An Evaluation of the impact of Tourism on the Ballyhoura Region. Prepared by Bowman Tourism Ltd. 22 nd December 1998. Ballyhoura: Value of Tourism 1. Bowman Tourism 1998
Table of Contents 1. Introduction.... 3 2. Background... 3 3. Executive summary... 3 3.1 Growth in Irish Tourism... 3 3.2 Growth in Ballyhoura Rural Tourism... 4 3.1 Growth in Tourism Employment in Ballyhoura... 4 4. Approach/Methodology... 5 5.0 Definition of a Tourist... 5 6.0 Findings... 6 6.1 The value of Tourism to Ireland.... 6 6.2 Breakdown of Tourism Revenue by Region 1997... 7 6.3 Summary figures - Ballyhoura Tourism Accommodation Revenue 1998... 8 6.4 The national tourism spend statistics... 8 National average tourism spend breakdown... 8 6.5 Income calculation Ballyhoura -based on national averages... 9 6.6 Number of jobs generated in Tourism... 9 Jobs calculation... 9 6.7 Ballyhoura Tourism employment... 10 7 Conclusions... 10 Ballyhoura: Value of Tourism 2. Bowman Tourism 1998
A report on the value of tourism to the Ballyhoura region 1. Introduction. Ballyhoura Development Ltd. commissioned Bowman Tourism Ltd. to identify the financial and jobs impact of tourism on the Ballyhoura region. This report is a continuation of the original assessment of the impact of tourism on the region carried out in 1996. 2. Background Ballyhoura Development Ltd was formed to encourage and facilitate rural development in the Ballyhoura region. One of its main partners is Ballyhoura Failte whose function is to specifically promote and develop tourism opportunities in the region. The two organisations work closely together, and are represented on each other s boards. Funding for marketing and development of these organisations come from a variety of sources, community contributions, ERDF funds, and particularly from the Leader programme. They work closely with a number of statutory bodies some of whom are represented on the board. There has been substantial investment in tourism in the region, directly through grants, and other incentives, and indirectly through advice, training, marketing assistance and promotional activities. 3. Executive summary 3.1 Growth in Irish Tourism Irish Tourism revenue has grown from 2,289.9 million in 1995 to 2,775.8 million in 1997. This pattern of growth is reported to have continued in 1998, but final figures are not yet available. This represents a growth rate of 21%. Ballyhoura: Value of Tourism 3. Bowman Tourism 1998
3.2 Growth in Ballyhoura Tourism Ballyhoura Tourism (excluding the Limerick City environs) revenue for the same period increased from an estimated 2,644,807 in 1995 to an estimated 4,975,545 in 1998. This represents a growth rate of 88 %. The causes for this massive increase are: Existence of an effective central marketing organisation (Ballyhoura Failte) A coherent tourism development, marketing and training strategy (based on the Ballyhoura Failte engine) in the Ballyhoura 1994-1999 Integrated Development Plan and supported by the tourism and training partners, the Local Authorities (Limerick Co Council, Cork Co Council) and Coillte Teo within the Ballyhoura Development partnership. Integrated support to the tourism industry from the key tourism and training partners Ballyhoura Failte, Shannon Development, Cork Kerry Tourism, CERT, FAS, TEAGASC and Co Limerick VEC. Supportive environment for tourism enterprises via resources from LEADER II, Operational Programme for Rural Development and the Operational Programme for Tourism Increased tourism investment resulting in substantial growth in accommodation (especially self catering), visitor attractions and food service provision. 3.3 Growth in employment Job calculations for 1995 were much less precise than the method devised by Henry and Deane (which includes a small allowance of 1.1 for the multiplier effect) and direct comparison with 1998 is difficult. The 1995 job figures were overstated in the original report at 331. Based on a 12,500 overseas revenue per job calculation/ 17,000 domestic revenue jobs calculation and the Henry and Deane method the job figure in 1995 should have been 212. The base position at the start of the LEADER II period (January 1995) is 150 jobs based on the 1994 revenue of 1.8 million and a 12,000 overseas revenue per job calculation and 16,250 domestic revenue per job calculation and the Henry and Deane method. The 1998 job numbers are calculated at 270 using the Henry and Deane method and and 18,500/ 25,000 revenue per job calculations for overseas and domestic generated tourism. Employment has grown since the start of LEADER II by 120 jobs (80%). Ballyhoura: Value of Tourism 4. Bowman Tourism 1998
