Tuesday, 16th March 1999

MARKETING FUND FOR PROMOTING IRELAND CRITICAL
Says IHF Chief Executive

Mr. John Power, Chief Executive, Irish Hotels Federation (IHF) today spoke of his serious concern that there is no dedicated marketing fund in place for the promotion of Ireland abroad as a tourist destination, even though Ireland is facing increased international competition from other countries. Mr. Power maintains that there is a need for a ring-fenced fund of £20 million per annum under the joint control of industry and the state. If Ireland is to sustain tourism with its 125,000 employees and annual contribution to the exchequer of over £1.4bn, it is even more critical in view of the fact that EU tourism funds will be no longer available post 1999.

Addressing hoteliers in Donegal, Mr. Power stressed that plans to increase visitor numbers from 5.5 million to 8 million by the year 2006 are completely worthless unless a proper planned marketing strategy is in place. He also outlined the need for proper recognition and support to be given to the tourism sector as a valuable employer in every corner of Ireland.

"We can't afford to be complacent with our tourism success to-date. We are now faced with aggressive, emerging competition that is armed with large marketing funds and could switch our tourists to different destinations. The need to invest in marketing is crucial. The rationale makes even more sense when you consider that our sector is indigenous and employs young and old people in every corner of the country outside the normal high concentrated urban centres.

"It is not like multinational companies that close operations and move to lower wage cost economies resulting in large redundancies of Irish workers. We are good employers offering excellent conditions and public representatives should acknowledge this more often. It is here for the long haul and our hotels and guesthouses in particular have shown this very clearly, by the millions invested every year in premises," he said.

The IHF is the representative body for in excess of 800 hotels and guesthouses in Ireland. As an industry group the IHF and its members contribute to the Overseas Tourism Marketing Initiative, and are active players in promoting and carrying out initiatives to market Ireland abroad.

Mr. Power said piecemeal activity was not enough and likely reductions in EU funds post 1999 meant a grave situation faced the industry's success unless concrete plans and monies were assigned to replace them now. While commending the Minister for Tourism, Sport and Recreation's initiative last month to provide funding of £300,000 to promote small family B&Bs and Guesthouses, Mr. Power said it simply was not enough and that it excluded small hotels unfairly.

"The reason Minister McDaid announced this separate funding for B&Bs and Guesthouses was to nurture and promote the small family-run, quality establishments that showcase Irish friendliness and spontaneity. I agree that Ireland's tourism success is based on our 'friendliness and charm' famed world-wide, and we need to strive to retain and preserve this, but excluding small family run hotels from the initiative is ludicrous as they provide overseas visitors with the same high quality individual, friendly service. There should be no discrimination between small family business and the Minister should ensure that this is rectified," concluded Mr. Power.

FOR INFORMATION:
Siobhan Molloy/Ciara Sweeney, FCC.
Tel: (01) 676 01 68 or (086) 817 50 66