Irish Tourism Industry Awards 2015

Congratulations to the Irish Tourist Industry Confederation (ITIC)
for launching a new and innovative awards programme.

Now we all know, that there is a whole 'awards industry' out there. Indeed many are created with the sole purpose of promoting awareness of a sponsor's brand, with the result that consumers are increasingly sceptical about their value.
However, these awards are different. They aim to;

• provide better visitor experiences
• provide a benchmark for best practice
• encourage the continuous raising of standards
• publicly recognise and reward excellence and
• emphasise the value of the tourism sector.

They also reflect the fact that Irish tourism is maturing. They rightly focus on critical themes such as innovation, environment, design, adventure, food, culture and visitor experience. The awards also acknowledge the key role local authorities play in destination development.

The award categories include;

• Best international access initiative
• Best leisure tourism innovation
• Best business tourism innovation
• Best environmental tourism innovation
• Best local authority tourism innovation
• Best festival/event experience
• Best urban experience
• Best international marketing initiative
• Best design in tourism.

The finalists for the inaugural event are all worth reviewing, and it's great to see less well-known tourism enterprises getting a national platform.

It is likely that further award categories will be added in future years. Personally, I'd like to see the inclusion of categories such as;

• Best visitor retail experience
• Best research innovation
• Best digital experience and
• Best educational experience

NEW TOURISM POLICY IS A MISSED OPPORTUNITY

Whilst I welcome the publication of the Government’s new tourism policy
‘People, Place and Policy – Growing Tourism to 2025’, I believe it lacks the vision and ambition required to fully capitalise on the sector's potential for growth over the coming decade and beyond.

With our key actions focused on overseas marketing, product development and skills-based training (as per the tourism policy review of 2003), and our governance model unchanged, I see no evidence of a vision bold and brave enough to realise the aspiration of participants at the Global Irish Economic Forum 2011, for Ireland to be “the best small country in the world in which to do tourism”.

The draft policy statement sets itself the goal of increasing revenue from overseas visitors, excluding carrier receipts, from €3.3 billion to €5 billion by 2025. It also aims to increase employment in the sector by 50,000 from the current estimated levels of 200,000. 

When compared with the targets set out in the tourism policy review of 2003, what strikes me is just how conservative our aims and ambitions have become. Back then, our goal was to increase revenue from overseas visitors, excluding carrier receipts, from €3.2 billion to €6 billion by 2012. Additionally, Fáilte Ireland estimated that the sector employed 257,000 back in 2007.

Meanwhile, according to the World Tourism Organisation, international tourism receipts grew from €513 billion in 2002 to €873 billion in 2013. Over the same period, revenues from overseas tourism to Ireland have been largely flat - €3.2 billion in 2002, €3.9 billion in 2007, €2.9 billion in 2011 and  €3.3 billion in 2013. 

Why are our hopes and aspirations for the sector now so muted?  The global economic recession makes an easy answer.  Looking a little deeper, I believe that the leadership within the sector has become ever more conservative and, coupled with the distinct lack of vision evident in the draft policy statement; we are effectively standing in the way of our own success.      

We only need to take a look at our own agri-food sector for an example of a positive and ambitious approach to policy development. In its vision of smart, green, growth, Food Harvest 2020 recognises that ‘the most compelling picture that emerges in the decade ahead is one of opportunity’.  

What we need now is an ambitious vision for Irish tourism, backed by strong public and private sector leadership, informed by up to date knowledge and research, and supported by a cohesive framework within which all the actors pull together.

The OECD in its “National Tourism Policy Review of Ireland” (2004) identified that ‘substantive change is required of Government Policy, in the delivery of that policy by the Tourism State Agencies, in the work of industry representative bodies and, most importantly, at the level of individual enterprises throughout the industry’.

In a nutshell - a change in the governance model of Irish tourism is the ONE policy action that has the capacity to radically transform the prospects for Irish tourism.

And, here we are in 2015 with a tourism policy that does nothing to address the very obvious need to improve the co-ordination of tourism policy - across national and local government, state agencies and industry. It is clear that the status quo will be maintained even though it is a major cause of fragmentation in service provision across the sector.

The policy makes clear that the provision of future state supports for investment in tourism shall be evidence based. However, the evidence base in Irish tourism is extremely weak, as the Report of the Tourism Renewal Group (2009) pointed out. It highlighted that, as an integral part of the knowledge economy, competing in the global marketplace, tourism must have a strong knowledge base.

It also emphasised, that to maintain competitiveness, the industry needs product, management and marketing innovation, supported by a world-class research, education and training capacity in third‐level institutions. It pointed to the absence of designated State funding for research in tourism and contrasted this to an annual research budget for agriculture in excess of €100 million.    

Meanwhile, the UNWTO (2013) has forecast that the number of international tourist arrivals will grow from just over 1 billion in 2012 to 1.8 billion by 2030. It is in this context that I believe tourism has the potential to become a ‘game-changer’ for Ireland in terms of jobs, foreign earnings and tax revenues.

However, the new tourism policy is bereft of new ideas, inspiration, and ambition. It offers us simply more of the same in terms of actions, safe targets, and conservative thinking.  In this increasingly crowded and competitive marketplace, more of the same will simply not do.

GUIDE ON EU FUNDING 2014-2020 FOR THE TOURISM SECTOR

The European Commission recently published a guide on EU funding 2014-2020 for the tourism sector.
The guide explains the type of tourism-related actions eligible for funding, the type and level of funding available, who can apply and how to apply.
As tourism has no direct budget line in the EU's multi-annual annual financial framework 2014-2020, the publication of this guide is most welcome.

