Thursday, 16th July 2009

Government Must Place Tourism to the Fore for Economic Recovery
Tourism must Retain Its Status as a Major Industry with the Enterprise Sector

Tourism must be at the forefront of Government policy as the country strives to come out of the current economic recession according to the Irish Hotels Federation (IHF). In response to today’s report by the Special Group on Public Service Numbers & Expenditure Programme, John Power, Chief Executive, IHF called on the Government to ensure that the tourism sector retains its status as a major industry within the enterprise sector and that current levels of marketing spend are maintained.

“We fundamentally disagree with the proposed reductions in tourism marketing spend outlined in the report. Effective marketing is key to the future success of Irish tourism. In addressing the challenges that lie ahead, greater funding is essential rather than reductions. Marketing expenditure must be viewed as an investment which the Government continually recoups multi-fold each year for the exchequer. Any reduction in this funding will result in a corresponding decline in industry performance and exchequer receipts. ”

In critically examining the functions of the Department of Arts, Sport and Tourism as suggested in the report, the IHF states that it is essential that tourism is not downgraded. It states that tourism’s status must be augmented to ensure it takes centre stage as a key driver of economic recovery. Mr Power states, “Last year, tourism earned €4.8 billion in foreign exchange earnings and represented 4% if GNP employing some 200,000 people. Given the current difficult economic conditions, we need tourism to be supported and expanded not eroded.”

“The significant tourism successes achieved over the last decade were the result of strategic planning and coordinated efforts by industry and Government bodies. We understand the mammoth task at hand for the Government to curtail spending while seeking to boost economic activity; however, marketing spend should not be sacrificed as it has been proven to generate a direct and immediate return to the exchequer through increased tourism business. In the past, every €1 spent on tourism marketing yielded €15 in tourism revenue,“ states Mr Power.

ENDS

FOR INFORMATION:

Siobhan Molloy / Eoin Quinn - Tel: 01 6760168

Weber Shandwick - Mobile: 086 817 5066 / 087 233 2191

*The Irish Hotels Federation represents almost 1,000 hotels and guesthouses throughout the country, which in turn employ 58,500 people.