CSO figures belie 'crisis' in Ireland's tourism industry

The level of debate about Ireland's tourism industry over recent weeks is very welcome

The level of debate about Ireland's tourism industry over recent weeks is very welcome. It underlines, once again, the continuing importance of the sector to our economy, particularly in rural areas, writes Fáilte Ireland chief Shaun Quinn.

A recurring theme of this debate has been that the tourism industry is somehow "in crisis". Yesterday's CSO figures show visitor numbers 4 per cent higher than the first six months of 2004 - itself a record year. The increase in visitors from continental Europe is especially welcome, given their importance in boosting tourism across our regions. Cautious optimism best captures views of the results for this season.

However, national visitor numbers can only tell a limited story. They do not tell us how much money our visitors are spending, how long they are staying, and crucially, where they are going.

A truer description would be that most tourism businesses are performing reasonably well in a difficult environment - but working very hard to do so. To an extent, how the season is going depends on whom you ask and where in Ireland they operate .

READ MORE

Since 2000, every tourism season has been atypical. From foot-and-mouth disease, 9/11, Sars, to the bombings in London this summer, every year has presented its own challenges. But global tourism is a growth market, driven by changing demographics and higher disposable income. It is a dynamic sector that offers the potential of a profitable alternative to agriculture and traditional manufacturing particularly in rural areas - so long as we have the facilities and activities to attract and satisfy visitors.

We have never had a better tourism product than we do today. Our accommodation is generally of a very high standard and good value.

On the sporting front, Ireland has been voted the best international golf destination. Between 2000 and 2004, Fáilte Ireland's analysis shows that an additional €2.2 billion has been invested in accommodation and visitor attractions. It is now a priority that we maximise the return on this investment.

Ireland achieves visitor satisfaction ratings of which any commercial enterprise would be proud. Some 97 per cent of our visitors say they would recommend a holiday in Ireland to a friend. Our "Visitor Attitudes Survey" shows that while tourists enjoy a positive and memorable experience in Ireland, they do find the cost of living here to be higher than they would like.

Interestingly, this does not relate to factors directly related to tourism - visitors are satisfied with value for money provided by travel to Ireland, car hire and accommodation for example. However, eating and drinking out and other living expenses are considered higher.

However, the phrase "Rip-Off Ireland" is becoming a dangerous cliche. It is too sweeping to be meaningful, too superficial to inform debate, and too general to point to solutions. A "rip-off" is a perception of lack of fair value in the mind of the consumer. Visitors to Ireland do not consider themselves "ripped-off" by tourism - if they did, they would hardly encourage their friends to visit in the future.

Notwithstanding this, Ireland is not positioned to compete internationally as a cheap tourist destination. Rather, our aim must remain the delivery of a high-quality tourism experience at a competitive price. Realising this aim means that the industry and the surrounding business environment must remain tightly focused on service quality.

Despite its relative maturity, tourism is experiencing some significant changes. Some are as a result of changing consumer behaviour - more frequent, shorter holidays, to cities, booked on the internet, more Irish people taking holidays at home. Others are to do with the expansion in accommodation capacity in Ireland, with almost one million hotel "bed nights" added in 2004 and the ongoing challenge of running small labour-intensive businesses in a higher-cost economy.

The combined impact of these changes is that the increase in visitor numbers has not been shared across the country. Dublin and the east coast welcome more tourists than ever; while some regions are actually experiencing a fall-off.

This has been offset by the upsurge in Irish people holidaying at home - up 25 per cent since 2000.

Air access direct to the regions is the key, and this year alone some 30,000 seats per week have been added over the summer. We are also working towards greater cohesion within tourism structures, better aligning regional and national policy to turn around the decline in visitors to these areas.

The case for an integrated approach to developing an economically and environmentally sustainable tourism industry is clear. Success does not lie in hotel rooms alone. Developments at local level, such as opening up and developing walking routes, are in their way just as important as a second terminal at Dublin airport.

The adverse impact that drift netting can have on Ireland as an angling destination can only be addressed at national level, with all parties "thinking tourism". The Government's Tourism Policy Review Group has championed the cause of tourism across all sectors, and this must be drilled down to local level.

In many ways, Ireland's recent economic success has presented the tourism sector with a number of challenges. Meeting these will require everyone - planners, businesses, transport operators, policy-makers and local authorities - to work together to build a vibrant, sustainable and regionally balanced tourism industry. Tourism has demonstrated a certain resilience over the years and, given a fair wind, will continue to represent a key strand in a growing Irish economy.

Shaun Quinn is chief executive of Fáilte Ireland