4. Approach/Methodology 4.1 All relevant documentation at Ballyhoura was reviewed. The relevant staff involved were interviewed. 4.2 The national tourism figures were examined, and the values for Ballyhoura were extrapolated. 4.3 The consultant met the Chief Executive, and the Development Manager of Ballyhoura Development, to obtain a clear understanding of the programme objectives. 4.4 All available financial and other tourism information was obtained from Ballyhoura Failte, including all bookings for self-catering and the bookings for the evolving homestay sector. 4.5 The accommodation income was calculated and extrapolated the other spend by use of national averages for other income. 4.6 Bord Failte and an author of the Henry and Deane report were consulted. This extensive study provides a more accurate method for calculation of jobs input. This was applied to the Tourism figures which provided a picture of the jobs generated. 4.7 The report was prepared based on the above. 5.0 Definition of a Tourist 5.1 A tourist is any person who travels away from home for more than twenty-four hours. Therefore any traveller who uses accommodation in the Ballyhoura region for a short-term stay is defined as a tourist. 1 6.0 Findings 6.1 The value of Tourism to Ireland. The figures below show that Ireland is going through a period of sustained tourism growth. There is increased demand for accommodation, and particularly for activities, facilities and amenities to attract visitors. 1 World Tourism Organisation definition Ballyhoura: Value of Tourism 5. Bowman Tourism 1998
Tourism Revenue 1988 1994 1995 1996 1997 Britain 267 451.9 501.2 574 683 Mainland Europe 123.7 371.6 413.7 466.6 457.7 Germany 35.9 110.4 122.4 148.9 121.8 France 31 74.4 83.8 88.1 89.1 Italy 6.9 46.3 42.4 53.5 50.9 Netherlands n/a n/a n/a 35.4 44 Rest of Europe 49.9 140.5 165.1 140.7 151.9 North America 165.5 213.4 275 31.6 348.2 Other Overseas 37.6 77.2 96.5 93.8 99.7 Total Overseas 593.8 1114.1 1286.4 1451 1588.6 Northern Ireland 46.1 80.5 82.6 85 101.9 Excursionist 15.1 7.4 8 8 1.45 Total Foreign 841 1498 1679 1889 2105 Exchange Domestic trips 311.1 657.1 610.9 578.8 670.8 Total Tourism revenue 1152.1 2155.1 2289.9 2467.8 2775.8 2 National Tourism revenue has grown from 2289.9 million in 1995 to 2775.8 million in 1997 a growth of 21% in two years. 6.2 Breakdown of Tourism Revenue by Region 1997 This table shows the breakdown of tourism numbers and revenue by region. Ballyhoura consists of an area in the northern part of the Cork region, and the south eastern part of the Shannon region. Both regions show strong growth, and the relationship between domestic tourism, and overseas tourism to both regions is very similar at 2 Source Bord Failte Ballyhoura: Value of Tourism 6. Bowman Tourism 1998
Tourism income Overseas average 67% Tourism income Domestic average 33% These figures are important when calculating job content. Numbers Overseas North Domestic Total Ireland Revenue Dublin 2586 110 989 3685 474.5 14.1 76.9 565.5 Midlands East 783 40 863 1686 150.7 4.3 73.5 228.5 South East 854 10 1243 2107 136.6 1.4 104.7 242.7 South West 1499 20 1315 2834 308.3 8.5 149.6 466.4 Shannon 1010 20 827 1857 187.3 3.8 91.9 283 West 1134 90 1073 2297 220.9 21.5 100.9 343.3 Northwest 551 290 638 1479 111.3 48.3 73.3 231.9 Total revenue 1588.6 101.9 670.8 2361.3 3 6.3 Summary figures Ballyhoura Tourism Accommodation Revenue 1998 Self Catering 404200 Homestay 123840 Hotels 781969 B+B 511464 Hostels 38544 Total accommodation revenue 1860017 The figures for hotels, 4 bed and breakfast, and hostels were arrived at by taking the number of beds by category, applying national average occupancy levels, and multiplying the bednights by average achieved revenue per bed. In the case homestay 3 Source Bord Failte 4 Ireland and Northern Ireland survey 1998. Ballyhoura: Value of Tourism 7. Bowman Tourism 1998
