"Tourism As Vital As Inward Investment" - Cullen

Martin Cullen T.D., Minister for Arts, Sport and Tourism said last week that while 2008 had been a challenging time for the Irish tourism industry, particularly the second half of the year, the tourism sector is well positioned to face the demands in the year ahead.

Minister Cullen said it was; "a sign of the professionalism of Irish tourism that everybody recognises that the sector, like every other business, is affected by the economic cycle. We need to keep our focus on medium to long-term growth - while managing any short-term challenges."

"Tourism and the hospitality industry in general, has played an enormous part in Ireland's economic growth over the last decade," he continued, "and is arguably our biggest employer with latest estimates suggesting that 322,000 are employed in the industry. (Foreign direct investment companies in Ireland employ 136,000 people directly).

"Despite recent challenges, Ireland will have attracted approximately 8 million visitors in 2008 and the industry will generate almost €6.5 billion for the economy.

"Worldwide economic uncertainty is now a feature in each of our key tourism source markets in particular the US and Great Britain.

"This poses a challenge to sustaining overseas visitor growth and, in particular, revenue growth in the coming year.

"The goal for the Government, supported by the tourism agencies, the tourism industry and the Irish people in general is to meet these challenges

"As part of that challenge I have established a new Tourism Renewal Group comprising of representatives of the tourism trade, national and international experts and senior public servants, to ensure that the tourism industry strategy is focused for the short term and is well placed to benefit from the upturn.

"This Group has been tasked with reviewing and, where appropriate, renewing the current tourism strategy.

"Following its examination and consultation, which is to be completed in the first half of 2009, the Renewal Group will set out a framework for action for the remainder of the National Development Plan period."

Minister Cullen said: "Over the past number of years the tourism industry and the Government have invested heavily in the country's tourism product.

"In addition, the recent Budget secured a tourism services investment of €160 million for next year, including €47.5 million specifically for overseas tourism marketing."

Fáilte Ireland and Tourism Ireland - the main tourism State agencies - have developed detailed business plans for 2009 that include a range of programmes and initiatives to support the Irish tourism industry in addressing marketing, product development and training needs.

Tourism Ireland, which promotes the island overseas, is launching a new suite of promotional and advertising materials as part of its €47m marketing strategy. Fáilte Ireland will also invest close to €120m in tourism in 2009, with increased investment in enterprise supports, leisure tourism (including golf, heritage and culture), business tourism and festivals. Tourism attractions, products and infrastructure have already been approved capital funding support of €46 million over the past two years and further investments will be made in 2009 under Fáilte Ireland's tourism product investment strategy.

Minister Cullen added: "The Government has provided specific funding once again in 2009, to enable Tourism Ireland to continue to promote the 'Discover Ireland's Wonderful West' campaign in the US and Great Britain markets, in line with the commitment given in the 'Shannon Airport Catchment Area Economic and Tourism Development Plan.'"

Minister Cullen welcomed the announcement on 22 December by Aer Lingus to resume its Shannon Heathrow service from the end of March next.

Commenting on significant 2009 tourism events which will impact on Ireland, the Minister said: "In January the country can look forward to hosting again a stage of the World Rally Championship following on from the successful staging of the event in 2007.

"With the benefit of Government funding, Galway will also host the Volvo Ocean Race in May, while also in May the Irish Open Golf Tournament with a new title sponsor, 3, will take place.

"We will also experience a range of other events and festivals across many artforms - all of which attract visitors to our shores and benefit local communities."

"A key priority for me in 2009 will be to develop the potential of cultural tourism in partnership with the tourism agencies and the cultural institutions

"Cultural Tourism is growing internationally and has been achieving annual growth rates of 15%."

Minister Cullen concluded: "Construction work on the site of the new national conference centre at Spencer Dock - the Convention Centre Dublin (CCD) - is now well advanced and the project is on schedule to open in September 2010.

"Currently business tourism attracts almost 300,000 visitors and is worth some €475 million to the Irish economy annually.

"According to a number of independent estimates the centre when fully operational, is expected to generate additional foreign revenue earnings of at least €25m a year.

"It is worth noting that already a number of conferences have already been booked for what will be a state of the art facility.

"The CCD sales team recently announced the securing of two more major international conferences which will take place in 2012, bringing 5,000 international delegates to Dublin."