Innsight
Heathrow Route / Mary Britton, RIP / Incentive Tourism / Funding for Tourism / Recently Deceased / Launch of clare.ie

Pages 1-4
12th IHF Benevolent Fund Golf Classic / Ireland Brand / 1,700 Travel Agents / Annual Hotel Survey

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

August 2007

innsight inside:

Page 3

IHF Benevolent Fund Golf Classic

Page 4

Horwath Bastow Charleton Annual Hotel Industry Survey

Page 8

Innsight Interview: Nick Waight, CEO, Convention Centre Dublin

HEATHROW ROUTE VITAL FOR ECONOMY OF SHANNON REGION

The announcement by Aer Lingus to cease flights from Shannon to Heathrow has come as a devastating shock to business and tourism leaders throughout the midwest region. Since the announcement, it is estimated that at least €100 million in investments in major tourism projects and €150 million in tourism revenue have been jeopardised.

At a meeting organised by Shannon Development, business and tourism interests called for high-level intervention by the Government to secure continued direct air access between Shannon and London Heathrow. Representatives insisted that the decision could not be reconciled with the Government’s stated desire to develop a vibrant economy along the western seaboard and its stated commitment to balanced regional development.

Heathrow is the largest hub in Western Europe providing access to all major European cities as well as key destinations in the Middle and Far East. As one of Shannon Airport’s most successful and profitable routes carrying over 320,000 passengers per annum, the London Heathrow route has performed extremely well over many decades and operation of the route remains a highly attractive proposition.

The Heathrow service remains essential for securing and maintaining foreign direct investment and indigenous industries across the West of Ireland. The announcement is an enormous blow to the many companies which have made substantial investments due to the availability of a Heathrow connection to Europe and beyond.

Without this direct link the ability of companies to conduct their business in the global marketplace is seriously undermined. It puts millions of Euro in regional investment at risk and, if implemented, will severely diminish the region's ability to attract business, conference and high-end leisure tourism from key international markets.

In advance of the Cabinet’s next meeting, An Taoiseach Bertie Ahern, TD, has asked a group of Government officials to explore all available options for supporting aviation connectivity for the Shannon region. The group will also examine the level of investment for the region under the National Development Plan and Transport 21 and will inform the Cabinet’s deliberations on the issue.

Commenting on the loss of Heathrow slots in Shannon, Michael Vaughan, Chairman of the IHF Shannon Branch, called on the Government to act swiftly to avert an economic crisis in the region and ensure Shannon Airport retains its vital Heathrow slots. The transfer of Heathrow slots out of Shannon will impact not only on direct jobs in Shannon Airport but will threaten the viability of thousands of jobs throughout the mid-west and west of Ireland as companies re-evaluate their investment decisions in the region.

Mr Vaughan stated, “As a vital access point for long haul and transatlantic flights, I find it impossible to reconcile this decision with the Government’s stated strategy of promoting business and tourism in the regions, particularly in light of the already difficult challenges presented by the Open Skies environment.”

MARY BRITTON, RIP

Former IHF Vice President Mary Britton, RIP

The Irish hospitality industry was deeply saddened to learn of the recent death of former IHF Vice President Mary Britton. In the late 1940s, Mary and her husband Vinnie bought a small guesthouse and pub in Rossnowlagh, Co. Donegal. Over the years the couple developed the Sandhouse into what is now an extremely popular four star hotel on the sandbanks of Rossnowlagh Beach.

Mary had a long and distinguished association with the Irish Hotels Federation, having first served on the IHF Council in 1968. Mary was elected Vice President of the Irish Hotels Federation in 1972 and was the first recipient of the prestigious Billy Kelly award in 1991 for the promotion of Irish tourism abroad. Mary served on Council for 30 years before stepping down at the end of 2000. The industry was also deeply saddened by the recent deaths of Elizabeth McEniff, George Loughran and Merv Griffin.

See page 2 for details.

innsight is produced with the assstance of eircom by the Irish Hotels Federation, 13 Northbrook Road, Dublin 6. Tel: 01 497 6459, Fax: 01 497 4613, Email: info@ihf.ie Items to be considered for inclusion should be addressed to The Editor, innsight, Weber Shandwick FCC, 2-4 Clanwilliam Tce, Lwr Grand Canal Quay, Dublin 2.

www.ihf.ie

Innsight
Heathrow Route / Mary Britton, RIP / Incentive Tourism / Funding for Tourism / Recently Deceased / Launch of clare.ie

Pages 1-4
12th IHF Benevolent Fund Golf Classic / Ireland Brand / 1,700 Travel Agents / Annual Hotel Survey

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

INCENTIVE TOURISM TRAILBLAZES TO IRELAND

Trailblazers, an international incentive tourism event supported by Fáilte Ireland, took place in the Four Seasons Hotel Dublin recently. The event, which was held in Ireland for the first time, provided an opportunity to showcase Ireland to over 65 top incentive houses from the United States. Ireland was chosen as the venue for the 2007 event following on from a successful bid prepared by Fáilte Ireland and Tourism Ireland.