actual figures supplied by Ballyhoura Failte were used. In the case of self catering, occupancy levels were established using data supplied by Ballyhoura Failte and this information was used to determine the average earnings per self catering unit in the area ( 4,700). This established the accommodation revenue. 6.4 The national tourism spend statistics The national tourism spend statistics were then used to extrapolate the spend on food and beverage, sightseeing, and shopping. This established the potential total tourism value to Ballyhoura. National average tourism spend breakdown % Accommodation and board 26 Food and drink 35 Sightseeing etc. 6 Transport 10 Shopping etc. 19 Other 4 Total 100 The following graph illustrates the breakdown in tourism spend. National Average Tourism RevenueSpend Shopping 19% Other 4% Accommodation 26% Transport 10% Sightseeing 6% Food and Drink 35% 5 6.5 Income calculation Ballyhoura -based on national averages Tourism Spend National average Ballyhoura breakdown. Accommodation 26 1860017 1,860,017 Food and drink 35 2503869 2,503,869 Sightseeing entertainment 6 429235 193,156 45% of national average Transport 10 715391 71,539 10% of national average Shopping 19 1359243 203,886 15% of national average Miscellaneous 4 286156 143,078 50% of national average Total 7153911 4,975,545 5 Source Bord Failte Ballyhoura: Value of Tourism 8. Bowman Tourism 1998
In view of the limited facilities available in the region, the consultant conservatively reduced the sightseeing and entertainment element to 45% of national average spend (1995 10%), and average spend on shopping and miscellaneous to 15% (1995 10%). 10% credit was given for spend on transport compared with 0 in 1995. Even with these reductions it is calculated that tourism was worth at least 4,975,545 compared with 2,644,807 in 1995, and the previous calculation by Ballyhoura Development of 1.8 million in 1994 at the end of the Leader 1 programme. 6.6 Number of jobs generated in Tourism Henry and Deane conducted a major study about the economic impact of Tourism on the economy in 1996. These figures were updated in 1997. The calculation is much more accurate than the crude method used for the 1995 study. The study identified a relationship between number of jobs created per million pounds of tourism spend, and the multiplier effect which measures the net impact of tourism to the economy after leakages, and the multiple effect of tourism spend. A factor of 1.1 was proven. Jobs calculation 6 1 job equivalent estimated for every 18500 of overseas visitor spend 1 job equivalent estimated for every 25000 of domestic visitor spend Tourism income breakdown Overseas average 67% 3,333,615 Tourism income breakdown Domestic average 33% 1,641,930 Total 7 4,975,545 6.7 Ballyhoura Tourism employment Job equivalent overseas spend 180 Job equivalent domestic spend 66 Total job equivalents 246 Add Multiplier effect-- 1.1 270 This extensive study provides a much more accurate calculation of jobs created than previous methods. It identifies the tourism employment content, and the multiplier effect arising. It does not take into account non tourism activity, shops and restaurants catering for the non tourism needs of the local community. 6 Henry and Deane 7 Bord Failte 1997 Ballyhoura: Value of Tourism 9. Bowman Tourism 1998
7 Conclusions 7.1 The Ballyhoura region has enjoyed an exceptional period of growth. The development of longer stay holidays involving homestay, the strong demand for self catering accommodation and the integrated strategic approach to industry development, promotion and capacity building has provided the conditions to substantially increase revenue. 7.2 There has been significant increase in the number of food outlets in the region which increases the self sufficiency of the region, and encourages tourists to stay longer. The Myers (1998) evaluation of food service identifies 58 food outlets, 25% of which are classified as new. 7.3 It also identified employment for this sector alone as providing the equivalent of 256 job equivalents up to the end of 1997 with 25 new jobs forecasted for 1998. 7.4 The growth in the range of visitor attractions, many of which attract day visitors, undoubtedly is a major contributor to tourism growth to the area, as is the high profile of Ballyhoura as a prime example of the way to successfully develop rural tourism. 7.5 Summary: Ballyhoura Tourism 1994 1995 1998 Revenue 1,800,000 2,622807 4,975,545 Jobs 150 212 270 Ballyhoura: Value of Tourism 10. Bowman Tourism 1998