BRINGING PEOPLE WITH THE RIGHT SKILLS TO THE TOURISM SECTOR

I was invited by the Irish Regions Office in Brussels last year to participate in a European Commission project aimed at assisting the integration in EURES, the European job mobility portal, of dedicated sub-sectors for tourism.
This project is part of the Commissions's rolling plan of tourism actions, following the publication of its political framework for tourism in June 2010.
Ernst & Young, Bologna was the lead partner in the project, which was co-ordinated by DG Enterprise and Industry and DG Employment, Social Affairs and Inclusion.
The overall purpose was to develop a skills vocabulary relevant to tourism to facilitate a closer matching of skills/qualifications with jobs. Three emerging sub-sectors for tourism were reviewed, namely;

• Adventure Tourism (aerial, water and land adventure)
• Blue Tourism (cruise, yachting and coastal tourism) and 
• Cultural Tourism (heritage, cultural events and spiritual tourism) 

Following participation at a number of seminars and development of working documents, a final conference was held in Brussels to share the project results with institutional stakeholders including the International Labour Organisation and the OECD.
At this event, the mismatch between workers' competencies and that required by their job was a recurring theme.
As a guest speaker, I outlined the role that education and training can play in tackling skills mismatch.
It is intended that the final deliverables from the project will be included in the further development of the European Skills Passport, an electronic portfolio of an individual's skills and qualifications, which will help to match workers skills to jobs across the EU.

NO GOVERNMENT FUNDING FOR NATIONAL DIASPORA CENTRE BUT €12.5 BILLION FOR THE AGRICULTURE SECTOR

It is estimated that some 70 million people have ties to Ireland. Despite this, it is remarkable that we have no one focal point where entertainment, technology and culture combine in celebration and commemoration of the achievements and experiences of the Irish diaspora.  The Dún Laoghaire Harbour Company has been working  hard over the past few years to fill this void. It wants to create a world-class Irish-International Diaspora Centre along the lines of that at Ellis Island in New York. Yet, bringing the proposed project to fruition requires significant funding.
A recent Fáilte Ireland study, commissioned by the Department of Transport, Tourism and Sport, concluded that such a centre has the potential to be a major tourism attraction. The study envisages that the capital cost of such a centre could range from €5 million to €26 million depending on the location, scale and specification. While the government agrees with this, it says it is not in a position to support it given that 'the State's finances remain extremely constrained'.
That might be so.
However in January 2014, the government announced support of more than €12.5 billion for the agriculture sector including €1.9 billion in national funding for expenditure on rural development. Clearly the envelope for agriculture is huge and the gap between what it gets, and what the tourism sector receives is really staggering.
Meanwhile, Irish tourism interests continue to express 'happiness' given the recent growth in visitor numbers, and the retention of 9% VAT rate. This is understandable. But, as a leading agricultural figure told me recently, 'happiness is not a policy'.
Perhaps tourism interests should now consider how the recently announced Ireland Strategic Investment Fund could be harnessed to deliver this project.

TOURISM - A KEY POLICY FOCUS FOR BRITISH IRISH CHAMBER OF COMMERCE

Recently, I was honoured to be invited by the British Irish Chamber to
participate in a discussion on the priorities for culture and tourism at its Annual Conference at the Titanic Belfast. While the Chamber is only three years old, it deserves credit for recognizing and focusing on policy areas that I believe are fundamental to the future socio-economic development of both countries. These include;

• Culture, Arts, Sport and Tourism
• Energy
• Food and Agribusiness
• Industry and Regulation
• International and
• SME

As the key issue facing governments today is stimulating growth and increasing employment, I highlighted the potential of tourism to lead economic recovery. Indeed just last year, at the Global Travel and Tourism Summit in Abu Dhabi, former US President Bill Clinton, urged tourism leaders to seize the mantle of economic responsibility with tourism as the game changer.
The facts speak for themselves. In recent times, tourism has generated jobs faster that any other sector of the economy. For example -

• in the UK, 28% of all new jobs created were in hospitality (between 2010 and 2012)
• in Ireland, the annual increase in employment (to June 2013) in the accommodation and food sector was 8%, compared with an overall increase in employment of just 1.8% 

I also pointed out that increased tourism produces -

• increased youth employment
• increased regional employment and 
• increased social inclusion 

Thus, the key challenge remains to convince policymakers to give tourism the same priority as other sectors of the economy such as agriculture, pharma, ICT and construction. By co-incidence, the day before the conference, the first ever debate on the high levels of VAT on UK tourism was held  in Westminster Hall. It's further proof, if any were needed,that the sector has a challenging job on its hands.

As the focal point for business between Ireland and UK, I believe it is highly significant that the British Irish Chamber has taken an initiative on tourism. There is lots to build on, particularly following the PA consulting report on the value of the economic relationship between the two countries in 2013.

I wish the Chamber every success in its future activities.

HOTREC MANIFESTO FOR EUROPEAN PARLIAMENT ELECTIONS 2014

HOTREC, the Brussels based organisation representing the hotel, restaurant and bar/café sector recently published a manifesto addressed to candidates in the European Parliament elections in 2014. It hopes to persuade the next set of EU parliamentarians to 'put tourism at the centre of European economic policy'.

Such an initiative, on the surface at least, sounds great, as tourism industry groups have been behind the curve in shaping the policy agenda. As a close observer of European tourism policy, I was naturally keen to see what HOTREC had to say.
The manifesto contains 16 demands which HOTREC highlights as 'priorities of the European hospitality sector' for 2014-2019.
These include...in it's own words;

• Accessibility - consider the burdens on SME's
• Copyright -  clear regulation of the audio-visual sector
• Cut red tape - reduce the administrative burden of enterprises
• Data protection - no extra burdens for SME's
• Distribution channels - ensure fair competition in online distribution
• Easier access to funds for SME's
• Food in restaurants  - ensure the use of fresh food is still possible
• Official controls in restaurants- no mandatory inspection fee
• Package travel - do no impair hotel bookings
• Payment cards - interchange fees must come down 
• Private accommodation - level the playing field for all participants in tourism businesses
• Smarter regulation - self-regulation should be promoted
• Social affairs - do not undermine job creation
• Subsidiarity must prevail
• VAT rates - maintain reduced rates for tourism
• Visa policy - facilitate the entrance of tourists to Europe

