'Tourism could create more jobs than manufacturing'

Tax incentives and low-cost airlines could help the tourism sector create more new jobs than the manufacturing sector in Northern…

Tax incentives and low-cost airlines could help the tourism sector create more new jobs than the manufacturing sector in Northern Ireland over the next five years, according to a report published today.

The report by the Northern Ireland Hotels Federation says employment in the hospitality sector grew by twice the average rate in the North last year and at least 50 per cent faster than the entire service sector. Mr Howard Hastings, president of the Northern Ireland Hotels Federation, believes the sector could become the most effective short-term contributor to employment growth in the North.

But he added that no one was denying the sector also faced a major challenge in the current economic climate. "The local economy is undergoing a period of uncertainty as a result of the global slowdown and the events of September 11th. We have also had the problem of foot-and-mouth disease earlier this year and this had a major impact on the sector.

"At the same time, we never had the same reliance on the North American market as the Republic or Great Britain so we don't have that issue to contend with," Mr Hastings said. Because of this, he believes Northern Ireland could now be better placed than Britain or the Republic to reposition the North as a tourist destination to a new audience.

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"People are rethinking a lot of different things in the tourism sector, airlines are looking at new options, there are lots of deals around and, with this changing behaviour, perhaps we are better placed to look at different opportunities now," Mr Hastings said.

But he admits that the North's chances of attracting increased tourism numbers are heavily reliant on the political process at home. "We have lived with the current political situation for a very long time in this industry but obviously any improvement in the situation would increase our opportunities to grow the tourism sector.

"Political stability is a prerequisite for growth," he added.

In the report, the industry body argues that Northern Ireland needs a radical programme of marketing, innovation and training to attract and retain visitors.

Blueprint for Tourism also makes a number of recommendations for the future development of the industry.

It wants to see a global strategy developed to market Ireland as a single destination, while also creating a specific Northern Ireland brand.

The hotels federation also believes the Northern Ireland Assembly should develop and fund a strategy to improve road and rail access and woo more airline operators to provide low-cost services between Belfast and key European destinations.

Another issue it argues the Assembly should consider is the potential to get companies to invest in the sector by offering tax allowances for approved training, marketing and innovation programmes.

Francess McDonnell

Francess McDonnell

Francess McDonnell is a contributor to The Irish Times specialising in business