Tourism chiefs call for more State spending in sector

Tourism chiefs are calling on the Government to boost investment in the sector to underpin its strong recovery. The Irish Tourist Industry Confederation believes that the Republic will attract a record-breaking number of holiday makers this year, beating the 7.7 million total reached in 2007.

However, the body fears that rising prices and falling spending on both overseas marketing and attractions all threaten the industry's renewed growth. The confederation's pre-budget submission calls on Minister for Finance Michael Noonan, to tackle these problems by increasing State spending on attractions and selling the Republic as a holiday destination. The confederation wants the Minister to establish a capital spending programme equal to at least 1 per cent of export earnings from tourism over the next five years.

It is also asking him to keep the special 9 per cent VAT rate, introduced to aid the sector in keeping its prices down, and for reforms to income tax and the universal social charge.

Confederation chairman Paul Gallagher said there had been a 40 per cent drop in marketing over the last seven years, despite increased competition in global tourism. His organisation is urging the Government to reverse this trend.

The group claims that spontaneous recall of advertising for Irish tourism has fallen in the State’s key markets over the past four years. It is now the seventh most recalled holiday destination by British, eighth in the US and ninth in Germany.

Mr Gallagher argued at the weekend that the case for State spending on tourist attractions is “compelling” and is urgently needed if the Republic is meet its target of bringing in 10 million visitors, spending €5 billion, every year by 2025.

"Capital investment by the Government in tourism infrastructure and visitor attractors through the Office of Public Works, local authorities, National Parks and Wildlife Service, Fáilte Ireland and other State agencies can provide a powerful stimulus to wider economic activity across the Irish economy," Mr Gallagher said. "Tourism has already generated over 30,000 jobs since 2011 and has the capacity to deliver a further 30,000 by 2025 as outlined in the Government's tourism policy document," he added, "but only if the policy aspirations are underpinned by adequate investment in produce and overseas marketing."