So it seems to me, that these demands are really just a 'wish list' of what hotels and restaurants want for their own individual businesses, rather than a justification for putting tourism at the centre of European economic policy.
While there is nothing wrong with this per se, this manifesto is, in my opinion, a lost opportunity.
If HOTREC is genuinely serious about elevating tourism's role within the EU, I would have expected a document outlining how tourism could contribute to the goals of the Europe 2020 strategy. It could also have taken advantage of the European Parliament's excellent resolution on tourism in 2011, to champion the strategic priorities for the sector. These include organisational structure, co-operation, research, innovation, technology, sustainability, training, entrepreneurship and funding. Such an approach would, I believe, certainly make future parliamentarians sit up and take notice.
A fairly obvious question which arises out of this then, is which organisation in Europe actually speaks on behalf of tourism to EU legislators?
Despite a plethora of interest groups, it is clear to me that there is no 'one voice' to speak for the sector at EU level. This leaves institutional representatives unsure how best to assist the sector and, as a result, other sectors get priority when political and policy decisions are made.
The HOTREC manifesto is unfortunately, yet another example, where the interest groups in tourism form a choir of soloists, where everyone sings their own song and where as a result, no one get heard.

TOURISM POLICY SUBMISSION

Readers know that I write a lot about tourism policy in this blog. As a result, a number got in touch to see if I responded to the Department of Transport, Tourism and Sport's recent call for submissions on developing tourism policy in Ireland, and if so, what I had to say.  
Well yes, I did make a submission. My response addressed what I regard as the key strategic imperatives which need to be undertaken to support a competitive and sustainable tourism industry in Ireland.
It sets out the four key actions which, if implemented, can position the country to take full advantage of the opportunity that now presents itself. These include;

• The establishment of a tourism cabinet within government
• The creation of a single private sector industry association
• The development of the national centre for tourism research and innovation
• The creation of a world class higher education tourism facility 

Readers can view my submission here.   

POSITIVE NEWS FOR TOURISM IN BUDGET 2014

The highlight of Budget 2014 from a tourism perspective, is the retention of the 9% vat rate.

This rate was originally  introduced in July 2011. It applies to a wide range of operations including restaurant and catering services, hotel and holiday accommodation, cinemas, theatres, museums, fairgrounds, amusement parks, sporting facilities, hairdressing, and printed matter such as brochures, maps, programmes and newspapers. These services were previously subject to 13.5% vat.

Congratulations to Adrian Cummins, CEO, Restaurants Association of Ireland and his team for leading this initiative and running a super campaign.

The abolition of the €3 air travel tax from April 1st next year is also welcome news. This will reduce visitor access costs and enhance our competitiveness in international markets.

PUBLIC CONSULTATION ON IRISH TOURISM POLICY LAUNCHED

In 2011, during discussions on tourism at the Global Irish Economic Forum, John Fitzpatrick identified the need for a long-term strategy for Irish tourism. This was subsequently endorsed by Forum participants and short-listed as a key proposal for action by government (see final report).

Now, almost two years later, a three-step process in developing a tourism strategy in finally underway as follows;

1. A public consultation has been launched. Interested parties are invited to submit written views/observations/suggestions to support a competitive and sustainable tourism policy in Ireland. These should be submitted by Friday 1st November 2013 to tourismpolicy@dttas.ie

2. A Tourism Policy Statement will then be finalised by Summer 2014. This statement will set out the Minister's priorities in terms of

• the contribution tourism is to make to national economic and social goals
• how that contribution will be measured and benchmarked, and
• in what manner tourism can best make its contribution

3. A detailed Strategy and Action Plan will then be developed, based on the priorities identified in the tourism policy statement.

Meanwhile, the power of travel and tourism to transform lives is increasingly being recognised by governments around the world. The most obvious example of this is the G20 Leaders Declaration 2012.

This year, President Bill Clinton challenged tourism industry leaders at the WTTC's Global Summit to take the mantle of economic responsibility, with tourism as a game changer.

This strategy review offers tourism stakeholders here, the opportunity to convince policymakers, that tourism can be the game changer for Ireland.

OVERSEAS VISITOR NUMBERS TO IRELAND 2000-2012

 6,517 million overseas trips were made to Ireland in 2012, an increase of 0.2% on 2011 (6,505), according to recent figures released by the CSO. 

In Europe, international tourist arrivals in 2012 were 535 million, an increase of 17 million on 2011 (+3%).  Central and Eastern Europe destinations fared best (+ 8%), followed by Western Europe (+3%) and Southern Mediterranean Europe (+2%).

The number of visitor arrivals to Ireland in 2012 is just 224,000 more than the number of visitors in 2000, as the table below illustrates -

Visitor numbers to Ireland 2000-2012

• 2000           6,293m
• 2001           5,990m
• 2002           6,065m
• 2003           6,369m
• 2004           6,574m
• 2005           6,977m
• 2006           7,709m
• 2007           8,012m
• 2008           7,839m
• 2009           6,927m
• 2010           6,037m
• 2011           6,505m
• 2012           6.517m

Meanwhile, global international visitor arrivals grew from 675 million to 1.035 billion over the same twelve year period. This growth trend is set to continue with the number of international visitor arrivals globally forecast to reach 1.8 billion by 2030.
Tourism is a huge opportunity for Ireland....to create jobs, help tackle long-term unemployment, increase youth employment, reduce the national budget deficit, increase social inclusion and regenerate regions and communities.
It seems obvious to to me that an ambitious, co-ordinated and adequately resourced tourism policy should be central the Irish government's employment strategy. However, this is not the case.
Government focus lies primarily in supporting other sectors such as ICT, energy, manufacturing, health, green economy and agriculture and food, as the recent progress report on the Action Plan for Jobs 2013 demonstrates.
In an increasingly competitive global tourism environment, Ireland's share of international tourist arrivals will continue to fall unless tourism is repositioned as a key economic driver for the country.

EU FUNDING PROGRAMMES FOR TOURISM LACK COHESION

In September 2011, the European Parliament adopted a resolution calling for a direct budget line for tourism in EU funding programmes, specifically in the multi-annual financial framework (MFF) 2014-2020.

