The largest employer group within the Irish tourism industry today welcomed the report of the Tourism Policy Review Group. The President of the Irish Hotels Federation (IHF) stated that while it is heartening that the report formally recognises and acknowledges the Irish tourist sector as a major contributor to the Irish economy, this economic importance must be factored into all Government departments and their decisions that could impact on the sector. Mr. Jim Murphy stated that the IHF, a key industry body within the sector, will play its part to assist achieve the challenging target to double overseas visitor spend in Ireland to €6 billion over the next 10 years.

According to Mr. Murphy, it is gratifying that the report confirms that Irish tourism is arguably the most successful sector of Irish owned enterprise since the foundation of the state. However, the report acknowledged the need for measures to enable the industry become more competitive in order that the country can benefit from the strong growth envisaged in international tourism.

The IHF confirmed it subscribes to the new vision for Irish tourism as a dynamic innovative, sustainable and highly regarded sector - offering overseas and domestic customers a positive and memorable experience beyond their expectations.

"We note the references to cost competitiveness. The IHF will continue to be active in addressing any element of complacency in the light of a competitiveness threat and acknowledges that Government has an equal responsibility to address this issue. It is heartening that the report outlines a range of fiscal and tax areas that need to be addressed from a wider context to assist in the national competitiveness issue," said Mr. Murphy.

"We particularly welcome the recommendation to strengthen the Government's commitment to creating and maintaining a positive budgetary and regulatory environment for tourism investment. The IHF will strongly endorse the calling for resolute action to maintain the recent progress of bringing inflation down to the Euro zone average. The IHF particularly welcomes the recommendation to avoid any further increases in excise duties or VAT in the budget of 2004 as well as the recommendation that indirect taxation levels on key tourism related consumables be brought down to the average Euro zone levels. In our recent pre-budget submission we requested the Minister for Finance to reduce, in the forthcoming budget, the VAT rate for hotels and restaurant charges to 10% in order to bring it more into line with the average EU rates."

The IHF maintains that an overarching recommendation, which will have enormous positive impact on the industry if implemented, calls for the improvement of the effectiveness of Government leadership and intervention in promoting tourism. This will include redefining the scope of tourism policy, the strengthening of the capacity of the role of the tourism division of the Department of Arts, Sport and Tourism and the participation of tourism in the National Competitiveness Council.

"It is essential that the recommendation to establish a consultation arrangement between the Department of Arts, Sport and Tourism and the Government departments and agencies whose activities most impact on tourism including the Department of Finance, Department of Transport, Department of Environment, Heritage and Local Government and the Department of Health and Children should immediately be put in place. This structure should ensure that policy decisions taken by other departments, which can impact on tourism, are done in the full knowledge of the likely effect they will have on what has now been clearly identified as Ireland's most important indigenous industry," continued Mr Murphy.

Mr. Murphy supported the report's strong recommendation to accelerate the completion of key elements of tourism related infrastructure including the national conference centre and the national sports stadium as well as the completion of the national roads programme. "The placing of these high on the priority list for the Government would contribute substantially to us giving an environment which will facilitate the delivery of the challenging targets set out in the report," he said.

In particular, the IHF endorses the recommendation for the immediate re-negotiation of the Ireland US bi-lateral air agreement, in advance of an EU - US aviation agreement, in order to remove the US gateways constraints and maximise the benefits to Ireland from additional air services and enhance visitor flow.

"The report calls for an additional competitive, fast-turn-around, terminal facility at Dublin airport to help develop additional air services. This and the implementation of a series of actions to improve the visitor reception facilities at Dublin airport are to be welcomed. As an island efficient low cost access is critical and we believe that this report has given adequate priority to this requirement. We would now call on the appropriate bodies to implement the recommendations as soon as possible."

On the recommendations in relation to marketing, the IHF particularly welcomes the recognition that marketing links Ireland's tourism product with potential overseas and domestic customers. The tourism sector is highly diverse with a predominance of small enterprises which lack individual scale, resources and knowledge to engage effectively in international marketing are required. Therefore partnership arrangements and State support are appropriate to marketing the tourism product. The acknowledgement that the State has a particular responsibility in supporting destination marketing to the island of Ireland in partnership with Northern Ireland Authorities and the representatives of the various segments of the tourist industry is closely in line with the IHF's vision as to how the Irish tourism product could be most effectively marketed overseas.

The reports acknowledgement of human resources as a critical component in Ireland's tourism is in line with the IHF's strategy and employment initiatives. "We particularly welcome the recommendation to establish a tourism careers promotion group comprising of key stakeholders, including students which would be designed to intensify and strengthen links with schools, communities and career guidance services. The IHF looks forward to participating in this group. This action, in addition to the recommendation to extend the remit and development responsibilities of Fáilte Ireland, the putting in place of a new human resources strategy to support professional career development and to position the industry as a highly attractive career choice, would be meaningful.

"Investment in people as a key asset of our industry is fundamental to assist the industry to achieve the growth being aspired to. The provision of excellence in induction programmes, in career training as well as providing a focus for leading and instigating the educational policies of State and the private sector are to be welcomed. These recommendations would be aimed at achieving more abundant and enhanced training within the industry and ultimately will be a major contribution to having a highly motivated, trained and efficient staff to meet the challenges set out elsewhere in the report," stated Jim Murphy.

The IHF concluded by congratulating the Minister for Arts, Sport and Tourism, Mr John O'Donoghue TD for his decisiveness and vision in setting up the Tourism Policy Review Group and the Chairman and members of the Group for the production of a comprehensive report, which should be the road-map in the next phase of developing Irish tourism. The IHF as the major representative body, both from the point of view of employment and capital invested in the Irish tourist sector, will play its part in ensuring that the key recommendations in this report are implemented.

Tourism Policy Review Group Report 2003 - New Horizons for Irish Tourism

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