Ireland Tourism in the economy Tourism is one of Ireland s most important economic sectors and has significant potential to play a further role in Ireland s economic renewal. In 2014, spending by visitors to Ireland increased, with total tourism and travel earnings from overseas visitors (excluding airfares and ferry costs) growing by 8.5% to EUR 3.7 billion. There was particularly strong growth in expenditure by holiday visitors from North America (14.5% to EUR 665 million) and from Great Britain (8.3% to EUR 338 million). The tourism and hospitality industry generated over EUR 6 billion in revenues from home and abroad equivalent to 3.4% of GDP. 2014 data show that overall visits to Ireland increased by +8.9% to 7.6 million trips (including same day visits), with holiday trips up 8.7% and business trips up 3.2%. Visits to friends and relatives in Ireland grew by 9.6%. Tourism supports almost 140 000 jobs in the accommodation and food sector alone, and overall is estimated to support in the region of 200 000 jobs. Ireland s cultural heritage is integral to the tourism offer, and the many individual sites directly contribute to the dispersal of employment throughout the country. Tourism governance and funding The Tourism Division of the Department of Transport, Tourism and Sport advises Government on national tourism policy, providing the strategic direction required to support the growth of a competitive and sustainable tourism industry. Two tourism agencies operate under the aegis of the Department to deliver and implement the policy: Fáilte Ireland was established under the National Tourism Development Authority Act 2003 to encourage, promote and support tourism as a leading indigenous component of the Irish economy. Its principal functions are the development of quality tourism product, domestic tourism marketing, tourism standards, enterprise support, capability building and human resource development for the tourism industry. Tourism Ireland Ltd is an all-island tourism marketing company with the overall objective of promoting increased tourism to the island of Ireland. Tourism Ireland is accountable to the North South Ministerial Council, with funding being provided by the Department of Enterprise, Trade and Investment in Northern Ireland and by the Department of Transport, Tourism and Sport in Ireland. Local authorities have long recognised the important contribution of tourism to their local areas, and are active in many aspects of tourism, including organising and funding events, and developing public tourism infrastructure. Many work closely with Fáilte Ireland to develop these projects. Locals and visitors alike benefit from the wider role of local 197
authorities in providing the infrastructure and environmental management that is essential for a fully-functioning economy. Ireland: Organisational chart of the tourism bodies Department of Transport, Tourism and Sport Fáilte Ireland (National Tourism Development Authority) Tourism Ireland (Overseas Marketing) Source: OECD, adapted from the Department of Transport, Tourism and Sport, 2016. The budget for expenditure on tourism services in 2015 is estimated at EUR 119.8 million, down from EUR 138.7 million in 2014. The figure for 2015 includes EUR 14.8 million of capital expenditure, allocated primarily to tourism product development, and a tourism marketing fund of EUR 34.1 million. Tourism policies and programmes The Irish Government published a new tourism policy statement in March 2015. People, Place and Policy: Growing Tourism to 2025 sets out policies which will enable Ireland s key attractions of people and place to combine effectively in order to maximise the economic, social, and environmental benefits of tourism. A series of policy objectives are designed to ensure the sustainable growth of Irish tourism in the period to 2025. The primary focus is on growing overseas revenue and hence exports. The Tourism Policy Statement reiterates the critical importance of competitiveness, in terms of quality, value and cost, recognising the importance of value and innovation in achieving this. Three headline targets have been set, to be achieved by 2025: Revenue from overseas tourism, in real terms and excluding air fares and ferry charges, to grow to EUR 5 billion per year in 2025 from EUR 3.5 billion in 2014. 250 000 people to be employed in tourism, increasing from current estimate of 200 000. 10 million overseas visits to Ireland, compared to 7.6 million in 2014 (including same day visits). Policies include: A shift from the previous focus on growing the number of trips to Ireland by overseas visitors to one of increasing the economic contribution of overseas visits. Targeting overseas marketing across a range of countries and market segments, focusing on the highest revenue potential while avoiding vulnerability to downturns in a few markets. A continued key role in tourism for festivals and events. Support for training and career development in the tourism sector to ensure that the industry is able to meet the needs of future visitors and that those working in the sector achieve their potential. 198
Maintenance of the 9% rate of VAT to ensure that the tourism sector remains costcompetitive. Recognition for the vital role of local communities in developing and delivering quality tourism experiences (Box 2.5). Giving local authorities a key role in leadership and support for communities in tourism. Recognition of the particular strengths of local authorities in developing tourism within their overall economic development role. Establishment of a tourism research forum, involving key public bodies and academic institutions, to identify and prioritise tourism-focused research in order to improve understanding of visitor needs. In order to ensure that the ambitious targets are met, People, Places and Policy Growing Tourism to 2025 commits to a whole-of-government approach, reaffirming the vital role of government in supporting tourism across policy areas and departments, including taxation, environment, and enterprise policy. Supporting festivals and events in Ireland While events play a key role in tourism in Ireland, funding has been a significant challenge. Both major and regional festivals, and particularly those which take place in the public realm for which there is no fee income from participants or spectators, depend on a combination of commercial sponsorship and public funding to meet their operating and marketing expenses. The budget for Fáilte Ireland s Festivals and Events Initiative has varied considerably from one year to another, depending on the overall Exchequer allocation to Fáilte Ireland. Events have been required to apply for funding each year, which has constrained their ability to develop. A rolling process of application and evaluation will now be put in place, so