With business tourism bringing 295,000 visitors to Ireland annually and generating revenues of €447 million in 2006, the event provided an excellent opportunity for Ireland to illustrate the exciting incentive itinerary options on offer within the Irish market. Also participating at the event were national tourist boards from Great Britain, Canada, Monaco, Denmark and Switzerland.

Pictured at the Trailblazers Gala Evening in the Royal Hospital Kilmainham (l-r): John Rafferty, Fáilte Ireland; Neel Edeling, VisitDenmark; Michele Saran, Canadian Tourism Commission; Lisa Sjolund, VisitBritain; Joyce McElroy, Fáilte Ireland; Cindy Hoddeson, Monaco Government Tourist Office; and Joe Byrne, Tourism Ireland, North America.

FUNDING FOR TOURISM INFRASTRUCTURE AND DEVELOPMENT

The Minister for Arts, Sport and Tourism, Séamus Brennan, TD, recently announced the allocation of more than €6 million in funding under Fáilte Ireland's Tourism Infrastructure Fund. The funding will benefit 50 tourism projects around the country, including more than €2.5 million for various walking and cycling routes, almost €500,000 for elements of a national coastal walk, more than €2.25 million for environment and visitor management works and almost €1 million for improvement and management works at Blue Flag beaches.

Minister Brennan has also announced funding of up to €2.92 million under Fáilte Ireland’s Tourism Product Development Scheme for projects in the Border Midlands and Western Region and the Southern and Eastern region.

Initiatives being funded include:

Border Southern & Eastern Kilkenny Parade, Canal Walk and Canal Square €1,268,000
Border Midlands & Western Riverside Amenity Park, Carrick on Shannon €400,000
Border Midlands & Western Ravensdale Equestrian Centre, Dundalk €350,000
Border Midlands & Western Bridge over River Moy €900,000

RECENTLY DECEASED

Elizabeth McEniff, RIP

In the 1930s, Elizabeth (Lizzie) McEniff, a native of County Tyrone and founder of the McEniff Group ran a small confectionery shop with her husband John in Bundoran. They also took in lodgers at their four bedroom home, which heralded the beginning of a business that has been developed over the years by her children and grandchildren. The McEniff Group’s portfolio has grown from its flagship Holyrood Hotel in Bundoran to include 11 hotels in Donegal, Dublin, Mayo and Sligo, holiday homes, amusement arcades and property development interests.

George Loughran, RIP

In 1955, George Loughran founded the Mount Herbert Hotel in Sandymount with his wife Rosaleen. George handed over the running of the hotel to his sons John and Paul in 1988 and the hotel was extended and developed, making it into one of Dublin’s most popular hotels. In 1999, Paul moved into property development and sold his share of the business to John, who is currently owner and director.

Merv Griffin, RIP

Merv Griffin, entrepreneur, entertainer and owner of St. Clerans Hotel in Craughwell, Co. Galway also passed away recently. Merv was most famous for creating Wheel of Fortune and Jeopardy - the two most successful game shows in television syndication history. Merv was passionate about St. Clerans “I ended the 20th century by fulfilling a long cherished dream – to own St. Clerans and restore it to its former splendour. Like John Huston, I fell in love with this Georgian beauty at first sight.”

LAUNCH OF CLARE.IE ON FOX NEWS

Over two million US viewers watched the official launch of County Clare's first dedicated tourism website on US television network Fox News recently. The website, www.clare.ie, features information on tourism attractions in Clare and contains detailed information on accommodation and access to the county as part of an overall effort to establish the ‘Banner County’ as a domestic and international tourist destination.

Announcing details of the website on the Fox News 'Wake Up' show, Mayor of Clare Councillor Patricia McCarthy said, “County Clare can proudly boast such world renowned tourist attractions as The Burren, Cliffs of Moher and Bunratty Castle. However, there is much more to Clare as the new website highlights. Visitors to the site can discover information on all aspects of the county from its heritage and history to its music, traditions and culture.”

“In the tourism world, keeping up with the latest trends in how people use the Internet can mean more actual visitors all year round. That is why the Clare Tourism Forum has produced an allinclusive online source of information for anyone wishing to find out more about what County Clare has to offer,” added Ms McCarthy.

The website launch formed part of a week long promotional drive by Clare tourism interests in the US with leading regional agencies, including Clare County Council, the Clare Tourism Forum, Shannon Development and the Clare Tourist Council travelling to Wisconsin to promote the county to an estimated 140,000 people attending the annual Milwaukee Irish Fest.

