Sunday, 27th November 2005

€10M RINGFENCED MARKETING FUND NEEDED FOR SHANNON

Major Commitment Necessary to face Future Challenges

The Irish Hotels Federation (IHF) today stated that, in anticipation of the renegotiated US-Ireland air bilateral, an effective strategic plan with state funding must be developed and implemented by government to sustain and increase the current level of direct transatlantic air traffic to Shannon airport. This strategy should include a specific ring fenced marketing provision of at least €10m per year for at least five years to primarily target Shannon’s offering to the North America market. The IHF stresses the need to prioritise infrastructural road improvements for the region with immediate action required on upgrading the quality of the Galway to Limerick road, improving the rail network and completion of the Dublin to Limerick motorway as per the Government’s Transport 21 plan. It adds that these must have a deadline for completion by the end of 2008 when the new US-Ireland air agreement comes fully into effect.

These necessary infrastructure developments are a critical factor to assist sustain tourism and business activity levels in the Shannon region through maximising rail and car travel potential. The IHF firmly believes that this will assist generate business and economic growth in the region and safeguard the thousands of jobs and industries operating along the western seaboard. It maintains that dedicated marketing efforts specifically promoting the Shannon region to the US and improved regional transport infrastructure are the two vital elements to ensure that all commercial interests in the Shannon region are given the opportunity to adjust to the air transport environment following the proposed transition period in 2008.

According to the IHF, there is serious concern at the potential detrimental impact the new air agreement would have on the growth viability of economic and tourism sectors in the region in the absence of concrete proposals and plans to support transatlantic traffic and ease of intercity travel.

The new Shannon Airport Authority is to be commended on the manner in which, so quickly after its formation, it implemented such positive initiatives to expand the air services from the airport to Britain and Europe where passenger numbers in the first nine months of 2005 have dramatically increased. This demonstrates its ability to make substantive progress when supports and resources are available. It is now essential that the authority is provided with the necessary funding and marketing resources to aggressively seek growth in the transatlantic market.

Specific measures that the IHF is calling for to positively address the challenges ahead for the Shannon Region include:

• A specific Shannon region marketing fund to be allocated, which would support the emerging ‘Ireland-West’ tourism brand abroad and help to market air routes into the region;
• Aer Lingus to give increased exposure to promoting US-Shannon fares in the US;
• A focused marketing campaign in all key overseas destinations that have direct flights into Shannon;
• Urgent acceleration of Transport 21 elements impacting on the Shannon region to include road upgrade programme to include finishing the Dublin – Limerick – Shannon motorway/dual-carriageway and the Atlantic road corridor.

Richard Bourke, President of the IHF stated that the proposed change in the status of Shannon airport is now less than a year away and it is essential that a strategic plan for region is announced and resourced as a matter of urgency in order that the challenges posed can be turned into a sustainable advantage for the region. “It will make sound Government investment sense as there is a proven seven fold return on its investment in tourism marketing. The emerging ‘Ireland-West’ tourism brand is a very welcome development to boost tourism to the Shannon region and western seaboard. It’s great to see the state agencies and the tourist industry coming together to promote this strong brand which has the ability to influence more people to visit the region. To gain maximum impact this promotion should receive substantial additional funding,” he said.

According to David Fitzgerald, Chairman, IHF Shannon branch and local businessman there is alarm in the region at the uncertain wide ranging consequences the new air agreement may bring. “The region as a whole and the important industrial western seaboard is heavily reliant on US investment and tourism. Direct and ease of access is fundamental to sustaining this corporate and tourism business. Whilst air access routes are the lifeline to ensure visitors are attracted to the Shannon region, road and rail infrastructure to and from Shannon region is vital too and must be enhanced as a priority to ensure people can get to and move around the region quickly and easily. We now need now clear Government intervention in order that the needs of the Shannon region are prioritised and a definite implementation date is set for proposed actions.”

ENDS

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