Sunday, 2nd March 2008

SAFEGUARDING IRISH TOURISM AT THE FOREFRONT OF AGENDA
IHF Annual Report reveals

The total value of tourism revenues increased to €6.5 billion in 2007 compared to €5.9 billion in 2006, making tourism Ireland’s most significant indigenous industry accounting for 4% of GNP. Speaking today at the launch of the IHF’s 2007 Annual Report and Review at its 70th Annual Conference in Kilkenny, John Power, Chief Executive of the IHF commented that although headline figures for 2007 have remained strong with a total of 7.7 million visitors, economic uncertainty and a weakening in consumer confidence will produce significant challenges for tourism in 2008 and serve to reinforce the importance of implementing more targeted and integrated marketing strategies for the year ahead. While Government policy recognises tourism as a vital constituent within the Irish economy, continuous support and vigilance will be essential.

According to Mr Power, the 20% increase achieved in domestic tourism expenditure represents a significant boost to regional tourism; however, while the increase is greatly welcomed there is a danger that the regions are overly reliant on domestic tourism.  Over six out of every ten bed nights sold in Ireland last year were to people from the Republic of Ireland.

“This leaves the sector vulnerable in a major slowdown in the Irish economy and highlights the need for greater efforts to diversify the geographic client base.  Furthermore, costs for the tourism industry have significantly increased in 2007 and have not been passed on but rather absorbed to maintain competitiveness which the Consumer Price Index reflects quite clearly. This situation makes it more pertinent than ever to have effective marketing strategies increasing visitor diversification and spend and requires a co-ordinated effort from all tourism agencies with tangible results,” says Mr Power.

         ‘‘We are committed to working closely with tourism bodies to ensure ambitious growth targets for overseas visitors are met and that infrastructural issues affecting the distribution of tourism throughout the regions are resolved. Visitor numbers reached 7.7 million in 2007, representing the sixth consecutive year of growth and this is certainly a figure to be commended; however, the sustained development of tourism across all regions remains one of the most pressing issues facing the industry,” states Mr Power.

Mr Power welcomes the allocation of €800 million to tourism marketing, training and product development under the National Development Plan.

        “It is gratifying that the National Development Plan provides for an Exchequer investment of €800 million over the next seven years. Of particular note is the NDP’s focus on improving regional transport infrastructure. This will result in greater access to the regions and will assist in achieving sustainable growth in regional tourism.”

The IHF estimates that the visitor arrival figures in 2007 were 7.7 million – an increase of 5% on 2006. The best market performer in 2007 was once again Mainland Europe which at 15% maintained its double digit growth progress in recent years. There was small growth from North America and New and Developing Markets with a slight reduction in the British market. A major review of the Ireland Brand was carried out by Tourism Ireland in 2007, the first since the brand’s inception in 1995. The all-island tourism brand has been used in all overseas marketing communications since 1995. It was further refined in 2001 and 2004 to reflect the changing nature of the island. The review indicated that the island of Ireland brand remains very attractive to visitors and that the holiday experience here, generally, meets or exceeds their expectations. However, it also confirmed that, in this highly competitive global marketplace, the Ireland brand will need to differentiate itself even more strongly if we are to deliver the required growth in overseas revenue and visitor numbers.

          “While Government targets to increase the overall visitor arrival numbers to ten million by 2012 are to be commended, it is vital that we pay heed to the length of time visitors are spending in our country and the knock on effects the trend for shorter breaks is having on total tourism revenue. As an industry we must remain focused on creating and delivering complete quality experiences that meet the high expectations of visitors. With intense competition from other international destinations, we must not lose sight of the key qualities that make our tourism product strong. This will require a clear vision and direction in developing Irish tourism and a commitment by state bodies and industry leaders to invest in innovative and creative offerings while safeguarding the traditional strengths of Ireland’s tourism product,” states Mr Power.

Mr Power notes that the Federation’s Be Our Guest guide continued to be the leading and most comprehensive guide to accommodation in Ireland with some 350,000 copies of the 2008 guide distributed in Ireland and overseas. He also noted the continued growth of Irelandhotels.com with the volume of bookings on the site increasing by 32% in 2007 to over €5.3 million.

There are now 904 hotels with over 58,498 bedrooms and 355 guesthouses with over 4,222 bedrooms in Ireland. The number of people employed in hotels and guesthouses in 2007 has increased to 58,500, making IHF members the largest employers in the tourism sector.

Overseas Visitor Numbers 2007

ENDS

FOR INFORMATION:

Siobhan Molloy/Eoin Quinn               
Weber Shandwick                              086 8175 066 / 087 2332 191

HOTEL & GUESTHOUSE STATISTICS 2007
70th IHF ANNUAL CONFERENCE
Sunday 2nd - Tuesday 4th March 2008

• 7.8 million overseas visitors to Ireland in 2007, a 5% increase on 2006.

• Tourism accounts for 4% GNP in 2007, compared with 3.1% in 2006

• €4.9 billion foreign exchange earnings in 2007 compared with €4.66 billion foreign exchange earnings in 2006.

• Total tourism revenue in 2007 grew to approximately €6.5 billion compared to €5.9 billion in 2006.

• Almost 60,000 people employed in the hotel and guesthouse sector – largest employer in the tourism sector.

• 904 hotels with over 58,498 rooms (873 hotels with 52,600 rooms in 2006).

• 355 guesthouses with over 4,222 rooms (383 guest houses in 2006).

• Total of over 62,000 hotel and guesthouse bedrooms in Ireland. 

• In 2007, there were over 24,000 bookings through irelandhotels.com, the value of which was over  €5.3 million - an increase of 32% on 2006