Innsight
Heathrow Route / Mary Britton, RIP / Incentive Tourism / Funding for Tourism / Recently Deceased / Launch of clare.ie

Pages 1-4
12th IHF Benevolent Fund Golf Classic / Ireland Brand / 1,700 Travel Agents / Annual Hotel Survey

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

12TH IHF BENEVOLENT FUND GOLF CLASSIC

The IHF Benevolent Fund Golf Classic event took place in Rathsallagh Golf Club on 25th June with a shot gun start in cold but dry conditions. It was supported by 26 teams and many others who sponsored holes. The course was in superb condition following the Barton Shield the previous day with the trickiest of pin positions to test everyone who tried to get close to them.

The Starwood Hotels Team led by Enda Mullin were the very worthy winners with a magnificent score of 87 points considering the pin positions. In a gallant second position with 84 points were the Jurys Doyle Team led by Dick Bourke with Justin Baily’s Horwath Bastow Charleton Team in 3rd with 82 points. Diageo were in fourth place with Donal O’Meara’s team in fifth.

A notable newcomer to the prizes this year was Pat Hevey’s Wicklow Branch which won the front nine with a very credible 48 points. The sponsors, Beamish and Crawford, with some help from a ‘Ghost’ player won the back nine with 44 points. Our non-winner’s prize draw later in the evening was very successful, with some very valuable weekends and Golf Fourballs in prestigious locations.

Pictured are (l-r): Mark Gogarty and Brendan Coughlan, Beamish & Crawford team; Annette Devine, President, IHF; and George Frost, Beamish & Crawford (Sponsors).

Pictured are (l-r): Pat Hevey, Chairman, IHF Wicklow Branch; Annette Devine, President, IHF; and George Frost, Beamish & Crawford (Sponsors)

Pictured are (l-r): George Frost, Beamish & Crawford; Enda Mullin; John Lennon; Ronan Nolan, and Paddy McGovern, Starwood Hotels team; Annette Devine, President, IHF.

The IHF would like to express its sincere thanks to the event’s sponsors, Beamish & Crawford for their continued generosity and to Classic Drinks for sponsoring the wines at dinner. The IHF would also like to thank those hoteliers and Associate Members who donated prizes and those who entered teams or sponsored a hole. We look forward to seeing all those involved again next year at the 2008 Benevolent Fund Golf Classic which will take place in Rathsallagh on 9th June, 2008.

MAJOR REVIEW OF IRELAND BRAND

Tourism Ireland has announced the appointment of leading international brand strategy consultants Enterprise IG to assist the organisation as part of a major review of the Ireland brand used to promote the island of Ireland as an attractive destination in overseas markets. The last comprehensive review of the Ireland Brand was undertaken in 1995 and led to the development of Tourism Brand Ireland.

The review will be comprehensive, incorporating all aspects of the brand from a tourism perspective and will include extensive research among consumers and trade in overseas markets as well as consultation with industry and stakeholders on the island of Ireland.

DUBLIN WELCOMES 1,700 TRAVEL AGENTS

Tourism Ireland, in partnership with Fáilte Ireland and Dublin Tourism, recently welcomed over 1,700 travel agents to Dublin as part of an annual conference held by Flight Centre – Australasia’s largest retail travel agency with 1,200 stores in seven countries. The global gathering included travel agents from Australia, New Zealand, South Africa, Canada, India, China and Great Britain and comprised Flight Centre’s top senior management as well as key suppliers.

The conference saw the largest ever travel agents’ group visit to Ireland and is estimated to have been worth €2 million directly to the Irish economy and is expected to encourage further growth in Irish tourism from Flight Centre’s markets. Ireland won the prestigious event amid stiff competition from Hong Kong, Paris, Singapore and Malaysia.

Paul O’Toole, Chief Executive, Tourism Ireland, said, “Australasia is a significant, developing market for the island of Ireland. Last year, we welcomed a record number of visitors to these shores, of which 153,000 visitors were from Australia and New Zealand. There is a noticeable shift in global travel trends with an increase particularly in long haul travel from the Middle East and the Far East. Working with Flight Centre provides us with an excellent opportunity to develop even more business from developing markets such as South Africa and Asia to help Ireland secure its share of what are becoming the most exciting growth markets in the world.”

Pictured are (l-r): John Rafferty, Head of Business and Events, Fáilte Ireland; Graham Turner, CEO, Flight Centre; Seamus Brennan, TD, Minister for Arts, Sports and Tourism; and Paul O’Toole, Chief Executive, Tourism Ireland.