that event organisers can be informed of decisions at least six months before their event is due to take place. Within the framework of Public Financial Procedures, Fáilte Ireland will also be able to consider three year commitments of support. Support for events will be weighted towards those with the greatest potential for overseas tourism as well as those that offset the seasonal nature of tourism. The appropriate use of themed years, including a possible repeat of The Gathering Ireland 2013, will be pursued further when drawing up the Tourism Action Plan. The Gathering Ireland 2013 is an example of an event that met Ireland s strategic priorities and was Ireland s biggest ever tourism initiative. Over 70 million people worldwide claim Irish ancestry and, throughout 2013, Ireland extended a welcome to those who have moved away, their relatives, friends and descendants and invited them home to gatherings in villages, towns and cities. Communities throughout Ireland, with the support of their Local Authorities, showcased and shared the very best of Irish culture, tradition, business, sport, landscape, food and the uniquely Irish sense of fun. The Gathering Ireland 2013 aimed primarily to generate additional tourist numbers and revenue, drawing an additional 275 000 visitors and generating additional tourism revenue of approximately EUR 170 million. The Gathering helped to strengthen existing links with Irish communities abroad and create new connections which remain as a valuable asset to Irish tourism. Tourism agencies will continue to work with the diaspora networks and will include this global family as part of future promotional work overseas. 199
Statistical profile Table 1. Ireland: Domestic, inbound and outbound tourism 2010 2011 2012 2013 2014 TOURISM FLOWS, THOUSAND Domestic tourism Total domestic trips.......... Overnight visitors (tourists) 7 300 7 169 7 031 7 111 7 354 Same-day visitors (excursionists).......... Nights in all types of accommodation 22 540 21 628 20 120 20 649 21 204 Hotels and similar establishments.......... Specialised establishments.......... Other collective establishments.......... Private accommodation.......... Inbound tourism Total international arrivals.......... Overnight visitors (tourists) 5 695 6 021 6 035 6 393 6 824 Same-day visitors (excursionists).......... Top markets Great Britain 2 562 2 623 2 518 2 641 2 789 Other Europe 1 270 1 382 1 415 1 461 1 521 United States/Canada 849 889 922 1 012 1 121 Germany 378 409 435 464 533 France 338 378 382 405 418 Nights in all types of accommodation.......... Hotels and similar establishments.......... Specialised establishments.......... Other collective establishments.......... Private accommodation.......... Outbound tourism Total international departures.......... Overnight visitors (tourists) 6 534 6 144 6 170 6 179 6 287 Same-day visitors (excursionists).......... Top destinations TOURISM RECEIPTS AND EXPENDITURE, MILLION EUR Inbound tourism Total international receipts 6 225 6 810 7 078 7 665 8 350 International travel receipts 3 106 3 010 3 022 3 370 3 656 International passenger transport receipts 3 119 3 800 4 056 4 295 4 694 Outbound tourism Total international expenditure 5 439 4 899 4 690 4 752 4 646 International travel expenditure 5 358 4 817 4 609 4 669 4 561 International passenger transport expenditure 81 82 81 83 85.. Not available Disclaimer: http://oe.cd/disclaimer Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933320074 200
II. OECD COUNTRIES PROFILES IRELAND.. Not available Disclaimer: http://oe.cd/disclaimer 1. Data refer to number of enterprises. Table 2. Ireland: Enterprises and employment in tourism Number of establishments 1 Number of persons employed 2012 2010 2011 2012 2013 2014 Total 22 653 165 929 164 840 185 638.... Tourism industries 21 870 160 227 159 142 179 717.... Accommodation services for visitors 16 279 116 350 117 200 139 121.... Hotels and similar establishments Food and beverage serving industry Passenger transport 1 935 24 891 25 636 24 108.... Air passenger transport Railways passenger transport Road passenger transport Water passenger transport Passenger transport supporting services Transport equipment rental Travel agencies and other reservation services industry Cultural industry 3 656 18 986 16 306 16 488.... Sports and recreation industry Retail trade of country-specific tourism characteristic goods Other country-specific tourism industries Other industries 783 5 702 5 698 5 921.... Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933320087.. Not available Disclaimer: http://oe.cd/disclaimer Table 3. Ireland: Internal tourism consumption Million ILS 2007 Domestic tourism consumption Inbound tourism consumption Internal tourism consumption Total...... Consumption products 3 142 3 637 6 779 Tourism characteristic products 2 337 2 875 5 212 Accommodation services for visitors 228 672 900 Food and beverage serving services 983 932 1 915 Passenger transport services 762 1 062 1 824 Air passenger transport services...... Railways passenger transport services...... Road passenger transport services...... Water passenger transport services...... Passenger transport supporting services...... Transport equipment rental services...... Travel agencies and other reservation services industry 155 12 167 Cultural services 209 197 406 Sports and recreation services...... Country-specific tourism characteristic goods...... Country-specific tourism characteristic services...... Other consumption products 805 762 1 567 Tourism connected products...... Non-tourism related consumption products...... Non-consumption products...... Source: OECD Tourism Statistics (Database). 1 2 http://dx.doi.org/10.1787/888933320091 201
From: OECD Tourism Trends and Policies 2016 Access the complete publication at: http://dx.doi.org/10.1787/tour-2016-en Please cite this chapter as: OECD (2016), Ireland, in OECD Tourism Trends and Policies 2016, OECD Publishing, Paris. DOI: http://dx.doi.org/10.1787/tour-2016-22-en This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of OECD member countries. This document and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. You can copy, download or print OECD content for your own use, and you can include excerpts from OECD publications, databases and multimedia products in your own documents, presentations, blogs, websites and teaching materials, provided that suitable acknowledgment of OECD as source and copyright owner is given. All requests for public or commercial use and translation rights should be submitted to rights@oecd.org. Requests for permission to photocopy portions of this material for public or commercial use shall be addressed directly to the Copyright Clearance Center (CCC) at info@copyright.com or the Centre français d exploitation du droit de copie (CFC) at contact@cfcopies.com.