Local tourism industry bracing for a challenging year ahead (Shannon)

Consumer confidence, credit and cost control key to performance this year.
 
Fáilte Ireland today emphasised that while this year would be a challenging one, there was still everything to play for in the tourism market in 2009. Fáilte Ireland, the authority responsible for developing tourism nationally and Tourism Ireland, the agency responsible for promoting the island of Ireland overseas, met with tourism industry members from the Shannon region today to outline plans for developing and sustaining tourism in the difficult year ahead.
While it was accepted that performance dipped significantly during 2008 and that this year would be tough, Fáilte Ireland nevertheless stressed that there were still opportunities and potential to be realised by many businesses. In recognition of this, Fáilte Ireland would be intensifying its marketing of holidays at home, expanding its direct business supports and maximising the effect of its capital investment in tourism infrastructure throughout 2009.
 
Mr Shaun Quinn, CEO of Fáilte Ireland today pointed out that -
 
“Despite the downturn, people are going to take holidays and there is still a great deal to play for in the tourism market here in the Shannon region – with particular potential in the home market this year. Indeed, the recent decision by Aer Lingus to reinstate the Heathrow link provides some grounds for optimism.
 
“Fortunately, we now have a much improved tourism product that offers demanding visitors a better experience than ever before.  By supporting individual businesses and preserving the strengths of the industry, we will be in a good position to recover our numbers as the global crisis alleviates.
 
“Consequently, Fáilte Ireland, will be working with tourism businesses to help them achieve sustainability in the short-term and greater competitiveness in the long-term.”
 
Tourism Ireland Chief Executive Paul O’Toole said –
 
“2008 presented the tourism industry in Ireland with some of the most challenging trading conditions in years.  We do not have final figures yet; however, we expect the outturn for the year to be about -3% lower than 2007, due to the weak and unstable economic conditions in most of our source markets.  Undoubtedly, this downturn has affected all regions.”
 
Commenting on the year ahead, Mr O’Toole said that –
 
“All indicators point to a more difficult year in 2009 due to the general weakening in global economies.  While the outlook may appear tough, it is important to recognise that many people around the world will still want to take holidays and short breaks and we in Tourism Ireland will be pulling out all the stops to ensure that the island of Ireland gets its share of that business.  Irish tourism has always punched above its weight when faced with major challenges in the past.  Tourism Ireland remains focused on improving the regional distribution of visitors from overseas and this year we will invest an estimated €8.5 million specifically in additional co-operative marketing campaigns with regional and industry partners overseas”. 

HOME HOLIDAYS 

A major part of Fáilte Ireland’s focus in 2009 will be on continuing to expand the home market with an aggressive marketing campaign to persuade more Irish people to take a break at home this year. In excess of €3 million will be invested with additional support from industry for a year-round marketing programme incorporating television, radio, press and outdoor channels to promote awareness of, and interest in, taking a break during 2009. This will be backed up by a revamped and simplified Discover Ireland website.  Key messages in the 2009 campaign will be the convenience and value of holidaying at home.
 
Mr Quinn explained –
 
“Irish consumers will be looking for value and quality more than ever before and this will be the core of our home holiday campaign for 2009, which incidentally will be our biggest ever marketing drive. We fully intend to take advantage of the definite opportunity which exists to present Ireland to its own people as a convenient, good value alternative to an international holiday in 2009.”
 
An additional €4 million will be invested in supporting local and national festivals as a proven critical attraction within the home holidays offering.  

BUSINESS SUPPORTS 

During 2008, Fáilte Ireland worked directly with over 2,000 tourism businesses and in 2009 will be investing almost €6 million in the form of direct supports and advice for tourism enterprises including many small and medium enterprises in the Shannon region. 
 
Mr Quinn emphasised -
 
“We are expanding our programme of supports for small tourism businesses as well as increasing their scope and reach across the country. We have experienced a significant increase in the numbers of businesses availing of our business support services over the past year and we expect that trend to continue in the current economic climate. We will be placing sharp focus on our supports on the three all important ‘Cs’ – cashflow, customers, and cost containment.”  

CONTINUED INVESTMENT 

Significantly for the region, the Mid-Shannon Corridor Tourism Infrastructure Investment Scheme was launched in June 2008. This provides the opportunity to undertake specified tourism capital investments which will benefit from accelerated capital allowances. Fáilte Ireland is currently processing applications under the scheme with the deadline for applications set for 31st May, 2009.
 
Today’s briefing for the industry also heard about Fáilte Ireland’s drive to upgrade the range and quality of Ireland’s key visitor attractions and that these activities will continue in 2009 with funding allocated under the National Development Plan.  Since 2007, Failte Ireland has invested some €30 million, in partnership with Local Authorities around the country, to upgrade walking and cycling routes, angling infrastructure, beach management facilities and tourist signage. An additional €18 million has recently been allocated to upgrading visitor attractions all over the country.
 
In 2009, Fáilte Ireland will be investing a further €11 million to complete the rollout of its Historic Towns Project. Capital funding will also be used to provide grant assistance for the development of significant tourist attractions and activities during 2009 as well as develop a number of additional looped walks in conjunction with the Department of Community, Rural and Gaeltacht Affairs.
 
In the Shannon region, support has been provided for Angling, Cycling, Environmental and walking projects in Clare, Limerick, Offaly and North Tipperary.  Major projects include the riverside walk in Limerick City, the Great Southern Railway cycling trail in Co Limerick, the Shannon to Ennis Cycle trail in Co Clare, the Lough Boora Parklands project in Co Offaly and angling facilities on the Nenagh river in Co Tipperary. 
 
