Introduction from Tourism Ireland to the Joint Committee on Transport, Tourism and Sport Wednesday, 9 th November, 2016
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1 Introduction from Tourism Ireland to the Joint Committee on Transport, Tourism and Sport Wednesday, 9 th November, 2016 Introduction Chairman, members, thank you for the opportunity to address you today. My name is Niall Gibbons and I am Chief Executive at Tourism Ireland. As members will know, Tourism Ireland is the organisation responsible for marketing the island of Ireland overseas. It was established as one of the six areas of co-operation under the framework of the Belfast Agreement of Good Friday The principal objectives of the company are to increase tourism to the island of Ireland and to support Northern Ireland to realise its tourism potential. Tourism Ireland operates in 23 markets overseas and, in delivering its marketing campaigns, the organisation works closely with Fáilte Ireland and Tourism Northern Ireland to ensure that its promotional themes overseas align with their development priorities for the industry at home an integrated, collaborative approach. I would like to acknowledge the presence of my colleagues Shaun Quinn of Fáilte Ireland and Tim Fenn of the Irish Hotels Federation and the support they have given Tourism Ireland. 1
2 I propose to give you a very brief overview in relation to overseas tourism to Ireland, and to talk about some of the factors that have arisen as a result of the recent BREXIT referendum. Overseas visitor performance The island of Ireland has seen five consecutive years of growth in overseas tourism was a record-breaking year when we welcomed 9.5 million overseas visitors to the island of Ireland, delivering revenue of almost 5 billion. And growth has continued into The latest CSO figures indicate that we have had the best ever January to September period with overseas visitors growing by +12 per cent when compared with the first nine months of Visitor numbers to Northern Ireland grew by +8 per cent in the first quarter of 2016, and industry feedback points to growth having continued through the summer. We have seen exceptional results from North America, Britain, and Mainland Europe this year; with important markets like Italy, Spain, France and Benelux all recording really good growth. Britain is the largest single market for tourism to Ireland, delivering 42% of all overseas visitors [and around 24% of total revenue]. Other priority markets in terms of visitor numbers and revenue are North America, Germany and France. 2
3 Factors influencing overseas tourism growth In marketing the island of Ireland overseas, a number of important factors work in our favour: Firstly, policy interventions by the Government such as the zero rating of the air travel tax and the reduction in VAT on tourism services, from 13.5% to 9% have undoubtedly facilitated the introduction of new air routes, enhanced competitiveness and helped to facilitate the kind of growth in overseas tourism we see today. Second, continued investment by the Government and Northern Ireland Executive in tourism experiences like the Wild Atlantic Way, Ireland s Ancient East, Dublin, Titanic, the National Trust and the Giant s Causeway Visitor Centre, is helping to capture the imaginations of potential visitors across the world and keep the island of Ireland in the international spotlight. Tourism Ireland has also invested in developing a significant digital footprint in recent years and, increasingly, leverages its strength in digital and social media in all markets. This has yielded considerable marketing efficiencies and created opportunities with new audiences worldwide. Tourism Ireland s global campaigns reach an audience of up to 700 million prospective visitors worldwide each year, through traditional and digital marketing. 3
4 Third, interest in visiting the island has remained high among potential visitors in our top source markets. And, perceptions of Northern Ireland as a place to visit for holidays have improved over time. While interest in Ireland is currently strong, this cannot be taken for granted in the highly competitive global tourism and travel industry where over 200 destinations compete for business. Brexit The recent BREXIT referendum has undoubtedly posed challenges in the short to medium term and Tourism Ireland has been actively monitoring the implications for the tourism industry on the island of Ireland. Firstly, in terms of the British market, the main factors that arise are in relation to consumer confidence and competitiveness. General economic uncertainty impacts on consumer confidence which in turn has consequences on demand for travel. According to Oxford Economics, the number of British people travelling abroad is forecast to decline by -2.4 per cent in This will undoubtedly have consequences for the island of Ireland. Since the referendum, there has been a depreciation in sterling of -18 per cent against the euro, which has made the Eurozone as a whole more uncompetitive. Given our dependence on Britain as a source market, the island of Ireland is likely to be more impacted than other Eurozone countries. Also, in the context of the depreciation of sterling against the dollar, the UK becomes a very competitive destination for 2017, for potential visitors from the US. 4
5 This makes our industry s value for money message more important than ever in our promotions. Second, the Common Travel Area between Ireland and the UK is a key priority for tourism. To give just one example, Northern Ireland has seen strong growth in overseas tourism in the last number of years, with 950 international tour operators now programming the island of Ireland. 75 per cent of visitors from North America to Northern Ireland and 68 per cent of visitors from Europe arrive via the Republic of Ireland. So, the future of the Common Travel Area is therefore vital for our business. Third, the British Irish Visa Scheme and the Short Stay Visa Waiver Programme have provided a significant boost to our marketing efforts in China, India and the UAE. Tourism Ireland and VisitBritain signed a Memorandum of Understanding in April 2014, with the aim of working more closely together particularly in long-haul markets outside of Europe and North America to promote the island of Ireland and Great Britain as destinations to be visited as part of a single holiday. Over the past two years, the two organisations have worked together to highlight the British Irish Visa Scheme in China and India. China is a key example of where the island of Ireland has seen significant growth in visitor numbers since the advent of the British Irish Visa Scheme. In fact, we expect to welcome around 50,000 Chinese visitors in 2016 actually hitting the growth target we had set for We welcome the announcement, just last month, that the Short Stay Visa Waiver Programme is to be extended for a further five years to October The ongoing status of the British Irish Visa Scheme requires clarification. 5
6 Looking ahead to 2017, Oxford Economics has revised its tourism growth forecasts for the island of Ireland downwards for the fourth time since the Brexit referendum. It has identified Ireland and Northern Ireland as the destinations most exposed to and impacted by Brexit. This is a situation that Tourism Ireland, along with Fáilte Ireland and our industry partners, will continue to keep under review. Diversification away from GB as a key source market While Britain will continue to be an important market, Tourism Ireland has, in recent years, shifted its focus towards Mainland Europe and North America as our most important sources of holiday visitors and revenue. This diversification approach will continue as a strategic priority of our Corporate Plan for 2017 to And, looking at growing our share of visitors from further afield, a review of new and developing markets is currently under way, led by Tourism Ireland, working closely with the Department of Transport, Tourism and Sport, the Department of Foreign Affairs and Trade, Fáilte Ireland and representatives of the Tourism industry. The strategy will focus on marketing and also on the training and up-skilling that is required for the tourism industry here to meet the needs of visitors from these markets. Chairman, I have just arrived back from World Travel Market in London, the world s the largest travel fair, where Tourism Ireland and 70 tourism businesses from across the island promoted. World Travel Market attracts more than 50,000 international travel professionals, with 180 destinations all vying for business. The environment there points to a very competitive marketplace. I want to assure you that Tourism Ireland 6
7 and the Irish tourism industry is already out there fighting for business for 2017, which will be a challenging year for all of us. Thank you for the opportunity to present to you today, I ll be happy to discuss these matters in further detail in the question and answer session. Thank you. ENDS 7
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