Wednesday, 6th June 2007

TOURISM MELTDOWN IN SHANNON PENDING
Govt Must Release Funds Promised – or Jobs Will Go

The Irish Hotels Federation (IHF) Shannon Branch today stated it has held crisis talks with the Shannon Regional Tourism Authority and other key tourism interests in a bid to circumvent the serious issues facing tourism in the region. It stated that there are grave effects on tourism being witnessed resulting from the cessation of key routes and airlines from the region in tandem with the impending departure of key executives at Shannon airport. The IHF is calling on the Government to immediately make available the €53m plan promised to Shannon under the new Open Skies Agreement to assist promote the region and negate the sharp drop being witnessed in tourism.

The IHF stated that the decision of American Airlines and Air Canada to depart from Shannon and fly to Dublin Airport instead has resulted in the loss of some €600,000 in hotel and guesthouse bookings in the Shannon region. This is compounded by the imminent departure of key executives at Shannon Airport who were directly responsible for marketing the facility to overseas markets. Thus the region is on the cusp of a crisis in the absence of fund for marketing promised under the Open Skies Agreement.

Chairman of the IHF Shannon Branch, Michael Vaughan, stated the situation poses an immediate threat to sustainable tourism in the region and must be addressed.

 “Our members are more than concerned about this loss of business and are calling for immediate Government intervention, otherwise hoteliers in the Shannon region will face property closures and job losses this winter. Already, premier hotels in the region have experienced a drop in North American incentive travellers. This high spending business segment cites the uncertainty of access into the region as a cause for dropping the area from their travel plans,” he said.

According to Mr. Vaughan the IHF has had a key input into a strategic marketing plan that if implemented quickly, can reverse the situation in Shannon within a matter of months. 

“We have a well co-ordinated and workable marketing plan to mitigate the open skies threat to the region. We are equally confident that the Shannon Regional Tourism Authority is the correct vehicle to implement this plan and they have our full support.  It is imperative that the Government intervene immediately and release the €53m allocated to Shannon so that this plan can be rolled out,” stated Mr Vaughan.

To facilitate these measures, the IHF is calling for a ring-fenced marketing budget of €5m to be allocated to Shannon Development for the immediate marketing of the Shannon gateway in the Northern American market.

ENDS

For Further Information:

Avril Collins/Eoin Quinn                      Tel: (01) 6760168 or 086 8175066
Weber Shandwick 

Or

Michael Vaughan,                                Tel: 087 2655555
Chairman IHF Shannon Branch