A number of looped walks have been developed with the assistance of funding from the Department of Community, Rural and Gaeltacht Affairs including those at O'Briensbridge, Feakle, Ruan and Carron in Co Clare and at Ballyhoura and Murroe in Co Limerick. All of this work will be built on in 2009.  

OVERSEAS MARKET

Outlining Tourism Ireland’s priority action areas for 2009, Paul O’Toole said that improving the distribution of tourism to more rural areas continues to be a priority for the organisation.  Tourism Ireland will continue to promote the range of engaging activities and sightseeing opportunities available throughout all of the regions, including the Shannon region and the West.  It will profile the many products available, including our world-class golf and high-profile tournaments like the Irish Open, as well as other products such as angling, walking and cycling.  Tourism Ireland will also continue to position the island of Ireland as a leading destination for business and cultural tourism.  As well as core marketing activities of the regions, Tourism Ireland, in co-operation with Fáilte Ireland, Shannon Development and Dublin Tourism, will continue to implement specific ‘Super Region’ campaigns in 2009 promoting the West, Lakelands and the East Coast.  In addition, ‘Discover Ireland’s Wonderful West’, a special €3 million marketing campaign, designed to promote the Shannon Catchment region to US and GB consumers, will also continue in 2009.
 
Critical to Ireland’s overseas tourism performance in 2009 will be the level of air and sea access into the island of Ireland.  Fluctuating oil costs, credit crunch and weakening consumer confidence have combined to put severe pressure on access in 2008 and it is anticipated that overall, airlines will further reduce access services, at least in the early part of 2009.  As a response, Tourism Ireland will maximise regional messages through co-operative marketing campaigns with air and sea carriers, in order to promote car touring.
 
“Go Where Ireland Takes You” is the key message of Tourism Ireland’s new marketing campaign, which will highlight the unique “character and characters” of the island of Ireland and will be rolled out in all key markets in 2009.  As well as maintaining the focus on building long-term interest in visiting Ireland, the campaign will also include strong tactical messages, highlighting the good value available here to consumers overseas. 
 
“We recognise that the challenges in our main markets are significant but nevertheless, the combination of good value fares by air and sea, our excellent product and the range of offers provided by the industry will help us to secure what business is there to be won, in this highly competitive climate”, said Paul O’Toole. 

PROSPECTS FOR THE SHANNON REGION IN 2009

Pat Daly, Tourism Marketing Manager, Shannon Development, the Regional Tourism Authority for the Shannon Region, spoke of 2008 tourism results and outlined the Company’s 2009 tourism plans.
 
Commenting on 2008 results he said, “The Shannon Region 2008 tourism performance will be in line with other regions nationally which are experiencing a downturn. Considering the economic decline in all our key source markets, the region has performed as well as could be expected in 2008.”
 
“2009 will be a challenging year for tourism and Shannon Development will continue to build on the success of its tourism marketing initiatives in 2008 which yielded exceptional performance results for this region, and saw the Company sign 35 major international marketing agreements with airlines flying into Shannon, airline vacation companies, tour operators, tours agents and consortia across all key tourism markets world-wide. These initiatives, undertaken directly by Shannon Development, resulted in over 426,000 additional bednights for the Shannon Region and boosted visitor spend in the area by over €43 million,” he said.
 
Announcing new plans to boost domestic tourism numbers, John King, Shannon Development’s Tourism Director said, “Shannon Development will continue to grow the domestic market by targeting short breaks and home holidays across key consumer segments. To further enhance the areas reputation as a must visit holiday destination, the Company is this year launching two exciting new region wide festivals, these are; the Shannon Region Spa & Wellness experience and the Shannon Region Family Fun Festival. We also have plans to sign national marketing agreements with key organisations and corporate/sports & social groups. We will use festivals and events as gateways and attract more ‘mobile’ events to the Region in addition to driving repeat business levels across the region.”
 
Shannon Development also announced that it had secured four major new events for the region to further enhance the appeal of the area to national and international visitors. These events are; The Limerick International Sevens Rugby Tournament for Limerick (secured by Shannon Development for a five year period), the All Ireland and International Dance Championships for Ennis, The International King of Clubs Angling Competition for North Tipperary & South Offaly, and The UK Union of Irish Golf Societies Annual Challenge for North Tipperary and South Offaly. The Company will also support the All Ireland Corporate Games which it secured for Limerick city last year for a five year period. These events are collectively expected to bring over 11,000 participants and to yield an estimated €17 million for the Region’s economy.
 
Shannon Development plans to complete 12 key tourism sales missions and participate in 22 major tourism trade and consumer promotions in targeted international tourism markets in 2009.
 
On the business tourism side Shannon Development in conjunction with Meet Limerick Shannon Conference and Sports Bureau will aim to secure and sign another 25 event for the Region in ’09 with a value of €8.5m.
 
Working with its other tourism partners, Shannon Development will continue to deliver the ‘Discover Ireland’s Wonderful West’ and ‘Super Region’ marketing programme to position the Shannon Region to deal with the impact of ‘Open Skies’.
 
“The Shannon Region already boasts a superb range of world class visitor attraction and accommodation, and during 2009 we will continue to work with tourism interests across the Region to add to and improve these enticing tourism assets. Shannon Development will continue to progress its €2 million Shannon Region Trails Programme, and promote the Mid Shannon Tourism Investment Scheme in the Shannon Region. Now more than ever is it important that we adopt a ‘smart’ approach to how we work. I am confident that working with the Shannon Region tourism trade, our tourism partners nationally and internationally, we can exploit new tourism opportunities and develop new niche tourism markets in 2009”, Mr. King concluded.

ENDS

For further information please contact:
 
Fáilte Ireland - Louise Tolerton 
086 6086578/01 8847135 
 

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