Monday, 6 th December 2004

HOTEL CHIEF APPLAUDS NEW USA CONNECTIONS

US Bilateral Air Agreement Renegotiation Now Urgent

The Irish Hotels Federation (IHF) today cited the new American Airlines routes to Ireland as a significant historic milestone that will assist grow the important US tourist market for Ireland and provide expanded air travel options for the estimated one million US visitors annually. The IHF stated that American Airlines first entry into the Irish market with its new Chicago-Dublin and Boston-Shannon air services from May 2005 would be a considerable catalyst to achieve ambitious targets planned for growth in the US market. The IHF stated that today’s announcement placed further priority on the speedy renegotiation of the current US Ireland air bilateral agreement which would remove the current constraints on US route access to and from Ireland and facilitate additional access into the country.

According to Richard Bourke, President, IHF the North American market is extremely valuable to Ireland as it yields high spending visitors who stay on average 10 nights in Ireland. A revised US Ireland air bilateral agreement could facilitate a doubling of the current direct air routes from the US that could increase by up to 25% per annum the number of US visitors to Ireland. This would translate into generating in excess of €200m extra revenue to the Irish economy each year. At present, 15% of all overseas visitors to Ireland are from the USA, and this could increase to nearer 20%, generating an extra one million visitors per annum within the next five years.

“Air access is a fundamental prerequisite when wishing to grow Ireland’s share of the important and lucrative US market, as US visitors spend almost twice that of the average overseas visitor to Ireland. The industry here looks forward to partnering with American Airlines on marketing efforts to encourage US visitors to choose our country as their holiday destination. This, combined with Ryanair now operating 15 routes out of Shannon gives further optimism for tourist interests in the Shannon and Mid West region.” says Richard Bourke.

The IHF added that this major announcement in tandem with Ryanair’s Shannon announcement last week places further emphasis on the Government’s need to give the immediate go ahead to the development of a competing second terminal at Dublin Airport.

“The importance of continually expanding direct air access routes into Ireland can not be over stated. It is the one of the biggest influences for people when choosing their holiday destination. As an island nation we need to encourage, attract and incentify airlines that expand their air routes to our country. Inbound tourism can only grow and flourish when there is frequency of access and the establishment of further overseas direct air access links. The second planned terminal at Dublin Airport would ease current capacity constrictions and create much needed competition, which will further encourage the opening up of new air routes into the country. Its development must be fastracked, if n ational tourism growth targets of increasing overseas visitors from 6 million to 10 million by 2012 is to be achieved,” concludes Mr Bourke.

FOR INFORMATION:

Siobhan Molloy/Gillian Martin Tel: 01 6760168 or 086 817 50 66

Weber Shandwick FCC