Monday 21st May 2007

€800 million Commitment to Tourism Welcomed
Competitiveness Remains a Pressing Issue, states IHF

The Irish Hotels Federation (IHF) today welcomed the commitment by Minister for Transport John O’Donoghue, TD, to ensuring Ireland remains a destination of choice for international and domestic tourists. Speaking at the launch of Fianna Fáil’s policy document on tourism in Killarney, Mr Power, Chief Executive, IHF, welcomed Fianna Fáil’s commitment to an €800 million tourism programme outlined in the National Development Plan and to establishing an innovation fund dedicated to promoting and supporting new tourism products within the Irish market.

Mr Power states, “The IHF welcomes Minister O’Donoghue’s commitment to maximising opportunities surrounding the Open Skies agreement, which could see Ireland witness some two million US visitors annually within the next seven years, representing an increase in revenue of €1billion to the Irish economy. Of particular significance is Fianna Fáil’s commitment to providing significant infrastructural development in the Mid West region and to providing marketing support to the Shannon region to assist in consolidating existing markets and developing new sources of business during a transitional period.”

Mr Power states, “Competitiveness will continue to be a pressing issue for Irish tourism throughout the life of the next Government. If implemented, Fianna Fáil’s manifesto on tourism, would make a substantial contribution towards restoring the competiveness of Ireland’s tourism offering and sustaining growth going forward.”

The IHF also welcomes the commitment, outlined in the manifesto, to examining the feasibility of developing a conference centre for the Shannon region and to ensuring Dublin airport’s Terminal 2 is opened in 2009.

“As Ireland’s largest indigenous industry, tourism needs to be protected to ensure it continues to be a substantial employer and contributor to the Irish economy. The IHF looks forward to working closely with the next Government and with industry bodies to ensure core issues affecting tourism’s competitiveness are addressed,” adds Mr Power.

The downward trend in Ireland’s competitiveness was highlighted recently by figures published in the IMD World Competitiveness Yearbook 2007, which takes account of a broad range of competitiveness factors and criteria from economic performance, labour market issues, and business legislation to productivity, education and infrastructure. According to 2007 figures(1), Ireland’s global competitiveness ranking has fallen nine places from a highpoint of 5th in 2000 to its current position of 14th. As such, the IHF believes that, given a favourable domestic cost base, Ireland’s tourism sector is ideally positioned to be a leader in restoring Ireland’s international competitiveness.

• IMD World Competitiveness Yearbook 2007, the world’s most renowned and comprehensive annual report on the competitiveness of nations.

The IHF states that Ireland’s tourist and hospitality industry is an enormous asset supporting approximately 250,000 people throughout every village, town and city in Ireland. Unlike multinational corporations, which can move facilities at short notice, tourism is a fundamental part of the fabric of Irish society and culture. Nationally, it generates over €6 billion in revenue – equivalent to 3.1% of GNP.

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Siobhan Molloy/Eoin Quinn Tel: 01 6760168
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Irish Tourism – Top Line Facts

• Tourism is Ireland’s largest indigenous sector in Ireland, outstripping agriculture as the lead employer.

• Tourism and hospitality supports approximately 250,000 jobs.

• €2.7 billion went to the Exchequer in direct and indirect taxes from tourism in 2006.

• Irish tourism generates over €6 billion in revenue. This is equal to 3.1% of Ireland’s Gross National Product.

• Hotels and guesthouses are the largest employer in the tourist industry.

• 1,250 hotels and guesthouses are located in every town and village in Ireland, employing over 57,000 people.

• Irish earnings from tourism have grown by over 39% in real terms over the past decade.

• The Government and exchequer are the main beneficiaries from tourism with 52 cent of every Euro spent by overseas tourists going to the exchequer.

• Every €1 spent on Government funded tourism marketing programmes results in a €60 return to the state.

• The number of overseas visitors to Ireland in 2006 was 7.4 million – an increase of 9% on 2005.