This is very welcome, as tourism has the capacity to create employment faster than any other sector of the economy. For example, according to the U.S. Travel Association, the travel and tourism industry has created jobs at a pace that has been 26% faster than the rest of the U.S. economy since employment recovery began in March 2010. More recently, a 2011 study by Oxford Economics for the British Hospitality Association showed that 236,000 net additional new jobs could be created across the UK by 2015, if the hospitality sector was positioned firmly as a key driver of economic recovery.  

However, current EU funding programmes for tourism are scattered across other policy areas and lack cohesion. This makes it very difficult for operators to understand the type and level of supports on offer. RPA recently conducted a study on the impact of EU policies on tourism including a guide to funding instruments for the sector.
It provides proof if any were needed, that EU financial measures for tourism need to be radically overhauled.

A BANK FOR HOTEL AND TOURISM DEVELOPMENT

With well known hotels such as The Burlington, Parknasilla and Tinakilly House currently on the market and tourism SME's struggling to get finance, I think that the creation of a specialised bank for hotel and tourism development in Ireland might be worth considering.
Austria has such a bank since 1947. The Austrian Bank of Hotel and Tourism Development is a subsidiary of the three largest Austrian banks and provides finance for and subsidies to Austrian tourism businesses. While it is privately owned, it has a contractual relationship with government to provide long-term capital to the sector at favourable interest rates. Last year, it received a €100 million loan from the European Investment Bank to support tourism SME's, even though unlike Ireland, the Austrian tourism sector has been relatively untouched by the recent global economic crisis.
As a new banking system in Ireland emerges from the economic crisis, our tourism sector needs an alternative financial model to that currently available.

THE MARKETING REQUIREMENTS FOR DUBLIN

Readers will be aware that last December, the Minister for Transport, Tourism and Sport dissolved Dublin Tourism and transfered its activities into Fáilte Ireland. As a result, tourism interests in the capital were concerned that Dublin would loose out in the increasingly competitive city break market, particularly as Fáilte Ireland has no remit to market Irish tourism overseas.
Last March, the Irish Tourist Industry Confederation (ITIC) commissioned Tourism Development International (TDI) to prepare a study on the marketing requirements for tourism in Dublin. This study, published in June, correctly identified a vision for the City that is broader than tourism. It says that Dublin's future as a sustainable city depends on it being an excellent place to live, work, learn, recreate and visit.
The report notes that Dublin's potential as a tourism destination has yet to be fully realised.The achievement of a growth target of 6.2% per year to 2020 would, it suggets, result in an additional 2.7 million overseas visitors, €750 million extra in overseas tourism revenues per annum and 27,000 additional new jobs.
Dublin's main competitors have, according to the report, organisational structures in place to mobilise effective and sustained marketing campaigns for their cities. Despite this, I am surprised at the finding that there is no one model which emerges as ideal for Dublin. For example, the very successful private sector model, established by the city authorities in New York, is now widely copied elsewhere.
The report suggests that a Destination Marketing Alliance for Dublin should be set up within the organisational architecture of Fáilte Ireland, and that new international marketing campaigns would be developed with and executed by Tourism Ireland under Service Level Agreements.
While I wish this initiative well, it's difficult to see how this proposed structure can deliver on the vision for Dublin as a major centre for communications, business, education, enjoyment and investment.

SUSTAINABILITY IN TOURISM - A GUIDE THROUGH THE LABEL JUNGLE

Want to know the difference between the labels used to certify sustainable tourism businesses (Green Globe, The Green Key, Earth Check, Europe Ecolabel etc.) or to identify which one might be appropriate to your business? Well, DestiNet, the knowledge networking portal for sustainable and responsible tourism recently published a very useful 40 page booklet with structured descriptions of 20 leading sustainable tourism certificates worldwide. Well worth checking out!

VISAS STILL A MAJOR BARRIER TO TOURISM GROWTH

Despite the huge potential offered by emerging markets such as China and India, our visa system is still a major barrier to tourism growth.
Readers will know that in 2011, the Irish government introduced a new holiday and short-stay Visa waiver programme for 16 countries whose nationals previously required a visa to visit Ireland. This programme allows nationals of countries such as India and China who have a short-term UK visa to come to Ireland, without the need for a separate visa. This scheme, which will run until 2016 is obviously welcome. But what do we know about the UK visa system?
Well, the European Tour Operators Association (ETOA) is highly critical of it. It recently revealed that hundreds of millions of pounds are lost to the UK economy every year because its visa process is so alienating, that applicants give up and decide to go elsewhere.
The ETOA cite the following examples:

• In 2010, just 3% of Chinese visitors to Europe obtained a UK visa, 2% obtained both UK and Schengen visas and 95% obtained just a Schengen visa 
• France now attracts over 50% more visitors from India than the UK 
• In 2009, Switzerland joined the Schengen Area. As a result, Indian visitor arrivals to Switzerland increased by 49% between 2008and 2010. This compares with a growth rate of 3% in arrivals from India to the UK over the same period
• The UK tourist visa costs £78 and offers two countries, the Schengen visa costs €60 and offers 26 countries

These figures suggest that it's time for a radical re-think of our tourist visa system.

U.S. TRAVEL AND TOURISM STRATEGY LAUNCHED

The Obama Administration recently launched a long-term roadmap for America's travel and tourism industry. The strategy establishes an overarching goal of increasing American jobs by attracting and welcoming 100 million international visitors by 2021, with an estimated annual spend of $250 billion. This compares with 60 million international visitors in 2010, spending $124.4 billion.
The plan lays out concrete steps to be taken in five areas which include;

• Promoting the United States
• Enabling and enhancing travel and tourism to an within the United States
• Providing world-class customer service and visitor experience
• Coordinating across government
• Conducting research and measuring results

It's notable that one of the actions to be undertaken is the establishment of a formal and inclusive leadership strucuture for travel and tourism within government, to coordinate with agencies and effectively implement the strategy.
The plan is certainly very ambitious. Hopefully, tourism policymakers on this side of the Atlantic have taken notice.

