Tuesday, 28th March 2006

IHF Comments on IBEC Report on Ireland-US Open Skies
€10M Ringfenced Marketing Fund Needed for Shannon Region

The Irish Hotels Federation (IHF) commenting today on the publication of IBEC’s report Embracing the Challenges and Opportunities of ‘Ireland–US Open Skies’, said it underlines calls already made by the Federation to ensure that the Shannon region is not disadvantaged by the Open Skies developments. The Federation reiterated the need for an effective strategic plan to be developed, supported by state funding, to sustain and increase the current level of direct transatlantic air traffic to Shannon airport. David Fitzgerald, Chairman of the IHF’s Shannon Branch, stated this strategy must include a specific ring fenced marketing provision of €10m per year for at least five years to target Shannon’s offering to the North American market.

Mr Fitzgerald stressed the need to prioritise infrastructural road improvements for the region with immediate action required on upgrading the Atlantic road corridor between Galway and Limerick, investing in the rail network and completing the Dublin to Limerick motorway as per the Government’s Transport 21 plan. This, he said, will assist facilitate movement of visitors around Ireland, quickly and easily. He also supports IBEC’s recommendation that an investment in product development for the region be made in the form of a major venue, which would assist attract visitors to the region.

"These necessary infrastructure developments are a critical factor to assist sustain tourism and business activity levels in the Shannon region by 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. Dedicated marketing efforts, specifically promoting the Shannon region to the US, improved regional transport infrastructure, and the provision of a world class entertainment venue for the region are 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,"Mr Fitzgerald added.

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. 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 finishing the Dublin – Limerick – Shannon motorway/dual-carriageway and the Atlantic road corridor.

  ENDS

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Winifred McCourt/Niamh Boylan Tel: 01 6760168
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