Innsight
Heathrow Route / Mary Britton, RIP / Incentive Tourism / Funding for Tourism / Recently Deceased / Launch of clare.ie

Pages 1-4
12th IHF Benevolent Fund Golf Classic / Ireland Brand / 1,700 Travel Agents / Annual Hotel Survey

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

Horwath Bastow Charleton

Annual Hotel Survey

Pictured at the launch of results of Horwath Bastow Charleton’s annual Ireland and Northern Ireland Hotel Industry Survey at Government buildings are (l-r): Justin Baily and Aiden Murphy, Horwath Bastow Charleton, and Minister for Arts, Tourism and Sport, Seamus Brennan, TD.

These higher equity levels have allowed hotels the opportunity to grow into their markets and reach stabilisation at which point operational cashflow is available to provide a return to the owner and service associated debt.

Going forward, these owner-provided subsidies will be much less of an available factor in providing funding for hotels. In an environment of lower tax breaks, strong land values, high construction costs and higher interest costs, funding packages for hotels will be more difficult to assemble and the impact of higher promoter equity on the return will mean that fewer hotels will be viable and this will limit supply side increases going forward.

Over the next few years, demand for hotel rooms is expected to continue to increase. With a slowing of new supply, opportunities will exist for reasonable revenue growth in the sector. The sector is likely to see a number of existing hotels expand their room count to take advantage of economies of scale where unsatisfied demand exists as well as further investment in new and expanded conference, leisure, spa and health related amenities.

Continued on page 5.

Horwath Bastow Charleton is one of the leading Chartered Accounting and Business Advisory practices in Ireland and specialist consultants to the hospitality industry. Our dedicated Hospitality Business Unit comprises accountants and hospitality consultants with direct industry experience who bring a mix of functional and strategic skills to provide expert advice to our clients.

Horwath Bastow Charleton provides a complete range of services from feasibility studies and corporate finance for new development projects to sales and marketing planning and ongoing financial and operational reviews for existing and expanding hotel companies. Our affiliation with Horwath International, recognized as the leading experts in the international hospitality sector, provides access to specialist expertise and international best practice.

For further information contact: Aiden Murphy, Partner Telephone: 01 676 0951 email: aiden.murphy@hbc.ie Web: www.hbc.ie

Horwath Bastow Charleton's Annual Hotel Survey for the Republic of Ireland has reported the opening of 5,500 new hotel rooms during 2006. Overall, demand for hotel accommodation continues to increase year on year with hotel room occupancies increasing by 1% in 2006 to 69.8%, contributing to another year of robust revenue performance.

This increase in top line performance, however, was more than matched with higher operational costs which resulted in an overall decline in profitability for the sector. Comparing results from 2006 with 2001 highlights the impact of certain costs increasing at a faster rate than revenue.

The revenue and cost bases of the hotel sector have changed considerably over the last 10 years and we take the opportunity in this year’s survey to explore and review the nature and level of revenue and cost changes that have occurred over this period. Breakeven revenue requirements are high with hotel costs tending to be mainly fixed or semi fixed, leading to significantly lower profits if revenue fails to materialise.

Strong economic performance with GDP growing an average of over 4% per annum for the past five years and projected to continue for the foreseeable future has created a climate where year on year demand for hotel room nights continues to grow. The sector sold 3.6 million more guestnights between 2001 and 2006 with guestnight demand increasing from 14.6 million nights in 2001 to 18.2 million in 2006.

Similarly the continued success in attracting overseas visitors has generated more hotel room demand over recent years and is likely to continue.

In 2001, 6.1 million overseas visitors came to Ireland while in 2006 this figure increased to 7.7 million. Hotels have also become the most popular source of paid accommodation increasing from 14% of bednights in 2001 to 22% in 2006.

It is suggested that the advent of Open Skies could bring over one million additional US visitors to Ireland which would be a major boost for the hotel sector. The delivery of the Convention Centre Dublin will also be a boost with conference visitors expected to reach 567,000 by 2012. The changes in VAT for conference business will reduce the costs for delegates and increase Ireland’s competitiveness in this area. The legacy of the Ryder Cup has also created a target of bringing 180,000 golf tourists per annum to Ireland by 2010. Indeed sports related tourism is now a key tourist product and source of international business. Hotels are very often the hub for such tourism potential and government supported tourism marketing and product development can help achieve the policy of better economic regional distribution.

The motorways running out of Dublin to all areas are a key piece of national infrastructure that is vital for the South and West in the delivery of customers for holidays in these areas. The shortening of journey times will deliver more visitors and no doubt improve the trading potential of hotels which are allowed easier access from Dublin, the major urban centre and ports location.

The hotel sector in Ireland has come through a period in which a new supply of high quality hotels has benefited from investor equity boosted by tax savings and adjacent property development profits.

Innsight
Heathrow Route / Mary Britton, RIP / Incentive Tourism / Funding for Tourism / Recently Deceased / Launch of clare.ie

Pages 1-4
12th IHF Benevolent Fund Golf Classic / Ireland Brand / 1,700 Travel Agents / Annual Hotel Survey

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