MAKING TOURISM A PRIORITY OF IRELAND'S EU PRESIDENCY

Ireland holds the presidency of the EU Council for six months starting January 1st 2013. During this time, it is expected that final agreement on the EU's 2014-2020 budget (otherwise known as the Multi-annual Financial Framework 2014-2020) will be reached. 
Ireland should make tourism a priority of its presidency and establish a direct budget line for tourism, thus completing the work begun by the authors of the Madrid Declaration.
By so doing, budget lines used for the support and coordination of tourism initiatives will be consolidated under a coherent and comprehensive financial framework for tourism. And, just as importantly, the potential of tourism to stimulate long-term job creation and economic growth across Europe will be made clear.

SIGNIFICANT INCREASE IN VISITOR ARRIVALS IN 2012

International tourist arrivals worldwide grew by 5.7% in the first two months of 2012 according to the UNWTO's recent World Tourism Barometer. Europe's results were ahead of expectations  (+5%), with destinations in Northern Europe and Western Europe performing even better (+6%).
Unfortunately, while this represents good news for Europe, the news for Ireland isn't quite so positive. The total number of trips to Ireland decreased by 1.2% in the period January-March 2012 compared with the same period last year.
It will be very interesting to see if the 6% increase in visitor numbers to Northern and Western Europe can be sustained for the rest of the year. Watch this space!

ASIA TOURISM FORUM 2012

Last week, I attended the Asia Tourism Forum 2012 in West Java, Indonesia, where I delivered a paper titled "The new political framework for tourism in Europe - A Lesson for Ireland". Organised by the Bandung Institute of Tourism, the conference brought together researchers, tourism industry practitioners and policy makers with the objective of assisting the development, marketing and mangement of Asia's tourism industry.

The quality of speakers was extremely high and I was particularly impressed with the contributions from Professor Kaye Chon, Director of the School of Hotel and Tourism Management at Hong Kong Polytechnic University and Professor Geoff Wall from the University of Waterloo, Ontario, Canada.

Kaye Chon identified leadership as the key ingredient for a successful tourism industry. He went on to describe Hotel Icon in Hong Kong, the world's first teaching hotel with full integration of teaching and learning in a full-service hotel environment. It only opened a year ago and today, it is number two on Trip Advisor's guide to Hong Kong hotels. This is some achievement for a university owned and managed hotel, in a city where all the leading luxury hotel brands are represented.
Geoff Wall on the other hand, discussed the concept of 'sustainable development', something which invariably is highlighted in any disucssion on tourism planning today.  He pointed out that it is, in fact, an oxymorom, posing questions such as what is to be sustained and what is development? Ultimately, he argued that the concept of 'sustainable livelihoods' is perhaps a much better organising framework.
It was my first time to Indonesia and I was really struck by the hospitality of the people, the warmth of their welcome and the quality of service I received. It was top class.  

Congratulations to Noviendi Makalam, Director of the Bandung Institute of Tourism, his staff and students for being superb hosts. I am very much looking forward to returning in the near future.

REPORT HIGHLIGHTS CONTRIBUTION OF FOOD TO IRISH TOURISM AND EXPORT GROWTH

Good Food Ireland (GFI) continues its excellent work in a new report highlighting the importance of food to Irish tourism. I absolutely agree that food is central to the visitor experience. For example, overseas visitors to Ireland spend more money on food and drink (36%) than on any other item. By comparison, visitors spend 28% of their money on bed & board, 17% on shopping, 11% on internal  transport, 6% on sightseeing/entertainment and 3% on miscellaneous services.

This report makes a valuable contribution in highlighting the economic value of small producers and operators to the Irish economy.  It estimates that GFI's members contribute €50 million  through their purchases of Irish food.
However, one of the findings which really surprised me, was that 'there is simply not enough funding for long-term investment in R&D'. I think the real issue, is not that there isn't enough funding, it is that respondants don't know it's there.  €641 million was allocated to the Agri-Food Research Programme within the Science, Technology and Innovation Fund 2007-2013. The good news, is that a further €80 billion has been allocated for research and innovation in the EU's next multi-annual finanical framework 2014-2020. Perhaps funding agencies need to find a better way to communicate what's on offer, particularly to SME's.  

THE PORTABLE HOTEL - SNOOZEBOX

Every wondered where the 4,200 security staff will stay during the London Olympics? In a transportable, temporary hotel in Hainault Forest.  Yes, a hotel which can be moved to where short-term accommodation is needed - at sporting events, festivals, film shoots etc.
I think Snoozebox is a very clever innovation.  It offers flexible accommodation from 40 to 400 rooms, which can be loaded, stacked and transported quickly to almost any destination in the world. Rooms come with air-conditioning, free WiFi, flat screen digital TV, storage, lugage rack, power sockets and a wet room. A touch screen terminal facilitates self-service check-in, and staff are available to assist if required. Food and beverage facilities can be provided at a bespoke 'Snoozebox Village'.  In addition, Snoozebox can also be used to add additional capacity to existing hotels during special events.

CONSULTATION ON THE EUROPEAN TOURISM QUALITY LABEL

Following the entry into force of the Lisbon Treaty in 2009, the European Commission now has specific powers to direct tourism activity in the EU. In June 2010, it published a communication on a new political framework for tourism in Europe. This framework outlined twenty one actions aimed at helping the European tourism industry promote sustainable, responsible and high-quality tourism, in order to enhance the sector's competitiveness.

Within this framework, one of the actions envisages the development of a European Tourism Quality Label (ETQ Label). Currently, there is a wide variety of public and private initiatives in this space, but they lack consistency and coordination.

The objectives of this initiative, according to the Commission, would be three-fold:

• For tourism businesses, it could serve as a management tool
• For consumers, it could be an information tool
• For Europe, it could be a competitive instrument

The possible future label would not abolish, but would complement existing tourism quality evaluation systems, which comply with the common European principles and criteria.

