Thursday, 16th November 2006

INCREASED GOVERNMENT TOURISM FUNDS TO BUILD ON
US & BRITAIN MARKET RECOVERY

The allocation of €153.7 to Tourism Services in the Book of Estimates announced today by the Minister for Finance is welcomed by the Irish Hotels Federation (IHF). The allocation, which represents an increase of 9% on last year’s provision, signifies the Government’s commitment to developing the Irish tourism sector and acknowledges its role as a valuable contributor to Ireland’s economic success.  The IHF particularly welcomes the 12.5% increase to €45m in the tourism marketing fund allocated today to frontline tourism marketing activities. An increase in marketing funds was one of the measures called for in the IHF’s recent pre budget submission.

John Power, Chief Executive, IHF maintains that these funds, together with the private sector’s marketing campaigns, will assist build on the success achieved this year in revitalising Ireland’s key US and Britain tourism markets.

 “There has been a tangible recovery in our key markets with the number of US visitors increasing by 11% and a growth of 6.5% being achieved in our British visitors this year. This clearly shows the benefit of increased investment in marketing which the Government provided in 2006.  The additional funds for 2007 will further stimulate this growth pattern. The additional funding is also necessary to ensure that the new Fáilte Ireland Regional Tourism Development Boards are adequately funded to carry out their function of promoting tourism activities in all parts of the country particularly in the most important domestic markets,” says John Power.

The IHF acknowledged the success of Mr John O’Donoghue, T.D., Minister for Arts, Sport and Tourism in procuring this extra funding for Irish tourism promotion.  Mr Power stated that, as is the norm for investment in tourism marketing, the Government can expect to reap as much as a seven fold return on its extra investment.

“Looking forward, as the Government contemplates the measures to be included in the National Development Plan, it is essential that tourism marketing and tourism product development continue to be high priorities. This is particularly relevant as these joint activities deliver substantial economic benefits throughout the country in general and particularly in rural areas. This activity contributes up to €2.5 billion annually to the Government tax take,” he continues.

The IHF stresses that research in Ireland’s international markets shows a very high interest in visiting Ireland, but the challenge is to communicate a compelling reason to visit here in the immediate future. “An increased level of investment in marketing Ireland as a destination and in the development and communication of our tourism products and reasons to visit are crucial in influencing people to make the decision to come to Ireland.” 

“Individual tourism businesses will continue, as here to fore, to invest significant funds in the marketing and promotion of their own products. However, the promotion of Ireland as a destination has, to a large extent, to be done by the state agencies Fáilte Ireland and Tourism Ireland who need to be adequately funded.”

ENDS

FOR INFORMATION:
Siobhan Molloy/Avril Collins                Tel: (01) 676 01 68 or 086 817 50 66
Weber Shandwick