Hotel, John O’Donoghue, TD, Minister for Arts, Sport and Tourism, highlighted the important implications of the New Horizons report commissioned by the Government. Mr O’Donoghue, TD, informed delegates that the report sets out a strong and renewed policy agenda with ambitious growth targets “providing a vision for Irish Tourism as a dynamic indigenous sector offering a destination of choice for discerning international and domestic tourists.”

Mr O’Donoghue informed delegates that the Implementation Group has sketched out the key themes around which the next phase of “New Horizons” implementation should be developed, including “competitiveness, productivity, skills, product development, innovation, access, marketing, sustainability and regional spread.”

The Minister noted that the report shows that by the end of 2005, good progress had been made on over 80% of the actions included in the first two year Action Plan. Acknowledging the IHF’s strong support for the work of the Implementation Group, Mr O’Donoghue stated that he was “committed to continuing with this successful model for the progressive roll out of the new strategy.”

Minister for Arts, Sport and Tourism Mr John O’Donoghue, TD, addresses the 68th IHF Annual Conference in Dublin.

Speaking at the IHF’s Annual Conference, Mr Simon Cooper, President and Chief Operating Officer, Ritz-Carlton Hotel, addressed the societal and external influences impacting on the global luxury hotel business. Mr Cooper, who oversees the development and strategic positioning of one of the world’s most powerful brands, identified various environmental challenges facing the luxury hotel business throughout the world. These included security concerns associated with terrorist threats and health risks, such as SARS and Bird Flu, and environmental disasters, like the Asian Tsunami.

Mr Cooper also highlighted the need for hotels to take account of evolving trends in affluent consumer demographics as part of their commitment to delivering excellent experiences for guests. Mr Cooper identified a change from “conspicuous consumption” of the 1980s to “conspicuous cultivation” in today’s society. According to Mr Cooper, today’s busy consumers seek a sanctuary from external stresses, focus more on health and wellbeing, are more savvy about technology, have higher expectations for personal service and have an increasing awareness of security and safety when travelling abroad.

Simon Cooper, President and COO, Ritz-Carlton Hotel Company, addresses the 68th IHF Annual Conference in Dublin.

Evan Doyle of Brooklodge & Wells Spa, Co. Wicklow, addresses the 68th IHF Annual Conference.

Addressing delegates at the IHF Annual Conference, Eoin and Evan Doyle recounted the challenges they and their brother Bernard faced when creating the BrookLodge & Wells Spa and Macreddin village deep in the spectacular Wicklow countryside.

In 1999, after two years waiting for planning permission and one year of building, the brothers’ unique village was opened for business. The village includes Evan’s acclaimed Strawberry Tree certified organic restaurant, a green, a pub and microbrewery, a chapel, an organic bakery, a smokehouse, an equestrian centre, shops and a monthly organic market. In addition, the Brook Lodge Hotel offers a spa and 50 luxurious rooms, including suites.

Addressing the IHF Annual Conference, Catherine Fulvio recalled her experiences in establishing the highly successful 4 star Ballyknocken House & Cookery School, Co. Wicklow.

After taking over the family guesthouse in 1999, Ms Fulvio started to run small cookery classes in the house and quickly realised she truly loved teaching guests to cook. During 2003 and 2004, Ms Fulvio renovated one of the farm buildings and opened Ballyknocken Cookery School, which is now open for both public and private classes.

The school, which has gained a worldwide reputation for excellence as a result of Ms Fulvio’s passion for cooking, has a diverse marketing mix including domestic visitors, tourists from abroad, hen parties, social clubs, referrals from hotels and clients from the Fáilte Ireland Return to Work Programme.

Catherine Fulvio, Proprietor of Ballyknocken House and Cookery School, Co. Wicklow, addresses the 68th IHF Annual Conference in Dublin.

While stressing the importance of emerging markets such as China and India in developing medium and long term marketing strategies, Mr Ahern highlighted the need to stress the all-island dimension of the Irish experience.

“In terms of real, practical and mutually beneficial North-South co-operation, the establishment of Tourism Ireland has proven the very positive outcomes of an all-island approach. On the public sector side, it is evident between the two Governments, between both public sectors and through the co-operation of the three tourism Agencies. Equally, it is mirrored in the private sector with industry representation on the board of Tourism Ireland and the close working relationship of the Tourist Industry Confederations, North and South.”

Acknowledging the important role of industry bodies in promoting tourism, Mr Ahern stated, “As we all know, the first challenge is to get people to this country, but the second is to ensure that they have the best experience when they come. Government can deliver a lot but it cannot deliver everything. You have also a very important role to play in providing incentives for people to visit not only Dublin, but also other regions where we have so much to offer.”

Mr Ahern expressed his appreciation to the IHF for its contribution in meeting the ambitious targets that have been set for Irish tourism and reiterated his confidence in rising to the challenges facing tourism in Ireland through close partnership between the Government, tourism agencies and the industry. Mr Ahern concluded by thanking outgoing President Richard Bourke for his contribution to the partnership approach and stated that he looked forward to working with incoming President, Annette Devine, in her new role during the time ahead.

Pictured at the Annual Conference with An Taoiseach Bertie Ahern, TD, were IHF staff members (l-r): Joy Bradley, Sara Brazil, Lisa Kearney, John Power, Anne O’Carroll and Ronan Smyth.

The IHF would like to thank all the sponsors of its 2006 Annual Conference for their generous support.

Coca-Cola Bottlers Ireland was the principle sponsor for the seventh year in a row. The Federation values its continued support and extends its gratitude to the organisation and Alfie Lydon for their contribution to this important annual event.

Alfie Lydon, Managing Director, Coca-Cola Bottlers Ireland.

The full list of sponsors is as follows:

The IHF’s 2005 Annual Report and Review has revealed that almost 40% of the Irish population took a holiday at home last year while overseas visitor numbers increased to 6.7 million in 2005, up from 6.4 million in the previous year. Speaking at the launch of the report, John Power, Chief Executive, IHF, commented that the overall increase in visitor numbers masked the reality that the number of bednights taken up by overseas visitors is in decline. The average length of stay by overseas visitors to Ireland has reduced by 9% since 2000, from 7.7 nights to 7 nights in 2005.

Visitors from Britain increased by 3.5% to 3.7 million while visitors from Mainland Europe increased by 20% to 1.9 million. However, North American and long haul markets showed declines of 3% and 9% respectively. Total tourism revenue in 2005 grew to approximately €5.3 billion with the tourism sector as a whole contributing some €2.4 billion to the Exchequer and employing some 150,000 people, of which 57,000 are in the accommodation sector.

Dublin was the main beneficiary of the increase with an increase of 11% in overseas visitors in 2005. The trend towards short stay breaks, however, has meant that there was little or no impact on the regions from foreign visitors. Outside Dublin, 70% and in some areas almost 80% of bednights can be attributed to domestic tourism trips, which grew by 6% in 2005 to over €1 billion in revenue.

Visitor Numbers 2005

MARKET	2005	Actual Increase/Decrease (+/-)
Britain	3.66m	3.5%
Mainland Europe	1.9m	20%
North America	930,000	-3%
Long Haul	290,000	-9%

The IHf Annual Report, which provides details of its activities in 2005, as well as useful tourism data and information, is available on the IHF website at www.ihf.ie

Copies can also be obtained by calling the IHF Head Office on (01) 497 6459