The Commission is currently undertaking an open consultation on this initiative, in the form of a relatively straightforward questionnaire. The consultation is open from 10 April-13 July, 2012. Given the experience of businesses and individuals with quality systems in the past, I'm sure there are many who might be interested in contributing to this important debate.

TOURISM STRATEGY NOW ON THE AGENDA FOLLOWING PUBLICATION OF THE GLOBAL IRISH ECONOMIC FORUM REPORT

Tourism featured prominently in the Report of the Second Global Irish Economic Forum which was recently published. Delegates at the Forum expressed the view that Ireland should aspire to being:-

• the best small country in the world in which to do tourism;
• the best small county in the world in which to do experience culture; and
• the best small country in the world in which to produce and export food.

Since we, as a nation, have never spoken of the tourism sector's potential in such vaulted terms before, these objectives are, therefore, truly visionary. The challenge now, of course, is to convert aspirations into reality.

Meanwhile, the most significant outcome from the tourism working group, is without question, the recognition that a strategic roadmap for Irish tourism is needed. As readers of my blog know, this has always been a very strongly held view of mine. In fact, it was on the eve of the forum that I met with John Fitzpatrick, President and CEO of Fitzpatrick Hotel Group, North America, and asked him to highlight this gap in the discussions on tourism. John obviously did an excellent job of persuading the tourism group to buy into this idea. Thanks, John.

It is anticipated that Government will now produce a 'White Paper' on the sector's future, and I look forward to reviewing it as soon as it is published.

ERRIN TOURISM WORKING GROUP

I recently attended a meeting of the European Regions Research and Innovation Network (ERRIN) Tourism Working Group.

I gave a presentation to the group on how, South Dublin County Council, as a local authority, is successfully leading the development of tourism in the south-west Dublin region.

For those unfamiliar with the ERRIN tourism working group, it is part of ERRIN, a Brussels based network of more than ninety European regions with the objective to ;-

• Strengthen the research and innovative capacities of European regions by facilitating knowledge exchange, joint actions and project partnerships
• Influence EU policies, and engage in debate with EU institutions to make them respond better to the regional needs

ERRIN has thirteen working groups covering diverse areas such as biotechnology, health, ICT, energy and climate change, design and creativity, innovation funding, transport and nanotech.

The tourism working group is involved in shaping EU tourism policy, participating in projects and sharing best practices among European regions. Its links with NECSTour (the Network of European Regions for a Sustainable and Competitive Tourism) has resulted in a very ambitious joint programme of activities for 2012. I was amazed to discover that there is no direct Irish representation on the ERRIN Tourism Working Group and that no region in Ireland is a member of NECSTour.

Why is this significant? Well, even though tourism is the largest indigenous sector of the Irish economy, Ireland is losing a valuable opportunity to participate in and shape ongoing EU tourism developments, at the very time that Europe's new political framework for tourism is taking shape.

It would be impossible to imagine the Irish farming community missing out on such an opportunity.

GEORGE LEE'S BUSINESS SHOW ON RTE HIGHLIGHTS TOURISM'S JOB CREATION POTENTIAL

George Lee's recent episode on "The Business" shone a much needed light on the huge jobs potential offered by the tourism industry in Ireland.

As an interviewee on the programme, I spoke to George about the need for Government to take tourism seriously by appointing a taskforce to plan the strategic development of the sector. The pharmaceutical and ICT sectors have benefited hugely from such an approach and, according to the recent Action Plan for Jobs, plans are underway to do something similar for the manuafacturing sector. So why should the tourism sector be overlooked?

With 240 million extra tourist arrivals set for Europe between now and 2020, this massive opportunity could convert to real and sustainable jobs in every corner of the country. But, and this is a big but, only if we take action now.

RESEARCH PRIORITISATION STEERING GROUP REPORT LAUNCHED

Back in 2009, the Report of the Tourism Renewal Group highlighted the research deficit in Irish tourism. It noted that -

• Tourism must have a strong knowledge base, competing as it does in the global marketplace
• Industry should be supported by a world-class research, education and training capacity in third level institutions
• Policy requires robust evidence and analysis in both government and institutions
• There is no dedicated State funding for research and development in tourism currently compared with over €100 million for research in agriculture , fisheries and food
• Fáilte Ireland should have access to the Science, Technology and Innovation Programme of the Department of Enterprise, Trade and Employment (now Department of Jobs, Enterprise and Innovation)

Three years on, little has changed. The Irish tourism research landscape is nowhere near the world-class standard that Maurice Pratt's report called for.

Meanwhile, the Report of the Research Prioritisation Steering Group is impressive and it is clear from its interpretation of the 'terms of reference' that it was not asked to prioritise one research area over another. The report identifies 14 priority areas which it recommends should be the focus of future investment directed towards economic outcomes. Tourism is mentioned within two priority areas namely, Digital Platforms, Content and Applications and Innovation in Services and Business Processes. However, it highlights that the R&D agenda needs to be industry led and supported by the establishment of a national research capacity in the higher education sector.

I hope that industry and those currently charged with shaping the future direction of the higher education landscape have taken notice.

OVERSEAS TRIPS TO IRELAND INCREASE BY 8% IN 2011

Recent CSO figures confirmed that Irish tourism returned to growth in 2011. 6,505 million people visited Ireland last year, an increase of 468 million over 2010. While this is very welcome news, visitor numbers remain at 2004 levels.
Between 2000-2010, international visitor arrivals grew from 675 million to 940 million. During this period, average annual growth was 3.4 %, with emerging markets (5.6%) strongly outpacing advanced economies (1.8%).
The pattern of visitor arrivals to Ireland over the same period has been much more modest as the following CSO figures indicate -

• 2000 6,293m
• 2001 5,990m
• 2002 6,065m
• 2003 6,369m
• 2004 6,574m
• 2005 6,977m
• 2006 7,709m
• 2007 8,012m
• 2008 7,839m
• 2009 6,927m
• 2010 6,037m

According to the World Tourism Organisation, international tourist arrivals are set to almost double to 1.8billion by 2030. In a European context, international tourist arrivals are set to increase by 240 million by 2020 or an additional 355 million within 18 years. This represents an enormous opportunity for Ireland., but to avail of it, a new strategic plan for tourism should to be developed as a matter of urgency. Given the fragmentation of the industry, this should be led by government. I suggest that a replica of the strategy adopted by government for the technology sector back in 1998 would be a good place to start.

