Tuesday 20th June 2006

IHF WELCOMES REPORT ON TOURISM COMPETITIVENESS

Urges Government and Industry to take on board key recommendations

The Irish Hotels Federation (IHF) has welcomed a report on competitiveness published today, stating that a number of the reports recommendations are particularly pertinent to sustaining and growing the success of Ireland's tourism sector into the future. Areas such as taxation, marketing and training are highlighted by John Power, Chief Executive, IHF, as priorities and he urged the Government and relevant tourism interests to take the report's recommendations in these areas on board. Higher productivity, more effective marketing and a more attractive taxation policy for business visitors, he said, would assist tackle many of the challenges currently faced by the industry. The report Ireland's Competitive Position in Tourism was published by the Irish Tourist Industry Confederation (ITIC).

Commenting on the report John Power states, "The tourism industry's growth has been good over the last 20 years, but behind the positive visitor numbers there are key areas where the industry's growth has been stymied. Business tourism is one such area where the potential for growth has not been achieved. This is due to a combination of factors, including infrastructure and taxation. While the infrastructure piece of the puzzle is now falling into place with a preferred tenderer selected to build the National Conference Centre, the VAT issue continues to negatively impact on Ireland's ability to command a serious percentage of the global conference and business tourism market. The Government must address this as a priority and allow the reclaim by businesses of VAT paid on hotel accommodation for delegates attending conferences and corporate meetings. This would help level the playing field with most EU countries including our nearest neighbours, the UK and Northern Ireland, when it comes to attracting business visitors."

Mr. Power also cited marketing funds and effective marketing strategies as key components of a successful tourism industry. Utilizing marketing funds cleverly to address areas such as regional spread of tourism will be crucial to the future of tourism in rural areas, he said.

"Whilst access around the country, be it by road, rail or air, is undoubtedly an area that requires attention, the industry too needs to play its part in making a compelling case for the attractions of rural Ireland to attract visitors back to the regions. Expediting the delivery of elements of the Government's Transport 21 plan, particularly the Atlantic Road Corridor and regional road upgrades, will provide the infrastructure to encourage ease of movement around the country.

"Having an adequate workforce in place, trained and skilled to a high degree is also crucial to the success of tourism, and the IHF supports ITIC's recommendations regarding increased investment in training. The Irish welcome is what we have become renowned for, and there is a great sense of pride in that amongst those who work in the industry. Greater investment in training is now required so that we continuously improve efficiency and productivity while maintaining the welcome and friendliness," continued Mr. Power.

He said that the importance to tourism of major events, such as the Ryder Cup, which has a world-wide TV audience of about 800 million people, cannot be overstated and everybody in tourism should seize the opportunity to reiterate the attractions of Ireland as a place to visit, not just for golf. "The support of the business community, all facets of the tourism industry, the Government and the Irish people should make the Ryder Cup 2006 an event to remember," John Power concluded.


For information:

Niamh Boylan / Eoin Quinn                 Tel: 01 6760168
Weber Shandwick FCC                      Mobile: 086 3809191 / 087 2332191