TOURISM IRELAND'S GREENING INITIATIVE

Congratulations to Tourism Ireland on the superb work it is doing to raise Ireland's international profile on St. Patrick's Day. It has persuaded the operators of world famous landmarks to turn their buildings green on March 17th in honour of our patron saint.

This year, Niagara Falls will join Table Mountain, the London Eye, the Empire State Building, the Burj Al Arab and the Sky Tower in Auckland in turning green for the day.

I'm sure that competitor destinations such as Scotland and Wales would love to generate similar publicity on their respective national holidays (St. Andrews Day, November 30th, and St. David's Day, March 1st).

NO NEW TOURISM INITIATIVES IN THE ACTION PLAN FOR JOBS

Following the launch of the government's Action Plan for Jobs 2012, the actions set out for tourism simply re-state what was in the programme for government last year. This is very disappointing and in sharp contrast to the strategic actions the government is taking in other sectors. For example in manufacturing, the government will -

• Develop a long term vision and strategic plan for the sector
• Establish a Manufacturing Development Forum to assist it in identifying the needs of manufacturing enterprises and to progress a transformation agenda
• Examine the financial supports for manufacturing in the context of negotiations on EU State Aids
• Evaluate the supports provided for in-company research and innovation
• Target investment in higher education and other public research into areas of direct relevance to the enterprise base
• Undertake a detailed assessment of manufacturing skills needs to address both the immediate and longer term needs of the sector

Notable initiatives for other sectors include -

• the development of a national strategy for the construction sector
• the implementation of a cross-departmental plan to develop the green economy
• the establishment of a Health Innovation Hub to drive collaboration between the health system and the life sciences industry
• the establishment of a Cloud Computing Technology Research Centre to support industry-led research and innovation

The actions proposed for manufacturing are exactly what is needed to strategically develop the Irish tourism sector. Clearly, the tourism industry has not been as adept as other sectors in making its case.

GETTING READY TO WELCOME CHINESE VISITORS

Given the significant growth in outbound tourism from China (it now ranks No. 3 in the top ten tourism spenders internationally), I often wonder how we'd cope if thousands of Chinese visitors actually decided to holiday here? What do we really know about them and how would we go about meeting their needs? So I was interested in a recent initiative between the French hotel group, Louvre Hotels and the Chinese hotel company, Jin Jiang Hotels. Simply put, Chinese visitors will feel more at home in France, while French visitors will be better understood in China. For example, for each of the Louvre hotels participating in the partnership -

• They will be equipped with Chinese-language brochures and signs
• Telephone assistance for guests will be available in Chinese
• The breakfast buffet will include Chinese foods and dishes
• Green tea will be available in hotel rooms
• Hotel room televisions will offer access to Chinese channels

Likewise, the Jin Jiang Inn hotels participating in this partnership will offer breakfast buffets that include French products, brochures in French and telephone assistance in French, among other services. An eight week exhange programme has been set up in China and France to enable hotel employees understand their foreign guests a little better. I wonder if we could do something similar here? What do you think?

A NEW APPROACH TO MARKETING DUBLIN

As our capital city, it great to see Dublin rank highly relative to its peers. In January, Euromonitor released its International Top 100 City Destinations Ranking covering 100 of the world's leading and most dynamic cities in terms of international tourist arrivals. Dublin is listed No. 27 overall and No. 7 in Europe ahead of Madrid, Venice, Berlin, Vienna, Munich, Budapest Lisbon and Florence. Unsurprisingly, London tops the European list followed by Paris, Rome, Barcelona, Amsterdam and Prague. It's also worth noting that Edinburgh, a city similar in size to Dublin, just makes the list in 90th position.

So the decision to dissolve Dublin Tourism and integrate it within Fáilte Ireland is a noteworthy one, in that it changes the way Dublin will now be marketed. Readers may know that Fáilte Ireland does not have a remit to market Irish tourism overseas, so the task of marketing Dublin in the international arena ultimately falls to Tourism Ireland. However, I'm not so sure that this is the optimum model for the city.

By comparison, it's useful to consider what other cities (as distinct from countries) are now doing to promote themselves internationally. What's important here is the approach taken, not the size of the city.The best example that I've come across to date is New York. It attracted 50 million visitors last year, up from 35 million visitors in 2002. So how did this happen? Well, leadership, partnership, vision and ambition feature highly. Michael Idov wrote an excellent piece about this in the New York Magazine recently, so it's well worth a look. The model was subsequently copied by Boris Johnson in London and more recently, Amsterdam, Manchester and Edinburgh have adopted variations of it.

It's perhaps time to consider something similar for Dublin.

THE SEANAD DEBATES A NEW STRATEGIC PLAN FOR IRISH TOURISM

It was good to see Senators well informed on tourism matters when the National Tourism Development Authority (Amendment Bill) 2011 went before the House recently. (I outlined the background to this Bill in an earlier post). Feargal Quinn highlighted the need for a strategic plan for tourism and suggested the Seanad as the ideal venue to start a debate on its future, while Sean Barrett noted that radical action was needed to transform Irish tourism following its performace in recent years. A fill copy of the debate can be accessed here

TOURISM LOSES OUT IN THE CAPITAL SPENDING PROGRAMME 2012-2016

Despite the positive rhetoric about the importance of tourism to the Irish economy, the absence of a strategic plan continues to hamper its development.

Nowhere is this more apparent than in the Capital Spending Programme 2012-2016. Tourism is set to receive €81 million over the period, but this is really just a re-packaging of commitments made previously. It was known for some time that decisions had been taken on major projects such as the Book of Kells Visitor Centre in Trinity College, the Viking Triangle in Waterford, The Great Western Greenway in Mayo, King John's Castle and the Limerick Riverside and Killarney House and Derrynane House in Kerry.

And what was news, was bad news, The planned investment in higher education for the sector was put on hold indefinitely. DIT's move to Grangegorman is now stalled and the planned development of a new hospitality, tourism & culinary arts building at IT Tallaght has also been deferred.

By comparison, the agri-food, marine and forestry sector which employs fewer people (137,000 v 180,000) is set to receive €840 million. That's 10 times more than the tourism allocation! So why is this? Well, the spending programme makes reference to the 'considerable scope for expansion and growth in the agriculture, food, marine and forestry sector.... identified in the Food Harvest Report 2020'. It also highlights that 'focused capital development in these areas through the capital grants scheme ...will facilitate progress towards achieving the Food Harvest 2020 goals'.

The last strategic plan for Irish tourism was published way back in 2003 but the world has changed a lot since then. Others countries are moving ahead. Take a look at the National Long-Term Tourism Strategy for Australia and you'll see what I mean.

2nd ANNUAL TOURISM POLICY WORKSHOP DROMOLAND 2011

The 2nd annual tourism policy workshop took place at the week-end (Nov4-6). The programme was very wide-ranging with topics on tourism development, the Irish economy, innovation, public policy, employment, marketing, technology, culture, the arts, and tourism in the west of Ireland. I gave a presentation on tourism developments in Europe and their implications for Ireland here

Overall, the workshop was excellent and I was particularly impressed with the attendance of Minister Leo Varadkar at almost all of the sessions. He also gave a very interesting address in which he outlined the following:

• The commitment of the government to the development of the tourism sector
• A reduction in the tourism marketing budget of approximately 5% year on year for the next few years
• A statement on aviation policy to be published next year
• The possible rationalisation of state agencies involved in tourism marketing and development
• The creation of a Centre for the Irish Diaspora
• A sustained focus on competitiveness

Jim Deegan and the team at UL deserve lots of credit for organising the event as does Mark Nolan and his team at Dromoland for looking after everyone so well.

TOURISM ON THE AGENDA AT THE GLOBAL IRISH ECONOMIC FORUM

It was great to see tourism feature prominently in the discussions at the second Global Irish Economic Forum at Dublin Castle recently. Among the highlights

• The government is setting up an implementation group, including a panel of international advocates who will advise it on six key sectors including tourism (the other sectors are financial services, securing foriegn direct investment, promoting culture abroad, exports and rebuilding Ireland's reputation)
• The launch of The Gathering, a global Irish 'homecoming' with the potential to attract 350,000 visitors in 2013
• Taoiseach Enda Kenny joined the World Travel and Tourism Council/UN World Tourism Organisation's (WTTC/UNWTO) 'Global Leader's for Tourism Campaign' here
• A new social networking site, World Irish was launched to connect Irish people around the world. (Funny how the words of President Kennedy are so apt almost 50 years later... well worth watching!
• President Clinton highlighted the fact that if Ireland thinks it has a lot of tourists, it could get a lot more!

However, perhaps the most important feature of the week-end from a tourism perspective were the ideas at the working group session on improving our tourism product and promotion abroad. Ten ideas were put forward, but just three were prioritised for action. I understand that a white paper on a strategic vision for Irish tourism is now finally on the agenda.

THE NATIONAL TOURISM DEVELOPMENT (AMENDMENT) BILL 2011

The National Tourism Development(Amendment) Bill 2011 went through its second stage in the Dail recently. The Bill provides for an increase in the level of capital funding that can be voted to the National Tourism Developmement Authority, Fáilte Ireland, for the purpose of supporting tourism product development.

The Government's support programme for capital investment in tourism product is provided through Fáilte Ireland's tourism capital development programme. The programme has operated under three broad strands as follows:

• The development of new attractions and the upgrading of existing attractions
• The development of tourism infrastructure, primarily through supporting local authorities to develop appropriate facilities for tourists ie. access to routes of scenic interest, signposting
• The development of outdoor and other active pursuits ie. water sports

Since its establishment in 2003 to the end of 2010, a total of €44.411 million has been advanced to Fáilte Ireland for capital expenditure on projects or enterprises. However the National Tourism Development Authority Act 2003 limits the amount of money that can be advanced by the Minister to Fáilte Ireland as capital expenditure on projects or enterprises to €65 million. Thus, this leaves a total of just €20 million available to be advanced to Fáilte Ireland before amending legislation is required. It is anticipated that expenditure in 2011 and 2012 is likely to exceed the existing cap and this nesessitates an increase in the limit. A new legislative cap is €150 million has now been agreed with the Department of Public Expenditure and Reform. So that's good news!

It is notable that a total of 97 speeches were made on the Bill when it went through the House on September 22 and September 29.

Perhaps a sign that an increasing numbers of TD's are finally beginning to appreciate the importance of tourism to the Irish economy!

World Tourism Day September 27th

On September 27th, the UNWTO will celebrate its 32nd World Tourism Day. This date was chosen to coincide with an important milestone in world tourism: the anniversary of the adoption of the UNWTO Statutes on 27 September 1970. Its main purpose is to foster awareness among the international community of the importance of tourism and its social, cultural, political and economic values. The day also provides an opportunity to highlight to government the major contribution the sector makes to our economy. From an Irish perspective, I've been searching to see at what events are happening here to celebrate the day, but unfortunately, I can't find anything. But that's not the case elsewhere. For example, in Valencia, the Tourism Foundation is preparing a range of offers for all those tourists who find themselves in the city on September 27th. These include

• 20% off a range of attractions
• free entry to the municipal museums
• guided city walks, followed by a glass of Valencian horchata for just €5
• free breakfast in selected hotels to guests to check in the previous day
• 2 for 1 spa offers

Now I know that Culture Night in Ireland on September 23nd is a superb event, with lots happening across the country. And of course we celebrate Arthur's Day the day before. With World Tourism Day falling on the 27th, I think that much of the infrastructure required to host a National Tourism Week is already in place. What do you think?